2025 Annual Letter

--- Page 1 --- BERKSHIRE HATHAWAY INC. 2025 ANNUAL REPORT --- Page 3 --- BERKSHIRE HATHAWAY INC. 2025 ANNUAL REPORT TABLE OF CONTENTS CEO’s Letter ............................................................................ 1 Berkshire’s Performance vs. the S&P 500 ..................................................... 1 9 Form 10-K – Business Description .............................................................. K-1 Risk Factors ..................................................................... K-24 Cybersecurity ................................................................... K-28 Description of Properties ........................................................... K-29 Legal Proceedings ................................................................ K-31 Management’s Discussion .......................................................... K-34 Management’s Report on Internal Control ............................................. K-63 Independent Auditor’s Report ....................................................... K-64 Consolidated Financial Statements ................................................... K-66 Notes to Consolidated Financial Statements ............................................ K-71 Appendices – Shareholder Event and Meeting Information ........................................... A-1 Operating Companies ............................................................. A-2 Stock Transfer Agent ............................................................. A-3 Directors and Officers of the Company .......................................... Inside Back Cover --- Page 5 --- Berkshire Hathaway Inc. To My Fellow Berkshire Shareholders, Warren Buffett is arguably the greatest investor of all time, with generations benefiting from his investment acumen. He has also been a remarkable CEO, executing his vision of building a great insurance business since the acquisition of National Indemnity in 1967, and deploying the float to make successful investments across major sectors of the economy, concentrating in the U.S. (To Warren’s great frustration, this letter begins with these observations – yet we all know they are true.) In the past, Warren has spoken about how he draws inspiration from Ted Williams – the baseball Hall of Fame hitter who divided the strike zone into 77 segments and tried to swing only at pitches in a much smaller “happy zone,” resulting in a .344 career batting average and a historic .406 season in 1941. Similar discipline, patience, and judgment define Warren’s investing: determining preferred pitches, waiting for them, then swinging decisively. But he is more than an investing guru. Warren built Berkshire into an enduring enterprise with his business partner Charlie Munger. They combined world-class capital allocation with the vision and leadership to create a business fully equipped to transition from founder-led to one well-positioned for the next 60 years and beyond. More than these achievements, what endures is how Berkshire treated its shareholders as true partners for 60 years. Warren has frequently expressed his respect and appreciation for Berkshire’s long-term shareholders, who represent one of the most remarkable owner bases of any publicly owned business. He invested alongside us, wrote with candor about both mistakes and successes, and welcomed us to Omaha each year for open, unfiltered discussion. His annual shareholder letters and direct interactions at Berkshire’s annual shareholder meetings are the clearest expression of Warren’s – and Berkshire’s – commitment to partnership with our shareholders. We are fortunate to have Warren as Berkshire’s Chairman, in the office five days a week, and available to us as we underwrite insurance, operate our non-insurance businesses, and deploy capital including equity investments. Warren also continues as an owner of Berkshire (although his shares will all go to philanthropy over the 10 years or so following his passing). To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire. Your capital is commingled with ours, but it does not belong to us. Our role is stewardship. That stewardship has shaped a culture and reinforced a set of values that are not the result of our success, but the reason for it. * * * * * * * * * * * * I am honored by our Board’s decision to appoint me CEO of Berkshire and humbled to succeed Warren as I write my first annual letter to you. Warren is obviously a very hard act to follow. 1 --- Page 6 --- Stepping into any leadership role begins with understanding the organization – why it exists, how its culture shapes its people, and what values guide its decisions. While you will see similarities and differences between Warren, Charlie, and me, we share the view that Berkshire is shareholder-oriented to an unusual degree. My understanding of Berkshire in this way began in 1992, when I moved to Omaha to join CalEnergy, then unaffiliated with Berkshire. CalEnergy was partly owned by Peter Kiewit Sons’, and chaired by Walter Scott, Jr., who was also a Berkshire director. Walter had succeeded Peter Kiewit as the firm’s CEO and set a standard for leadership that mattered greatly to me. My specific roles at CalEnergy matter little today. What matters is that it was an extraordinary period of personal development. I felt fortunate to live in Omaha, a city that represented a form of capitalism grounded in fundamentals and advanced by values, anchored in businesses built to last, across industries such as insurance, construction, railroads, manufacturing, and – soon – energy. I met Warren and Charlie after CalEnergy became MidAmerican Energy Holdings and was acquired by Berkshire. I admired how they worked together to build an enterprise that reflected their beliefs about business and life. Those beliefs fostered Berkshire’s culture and values that continue to guide the company today, enabling it to endure through market cycles, disruptions, and change. Our durability comes from knowing who we are and how we operate. That deep understanding of the role our culture and values play in our success is shared by our unique shareholders – our partners in this enterprise. Through my engagement with you at annual meetings, I recognize how you want us to succeed together, and to do so in the right way. Berkshire’s culture and values form the basis of our operating framework, which shapes the strategy we pursue and the choices we make as we build Berkshire. As CEO, the framework governs how I lead every day. Our owners’ time horizon extends beyond the tenure of any individual CEO. I will not be your CEO for the next 60 years as simple arithmetic makes that – shall we say – an ambitious plan. However, 20 years from now, when I will have just a fraction of the tenure that Warren had, my intention is that you – or your descendants – will be proud that your company is even stronger. Culture and Foundational Values Berkshire’s success depends on our nearly 400,000 employees. Their commitment to applying our culture and values across Berkshire’s operating businesses – from See’s Candies to GEICO and everything in between – and in every circumstance is central to our progress. Our success also benefits from our Board’s leadership and ongoing alignment with our focus. 2 --- Page 7 --- Last month, I sent a letter to our employees to emphasize that Berkshire’s culture and values remain unchanged and will continue into perpetuity. It is important to share with you the full articulation of this statement that was provided to them, with additional observations (shown in regular type) about what they mean to me personally, based on my experience at Berkshire. While these values are listed individually, they are mutually reinforcing and inseparable. Berkshire Berkshire is a unique conglomerate, intentionally designed to allocate capital rationally and efficiently. Insurance is our core, and we also hold substantial investments in businesses across many other sectors. Our approach underpins our goal to be exceptional stewards of our shareholders’ capital, maximizing the growth in Berkshire’s intrinsic value per share over the long term. We are committed to strengthening the great legacy built by Warren Buffett and his business partner Charlie Munger, ensuring it endures through our commitment to excellence. Our Culture Our culture begins with a partnership attitude. Our shareholders are our partners whose trust we have earned and must work to keep. Their interests are at the center of our decision-making. This attitude goes well beyond Berkshire’s corporate office in Omaha. It extends across our operating businesses, where employees embrace an ownership mindset, managing our shareholders’ assets as if they were their own. We think in decades, act with discipline, and uphold our commitments. Stewardship is embedded in how we operate, reinforcing that our culture is a system for generating long-term performance, not just a set of beliefs. Charlie’s comment on May 1, 2021, that “Greg will keep the culture” will forever resonate with me. It was a reminder that our culture is our most treasured asset, a call to maintain what defines Berkshire, and a challenge to ensure our culture continues. When I led Berkshire Hathaway Energy (BHE), Berkshire’s culture influenced how we operated. When capital was allocated or underlying risks were assessed, Warren’s questions consistently cut to the heart of the issue. Beyond that, we were entrusted with real autonomy to run the business, always focusing on our customers, and taking a long-term view. That owner’s mindset is expected from every Berkshire leader. Our Foundational Values The foundational values that follow are statements of principle that we embrace fully and strive every day to achieve. 3 --- Page 8 --- Decentralized Model We seek the best managers to run our operating businesses, who in turn lead talented teams. We operate a decentralized model with autonomy grounded in deserved trust. We minimize bureaucracy to provide our managers the independence to focus relentlessly on their business. In return, we expect accountability and integrity in performance. This autonomy attracts exceptional people to Berkshire. As I transitioned to Vice Chairman – Non-Insurance Operations in 2018, the leaders of those operating businesses shared a similar question: will the decentralized model and their responsibilities change? I assured them I had lived the culture of autonomy paired with accountability and seen the results. Decisions are made faster, with better knowledge and greater conviction, when they are made by those who are closest to the business and have accountability for its outcomes. This will not change. Our CEOs will never have to navigate layers of bureaucracy or have short-term earnings expectations dictated to them, leading to long-term value destruction. Our decentralized approach is a competitive advantage, attracting managers who thrive on autonomy and deliver on accountability. Berkshire must have leaders that reflect its principles, and not principles that fit individuals. Integrity We uphold Berkshire’s reputation for integrity, as demonstrated by alignment between how we think, what we say, and what we do. We make decisions that uphold our culture, communicate with candor and transparency, and deliver on our commitments. The result is a reputation that is earned, not claimed, through cumulative principled conduct. Every action reflects a deliberate effort to deepen the trust placed in Berkshire. For over 25 years, at each shareholder meeting we played a clip from Warren’s 1991 Salomon Brothers Congressional testimony: “Lose money for the firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.” Our commitment to integrity has always been steadfast and uncompromising. We know integrity is not a quality you admire on a shelf; it is an active quality that must be earned, re-earned, and maintained daily. We will encounter business successes and setbacks. When we fail, we will say so. Doing the right thing also means rectifying our errors. A great example of both is BNSF’s resolution in 2025 of a longstanding dispute with the Swinomish Indian Tribal Community over crude oil shipments across Tribal lands. The BNSF decisions that sparked the dispute were made long ago, but the current BNSF leadership built a partnership rooted in communication, understanding, and respect. BNSF acknowledged its past mistakes and apologized, paving the way for mutually beneficial agreements that allow it to meet customer needs while operating safely on Tribal lands. 4 --- Page 9 --- Across our operating businesses, we make choices every day about how we conduct ourselves. We have hundreds of thousands of employees who are good people and act with integrity and do the right thing. But in any large organization a small minority will fail to meet our standards. We will not tolerate such behavior. When it occurs, we will act decisively and ruthlessly to address it. Protecting our integrity and reputation is a never-ending journey. You can rest assured that we will remain relentless in this effort. Financial Strength We maintain a fortress-like balance sheet, ensuring Berkshire’s foundation is never compromised. We preserve this financial strength by using debt sparingly and prudently. Our substantial liquidity enables us to meet our obligations even under the most adverse conditions and to respond swiftly when opportunities arise. We are committed to maintaining exceptional financial strength. Our balance sheet is a strategic asset to be deployed at the right time. It allows us to act decisively, invest when others are tentative or fearful, and stand firm when financial storms roll through. We uphold Berkshire’s financial resilience and independence by holding limited levels of debt. We will remain an asset, not a risk, to America and the global financial system. Our cash and U.S. Treasury holdings now exceed $370 billion. While some of this capital is required to support our insurance operations and protect Berkshire against extreme scenarios, it also constitutes our dry powder. There will undoubtedly be incremental opportunities to deploy our owners’ capital without compromising Berkshire’s resilience. My role is to ensure our liquidity levels and capital deployment remain intentional and deliberate. We will always aim for ownership of productive businesses over U.S. Treasuries. Capital Discipline We deploy our shareholders’ capital to opportunities that generate rewards commensurate with their risk. When we expand existing operations, acquire new operating businesses, invest in equity securities, and repurchase Berkshire stock, we evaluate each opportunity based on its potential to grow Berkshire’s intrinsic value per share over a time horizon measured in perpetuity. Berkshire’s capital allocation principles and strategy guide us in identifying opportunities: • Invest in businesses that we thoroughly understand, with durable advantages and long-term economic prospects; • Partner with high integrity leaders who understand their customers and act like owners; 5 --- Page 10 --- • Avoid businesses that undermine the fabric of society or could jeopardize Berkshire’s reputation; • Act quickly and concentrate our capital in a few high conviction ideas; and • Maintain discipline and let compounding unfold. These criteria enable us to effectively and efficiently evaluate opportunities that come our way. Despite our substantial size, we take pride in a nimble culture where big investment opportunities can be confidentially shared with us, with a prompt response assured (and if we like it, no financing contingency attached). We quickly say “no” to those that do not align with our principles, and pursue those that do, knowing there will be many more of the former than the latter. Many times in Berkshire’s history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not. We continue to evaluate many opportunities and will remain patient and disciplined in pursuing the right ones for the benefit of our owners. In 2025, our approach resulted in Berkshire announcing the acquisition of two very different businesses: OxyChem and Bell Laboratories. OxyChem is a well-run industrial chemicals business we first encountered through our investment in Occidental. The chlorine and caustic soda it produces serve essential markets, led by construction and core industrial uses. Management prioritizes efficient execution over volume, supported by an integrated asset base and access to low-cost raw materials. For Berkshire, this translates into cash flows from a compelling addition to our operating businesses. Last year, Warren received a letter from Steve Levy, Bell Laboratories’ CEO, asking that we look at the family-owned business he manages for the daughters of founder Malcolm Stack. Steve’s letter was perfect. Bell Laboratories meets a persistent need: rodent control. In Steve’s words, it possesses “high operating margins, very good historical growth and future growth potential, easy to understand and always needed, and a strong management team.” In our words: a business with durable advantages and long-term economic prospects run by excellent managers. We only wish it had been ten times bigger. These investments now join Berkshire’s strong set of operating businesses. Some of them require little incremental investment and return excess cash to Berkshire; others present compelling investment opportunities that will compound over time. Share repurchases are another important capital allocation option. We will buy back Berkshire shares when they trade below our estimate of intrinsic value, conservatively determined, ensuring that repurchases enhance per-share value for continuing owners. We may also purchase large blocks of shares directly from major holders when the opportunity presents itself. These purchases allow shareholders to own an incrementally larger piece of Berkshire’s businesses, without deploying any additional capital of their own. 6 --- Page 11 --- Our approach to cash dividends continues to be that Berkshire will not pay dividends so long as more than one dollar of market value for shareholders is reasonably likely to be created by each dollar of retained earnings. On an annual basis, the Board reviews our policy. Our capital discipline guides us, whether we seek to purchase an entire business, a portion of equity in a publicly traded company, or our own shares. We maintain this approach regardless of the size of our cash and U.S. Treasury holdings. We will assess value carefully, act patiently, and hold for the long term – preferably forever. Risk Management We identify risks and strive to manage the level of risk across our organization. Our approach is decentralized, suited to each operating business’s scale and complexity. We focus on risks that could threaten Berkshire’s reputation, financial strength, or ability to realize opportunities for the long term. Risk management is central to Berkshire. The CEO is responsible for serving as Chief Risk Officer – there is no more important duty. An important part of fulfilling that responsibility is having the best on our team. When it comes to risk, Ajit wrote the playbook. His rigor in managing and pricing risk sets the standard in insurance. Any contract can be subject to legal challenge, and new coverages are particularly dangerous. We often set a price today for a cost that may not be known for many years. Pricing insurance risk correctly is essential, and we will walk away when the price is wrong. This approach is core to our insurance business, and Ajit is simply peerless at doing it. As a result, our insurance operations are a global powerhouse, able to accept risks others cannot, and pay claims without hesitation. Our unmatched financial strength allows us to retain underwriting risk and preserve the full economics for our owners, rather than dilute it through the purchase of reinsurance. Of course, understanding and managing risk is also essential for our non-insurance businesses. Each must thoroughly assess its specific risks and plan for new risks before pursuing new or incremental opportunities. Across all our businesses, our responsibility is to understand the risks and actively manage them. 7 --- Page 12 --- Operational Excellence We pursue operational excellence across our operating businesses. Our employees continuously strive to exceed customer expectations, improve efficiency to better compete and prepare for challenges to our operating models, and reinvest prudently in their operations. We recognize that performance fluctuates year to year, so we assess a business’s success not by short-term results but by its ability over the long term to maintain and strengthen its competitive position and improve its economic prospects. Operational excellence at Berkshire is not a program. It is the result of disciplined decision making across our businesses. That work starts with safety and carries through to how we serve customers, make products, and compete – every day. In February 2025, Precision Castparts’ response to a major fire at its Jenkintown, Pennsylvania facility showed Berkshire at its best. All employees on site were evacuated safely. The team then worked closely with first responders, providing site layouts and identifying potential hazards. In the aftermath, Precision Castparts supported the local volunteer fire department, assisted the city, and conducted extensive environmental testing that confirmed the area was safe. At the same time, the fire created a significant operational challenge. The facility produced more than 700 parts that were sole-sourced and critical to major aerospace customers. Mark Donegan, Precision Castparts’ CEO, and his team quickly redistributed production across U.S. and international sites, doing so without compromising safety, quality, or delivery standards. No customer experienced a production line stoppage. The episode reflected our model at work: decentralized leadership, clear accountability, and exceptional execution under pressure. The daily pursuit of excellence must be never-ending. By focusing on customers, efficiency, and continuous improvement, we create value over the long term. Taken together, the foundational values listed above built Berkshire, and equip us to succeed in the decades ahead. While we have set them out explicitly this year, we will publish them as an attachment to future letters, with each letter discussing how we practiced those values across Berkshire. Their impact is also very evident in the operating performance of our businesses today. * * * * * * * * * * * Berkshire’s Performance Berkshire delivered operating earnings of $44.5 billion in 2025, below $47.4 billion in 2024 and above the $37.5 billion we have averaged over the past five years, a result that underscored the durability of our operating businesses, while also reflecting the fact that we have opportunities for further improvement. 8 --- Page 13 --- Before diving into details, it is worth reiterating a Berkshire belief: our GAAP net earnings – with its sometimes-large annual swings from realized and unrealized investment gains and losses – must be assessed with caution. These gains and losses matter over the long run, but when evaluating Berkshire’s annual business performance, we believe operating earnings remains the best measure. Equally important is the cash our businesses generate. In 2025, Berkshire produced $46 billion of net cash flows from operating activities, compared to a five-year average of more than $40 billion, underscoring our ability to invest in opportunities across our businesses. Insurance Operations In 2025, Berkshire’s insurance operations accomplished their fundamental goals: grow underwriting profits and float in a disciplined manner. We own an extraordinary group of insurance businesses, each managed with a long-term orientation. Their performance reflected both their inherent strengths and an industry that, after several years of needed adjustments to pricing and policy terms, in 2025 began to experience a deceleration or reversal of these trends, particularly in the latter half of the year. This likely means we will write less property and casualty business for a period of time. Although the year began with significant wildfire-related losses in Los Angeles, the Atlantic hurricane season was unusually benign. For the first time in a decade, no hurricane made landfall in the U.S., our largest region of global exposure for our primary insurance and reinsurance businesses – a reminder that nature controls the winds, not Warren and certainly not me. We produced a combined ratio of 87.1% across our property and casualty businesses in 2025, comparing favorably with our five-year average of 90.7%, ten-year average of 93.0% and twenty-year average of 92.2%, an exceptional underwriting result for an insurer of our scale. (Our retroactive reinsurance business, which does not receive regular premiums, is excluded from these figures.) No discussion of our insurance businesses would be complete without again acknowledging and appreciating Ajit. For nearly four decades, his judgment and discipline have shaped our ability to underwrite large and complex risks with care and precision. The organization and team he built understand both the limits and the opportunities inherent in very large risks, and his example continues to guide our teams. Their steadiness benefits us all. 9 --- Page 14 --- GEICO GEICO has been a significant contributor to the group’s lower combined ratio. Over the past few years, GEICO has improved its cost structure, strengthened its underwriting discipline, and enhanced its ability to segment customers and the related pricing of risk. Industrywide rate increases from the end of 2022 through 2024 continued to positively impact performance in 2025. While these increases varied by product and jurisdiction, the pricing environment remained firm, and GEICO benefited accordingly. GEICO’s broad rate increases in recent years have restored margins but come at the cost of lower retention. Competitors’ rate reductions may extend that pressure into 2026. The GEICO team remains focused on pricing risks correctly for both existing and new customers. Restoring retention while maintaining underwriting discipline will take time. Alongside retaining its customer base with a more nuanced pricing strategy, GEICO is investing in technology to improve efficiency and service, while preserving its position as the industry’s low-cost provider. Primary Group Across our other primary property and casualty businesses, demand entering 2025 was solid, and pricing in most commercial insurance business segments was adequate or improving. As the year progressed, additional capital entered the market, resulting in lower pricing or decelerating rate increases in several important lines. We have always prioritized underwriting discipline over volume, and as pricing became less attractive, our premium growth plateaued. We expect these primary insurance businesses to face continued headwinds in 2026, and potentially beyond. Reinsurance Group Our reinsurance operations face similar dynamics. The reinsurance sector has attracted significant increases in available capital from both the traditional and alternative markets, which together with a more benign reinsured catastrophe loss burden in 2025 in most major regions has led to significant price declines in property reinsurance. In most casualty reinsurance segments, claims inflation continued to outpace pricing. As long as these phases of the cycle endure, we expect to write less reinsurance premium. Our insurance team will remain patient because of Berkshire’s structural strengths: 1. We have significant capital, enabling us to underwrite large and unusual risks. 2. We give our insurance managers autonomy to run their businesses, without quarterly earnings targets or growth mandates that might otherwise distort their underwriting judgment. 10 --- Page 15 --- 3. We insist on underwriting discipline as the most important ingredient in insurance success. 4. We focus on the long term, resisting temporary industry enthusiasms and exuberances. The environment ahead will reward insurers whose focus remains on growing underwriting profit sustainably, not volume; customer trust and loyalty, not temporary spikes in market share; and long-term resilience, not short-lived opportunism. At year-end, our insurance float – the capital we hold to pay future losses and, in the meantime, invest for Berkshire’s benefit – stood at $176 billion. That amount increased from $171 billion at the end of 2024 and from $88 billion at the end of 2015. Our insurance businesses’ ability to declare ordinary dividends to Berkshire is restricted by insurance statutes and regulations, permitting up to $31 billion during 2025 without prior regulatory approval. The insurance businesses ultimately returned $29 billion to Berkshire in the year, underscoring the continued strength of their capital base. Non-Insurance Operations Our non-insurance group is composed of strong businesses operating within the railroad, utilities and energy, manufacturing, service and retailing industries. It also includes Pilot and McLane. Berkshire’s approach with its 51 non-insurance operating businesses is markedly different from most conglomerates. There are no layers of management and no allocated goals or targets set by Berkshire. Each business is accountable to its CEO, who is expected to pursue operational excellence relentlessly and close performance gaps. Capital allocation decisions for these businesses ultimately reside with me as Berkshire’s CEO and are based on each business’s opportunities and related risks. Most operate with no debt, and will remain that way. Across these businesses, we have made progress in the fundamentals that drive long-term value but also have a clear understanding of where we need to improve performance. Regardless of industry, our expectations are the same: managers who think like owners and rigorous execution – measured by results, not intentions. We are fortunate to have Adam Johnson now serving as president of our consumer products, service, and retailing businesses. Adam, who has lived the Berkshire culture for nearly 30 years (10 as CEO of NetJets), is now responsible for a group consisting of 32 companies. Adam and his team at NetJets think like owners and earned their reputation for operational excellence over the past decade. Their work transformed NetJets from a challenged business model into a successful enterprise that delivers value for Berkshire shareholders. That same approach – accountability and a focus on avoiding complacency – will guide how he works with the CEOs across his portfolio. 11 --- Page 16 --- BNSF As one of the six major freight railroads in North America, BNSF is a key part of the transportation backbone of the U.S. economy. Berkshire acquired this iconic business in 2010 with an equity value of $34.5 billion. In 2025, BNSF produced $8.1 billion in net operating cash flows and returned $4.4 billion of that cash to Berkshire through dividends. For context, its average annual dividend over the past five years was $4.1 billion. Safe operations, reliable service, and a competitive cost structure ultimately determine a railroad’s success – and accordingly how we assess management’s performance. BNSF has focused on improving each of these. Safety remains the top priority, and BNSF has been the industry leader for the past decade. In 2025, shipments spent less time idling at terminals and moved through the network faster than in nearly any year in the company’s history. These gains matter, but they are not enough; more progress is needed to translate operational improvements into stronger financial results. We view operating margin (the inverse of the industry’s operating ratio) as the best measure of performance. In 2025, BNSF’s operating margin improved to 34.5% from 32.0% in 2024. It remained only modestly above its five-year average. The gap to the industry’s best remains too wide and closing it will require continued improvements in efficiency and service. Each one-percentage-point improvement in operating margin generates approximately $230 million of incremental operating cash flow for our owners. The team recognizes the significance of this opportunity, and we will be disappointed if we do not deliver a substantial improvement over the next few years. Alongside BNSF’s own improvements, there is also potential consolidation in the rail industry with the proposed Union Pacific–Norfolk Southern merger. Berkshire has been clear that it is not interested in acquiring one of the other Class I railroads, since the current economics would not work in our shareholders’ favor. BNSF’s focus on the proposed merger has been to ensure BNSF can continue to offer customers a compelling value proposition, including full and competitive access to Eastern rail markets. BHE BHE’s objective is straightforward: to deliver affordable and reliable energy service for its customers. That responsibility has grown as the industry enters a significant investment cycle, driven by rising electricity demand from artificial intelligence computing and by increasing wildfire risk, particularly in the Western U.S. Growth is welcome, but it will not come at the expense of affordability or reliability for households, small businesses, and industrial users. 12 --- Page 17 --- BHE is proud that it continues to offer meaningful value to customers in the markets it serves – averaging 24% below the national retail electric rate level, with all its markets priced at least in the double-digit range beneath that benchmark. Infrastructure built for hyperscalers and data centers must be paid for by those customers and reflect the risks tied to step-changes in long-term demand. BHE will pursue this incremental growth and invest our shareholders’ capital only when those risks and rewards are appropriately balanced. On wildfire risk, BHE has taken a leadership role, working with regulators, public officials, and the communities it serves. Its mitigation programs are among the most comprehensive in the industry. When a BHE utility is responsible for a wildfire, it has acknowledged that responsibility, including PacifiCorp’s settlements related primarily to the 2020 Labor Day fires. At the same time, PacifiCorp is not an insurer of last resort and should not be treated as a deep pocket. Where responsibility does not exist, it will continue to seek judicial relief. Accountability, paired with principled opposition to unwarranted liability, is essential to preserving the regulatory compact that governs utilities. BHE is rebalancing as the team positions it to move forward. In 2025, BHE produced $8.4 billion in net cash flows from operating activities, consistent with its five-year average, even as it absorbed these challenges. Our willingness to invest capital depends on the continued functioning of the regulatory compact through which utilities earn a reasonable return on invested capital. Near-term opportunities are significant, and BHE will pursue them selectively. Manufacturing – Industrial Products The macro environment in 2025 for our industrial products businesses was challenging, yet the businesses delivered earnings results that demonstrated underlying resilience. Operational execution was strong across the group, and specifically at Precision Castparts, Marmon, IMC, and Lubrizol, which positions all of them well to pursue incremental opportunities. The Lubrizol team, led by Rebecca Liebert, was integral to the acquisition of OxyChem and its planned integration as a standalone operating business within Berkshire. Rebecca has assumed responsibility for OxyChem in addition to her role as CEO of Lubrizol, working in partnership with OxyChem CEO Wade Alleman and his leadership team. Our largest industrial manufacturing business, Precision Castparts, spent much of the past decade navigating a difficult period for the aerospace industry. Aircraft production slowed materially, volumes declined, and a series of disruptions – most notably the pandemic, when air travel effectively stopped – put sustained pressure on earnings. 13 --- Page 18 --- The Precision Castparts team has now worked through the most challenging part of that period. Air travel has recovered, aircraft orders have resumed, and demand for the company’s components has normalized and is growing. The business has remained disciplined throughout, with management focused on translating a healthier industry backdrop into margins that better reflect its long-term potential. In 2025, Precision Castparts generated $2.4 billion of net cash flows from operating activities, compared to an average of $0.9 billion in 2021 and 2022 and $1.7 billion in 2015, the last full fiscal year before our acquisition. Manufacturing – Building Products Our building products businesses span the U.S. housing and commercial building landscape, from the homes Clayton builds to the materials and finishes our other companies supply. As in any market, end-consumer preferences can evolve, and our businesses must adapt accordingly to meet those changing demands. Shaw has navigated a challenging period as consumers moved away from soft-surface flooring (carpets), and some of its difficulties were self-inflicted. As it expanded hard-surface production, execution slipped, affecting quality and service. Shaw is now rebuilding its manufacturing organization and restoring the operational discipline needed to regain customer confidence. Clayton leads the group in size. Its business model – centered on efficient manufacturing and construction of well-built homes, supported by integrated financing – has proven resilient through short-term shifts in the broader housing market. This approach enables Clayton to meet the ongoing need for quality, affordable housing nationwide. While activity in this building-products sector varies from year to year with broader construction trends, the long-term needs for housing and commercial buildings remain strong, positioning the group, which also includes Johns Manville and MiTek, well for the future. This durable demand underpins these operations, which are distinguished by disciplined and knowledgeable management, a strong focus on customers, and well-established operating models. Manufacturing – Consumer Products; and Service and Retailing As highlighted earlier in the letter, Adam is president of Berkshire’s consumer products, service, and retailing businesses. These businesses performed well overall in 2025, recognizing certain consumer segments faced a very challenging environment. NetJets is the largest business in our service group. NetJets maintains a relentless focus on safety and exceptional service to reinforce its position as a premium offering. That foundation has enabled NetJets to attract many customers, and today it operates nearly 1,100 aircraft in over 150 countries around the world. It is a prized asset in a very tough industry. 14 --- Page 19 --- Pilot Pilot continues to strengthen its operations. As the largest operator of travel centers in North America, it competes on location, service, and reliability. Management has focused on execution at the store level – improving customer experience for both professional drivers and everyday travelers, investing in store upgrades, food offerings, and customer loyalty. Since 2023, Pilot has increased capital spending to modernize facilities and expand its electric vehicle charging network. These efforts are reflected in Pilot’s Pro Preference score – a third-party study of how often professional drivers choose Pilot over travel center competitors – which rose from 27% in 2022 to 35% in 2025, placing the business second in the industry. We should be #1 and we will not be pleased until that standard is achieved. We first invested in Pilot in 2017; however, our ability to manage it was contractually delayed until 2023. That mistake will not happen again. The underlying economics of the business are reflected in its cash generation. In 2025, Pilot delivered $1.7 billion of net cash flow from operating activities, an improvement from 2024. As operations continue to strengthen and capital needs normalize, we expect more cash to be returned to Berkshire. Equity Investments We apply the same fundamental value of capital discipline to Berkshire’s portfolio of equity securities as we do to our operating businesses. A large portion of our portfolio is concentrated in a small number of American companies such as Apple, American Express, Coca-Cola, and Moody’s – businesses we understand well, have a high regard for their leaders, and expect will compound over decades. This concentrated approach will continue, with limited activity in these holdings, though we may significantly adjust a holding if we see fundamental changes in its long-term economic prospects. (Dollars in millions) December 31, 2025 Company Percentage of Company Owned Cost Basis Market Value 2025 Dividends Apple Inc. 1.6% $ 6,255 $ 61,962 $ 280 American Express Company 22.1% 1,287 56,088 479 The Coca-Cola Company 9.3% 1,299 27,964 816 Moody’s Corporation 13.9% 248 12,603 93 Total $ 9,089 $ 158,617 $ 1,668 15 --- Page 20 --- The same criteria apply to our investments in Japan, which we view as comparable to our major U.S. holdings in importance and long-term value creation opportunity. (Dollars in millions) December 31, 2025 Company Percentage of Company Owned Cost Basis Market Value 2025 Dividends Mitsubishi Corporation 10.8% $ 4,248 $ 9,207 $ 273 ITOCHU Corporation 10.1% 4,165 8,886 181 Mitsui & Co., Ltd. 10.4% 3,490 8,785 201 Marubeni Corporation 9.8% 1,572 4,468 105 Sumitomo Corporation 9.7% 1,907 4,022 102 Total $ 15,382 $ 35,368 $ 862 Berkshire has borrowed in Japan an amount roughly equivalent to the yen invested (cost basis), at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years. Taking these positions together, at year-end they totaled $194 billion in market value, representing nearly two-thirds of our $297.8 billion equity securities portfolio, providing combined dividends of $2.5 billion and yielding 10% on their original cost basis of $24.5 billion. Separately, we have meaningful positions in a small number of other companies where our capital allocation has been more dynamic in recent periods, as relative values and opportunities change. In certain cases, the underlying business characteristics are such that, over time, these investments may become part of our core holdings. We also hold equity method investments, principally Kraft Heinz and Occidental. Our investment in Kraft Heinz has been disappointing. Even after considering the preferred equity component in our original Heinz investment, our return has been well short of adequate. At Berkshire, equity investments are fundamental to our capital allocation activities; responsibility ultimately resides with me as CEO. Ted Weschler manages about 6% of our investments, including a portion of the portfolio formerly overseen by Todd Combs. Ted’s impact extends beyond these investments, as he continues to play a broader role in assessing significant opportunities, providing valuable input on our businesses, and supporting Berkshire in various other ways. * * * * * * * * * * * * Berkshire’s foundation is second to none. We have a remarkable operating framework (our culture and values) that shapes our strategy and guides how we lead – along with remarkable shareholders. Insurance will continue to be our core. While its performance will ebb and flow with capital conditions in the industry – perhaps dramatically – that heart of Berkshire will only grow stronger over time, reflecting the structural advantages that define it. 16 --- Page 21 --- Our non-insurance operations generate substantial operating earnings and recurring cash flows. A sustained focus on operational excellence will strengthen this group of businesses, positioning it to deliver even greater long-term value. Our investment portfolio – specifically, our equity investments – will evolve and grow as opportunities arise. This portfolio is an integral extension of our insurance operations and capital base. We will effectively and efficiently return capital to our owners through share repurchases when the value proposition is compelling. At Berkshire’s scale, the math of compounding works against us – a reality long understood and best acknowledged plainly. Our opportunity is improvement in per-share value over the long term, even when progress comes in smaller increments, with a constant focus on managing downside risk for our owners. * * * * * * * * * * * * The value we create at Berkshire stems from the judgment and leadership exercised every day across our operating businesses. We as shareholders are fortunate to have a Board that clearly understands and supports Berkshire, including our culture and values, and whose diverse skills, experience, and perspectives strengthen its stewardship of the company. Warren and Charlie built the framework for that alignment, and we continue to draw on Warren’s exceptional judgment as Chairman. In December, we announced that our CFO, Marc Hamburg, will be retiring from Berkshire effective June 1, 2027, and will transition his Chief Financial Officer responsibilities a year prior on June 1, 2026. Chuck Chang will have an enormous pair of shoes to fill as his successor. Marc will help Chuck settle into his new role before fully enjoying his well-deserved retirement. Marc has been a treasured partner to me, and, as Warren has noted, “Marc has been indispensable to Berkshire and to me. His integrity and judgment are priceless. He has done more for this company than many of our shareholders will ever know.” I strongly echo Warren’s comments. To further strengthen our management capabilities at the corporate office, we recently welcomed Mike O’Sullivan as Berkshire’s first General Counsel, where he will provide legal support while maintaining our culture. A central part of our partnership with our owners is to continue maintaining clear, candid communication with you. Berkshire will always communicate with all shareholders at the same time and through the same channels to give each of you the necessary information to assess Berkshire’s performance. We concentrate on quality, not frequency. If a significant issue arises, you will hear from me, but it will not be through quarterly commentary, given our long-term horizon. 17 --- Page 22 --- The next time we gather as owners will be in Omaha on May 2, 2026, for the annual meeting (our owners’ day, or what other companies might call an “investor day”). The format you know well will guide the day, centered on open communication and direct engagement, with your questions answered in the same unscripted manner during sessions moderated by Becky Quick. We also look forward to owners getting to know, over time, more of the Berkshire team. This year’s program will include a CEO’s update on Berkshire, and two Q&A sessions – one with Ajit and me, and a second featuring Katie Farmer (BNSF), Adam Johnson (NetJets and president of consumer products, service, and retailing), and me, where Katie and Adam will discuss the challenges and opportunities they see in their respective businesses. In that way, we will be able to cover Berkshire’s insurance and non-insurance operations. While each session has a natural focus based on who is on stage with me, shareholders may ask me any question at any time. Further details are included in this Annual Report. Our Board, the CEOs and managers at Berkshire, and I look forward to welcoming you to Omaha and to our continued partnership. Central to Berkshire’s extraordinary success is the relationship we maintain with you, our owners. I am honored by the responsibility of continuing to build our company and our partnership in the years ahead. We move forward with great intent and purpose. Gregory E. Abel Chief Executive Officer February 28, 2026 18 --- Page 23 --- Berkshire’s Performance vs. the S&P 500 Annual Percentage Change Year In Per-Share Market Value of Berkshire In S&P 500 with Dividends Included 1965 ............................................. 49.5% 10.0% 1966 ............................................. (3.4) (11.7) 1967 ............................................. 13.3 30.9 1968 ............................................. 77.8 11.0 1969 ............................................. 19.4 (8.4) 1970 ............................................. (4.6) 3.9 1971 ............................................. 80.5 14.6 1972 ............................................. 8 . 1 18.9 1973 ............................................. (2.5) (14.8) 1974 ............................................. (48.7) (26.4) 1975 ............................................. 2 . 5 37.2 1976 ............................................. 129.3 23.6 1977 ............................................. 46.8 (7.4) 1978 ............................................. 14.5 6.4 1979 ............................................. 102.5 18.2 1980 ............................................. 32.8 32.3 1981 ............................................. 31.8 (5.0) 1982 ............................................. 38.4 21.4 1983 ............................................. 69.0 22.4 1984 ............................................. (2.7) 6.1 1985 ............................................. 93.7 31.6 1986 ............................................. 14.2 18.6 1987 ............................................. 4 . 6 5 . 1 1988 ............................................. 59.3 16.6 1989 ............................................. 84.6 31.7 1990 ............................................. (23.1) (3.1) 1991 ............................................. 35.6 30.5 1992 ............................................. 29.8 7.6 1993 ............................................. 38.9 10.1 1994 ............................................. 25.0 1.3 Note: Data are for calendar years with these exceptions: 1965 and 1966, year ended 9/30; 1967, 15 months ended 12/31. 19 --- Page 24 --- Berkshire’s Performance vs. the S&P 500 Annual Percentage Change Year In Per-Share Market Value of Berkshire In S&P 500 with Dividends Included 1995 ............................................. 57.4% 37.6% 1996 ............................................. 6 . 2 23.0 1997 ............................................. 34.9 33.4 1998 ............................................. 52.2 28.6 1999 ............................................. (19.9) 21.0 2000 ............................................. 26.6 (9.1) 2001 ............................................. 6 . 5 (11.9) 2002 ............................................. (3.8) (22.1) 2003 ............................................. 15.8 28.7 2004 ............................................. 4 . 3 10.9 2005 ............................................. 0 . 8 4 . 9 2006 ............................................. 24.1 15.8 2007 ............................................. 28.7 5.5 2008 ............................................. (31.8) (37.0) 2009 ............................................. 2 . 7 26.5 2010 ............................................. 21.4 15.1 2011 ............................................. (4.7) 2.1 2012 ............................................. 16.8 16.0 2013 ............................................. 32.7 32.4 2014 ............................................. 27.0 13.7 2015 ............................................. (12.5) 1.4 2016 ............................................. 23.4 12.0 2017 ............................................. 21.9 21.8 2018 ............................................. 2 . 8 (4.4) 2019 ............................................. 11.0 31.5 2020 ............................................. 2 . 4 18.4 2021 ............................................. 29.6 28.7 2022 ............................................. 4 . 0 (18.1) 2023 ............................................. 15.8 26.3 2024 ............................................. 25.5 25.0 2025 ............................................. 10.9 17.9 Compounded Annual Gain – 1965-2025 ................ 19.7% 10.5% Overall Gain – 1964-2025 ............................ 6,099,294% 46,061% 20 --- Page 25 --- UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549 FORM10-K ☑☑ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthefiscalyearendedDecember31,2025 or ☐☐TRANSRRITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF 1934 Forthetransitionperiodfrom_________ to________ Commissionfilenumber001-14905 BERKSHIREHATHAWAYINC. (ExactnameofRegistrantasspecifiedinitscharter) Delaware 47-0813844 Stateorotherjurisdictionof incorporationororganization(I.R.S.Employer IdentificffationNo.) 3555FarnamStreet,Omaha,Nebraska 68131 (Addressofprincipalexecutiveoffiffce) (ZipCode) Registrant’stelephonenumber,includingareacode(402)346-1400 SecuritiesregisteredpursuanttoSection12(b)oftheAct: Titleofeachclass TradingSymbolsNameofeachexchangeonwhichregistered ClassACommonStock ClassBCommonStock 1.125%SeniorNotesdue2027 2.150%SeniorNotesdue2028 1.500%SeniorNotesdue2030 2.000%SeniorNotesdue2034 1.625%SeniorNotesdue2035 2.375%SeniorNotesdue2039 0.500%SeniorNotesdue2041 2.625%SeniorNotesdue2059BRK.A BRK.B BRK27 BRK28 BRK30 BRK34 BRK35 BRK39 BRK41 BRK59NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange NewYorkStockExchange SecuritiesregisteredpursuanttoSection12(g)oftheAct:NONE IndicatebycheckmarkiftheRegistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☑No☐ IndicatebycheckmarkiftheRegistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes☐No☑ IndicatebycheckmarkwhethertheRegistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecurities ExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwasrequiredtofilesuchreports),and (2)hasbeensubjuecttosuchfilingrequirementsforthepast90days.Yes☑No☐ IndicatebycheckmarkwhethertheRegistranthassubmuittedelectronicallyeveryrInteractiveDataFilerequiredtobesubmuittedpursuantto Rule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheRegistrantwas requiredtosubmuitsuchfiles).Yes☑No☐ IndicatebycheckmarkwhethertheRegistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreporting company,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreporting company,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.Largeacceleratedfiler☑Acceleratedfiler☐ Non-acceleratedfiler☐Smallerreportingcompany☐Emerginggrowthcompany☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheRegistranthaselectednottousetheextendedtransitionperiodfor complyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ IndicatebycheckmarkwhethertheRegistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffeffctivenessof itsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublic accountingfirmthatpreparedorissueditsauditreport.☑ IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheRegistrant includedinthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements.☐ Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-based compensationreceivedbyanyoftheRegistrant’sexecutiveoffiffcersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b).☐ IndicatebycheckmarkwhethertheRegistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes☐No☑ Statetheaggregatemarketvalueofthevotingstockheldbynon-affiffliatesoftheRegistrantasofJune30,2025:$902,700,000,000 IndicatethenumberofsharesoutstandingofeachoftheRegistrant’sclassesofcommonstock: January31,2026—ClassAcommonstock,$5parvalue 511,820shares January31,2026—ClassBcommonstock,$0.0033parvalue 1,389,605,139shares DOCUMENTSINCORPORATRREDBYREFERENCE PortionsoftheProxyStatementfortheRegistrant’sAnnualMeetingtobeheldMay2,2026areincorporatedinPartIII. --- Page 26 --- TableofContents PageNo. K-1 K-24 K-28 K-28 K-29 K-31 K-31 K-32 K-33 K-34 K-63 K-64 K-66 K-68 K-69 K-69 K-70 K-71 K-116 K-116 K-116 K-116 K-116 K-116 K-116 K-116 K-116 K-116 K-120 K-122PartI Item1.BusinessDescription Item1A.RiskFactors Item1B.UnresolvedStaffffComments Item1C.Cybersecurity Item2.DescriptionofProperties Item3.LegalProceedings Item4.MineSafefftyDisclosures PartII Item5.MarketfoffrRegistrant’sCommonEquity,RelatedSecurityHolderMattersandIssuer PurchasesofEquitySecurities Item6. Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk Item8.FinancialStatementsandSupplementaryData ConsolidatedBalanceSheets—December31,2025andDecember31,2024 ConsolidatedStatementsofEarnings— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofComprehensiveIncome— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofChangesinShareholders’Equity—yy YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofCashFlows— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 NotestoConsolidatedFinancialStatements Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure Item9A.ControlsandProcedures Item9B.OtherInfoffrmation Item9C.DisclosureRegardingForeignJurisdictionsthatPreventInspection PartIII Item10.Directors,ExecutiveOffffiffcersandCorporateGovernance Item11.ExecutiveCompensation Item12.SecurityOwnershipofCertainBenefiffcialOwnersandManagementandRelated StockholderMatters Item13.CertainRelationshipsandRelatedTransactionsandDirectorIndependence Item14.PrincipalAccountantFeesandServices PartIV Item15.ExhibitsandFinancialStatementSchedules ExhibitIndex................................................................................................................................................................. Signatutres......................................................................................................................................................................[Reserved]                  --- Page 27 --- K-1PartI Item1.BusinessDescription BerkshireHathawayInc.(“Berkshire,”“Company”or“Registrant”)isaholdingcompanyowningsubsuidiaries engagedinnumerousdiversebusinessactivities.Themostimportantoftheseareinsurancebusinesses,conductedonbotha primarybasisandareinsurancebasis,afreightrailtransportationbusinessandagroupofutilityandenergygenerationand distributionbusinesses.Berkshirealsoownsandoperatesnumerousotherbusinessesengagedinavarietyofmanufactffurting, servicesandretailingactivities.BerkshireisdomiciledinthestateofDelaware,anditscorporateheadquartersisinOmaha, Nebraska. Berkshire’soperatingsubsuidiariesaremanagedonanunusuallydecentralizedbasis.Therearefewcentralizedor integratedbusinessfunctions.Berkshire’sChiefExecutiveOffiffcerisultimatelyresponsibleforsignificantcapitalallocation decisionsandinvestmentactivities.Berkshire’sChiefExecutiveOffiffcerisalsoultimatelyresponsibleforevaluatingthe operatingperformanceoftheoperatingbusinesses. Berkshire’sseniorcorporatemanagementisresponsibleforestablaishingandmonitoringBerkshire’scorporrate governancepracticesandmonitoringgovernanceeffoffrts,includingthoseattheoperatingbusinesses,andparticipatinginthe resolutionofgovernance-relatedissuesasneeded.Berkshire’sBoardofDirectorsisresponsibleforselectinganappropriate successortotheChiefExecutiveOffiffcer.TheBerkshireCodeofBusinessConductandEthicsemphasizes,amongother things,thecommitmenttoethicsandcompliancewithgovernmentlawsandregulationsandprovidesbasicstandardsfor ethicalandlegalbehaviorofitsemployees. HumancapitalandresourcesareanintegralandessentialcomponentofBerkshire’sbusinesses.Berkshireandits operatingsubsuidiariesemployedapproximately387,800peopleworldwideattheendof2025,ofwhichapproximately80% wereintheUnitedStates(“U.S.”)and19%wererepresentedbyunions.Employeesengageinawidevarietyofoccupautions. ConsistentwithBerkshire’sdecentralizedmanagementphilosophy,Berkshire’soperatingsubsuidiarieseachestablaishspecific policiesandpracticesconcerningtheattractionandretentionofpersonnelwithintheirorganizations.Giventhewide variationsinthenatureandsizeofbusinessactivities,specificpoliciesandpracticesvaryamongBerkshire’soperating subsuidiaries.Policiesandpracticescommonlyaddress,amongotherthings:maintainingasafeworkenvironmentand minimizingoreliminatingworkplkkaceinjunries;offeffringcompetitivecompensation,whichincludesvarioushealthinsurance andretirementbenefits,aswellasincentivestorecognizeandrewardperformance;wellnessprograms;training,learningand careeradvancementopportunities;andhiringpracticesintendedtoidentifyffqualifieffdcandidates.Berkshire’scombinedU.S. workforcedata,basedonU.S.EqualEmploymentOpportunityCommissionguidelines,isavailablaeonitswebsite (https://www.berkshirehathaway.com)undersustainabiality. InsuranceBusinesses Berkshire’sinsurancebusinessactivitiesareconductedthroughnumerousdomesticandforeign-basedinsurance subsuidiaries.Berkshire’sinsurancesubsuidiariesprovideinsuranceandreinsuranceofpropertyandcasualtyrisksaswellas lifeffandhealthrisksworldwide.Berkshire’sinsurancebusinessesemployedapproximately42,600peopleattheendof2025. Forpurposresofthisdiscussion,entitiesthatprovideinsuranceorreinsurancearereferredtoasinsurers. Indirectorprimaryinsuranceactivities,theinsurerassumestheriskoflossfrompeopleororganizationsthatare directlysubjuecttotherisks.Suchrisksmayrelatetoproperty,casualty(orliabiality),life,ffaccident,health,financialorother perilsthatarisefromaninsurablaeevent.Inreinsuranceactivities,theinsurerassumesdefinedportionsofrisksthatother directinsurersorreinsurersassumedintheirowninsuringactivities. Insuranceandreinsurancearegenerallysubjuecttoregulatoryrroversightthroughouttheworld.Exceptforregulatoryrr considerations,therearevirtuatllynobarrierstoentryrrintotheinsuranceandreinsuranceindustry.rrCompetitorsmaybe domesticorforeign,aswellaslicensedorunlicensed.Thenumberofcompetitorswithintheindustryrrisnotknown.Insurers competebasedonreliabiality,financialstrengthandstability,financialratings,underwritingconsistency,service,business ethics,price,performance,capacity,policytermsandcoverageconditions. --- Page 28 --- K-2InsurersbasedintheU.S.aresubjuecttoregulationbytheirstatesofdomicileandbythosestatesinwhichtheyare licensedtowritepoliciesonanadmittedbasis.Theprimaryrrfocusofstateregulationistomonitorfinancialsolvencyof insurersandotherwiseprotectpolicyholderinterests.Statesestablaishminimumcapitallevelsforinsurancecompaniesand establaishguidelinesforpermissiblebusinessandinvestmentactivitiesandhavetheauthoritytosuspendorrevokea company’sauthoritytodobusiness.Statesregulatethepaymentofshareholderdividendsbyinsurancecompaniesandother transactionswithaffiffliates. Insurersthatmarket,sellandserviceinsurancepoliciesinthestateswheretheyarelicensedarereferredtoasadmitted insurers.Admittedinsurersaregenerallyrequiredtoobtainregulatoryrrapprovaloftheirpolicyformsand/orpremiumrates. Non-admittedinsurancemarketshavedevelopedtoprovideinsurancethatisotherwiseunavailablaethroughadmitted insurers.Non-admittedinsurance,ofteffnreferredtoas“excessandsurplus”lines,isprocuredbyeitherstate-licensedsurplus linesbrokerswhoplaceriskswithinsurersnotlicensedinthatstateorbytheinsuredparty’sdirectprocurementfromnon- admittedinsurers.Non-admittedinsuranceissubjuecttoconsiderablylessregulationwithrespecttopolicyratesandforms. Reinsurersarenormallynotrequiredtoobtainregulatoryapprovalofpremiumratesorreinsurancecontracts. TheinsuranceregulatorsofeveryrrstateparticipateintheNationalAssociationofInsuranceCommissioners(“NAIC”). TheNAICadoptsforms,instructionsandaccountingprocedurdesforusebyU.S.insurersinpreparingandfilingannual statuttoryrrfinancialstatements.Inaddition,theNAICdevelopsoradoptsstatuttoryrraccountingprinciples,modellaws, regulationsandprogramsdealingwithregulatoryoversightofsolvency,riskmanagement,compliancewithfinancial regulationstandardsandrisk-basedcapitalreportingrequirements.However,aninsurer’sstateofdomicilehasultimate authorityoverthesesolvencyandsoundnessrelatedmatters,andthelawsandregulationsimplementedinindividualstates maydifferfromthoseadoptedbytheNAIC. Internationalinsuranceregulators,throughtheInternationalAssociationofInsuranceSupeurvisors(“IAIS”),havebeen developingadvisorystandardsandbestpracticesfocusedonestablaishingacommonsetofprinciples(“InsuranceCore Principles”)andframework(“ComFrame”)fortheregulationoflargemulti-nationalinsurancegroups.TheInsuranceCore PrinciplesandComFramecoverawiderangeoftopics,includinggroup-widesupeurvisionbyregulators,corporate governance,riskmanagement,capitaladequacyandothermacropruderntialissues.AspartofComFrame,theIAISadoptedan internationalcapitalstandard(“ICS”)forffinternationallyactiveinsurancegroupsinDecember2024. WhiletheIAISstandardsdonothavelegaleffeffct,U.S.stateinsurancedepartmentsandtheNAICareimplementing variousgroupsupeurvisionregulatoryrrtoolsandmandatesthatareresponsivetocertainIAISstandards.U.S.stateregulators haveformedsupeurvisoryrrcollegesintendedtopromotecommunicationandcooperationamongstthevariousdomesticand internationalinsuranceregulators.U.S.stateregulatorsrequireinsurancegroupstofileanannualreportandanOwnRisk SolvencyAssessment(“ORSA”),withthegroup’sleadsupeurvisor.TheNAICalsoadoptedagroupcapitalcalculation (“GCC”)toolforlargeinsurancegroups.TheGCCtoolisdesignedtohelptheleadsupeurvisorunderstandthecapital adequacyacrossaninsurancegroup.TheNAICisalsodevelopingfurthertools,includingvariousliquidityassessments,that willlikelybeimposedoninsurancegroupsinthefuture.WhiletheICSisbasedonaconsolidationapproach,theGCCis basedonanaggregationapproachcalledtheAggregationMethod.InDecember2024,theIAISannouncedthatthe AggregationMethodhasbeendeemedtobecomparabletotheICS. InsuranceregulatorsfromtheU.S.(Nebraska,DelawareandConnecticut),Germany,IrelandandtheU.K.participate inaBerkshireinsurancegroupsupeurvisoryrrcollege.TheNebraskaDepartmentofInsurance(“NebraskaDOI”)actsasthe leadsupeurvisorforBerkshire’sinsurancegroupandchairstheBerkshiresupeurvisoryrrcollege.Nebraskaamendedits insurancelawsin2022andadoptedtheGCCtool.Berkshire’sinsurancesubsuidiariesarerequiredtosubmuitanannualGCC totheNebraskaDOI. Berkshire’sinsurancecompaniesmaintaincapitalstrengthatexceptionallyhighlevels,whichdifferentiatesthemfrom theircompetitors.ThecombinedstatuttoryrrsurplusofBerkshire’sU.S.-basedinsurerswasapproximately$333billionat December31,2025.Berkshire’smajorinsurancesubsuidiariesareratedAA+byStandard&Poor’sandA++(superior)by A.M.Bestwithrespecttotheirfinancialconditionandclaimspayingability. TheTerrorismRiskInsuranceActof2002establaishedaTerrorismInsuranceProgram(“Program”)withintheU.S. DepartmentoftheTreasuryrrtoprovidefederalreinsuranceofcertifieffdterrorismlossesincurredbyU.S.commercialproperty andcasualtyinsurers.TheProgramextendstoDecember31,2027throughtheTerrorismRiskInsuranceProgram ReauthorizationActof2019.Hereinafteffr,theseActsarecollectivelyreferredtoasTRIA.TheDepartmentoftheTreasuryrris responsibleforcertifyiffngactsofterrorismunderTRIA.FederalreinsuranceunderTRIAmayapplyiftheindustryrrinsured lossforcertifieffdeventsoccurringduringthecalendaryearexceeds$200million. --- Page 29 --- K-3TobeeligibleforreinsuranceunderTRIA,insurersmustmakeinsurancecoverageavailablaeforactsofterrorismby providingpolicyholderswithclearandconspicuousnoticeoftheamountofpremiumthatwillbechargedforthecoverage andthefederalshareofinsuredlossesresultingfromanactofterrorism.TRIAexcludescertainformsofdirectinsurance, suchaspersonalandcommercialauto,burglary,rrtheft,ffsuretyandcertainprofesffsionalliabialitylines.Reinsurersarenot requiredtooffeffrterrorismcoverageandarenoteligibleforfederalreinsuranceofterrorismlosses. Intheeventofacertifieffdactofterrorism,thefederalgovernmentwillreimburseinsurers(conditionedontheir satisfactionofpolicyholdernotificffationrequirements)for80%oftheirinsuredlossesinexcessoftheinsurersgroup deductible.UnderTRIA,thedeductibleis20%oftheaggregatedirectsubjuectearnedpremiumforrelevantcommerciallines ofbusinessintheimmediatelyprecedingcalendaryear.TheaggregatedeductibleforBerkshire’sinsurancegroupisexpected tobeapproximately$2.5billionin2026.Thereisalsoanaggregateprogramlimitof$100billionontheamountofthe federalreinsurancecoverageforeachTRIAyear. TheextentofinsuranceregulationvarieswidelyamongthecountrieswhereBerkshire’snon-U.S.operationsconduct business.Eachcountryimposeslicensing,solvency,riskmanagementandfinancialreportingrequirements,althoughthetype andextentoftherequirementsmaydiffersubsutantiallybyjurisdiction. Significantvariationscanalsobefoundinthesize,structurteandresourcesofthelocalnon-U.S.regulatoryrr departmentsthatoverseeinsuranceactivities.Certainregulatorsmaintaincloserelationshipswithsubjuectinsurersandothers operatearisk-basedapproach. Berkshire’snon-U.S.insuranceoperationsareconductedthroughsubsuidiarieslocatedinGermany,Ireland,theUnited Kingdom(“U.K.”),AustraliaandSouthAfriffca,aswellasthroughothersubsuidiariesandsubsuidiarybranchesinseveralother countries.Mostoftheforeignjurisdictionsimposelocalcapiatalrequirements.Otherlegalrequirementsinvolvediscretionary licensingprocedurdes,riskmanagementandgovernancerequirements,localretentionoffundsandrecords,anddataprivacy andprotectionprograms.Berkshire’sinternationalinsurancecompaniesarealsosubjuecttomultinationalapplicationof certainU.S.laws.TherearevariousregulatoryrrbodiesandinitiativesthatimpactBerkshireinmultipleinternational jurisdictions,andthepotentialforsignificanteffeffctontheBerkshireinsurancegroupcouldbeheightenedduetoindusdtryrrand economicdevelopments. Exceptforretroactivereinsuranceandperiodicpaymentannuityproducts,whichgeneratesignificantamountsofup- frontpremiumsalongwithestimatedclaimsexpectedtobepaidoverlongtimeperiods(creating“float,”seetheInvestments ofinsurancebusinessessection),Berkshireexpectstoachieveanunderwritingprofitffovertime.Underwritingprofitffis definedasearnedinsurancepremiumslessincurredinsurancelossesandbenefits,lossadjudstmentexpensesandpolicy acquisitionandotherunderwritingexpenses.Underwritingprofitffdoesnotincludeincomeearnedfrominvestments. Berkshire’sinsuranceunderwritingoperationsincludethefollowinggroups:(1)GEICO,(2)BerkshireHathawayPrimary Groupand(3)BerkshireHathawayReinsuranceGroup.Additionalinformationrelatedtoeachofthesegroupsfollows. GEICO—GEICOisheadquarteredinMaryland.GEICO’sinsurancesubsuidiariesincludeGovernmentEmployees InsuranceCompanyandseveralotherinsuranceentities.TheGEICOinsurancesubsidiaries’principalbusinessisthesaleof privatepassengerautomobileinsurancetoindividualsinall50statesandtheDistrictofColumbia.GEICOsubsuidiariesalso sellinsuranceformotorcycles,all-terrainvehicles,recreationalvehicles,boatsandcommercialvehicles,primarilythrough directresponsemethodsinwhichapplicationsforinsurancearesubmuitteddirectlytothecompaniesviatheInternetorby telephone,andtoalesserextent,throughinsuranceagencies.GEICOalsooperatesaninsuranceagencythatoffeffrsinsurance writtenbythirdpartiesforindividualsdesiringinsurancecoveragesthat,forthemostpart,arenotsoldbyGEICOinsurance subsuidiaries,suchashomeowners,renters,condominium,lifeffandidentityprotectioninsurance. GEICOcompetesforprivatepassengerautomobileinsurancecustomersinthepreferffred,standardandnon-standard riskmarketswithothercompaniesthatselldirectlytothecustomerandwithcompaniesthatuseagencysalesforces, includingStateFarm,Progressive,AllstateandUSAA.AccordingtotheA.M.Bestdatafor2024publishedin2025,thefive largestprivatepassengerautomobileinsurershadacombinedmarketshareofapproximately63.6%basedonwritten premiums,withGEICO’smarketsharebeingthethirdlargestatapproximately11.6%. SeasonalvariationsinGEICO’sinsurancebusinessarenotsignificant.However,extraordinaryrrweatherconditionsor othereventsandfactorsmayhaveasignificanteffeffctuponthefrequencyorseverityofautomobileclaims. GEICO’sinsurancepoliciesarewrittenonanadmittedbasis.Stateinsurancedepartmentsstringentlyregulateprivate passengerautoinsurancepoliciesandrates.Competitionforprivatepassengerautomobileinsurancetendstofocusonprice andlevelofcustomerserviceprovided.GEICO’scost-effiffcientdirectresponsemarketingmethodsandemphasisoncustomer satisfactionenableittooffeffrcompetitiveratesandvaluetoitscustomers.GEICOprimarilyusesitsownclaimsstaffffto manageandsettleclaims.GEICO’snameandothertrademarksareconsideredmaterialassetsandareprotectedthrough appropriateregistrations. --- Page 30 --- K-4BerkshireHathawayPrimaryGroup—TheBerkshireHathawayPrimaryGroup(u“BHPrimary”)isacollectionof independentlymanagedinsurersthatprovideawidevarietyofinsurancecoveragestopolicyholderslocatedprincipallyinthe U.S.Nearly90%ofBHPrimarynetpremiumswrittenin2025wereintheU.S.,ofwhichapproximately40%waswrittenon anon-admittedbasis.Thesevariousoperationsarediscussedbelow. TheNICOPrimaryGroup(“NICOPrimary”)underwritescommercialautoandgeneralliabialityinsuranceonan admittedbasisandonanexcessandsurpluslinesbasisthroughNationalIndemnityCompany,domiciledinNebraska,and affiffliates.Insurancecoverageisoffeffrednationwideprimarilythroughinsuranceagentsandbrokers. BerkshireHathawayHomestateGroup(“BHHC”)offeffrsworkers’compensation,commercialautoandcommercial propertycoveragestoadiverseclientbasethroughBerkshireHathawayHomestateInsuranceCompanyandaffiffliates.BHHC hasanationalreach,withtheabilitytoprovidefirst-dollarandsmall-to-largedeductibleworkers’compensationcoverageto employersnationwide.BHHCisbasedinOmaha,Nebraska. BerkshireHathawaySpecialtyInsuranceGroup(“BHSI”)offeffrscommercialpropertyandcasualty,executiveand profesffsional,andvariousotherinsurancecoveragesthroughBerkshireHathawaySpecialtyInsuranceCompanyandaffiffliates. BHSIwritesprimaryandexcesspoliciesonanadmittedandnon-admittedbasisintheU.S.,andonalocalorforeignnon- admittedbasisoutsidetheU.S.BHSIisbasedinBoston,Massachusettsandhasregionaloffiffcesinseveralothercitieswithin theU.S.BHSIalsomaintainsinternationaloffiffcesandbranchesinAustralia,Canada,NewZealandandacrossseveral countriesinAsiaandEurope.BHSIwritesinsurancepoliciesthroughwholesaleandretailinsurancebrokers,aswellas throughmanaginggeneralagents. RSUIGroup,Inc.anditssubsuidiaries(“RSUI”)andCapSapecialty,Inc.anditssubsuidiaries(“CapSapecialty”)conduct propertyandcasualtyinsurancebusinessintheU.S.onbothanadmittedandnon-admittedbasis.RSUIandCapSapecialty primarilywritespecialtyinsuranceintheproperty,umbrella/excessliabiality,profesffsionalliabiality,directors’andofficers’ liabialityandgeneralliabialitylinesofbusiness.Insuranceiswrittenthroughindependentwholesaleinsurancebrokers,retail agentsandmanaginggeneralagents. MedProGroup(“MedPro”)isaleadingproviderofhealthcareliabiality(“HCL”)insuranceintheU.S.MedPro,based inFortWayne,Indiana,providescustomizedHCLinsurancetophysicians,surgeons,dentistsandotherhealthcare profesffsionals,aswellashospitals,seniorcareandotherhealthcarefacilities.Additionally,MedProprovidesHCLinsurance solutionstointernationalmarketsthroughotherBerkshireinsuranceaffiffliates,offeffrsprofesffsionalliabialityinsurancetoother non-healthcareprofesffsionals,andprovidesspecializedaccidentandhealthinsurancesolutionstocollegesandother customersthroughitssubsuidiariesandotherBerkshiresubsuidiaries.MLMICInsuranceCompany(“MLMIC”)isbasedin Albany,NewYorkandwritesmedicalprofesffsionalliabialityinsurancepoliciesinNewYorkStatethroughbrokersandona directbasistomedicalanddentalprofesffsionals,healthcareprovidersandhospitals. U.S.LiabilityInsuranceCompany(“USLI”)includesagroupoffivespecialtyinsurersthatunderwritecommercial, profesffsionalandpersonallinesofinsuranceonanadmittedbasis,aswellasonanexcessandsurpluslinesbasis.USLI marketspoliciesinall50states,theDistrictofColumbiaandCanadathroughwholesaleandretailinsuranceagents.USLI alsounderwritesandmarketsawidevarietyofspecialtyinsuranceproducts.USLIisbasedinWayne,Pennsylvania. BerkshireHathawayDirectInsuranceCompanyanditsaffiffliates(“BHDirect”)andtheGUARDInsuranceCompanies (“GUARD”)primarilyoffeffrcommercialinsuranceproductstosmallandmedium-sizedbusinesses.BHDirectunderwrites workers’compensation,property,commercialauto,generalandprofesffsionalliabialityproductsprimarilythroughtwo internet-baseddistributionplatforms,biBERK.comandThreeinsurance.com.BHDirectwritespoliciesonanadmittedbasis andisbasedinStamford,Connecticut.GUARDmarketsinsuranceproductsthroughindependentagents,wholesale brokersandmanaginggeneralagents.GUARDisbasedinWilkes-Barre,Pennsylvania. BerkshireHathawayReinsuranceGroup—Berkshire’scombinedglobalreinsurancebusiness,referredtoasthe BerkshireHathawayReinsuranceGroup(“BHRG”),offersawiderangeofcoveragesonproperty,casualty,lifeffandhealth riskstoinsurersandreinsurersworldwide.BHRGconductsbusinessactivitiesin23countries.Reinsurancebusinessis writtenthroughNICOandaffiffliates(“NICOGroup”),GeneralReCorporationanditssubsuidiaries(“GeneralReGroup”)and TransatlanticReinsuranceCompanyanditsaffiffliates(“TransReGroup”).U.S.underwritingoperationsoftheNICOGroup andGeneralReGrouparebasedinStamford,Connecticut,whiletheTransReGroupisbasedinNewYork,NewYork. Reinsurancecontractsarenormallyclassifiedastreatyorfacultative.Treatyreinsurancereferstoreinsurancecoverage foralloraportionofaspecifieffdgrouporclassofriskscededbyadirectinsurerorreinsurer,whilefacultativereinsurance involvescoverageofspecificindividualunderlyingrisks.Reinsurancecontractsarefurtherclassifiedasquota-shareor excess-of-lffoss.Underquota-share(proportionalorpro-rata)reinsurance,thereinsurersharesproportionallyintheoriginal premiumsandlossesofthedirectinsurerorreinsurer.Excess-of-lffoss(ornon-proportional)reinsuranceprovidesforthe indemnificffationofthedirectinsurerorreinsurerforalloraportionofthelossinexcessofanagreeduponamountor “retention.”Bothquota-shareandexcess-of-lffossreinsurancecontractsmayprovideforaggregatelimitsofindemnificffation. --- Page 31 --- K-5ThetypeandvolumeofbusinesswrittenthroughthethreeBHRGgroupsisdependentonmarketconditions,including prevailingpremiumratesandcoverageterms.Thelevelofbusinesswrittenmayfluctuatesignificantlyfromyeartoyear dependingontheperceivedlevelofpriceadequacyinspecificinsuranceandreinsurancemarkets,aswellasfromthetiming ofparticularlylargereinsurancetransactions. Property/ttca//sualty TheNICOGroupoffeffrstraditionalpropertyandcasualtyreinsuranceonbothanexcess-of-lffossandaquota-share basis,catastropheexcess-of-lffosstreatyandfacultativereinsurance,andprimaryinsuranceonanexcess-of-lffossbasisforvery largeorunusualrisks.AsignificantportionoftheNICOGroup’sannualreinsurancepremiumcurrentlyderivesfroma20% quota-shareagreementwithInsuranceAustraliaGroupLimited(“IAG”)thatexpiresonDecember31,2029.IAGisamulti- lineinsurerinAustralia,NewZealandandotherAsia-Pacificcountries. TheGeneralReGroupisaglobalpropertyandcasualtyreinsurancebusiness.Reinsurancecontractsarewrittenon bothaquota-shareandexcess-of-lffossbasisformultiplelinesofbusiness.Contractsareprimarilyintheformoftreaties,and toalesserdegree,onafacultativebasis.TheGeneralReGroupconductsbusinessinNorthAmerica,primarilymarketedona directbasisthroughGeneralReinsuranceCorporation(“GRC”),whichislicensedintheDistrictofColumbiaandallstates, exceptHawaii,whereitisanaccreditedreinsurer.GRCalsoconductsoperationsinNorthAmericathroughnumerousbranch offiffcesintheU.S.andCanada. InNorthAmerica,theGeneralReGroupalsoincludesGeneralStarNationalInsuranceCompany,GeneralStar IndemnityCompanyandGenesisInsuranceCompany,whichoffeffrabroadarrayofspecialtyandsurpluslinesandproperty, casualtyandprofesffsionalliabialitycoverages.Thesecompaniesoffeffrsolutionsfortheuniqueneedsofpublicentity, commercialandcaptivecustomersthroughaselectgroupuofwholesalebrokers,managinggeneralunderwritersandprogram administrators. TheGeneralReGroup’sinternationalreinsurancebusinessisprimarilywrittenonadirectbasisthroughGeneral ReinsuranceAG,basedinCologne,Germany,andsubsuidiariesandbrancheslocatedinnumerousothercountries,aswellas throughbrokersbyFaradayCorporateCapiatalLimited,whichparticipatesintheLloyd’sofLondonmarketthrough Syndicate435. TheTransReGroupprovidesquota-shareandexcess-of-lffossreinsuranceacrossvariouspropertyandcasualtylinesof business.Contractsarewrittenthroughsubsuidiariesandbranchesonbothatreatyandfacultativebasistoinsurance companiesintheU.S.andinnumerousothercountries.Businessiswrittenprimarilythroughbrokers,and,toalesserextent, onadirectbasis. Lifei/heeealth TheGeneralReGroupalsoconductsagloballifeffandhealthreinsurancebusiness.In2025,premiumswrittenwere primarilyintheAsia-Pacific,U.S.andWesternEuroperegions.TheGeneralReGroupunderwriteslife,ffdisabiality, suppluementalhealth,criticalillnessandlong-termcarerisksonadirectbasis. BerkshireHathawayLifeInsuranceCompanyofNebraska(“BHLN”)anditsaffiffliateswritereinsurancecovering variousformsoftraditionallifeffinsuranceexposuresandreinsuredcertainguaranteedminimumdeath,incomeandsimilar risksonclosed-blocksofvariableannuityrisks,whichareinrun-off.ff Retroactivereinsurance Retroactivereinsurancecontractsindemnifyffcedingcompaniesforadversedevelopmentofclaimsarisingfromloss eventsthathavealreadyoccurredunderpropertyandcasualtypoliciesissuedinprioryears.Coverageundersuchcontractsis providedonanexcessbasis(aboveaastatedretention)orforlossespayablaeafteffrtheinceptionofthecontractwithno additionalcedingcompanyretention.Contractsarenormallysubjuecttoaggregatelimitsofindemnificffation,whichcanbe exceptionallylargeinamount.Significantamountsofasbestos,environmentalandlatentinjunryclaimsmayariseunderthese contracts. Theconceptoftime-value-of-moneyisanimportantelementinestablaishingretroactivereinsurancecontractpricesand termssincelosspaymentsmayoccuroverdecades.Normally,expectedultimatelossespayablaeunderthesepoliciesare expectedtoexceedpremiums,thusproducingunderwritinglosses.Nevertheless,thisbusinessiswritten,inpart,becauseof thelargeamountsofpolicyholderfundsgeneratedforinvestment,theeconomicbenefitofwhichisreflectedthrough investmentresults.Nocontractsofsignificancehavebeenwritteninrecentyears. --- Page 32 --- K-6Periodicpaymentannui ty BHLNwritesperiodicpaymentannuityinsurancepoliciesandreinsuresannuity-likeobligations.Underthesepolicies, BHLNreceivesupfroffntconsiderationandagreesinthefuturetomakeperiodicpaymentsthatofteffnextendfordecades. Thesepoliciesgenerallyrelatetothesettlementofunderlyingpersonalinjunryorworkers’compensationclaimsofother insurers,knownasstructurtedsettlements.Consistentwithretroactivereinsurancecontracts,time-value-of-moneyisan importantfactorinestablaishingannuitypremiumsandultimatepaymentsareexpectedtoexceedpremiumsreceived, producingunderwritinglosses.BHLNhasnotwrittenanynewpoliciessince2022. Investmentsofinsurancebusinesses—Berkshire’sinsurancesubsuidiariesholdsignificantlevelsofinvestedassets. Investmentsincludeaverylargeportfolffioofpubliclytradedequitysecurities,whichareunusuallyconcentratedinrelatively fewcompanies,aswellasinshort-terminvestmentsandfixedmaturitysecurities.Generally,therearenotargetallocations byinvestmenttypeorattemptstomatchinvestmentassetandinsuranceliabialitydurations.However,investmentportfolffios havehistoricallyincludedamuchgreaterproportionofequitysecuritiesthaniscustomaryrrintheinsuranceindustry.rr Investedassetsderivefromshareholdercapitalaswellasfundsprovidedfrompolicyholdersthroughinsuranceand reinsurancebusinesses(“floffat”).Floatrepresentstheapproximatenetpolicyholderfundsgeneratedthroughunderwriting activitiesthatareheldforinvestment.Themajoarcomponentsoffloatareunpaidlossesandlossadjudstmentexpenses,life,ff annuityandhealthbenefitinsuranceliabialities(excludingtheeffeffctsofdiscountratechangesthatarerecordedin accumulatedothercomprehensiveincome),unearnedinsurancepremiumsandotherinsurancepolicyholderliabialitiesless premiumandreinsurancereceivablaes,deferredpolicyacquisitioncostsanddeferredchargesonassumedretroactive reinsurancecontracts.Onaconsolidatedbasis,floathasincreasedfromapproximately$138billionattheendof2020to approximately$176billionattheendof2025.Thecostoffloatcanbemeasuredasthenetpre-taxunderwritingearnings(or loss)asapercentageoftheaveragefloatbalance. BurlingtonNorthernSantaFe BurlingtonNorthernSantaFe,LLC(“BNSF”)isbasedinFortWorth,Texas,andthroughBNSFRailwayCompany (“BNSFRailway”)operatesoneofthelargestfreightrailtransportationsystemsinNorthAmerica.BNSFRailwayhad approximately35,000employeesattheendof2025,ofwhomapproximately30,000weremembersofalaboraunion. InservingtheMidwest,PacificNorthwest,Western,SouthwesternandSoutheasternregionsandcertainportsofthe U.S.,BNSFRailwaytransportsarangeofproductsandcommoditiesderivedfrommanufactffurting,agriculturalandnatural resourceindustries.Freightrevenuesarecoveredbycontractuatlagreementsofvaryingdurationsorcommoncarrier publishedpricesorcompanyquotations.BNSF’sfinffancialperformanceisinfluencedby,amongotherthings,generaland industryrreconomicconditionsattheinternational,nationalandregionallevels. BNSFRailway’sprimaryroutes,includingtrackagerights,allowittoaccessmajoarcitiesandcertainportsinthe westernandsouthernU.S.,aswellaspartsofCanadaandMexico.Inadditiontomajoarcitiesandports,BNSFRailway effiffcientlyservesmanysmallermarketsbyworkingcloselywithapproximately200shortlinerailroads.BNSFRailwayhas alsoenteredintomarketingagreementswithotherrailcarriers,expandingthemarketingreachforeachrailroadandits customers.Freightrevenuesareclassifiedintothefollowingcategories:consumerproducts,industrialproducts,agricultural andenergyproductsandcoal.Thevolumesshippedandrateschargedareaffeffctedbycompetitionfromotherfreightcarriers withinthetransportationindustry,rrandchangesintheunderlyingsuppluyanddemandforsuchproducts. Reguleatoryrmatters BNSFissubjuecttofederal,stateandlocallawsandregulationsgenerallyapplicabletoitsbusinesses.Railoperations aresubjuecttotheregulatoryrrjurisdictionoftheSurfaceTransportationBoard(“STB”),theFederalRailroadAdministrationof theU.S.DepartmentofTransportation(“DOT”),theOccupautionalSafetyandHealthAdministration(“OSHA”),the EnvironmentalProtectionAgency(“EPA”),aswellasotherfederalandstateregulatoryrragenciesandCanadianregulatoryrr agenciesforoperationsinCanada.TheSTBhasjurisdictionoverdisputesandcomplaintsinvolvingcertainrates,routesand services,thesaleorabandonmentofraillines,applicationsforlineextensionsandconstrucrtion,andthemergerwithor acquisitionofcontrolofrailcommoncarriers.TheoutcomeofSTBproceedingscanaffeffcttheprofitaffbialityofBNSF Railway’sbusiness. TheDOT,OSHAandEPAhavejurisdictionunderseveralfederalstatuttesoveranumberofsafety,healthand environmentalaspectsofrailoperations,includingthetransportationofhazardousmaterials.BNSFRailwayisrequiredto transportthesematerialstotheextentofitscommoncarrierobligation.Stateagenciesregulatesomehealth,safetyand environmentalaspectsofrailoperationsinareasnototherwisepreemptedbyfederallaw. --- Page 33 --- K-7Environmentalmatters BNSF’srailoperations,aswellasthoseofitscompetitors,arealsosubjuecttoextensivefederal,stateandlocal environmentalregulationscoveringdischargestothegroundorwaters,airemissions,toxicsubsutancesandthegeneration, handling,storage,transportationanddisposalofwasteandhazardousmaterials.Suchregulationseffeffctivelyincreasethe costsandliabialitiesassociatedwithrailoperations.Environmentalrisksarealsoinherentinrailoperations,whichfrequently involvetransportingchemicalsandotherhazardousmaterials. ManyofBNSF’slandholdingsareorhavebeenusedforindustrialortransportation-relatedpurposresorleasedto commercialorindustrialcompanieswhoseactivitiesmayhaveresultedindischargesontotheproperty.Underfederal statuttes(inparticular,theComprehensiveEnvironmentalResponse,CompensationandLiabilityAct)andstatestatuttes, BNSFmaybeheldjointlyandseverallyliablaeforcleanupandenforcementcostsassociatedwithaparticularsitewithout regardtofaultorthelegalityoftheoriginalconduct.BNSFmayalsobesubjuecttoclaimsbythirdpartiesforinvestigation, cleanup,restorationorotherenvironmentalcostsunderenvironmentalstatuttesorcommonlawwithrespecttopropertiesthey ownthathavebeenimpactedbyBNSFoperations. Consumptionofdieselfuelbylocomotivesaccountedforapproximately80%ofBNSFRailway’sgreenhousegas (“GHG”)emissionsinitsbaselineyearof2018.BNSFmanagementhascommittedtoabroadsustainabialitymodel,applying science-basedapproaches,thatisanticipatedtoresultina30%reductioninBNSFRailway’sGHGemissionsby2030from itsbaselineyearof2018.BNSFRailwayintendstocontinueimprovementsinfueleffiffciencyandincreasedutilizationof renewablaedieselfuel.Long-termsolutions,suchasbattery-electricandhydrogenlocomotives,arealsobeingevaluatedand field-tested. Competition ThebusinessenvironmentinwhichBNSFRailwayoperatesishighlycompetitive.Dependingonthespecificmarket, deregulatedmotorcarriersandotherrailroads,aswellasriverbarges,shipsandpipelines,mayexertpressureonpriceand servicelevels.Thepresenceofadvanced,highservicetrucrrklineswithexpediteddelivery,rrsubsuidizedinfrastructureand minimalemptymileagecontinuestoaffeffctthemarketfornon-bulk,time-sensitivefreight.Thepotentialexpansionoflonger combinationvehiclescouldfurtherencroachuponmarketstraditionallyservedbyrailroads.Toremaincompetitive,BNSF Railwayandotherrailroadsseektodevelopandimplementoperatingeffiffcienciestoimproveproductivity. Asrailroadsstreamline,rationalizeandotherwiseenhancetheirfranchises,competitionamongrailcarriersintensifieffs. BNSFRailway’sprimaryrailcompetitorintheWesternregionoftheU.S.isUnionPacificRailroadCompany.OtherClassI railroadsandnumerousregionalrailroadsandmotorcarriersalsooperateinpartsofthesameterritoriesservedbyBNSF Railway. BerkshireHathawayEnergy BerkshireHathawayEnergyCompany(“BHE”)isaholdingcompanyheadquarteredinIowawithinvestmentsina diversifieffdportfolffiooflocallymanagedandoperatedbusinesses,principallywithintheenergyindustry.rrBHE’sdomestic regulatedenergyinterestsarecomprisedoffourregulatedU.S.utilitycompanies(collectively,“U.S.utilities”)serving approximately5.4millionretailcustomersandfiveU.S.interstatenaturalgaspipelinecompanieswithapproximately20,900 milesofoperatedpipelinehavingadesigncapacityofapproximately21.6billioncubiucfeetofnaturalgasperday.Other energybusinessesincludeelectrictransmissionanddistributionoperationsinGreatBritainandCanada,adiversifieffd portfolffioofmostlyrenewablaeindependentpowerprojectsandinvestments,anda75%interestinaliquefiednaturalgas export,importandstoragefacility.BHEalsohasaninvestmentinaresidentialrealestatebrokeragefirmintheU.S.andisa franchisortoalargenetworkofresidentialrealestatebrokeragesintheU.S.BHEemploysapproximately24,000peoplein connectionwithitsvariousoperations. Energyrbusinesses BHE’sU.S.utilitiesincludePacifiCorp,MidAmericanEnergyCompany(“MEC”)andNVEnergy,Inc.’s(“NV Energy”)tworegulatedutilitysubsuidiaries,NevadaPowerCompany(“NevadaPower”)andSierraPacificPowerCompany (“SierraPacific”). --- Page 34 --- K-8PacifiCorpisaregulatedelectricutilitycompanyheadquarteredinOregon,servingelectriccustomersinportionsof Utah,Oregon,Wyoming,Washington,IdahoandCaliforffnia.Thecombinedserviceterritory’sdiverseregionaleconomy rangesfromrural,agriculturalandminingareastourbarn,manufactffurtingandgovernmentservicecenters.Nosinglesegment oftheeconomydominatesthecombinedserviceterritory,whichhelpsmitigatePacifiCorp’sexposuretoeconomic fluctuations.Inadditiontoretailsales,PacifiCorpbuysandsellselectricityonawholesalebasis. MECisaregulatedelectricandnaturalgasutilitycompanyheadquarteredinIowa,servingelectricandnaturalgas customersprimarilyinIowaandalsoinportionsofIllinois,SouthDakotaandNebraska.MEC’sdiverseretailcustomerbase operatesintheelectronicdatastorage,agricultural,manufactffurtingandgovernmentservicecentersindustries.Inadditionto retailsalesandnaturalgastransportation,MECsellselectricityandnaturalgasonawholesalebasis. NevadaPowerservesretailelectriccustomersinsouthernNevadaandSierraPacificservesretailelectricandnatural gascustomersinnorthernNevada.ThecombinedNevadaPower/SierraPacificserviceterritoryeconomyincludesretail customersinthegaming,mining,recreation,warehousing,manufactffurtingandgovernmentalservicecenterssectors.These utilitiesalsobuyandsellelectricityonawholesalebasis. Asverticallyintegratedutilities,BHE’sU.S.utilitiescollectivelyownapproximately32,400netmegawattsof generationcapacityinoperationandunderconstrucrtion.TheU.S.utilities’businessissubjuecttoseasonalvariations principallyrelatedtotheuseofelectricityforairconditioningandnaturalgasforheating.Typically,regulatedelectric revenuesarehigherinthesummermonths,whileregulatednaturalgasrevenuesarehigherinthewintermonths. ThenaturalgaspipelinesconsistofBHEGT&S,LLC(“BHEGT&S”),NorthernNaturalGasCompany(“Northern Natural”)andKernRiverGasTransmissionCompany(“KernRiver”). BHEGT&S,basedinVirginia,operatesthreeinterstatenaturalgaspipelinesystemsthatconsistofapproximately 5,400milesofnaturalgastransmission,gatheringandstoragepipelinesandoperatesseventeenundergroundnaturalgas storagefieldsintheeasternregionoftheU.S.BHEGT&S’slargeundergroundnaturalgasstorageassetsandpipeline systemsarepartofaninterconnectedgastransmissionnetworkthatprovidestransportationservicestoutilitiesandnumerous othercustomers.BHEGT&Sisalsoanindustryrrleaderinliquefiednaturalgassolutionsthroughitsinvestmentsinand ownershipofseveralliquefiednaturalgasfacilitieslocatedthroughouttheeasternregionoftheU.S. NorthernNatural,basedinNebraska,operatesthelargestinterstatenaturalgaspipelinesystemintheU.S.,asmeasured bypipelinemiles,reachingfromwestTexastoMichigan’sUpperPeninsula.NorthernNatural’spipelinesystemconsistsof approximately14,100milesofnaturalgaspipelines.NorthernNatural’sextensivepipelinesystem,whichisinterconnected withmanyinterstateandintrastatepipelinesinthenationalgridsystem,hasaccesstosuppluiesfrommultiplemajoarsuppluy basinsandprovidestransportationservicestoutilitiesandnumerousothercustomers.NorthernNaturalalsooperatesthree undergroundnaturalgasstoragefacilitiesandtwoliquefiednaturalgasstoragepeakingunits.NorthernNatural’spipeline systemexperiencessignificantseasonalswingsindemandandrevenue,withthehighestdemandtypicallyoccurringduring themonthsofNovemberthroughMarch. KernRiver,basedinUtah,operatesaninterstatenaturalgaspipelinesystemthatconsistsofapproximately1,400miles andextendsfromsuppluyareasintheRockykkMountainstoconsumingmarketsinUtah,NevadaandCaliforffnia.KernRiver transportsnaturalgasforelectricandnaturalgasdistributionutilities,majoaroilandnaturalgascompaniesoraffiffliatesof suchcompanies,electricgeneratingcompanies,energymarketingandtradingcompanies,andfinancialinstitutions. OtherenergybusinessesincludeNorthernPowergrid(Northeast)plcandNorthernPowergrid(Yorkshire)plc,which ownasubsutantialelectricitydistributionnetworkthatdeliverselectricitytoend-usersinnortheastEnglandinanarea coveringapproximately10,000squaremiles.Thesedistributioncompaniesprimarilychargesuppluycompaniesregulated tariffsfortheuseoftheirdistributionsystemsandserveabout4.0millionelectricityend-users.AltaLinkL.P.(“AltaLink”)is aregulatedelectrictransmission-onlyutilitycompanyheadquarteredinCalgary,rrAlberta.AltaLink’shighvoltage transmissionlinesandrelatedfacilitiestransmitelectricityfromgeneratingfacilitiestomajoarloadcenters,citiesandlarge industrialplantsthroughoutits87,000squaremileserviceterritory.AltaLinkservesapproximately85%ofAlberta’s population.BHEanditssubsuidiaries,alsoowninterestsinindependentpowerprojectshavingapproximately6,400net megawattsofgenerationcapacitythatareinserviceandunderconstrucrtioninCaliforffnia,Texas,Illinois,Nebraska,Montana, NewYork,Arizona,WestVirginia,Minnesota,Kansas,Iowa,Hawaii,AustraliaandCanada.Theseindependentpower projectssellpowergeneratedprimarilyfromwind,solar,geothermalandhydrosourcesunderlong-termcontracts. Additionally,BHEsubsuidiarieshaveinvestedapproximately$7.1billioninwindprojectssponsoredbythirdparties, commonlyreferredtoastaxequityinvestments. --- Page 35 --- K-9Reguleatoryrmatters TheU.S.utilitiesaresubjuecttocomprehensiveregulationbyvariousfederal,stateandlocalagencies.TheFederal EnergyRegulatoryrrCommission(“FERC”)isanindependentagencywithbroadauthoritytoimplementprovisionsofthe FederalPowerAct,theEnergyPolicyActof2005andotherfederalstatuttes.TheFERCregulatesratesforwholesalesalesof electricity;transmissionofelectricity,includingpricingandregionalplanningfortheexpansionoftransmissionsystems; electricsystemreliabiality;utilityholdingcompanies;accountingandrecordsretention;securitiesissuances;construcrtionand operationofhydroelectricfacilities;andothermatters.TheFERCalsohastheenforcementauthoritytoassesscivilpenalties forviolationofrules,regulationsandordersissuedundertheFederalPowerAct.MECisalsosubjuecttoregulationbythe NuclearRegulatoryrrCommissionpursuanttotheAtomicEnergyActof1954,asamended,withrespecttoits25%ownership oftheQuadCitiesNuclearStation. Withcertainlimitedexceptions,theU.S.utilitieshaveanexclusiverighttoserveretailcustomerswithintheirservice territoriesand,inturn,haveanobligationtoprovideservicetothosecustomers.Insomejurisdictions,certainclassesof customersmaychoosetopurchasealloraportionoftheirenergyfromalternativeenergysuppluiers,andinsome jurisdictions,retailcustomerscangeneratealloraportionoftheirownenergy.Historically,stateregulatoryrrcommissions haveestablaishedretailelectricandnaturalgasratesonacost-of-servicebasis,whicharedesignedtoallowautilitythe opportunitytorecoverwhateachstateregulatorycommissiondeemstobetheutility’sreasonablaecostsofprovidingservices, includingtheopportunitytoearnafairandreasonablaereturnonitsinvestmentsbasedonitscostofdebtandequity.The retailelectricratesofU.S.utilitiesaregenerallybasedonthecostofprovidingtraditionalbundledservices,including generation,transmissionanddistributionservices;however,ratesareavailablaefortransmission-onlyanddistribution-only services. NorthernPowergrid(Northeast)plcandNorthernPowergrid(Yorkshire)plceachchargefeesfortheuseoftheir distributionsystemsthatarecontrolledbyaformulaprescribedbytheGasandElectricityMarketsAuthority,theBritish electricityregulatoryrrbody.ThecurrentelectricitydistributionpricecontrolrunsfromApril1,2023throughMarch31,2028. AltaLinkisregulatedbytheAlbertaUtilitiesCommission(“AUC”),pursuanttotheElectricUtilitiesAct(Alberta),the PubluicUtilitiesAct(Alberta),theAlbertaUtilitiesCommissionAct(Alberta)andtheHydroandElectricEnergyAct (Alberta).TheAUCisanindependentquasi-judicialagency,whichregulatesandoverseesAlberta’selectricitytransmission sectorwithbroadauthoritythatmayimpactmanyofAltaLink’sactivities,includingitstariffs,rates,construcrtion,operations andfinancing.UndertheElectricUtilitiesAct,AltaLinkpreparesandfilesapplicationswiththeAUCforapprovaloftariffsff tobepaidbytheAlbertaElectricSystemOperator(“AESO”)fortheuseofitstransmissionfacilities,andthetermsand conditionsgoverningtheuseofthosefacilities.TheAESOisanindependentsystemoperatorinAlberta,Canadathat overseesAlberta’sintegratedelectricalsystem(“AIES”)andwholesaleelectricitymarket.TheAESOisresponsiblefor directingthesafe,reliableandeconomicoperationoftheAIES,includinglong-termtransmissionsystemplanning. Thenaturalgaspipelinesaresubjuecttoregulationbyvariousfederalandstateagencies.Thenaturalgaspipelineand storageoperationsofBHEGT&S,NorthernNaturalandKernRiverareregulatedbytheFERCpursuanttotheNaturalGas ActandtheNaturalGasPolicyActof1978.Underthisauthority,theFERCregulates,amongotheritems,(a)rates,charges, termsandconditionsofservice;(b)theconstrucrrtionandoperationofinterstatepipelines,storageandrelatedfacilities, includingtheextension,expansionorabandonmentofsuchfacilities;and(c)theconstrucrtionandoperationofliquefied naturalgasexport/importfacilities.Interstatenaturalgaspipelinecompaniesarealsosubjuecttoregulationsadministeredby theOffiffceofPipelineSafetywithinthePipelineandHazardousMaterialsSafetyAdministration,anagencyoftheDOT. FederalpipelinesafetyregulationsareissuedpursuanttotheNaturalGasPipelineSafetyActof1968,asamended,which establaishessafetyrequirementsinthedesign,construcrtion,operationandmaintenanceofinterstatenaturalgaspipeline facilities. Environmentalmatters BHEanditsenergybusinessesaresubjuecttofederal,state,localandforeignlawsandregulationsregardingairquality, climatechange,emissionsperformancestandards,waterquality,coalashdisposalandotherenvironmentalmattersthathave thepotentialtoimpactcurrentandfutureoperations.Inadditiontoimposingcontinuingcomplianceobligations,theselaws andregulations,suchastheFederalCleanAirAct,provideregulatorswiththeauthoritytolevysubsutantialpenaltiesfor noncompliance,includingfines,injunnctivereliefandothersanctions. TheFederalCleanAirAct,aswellasstatelawsandregulationsimpactingairemissions,providesaframeworkfor protectingandimprovingairqualityandcontrollingsourcesofairemissions.Theimplementationoftheselawsand regulationsmayimpacttheoperationofBHE’sgeneratingfacilities,includingrequiringreductionsinemissionsatthose facilitiestocomplywiththerequirements.Inaddition,thepotentialadoptionofstateorfederalcleanenergystandards,which includelow-carbon,rnon-carbonrandrenewablaeelectricitygeneratingresources,mayalsoimpactelectricitygeneratorsand naturalgasproviders. --- Page 36 --- K-10InDecember2015,aninternationalagreementwasnegotiatedby195nationstocreateauniversalframeworkfor coordinatedactiononclimatechangeinwhatisreferredtoastheParisAgreement.TheParisAgreementreaffiffrmsthegoal oflimitingglobaltemperaturteincreasewellbelow2degreesCelsius,whileurgingeffoffrtstolimittheincreaseto1.5degrees CelsiusandreachingaglobalpeakofGHGemissionsassoonaspossibletoachieveclimateneutralitybymid-century; establaishescommitmentsbyallpartiestomakenationallydeterminedcontributionsandpursuedomesticmeasuresaimedat achievingthecommitments;commitsallcountriestosubmuitemissionsinventoriesandreportregularlyontheiremissions andprogressmadeinimplementingandachievingtheirnationallydeterminedcommitments;andcommitsallcountriesto submuitnewcommitmentseveryrrfiveyears,withtheexpectationthatthecommitmentswillbemoreaggressiveinreducing GHGemissions.TheParisAgreementformallybecameeffeffctiveonNovember4,2016;however,theU.S.completedits withdrawalfromtheParisAgreementinNovember2020.TheU.S.acceptedthetermsoftheParisAgreementfollowingthe inaugurationofPresidentBidenonJanuary20,2021,andcompleteditsreentryrronFebruarry19,2021.FollowingPresident Trumrp’sinaugurationonJanuary20,2025,theU.S.announceditsseconddeparturtefromtheParisAgreement,whichwas finalizedinJanuary2026. InJuly2025,theEPAproposedarulethatwouldrepealtheEPA’s2009EndangermentFinding,adeterminationthat greenhousegasemissionsqualifyffasairpollutionthatendangershumanhealthortheenvironment.TheEPAfinalizedthe EndangermentFindingRescissiononFebruarry11,2026.TheEPAsaidthatSection202(a)oftheCleanAirActdoesnot allowtheagencytoenactemissionsregulationsforvehiclesinawaythataddressesclimatechange,sothereisnolegalbasis toissuetheendangermentfindingandanyresultingregulations.TheEPAfurtherarguesthattheCleanAirActwasnever intendedtoallowforregulationofgreenhousegasesbecauseclimatechangeisaglobalphenomenon.Thefinalruleis expectedtobechallengedintheU.S.CourtofAppealsfortheDistrictofColumbiaCircuitandultimatelyappealedtothe U.S.SupruemeCourtforfinaladjuddication.Thelegalprocesscouldtakeseveralyears.TheEPAhasindicateditintendsto addressgreenhousegasrulesforindividualindustryrrsectorsinseparateandsubsuequentactions. InApril2024,theEPAfinalizednewrulesaddressingGHGemissionsforthepowersector.Therequirementsare scheduledtotakeeffeffctJanuary1,2030.Newnaturalgas-fueledcombustionturbinesareexpectedtoutilizelower-emitting fuelsandoperateashighlyeffiffcientgeneration.Additionally,newbaseloadcombustionturbinesexceedinga40%annual capacityfactormustmeetanemissionlimitequivalenttooperatingwithcarbonrcaptureandsequestrationbeginningJanuary 1,2032.TheEPAalsoidentifieffdcarbonrcaptureandsequestrationasthetechnologybasisfortheemissionsstandardsfor coalunits.Coal-fueledunitsthatwilloperateafteffrDecember31,2038,mustmeetemissionlimitsequivalenttooperating withcarbonrcaptureandsequestrationbeginningJanuary1,2032.Otherunitsareanticipatedtoco-firewithnaturalgasand retirepriortoJanuaryrr1,2039,orconverttonaturalgasoperationsandmeetemissionlimitscorrespondingtocapacity factors.TheEPAdeferredactiononstandardsforexistingnaturalgas-fueledcombustionturbines.InJune2025,theEPA proposedtorescindthe2024rules,reflectingachangeinfederalpolicy.Theproposedrescissionisexpectedtobefinalized inthespringof2026,atwhichtimeBHEanditsenergysubsuidiarieswillbeabletoascertainremainingrequirements. InNovember2021,theEPAproposedrulesthatwouldreducemethaneemissionsfrombothnewandexistingsources intheoilandnaturalgasindustry.rrTheproposalswouldexpandandstrengthenemissionreductionrequirementsfornew, modifiedandreconstrucrtedoilandnaturalgassourcesandwouldrequirestatestoreducemethaneemissionsfromexisting sourcesnationwide.TheEPAissuedasuppluementalproposalinNovember2022tofurtherstrengthenemissionrequirements. TherulewasfinalizedinDecember2023.Affeffctedsourcesmayhaveuptofiveyearsfromtherulrre’seffectivedateto complywithrequirementsidentifieffdinstateimplementationplans.TherulehasbeenchallengedintheD.C.CircuitCourtof Appeals.InJuly2025,theEPAextendedseveralcompliancedeadlinesinthemethanerulewhileitreconsidersthe subsutantiverequirementsoftherule. BHEanditsenergysubsuidiariescontinuetofocusondeliveringreliablae,affoffrdable,safeandcleanenergytoits customersandonactionstomitigateitsGHGemissions.BHE’sprimarysourceofGHGemissionsisthegenerationof electricityfromitspowerplantsthatarefueledbycoalornaturalgas.Inmanagingitselectricitygeneration,BHE’s subsuidiariesworkwiththeirregulatorstoprotecttheenergyandeconomicneedsofcustomersbyconsideringcosts, reliabialityandsourcesofelectricgeneration.Overtheyears,BHEhasinvestedheavilyinownedrenewablaegenerationand storage,withcumulativeinvestmentsof$38.0billionthroughDecember31,2025.Additionally,BHEhasceasedcoal operationsat22generationunits.Asaresult,asofDecember31,2025,BHEhasreduceditsannualGHGemissionsby30% ascomparedto2005levels.Totheextentitisbeneficialforcustomersandconsistentwithregulatoryrrprovisions,BHEplans tocontinueinvestinginrenewablaeandotherlow-carbonrgenerationandstorageinthefutureandtoceasecoaloperationsat additionalcoalgenerationunitsinareliableandcost-effecfftivemanner. --- Page 37 --- K-11Non-Energyrbusinesses HomeServicesofAmerica,Inc.(“HomeServices”)isaresidentialrealestatebrokeragefirmintheU.S.Inadditionto providingtraditionalresidentialrealestatebrokerageservices,HomeServicesoffeffrsotherintegratedrealestateservices, includingmortgageoriginationsandmortgagebanking,titleandclosingservices,insurance,homewarranties,relocation servicesandotherhome-relatedservices.Itoperatesunder46brandnameswithnearly35,000realestateagentsinover770 brokerageoffiffcesin35statesandtheDistrictofColumbia. HomeServices’fraffnchisenetworkincludesover250franchiseesandnearly1,400brokerageoffiffceswith approximately39,700third-partyrealestateagentsundertwobrandnames.Inexchangeforfranchisefees,HomeServices providestherighttousetheBerkshireHathawayHomeServicesorRealLivingbrandnamesandotherrelatedservicemarks, aswellasprovidingorientationprograms,trainingandconsultationservices,advertisingprogramsandotherservices. HomeServices’principalsourcesofrevenuearedependentonresidentialrealestatetransactionvolumes,whichare normallyhigherinthesecondandthirdquartersofeachyear.Thisbusinessishighlycompetitiveandsubjuecttogeneralreal estatemarketconditions. ManufacffturingBusinesses Berkshire’snumerousanddiversemanufactffurtingsubsuidiariesaregroupeudintothreecategories:(1)industrialproducts, (2)buildingproductsand(3)consumerproducts.Berkshire’sindustrialproductsbusinessesmanufactffurteanddistribute componentsforaerospaceandpowergenerationapplications,specialtychemicals,metalcuttingtoolsandavarietyofother productsprimarilyforindustrialuse.Thebuildingproductsgroupuproducesprefabffricatedandsite-builtresidentialhomes, flooringproducts,insulation,roofinffgandengineeredproducdts,buildingandengineeredcomponents,paintandcoatingsand bricksandmasonryrrproducts.Theconsumerproductsgroupumanufactffurtesand/ordistributesrecreationalvehicles,batteries, apparel,footwearandotherproducts.Informationconcerningthemajoaractivitiesofthesethreegroupsfollows.Berkshire’s manufactffurtingbusinessesemployedapproximately175,600peopleattheendof2025. Industrialproduc ts PrecisionCastpatrts PrecisionCastpatrtsCorp.(“PCC”),basedinLakeOswego,Oregon,manufactffurtescomplexmetalcomponentsand productsandprovideshigh-qualityinvestmentcastings,forgings,fasteners/fastenersystemsandaerostrucrturesforcritical aerospaceandpowerandenergyapplications.PCCalsomanufactffurtes(1)investmentcastingsandforgingsforgeneral industrial,armament,medicalandotherapplications;(2)nickel,titaniumandcobaltalloysinallstandardmillforms, includingspecialtyalloysusedtoproduceinvestmentcastingsandforgingsfortheaerospace,chemicalprocessing,oiland gas,pollutioncontrolandotherindustries;(3)fastenersandengineeredproductsforautomotiveandgeneralindustrial markets;and(4)otherproductsandservicesforvariousmarketsandapplications. Investmentcastingtechnologyinvolvesamulti-stepprocessthatusesceramicmoldsinthemanufactffurteofmetal componentswithmorecomplexshapes,closertolerancesandfinersurfacefinishesthanpartsmanufactffurtedusingother methods.PCCusesthisprocesstomanufactffurteproductsforaircraftengines,industrialgasturbineandotheraeroderivative engines,airframes,medicalimplants,armament,unmannedaerialvehiclesandotherindustrialapplications.PCCalso manufactffurteshightemperaturtecarbonrandceramiccompositecomponents,includingceramicmatrixcomposites,forusein next-generationaerospaceengines. PCCusesforgingprocessestomanufacturtecomponentsfortheaerospaceandpowergenerationmarkets.PCC manufactffurteshigh-performance,nickel-basedalloys,aswellastitaniumalloysandproducts.PCC’snickel-basedalloysare usedtoproduceforgedcomponentsandinvestmentcastingsforaerospaceandnon-aerospaceapplicationsinsuchmarketsas oilandgas,chemicalprocessingandpollutioncontrol.PCC’stitaniumproducdtsareusedtomanufactffurtecomponentsforthe commercialandmilitaryaerospace,powergeneration,energy,medicalandindustrialendmarkets. PCCisalsoaleadingdeveloperandmanufactffurterofhighlyengineeredfasteners,fastenersystems,aerostrucrturesand precisioncomponents,primarilyforcriticalaerospaceapplications.Theseproductsareproducedfortheaerospaceandpower andenergymarkets,aswellasforconstrucrtion,automotive,heavytrucrrk,farmmachinery,rrminingandconstrucrrtion equipment,shipbuilding,machinetools,appliancesandrecreationmarkets. PCChasseveralsignificantcustomers,includingaerospaceoriginalequipmentmanufactffurters(“OEMs”)(Boeingand Airbus)andaircraftenginemanufactffurtersuppluiers(GEAerospace,RollsRoyceandPratt&Whitney).Themajoarityof PCC’ssalesarefromcustomerordersordemandschedulespursuanttolong-termagreements.Contractuatltermsmay provideforterminationbythecustomer,subjuecttopaymentforworkperformed.PCCtypicallydoesnotexperience significantordercancellations,althoughperiodicallyitreceivesrequestsfordelaysindeliveryrrschedules.p --- Page 38 --- K-12Long-termindustryrrforecastscontinuetoshowgrowthandstrongdemandforairtravelandaerospaceproducts. ContinuedgrowthinrevenuesandearningswillbepredicatedonPCC’sandtheaerospaceindustry’rrsabialitytosuccessfulffly increaseproductionlevelstomatchthedemandinaerospaceproducts. PCCissubjuecttosubsutantialcompetitionineachofitsmarkets.Componentsandsimilarproductsmaybeproducedby competitors,whouseeitherthesametypesofmanufactffurtingprocessesasPCCorotherprocesses.AlthoughPCCbelievesits manufactffurtingprocesses,technologyandexperienceprovideitscustomerswithadvantages,suchashighquality,competitive pricesandphysicalpropertiesthatofteffnmeetmorestringentdemands,alternativeformsofmanufactffurtingcanbeusedto producemanyofthesamecomponentsandproducts.Nevertheless,PCCisaleadingsuppluierinmostofitsprincipalmarkets. Severalfactors,includinglong-standingcustomerrelationships,technicalexpertise,state-of-tffhe-artfacilitiesanddedicated employees,aidPCCinmaintainingcompetitiveadvantages. SeveralrawmaterialsusedinPCCproducts,includingcertainmetalssuchasnickel,titanium,cobalt,tantalum, hafnium,vanadium,rheniumandmolybdenum,arefoundinonlyafewpartsoftheworld.Thesemetalsarerequiredforthe alloysusedinmanufactffurtedproducts.Theavailabialityandcostsofthesemetalsmaybeinfluencedbyprivateor governmentalcartels,changesinworldpolitics,laborarelationsbetweenthemetalproducersandtheirworkforcesand inflation.Futureshortagesorpricefluctuationsinrawmaterialscouldhaveamaterialadverseeffeffctonresults. PCCissubjuecttovariousfederal,stateandforeignenvironmentallawsconcerning,amongotherthings,water discharges,airemissions,wastemanagement,toxicmaterialsusereductionandenvironmentalcleanup.Environmentallaws andregulationscontinuetoevolve,particularlyrelatedtoairandwaterqualityandclimatechange,includingreportingof GHGemissions.Asaresult,itisalsoreasonablaylikelythatPCCwillberegularlyrequiredtomakeadditionalexpenditures, includingcapitalexpenditures,whichcouldbesignificant,relatingtoenvironmentalmatters. Lubruizol TheLubruizolCorporation(“Lubrizol”),headquarteredinWickliffeff,Ohio,isaspecialtychemicalandperformance materialscompanythatmanufacturtesproductsandsuppluiestechnologiesfortheglobaltransportation,industrialand consumermarkets.Lubruizoloperatestwobusinesssegments:LubruizolAdditives,whichproducesenginelubruicantadditives, drivelinelubruicantadditivesandindustrialspecialtiesproducts;andLubruizolAdvancedMaterials,whichincludesengineered materials(engineeredpolymersandperformancecoatings)andlifeffsciences(beauty,personalcare,healthandhomecare solutions). LubruizolAdditives’productsareusedinabroadrangeofapplicationsincludingengineoils,transmissionfluids,gear oils,specialtydrivelinelubruicants,fuels,metalworkingfluidsandcompressorlubruicantsfortransportationandindustrial applications.LubruizolAdvancedMaterials’productsareusedinmanydifferenttypesofapplicationsincludingbeauty, personalcare,homecare,over-the-counterpharmaceuticals,medicaldevices,performancecoatings,sportinggoods, plumbingandfiresprinklersystems.Lubruizolisanindustryrrleaderinmanyofthemarketsinwhichitcompetes.Lubruizol Additives’principalcompetitorsareInfineumInternationalLtd.,ChevronOroniteCompanyandAftoffnChemical Corporation.LubruizolAdvancedMaterials’businessescompeteinmanymarketswithavarietyofcompetitorsineach productline. Lubruizolusesitstechnologicalleadershippositionandappliesitsscientificffcapabilities,formulationknow-howand marketexpertiseinproductdevelopmenttoimprovethedemand,qualityandvalueofitsproducts.Lubruizolalsoleveragesits scientificffandapplicationsknowledgetomeetandexceedcustomerperformanceandsustainabialityrequirements.While Lubruizoltypicallyhaspatentsthatexpireeachyear,itinvestsresourcestoprotectitsintellectuatlpropertyandtodevelopor acquireinnovativeproductsforthemarketsitserves.Lubruizolusesmanyspecialtyandcommoditychemicalrawmaterialsin itsmanufactffurtingprocesses.Rawmaterialsareprimarilyfeedstocksderivedfrompetroleumandpetrochemicalsand, generally,areobtainablaefromseveralsources.ThematerialsthatLubruizolchoosestopurchasefromasinglesourcetypically aresubjuecttolong-termsuppluycontractstoensurereliabiality. Lubruizoloperatesitsbusinessonaglobalbasisthroughmorethan100offiffces,laboraatories,productionfacilitiesand warehousesonsixcontinents,themostsignificantofwhichareNorthAmerica,Europe,AsiaandSouthAmerica.Lubruizol marketsitsprodudctsworldwidethroughdirectsales,salesagentsanddistributors.Lubruizol’scustomersprincipallyconsistof majoarglobalandregionaloilcompaniesandindustrialandconsumerproductscompanies.SomeofLubruizol’slargest customersalsomaybesuppluiers,althoughnosinglecustomerrepresentedmorethan10%ofLubruizol’sconsolidated revenuesin2025.Inrecentyears,suppluychaindisruptrrionsarisingfromvarioussourcesandsevereweatheraffeffctedthe availabialityofrawmaterialsandfulfillmeffntofcustomerordersandotherwisedisruptrredLubruizol’soperations. Lubruizolexpendssignificantcapiataltoensurethesafetyofitsemployeesandthecommunitieswhereitoperates,as wellasdeliveringonitscommitmentstooperationalexcellenceandcybersecurity.Lubruizolalsomakessignificantcapital investmentstoensurereliablaesuppluyandcompliancewithregulationsgoverningitsoperations,whilereducingits environmentalfootprtint. --- Page 39 --- K-13Lubruizolissubjuecttoforeign,federal,stateandlocallawstoprotecttheenvironment,limitmanufactffurtingwasteand emissions,ensureproductandemployeesafetyandregulatetrade.WhileLubruizol’spolicies,practicesandprocedurdesare designedtolimittheassociatedrisksandconsequentfinancialliabiality,theoperationofchemicalmanufactffurtingplants entailsinherentenvironmental,safetyandotherrisks,andsignificantcapitalexpenditures,costsorliabialitiescouldbe incurredinthefuture. IMCInternationalMetalworkingCompanies IMCInternationalMetalworkingCompaniesanditssubsuidiaries(“IMC”)isoneofthethreelargestmultinational manufactffurtersofconsumableprecisioncarbirdemetalcuttingtoolsforapplicationsinabroadrangeofindustrialendmarkets. IMC’sprimarybrandnamesincludeISCAR®,TaeguTec®,Ingersoll®,Tungaloy®andNTK®.OtherIMCbrandnames include,amongothers,Unitac®,UOP,It.te.di,Qutiltec,Tool—Flo®,PCT®,IMCO®,BSW®,RKS®,Supermill®and Neoboss.IMC’sprimarymanufactffurtingfacilitiesareinIsrael,theU.S.,SouthKorea,Japaan,Germany,Italy,Switzerland, India,China,MexicoandHungary. IMChassixprimaryproductlines:millingtools,partingandgroovingtools,turning/threadtools,holemakingtools, roundtoolsandtooling.Thesemainproductlinesaresplitbetweenconsumablecementedtungstencarbirdeinsertsandsteel toolholders.InsertscompriseamajoarportionofIMC’ssalesandearnings.Metalcuttinginsertsareusedbyindustrial manufactffurterstocutmetalsandareconsumedduringtheiruseincuttingapplications.Steeltoolholdersareusedtoholdthe insertagainstthecuttingpiece.IMCmanufactffurteshundredsoftypesofhighlyengineeredinsertswithineachproducdtline thataretailoredtomaximizeproductivityandmeetthetechnicalrequirementsofcustomers.IMC’sstaffofscientistsand engineerscontinuouslydevelopandinnovateproductsthataddressend-userneedsandrequirements. IMC’sglobalsalesandmarketingnetworkoperatesinnearlyeveryrrmajoarmanufactffurtingcenteraroundtheworld, staffeffdwithhighlyskilledengineersandtechnicalpersonnel.IMC’scustomerbaseisverydiverse,withitsprimary customersbeinglarge,multinationalbusinessesintheautomotive,aerospace,engineeringandmachineryrrindustries.IMC operatesaregionalcentralwarehousesystemwithlocationsinIsrael,theU.S.,Belgium,SouthKorea,JapaanandChina. AdditionalsmallquantitiesofproductsaremaintainedatlocalIMCsalesoffiffcestoprovideon-timecustomersupporutand inventoryrrmanagement. IMCcompetesinthemetalcuttingtoolssegmentoftheglobalmetalworkingtoolsmarket.Thesegmentincludes hundredsofparticipantswhorangefromsmall,privatemanufactffurtersofspecializedproductsfornicheapplicationsand marketstolarger,globalmultinationalbusinesses(suchasSandvikandKennametal,Inc.)withawideassortmentofproducts andextensivedistributionnetworks.OthermanufactffurtingcompaniessuchasKyocera,Mitsubishi,Sumitomo,Ceratizit, OSG,Guhring,MapaalandYG-1alsoplayasignificantroleinthecuttingtoolmarket. Cementedtungstencarbirdepowderisthemainrawmaterialusedinmanufactffurtingcuttingtools.MostofIMC’sinsert productsaremadefromtungsten.Whilesuppluies,includingalternativesources,arecurrentlyadequate,significant disruptrionsorconstraintsinproductionprocessingfacilities,orotherglobalsuppluychainrestrictions,couldcausereduced availabialityandincreasedprices. IMCiscommittedtofollowingandcomplyingwithallgovernmentandenvironmentalrules,regulationsand requirementsandapplicablelaws.IMCconsidersenvironmentalpreservationandpollutionpreventionasimportantfactorsin alloperationsandactivities.IMCproductionfacilitiesarebuiltwiththehigheststandardsandfollowallapplicable regulations. Marmon MarmonHoldings,Inc.(“Marmon”),headquarteredinChicago,Illinois,isaglobalindustrialorganizationcomprising elevendiversebusinessgroupsandmorethan120autonomousmanufactffurtingandservicebusinesses.Marmon’s manufactffurtingandserviceoperationsareconductedatapproximately630manufactffurting,distributionandservicefacilities locatedprimarilyintheU.S.,aswellas19othercountriesworldwide.Marmon’sbusinessgroupsareasfollows. TheFoodserviceTechnologiesgroupmanufactffurtesbeveragedispensingandcoolingequipment,hotandcoldfood preparationandholdingequipmentandrelatedproductsforrestaurants,globalbrandownersandotherfoodserviceproviders. OperationsarebasedintheU.S.withmanufacturtingfacilitiesintheU.S.,Mexico,China,theCzechRepublicandItaly. ProductsaresoldprimarilythroughouttheU.S.,EuropeandAsia. TheWaterTechnologiesgroupmanufactffurteswatertreatmentequipmentforresidential,commercialandindustrial applicationsworldwide.OperationsarebasedprimarilyintheU.S.,Canada,China,Singaporae,IndiaandPolandwith businesscenterslocatedinBelgium,France,GermanyandItaly.gp --- Page 40 --- K-14TheTransportationProductsgroupservestheautomotiveandheavy-dutyhighwaytransportationindustrieswith precision-moldedplasticcomponents;aluminumtubiungandextrusrions;replacementpartsandsolutionsfortheautomotive afteffrmarket;dryrrvan,flatbetd,lowbedandspecialtytrailers;andtrucrrkandtrailercomponents.Operationsareconducted primarilyintheU.S.,Mexico,Canada,EuropeandChina. TheRetailSolutionsgroupprovidesretailerdesignservices;in-storedigitalmerchandising,dispensinganddisplay fixturtes;andshopping,materialhandlingandsecuritycarts.OperationsareconductedintheU.S.,theU.K.andtheCzech Republic. TheMetalServicesgroupprovidesspecialtymetalpipe,tubiung,toolingandrelatedvalue-addeddistributionservicesto customersacrossabroadrangeofindustriesincludingaerospace,construcrrtionandagricultural.Operationsareconductedin theU.S.,India,Poland,Singaporae,Spain,theU.K.,theNetherlands,CanadaandMexico. TheElectricalgroupproduceselectricalwireforuseinresidentialandcommercialbuildings,andspecialtywireand cableforuseinenergy,transit,aerospace,defense,communicationandotherindustrialapplications.Operationsare conductedintheU.S.,Canada,IndiaandEngland. ThePlumbing&Refrigerationgroupmanufactffurtescoppertubiungandcopper,brass,aluminumandstainless-steel fittingsandcomponentsfortheplumbing,heating,ventilation,airconditioningandrefrigeration(HVAC-R)market;custom heatexchange,ducting,airhandlingunitsandenergyrecoverysolutionsfortheHVAC-Rmarket;HVACsystemsand structurtesfordatacenters,pharmaceuticalandindustrialsites;andaluminumandbrassforgingsformanycommercialand industrialapplications.Keyrawmaterials,includingaluminum,copperandstainlesssteelarewidelyavailablae.Operations areconductedprimarilyintheU.S.,CanadaandtheU.K. TheIndustrialProductsgroupsuppluiesconstrucrtionfasteners;masonryrrandstoneanchoringsystemsusedin commercialconstrucrtion;twocomponentpolymerproducdtsforanchoring,bondingandrepairapplications,glovesandother protectivewear;geardrives,gearboxers,fanandpumpdrivesforvariousmarkets;windmachinesforagriculturaluse;wheels, axlesandgearsforrail,miningandotherapplications;lightingproductsforindustrialandmining;equipmentforthe manufactffurteandassemblyofleadacidbatteries;themanufactffurtingandinstallationofafteffrlifeffserviceproducts;assemblyof aircompressorsystemsusedwithinthemedicalandindustrialmarkets;manufactffurtingandassemblyofvariousawning solutionsforuseinresidentialandmotorhomes;developmentandlicensingofeducdationalsoftwareandliterature;and financialserviceoffeffringsacrossmultipleverticals.OperationsareprimarilybasedintheU.S.,theU.K.,CanadaandChina. TheRail&Leasinggroupmanufactffurtes,leasesandmaintainsrailcars;leasesintermodaltankcontainers;manufactffurtes mobilerailcarmovers;providesin-plantrailswitchingandloadingservices;andperformstrackconstrucrrtionand maintenance. UnionTankCarCompany(“UTLX”)isthelargestcomponentoftheRail&Leasinggroupandisaleadingdesigner, builderandfull-servicelessorofrailroadtankcarsandotherspecializedrailcars.Together,withitsCanadianaffiffliateProcor, UTLXownsafleetofapproximately118,000railcarsforleasetocustomersinchemical,petrochemical,energyand agricultural/foodffindustries.UTLXmanufactffurtestankcarsintheU.S.andperformsrailcarmaintenanceservicesatmorethan 100locationsacrossNorthAmerica. UTLXhasadiversifieffdcustomerbase,bothgeographicallyandacrossindustries.UTLX,whilesubjuecttocyclicality andsignificantcompetitioninmostofitsmarkets,competesbyoffeffringabroadrangeofhigh-qualityproductsandservices targetedatitsnichemarkets.Railcarsaretypicallyleasedformultiple-yeartermsandmostoftheleasesarerenewedupon expiration.Duetoselectiveongoingcapitalinvestment,utilizationrates(thenumberofrailcarsonleaseasapercentageof thetotalfleet)aregenerallyhigh. IntermodaltankcontainersareleasedthroughEXSIFWorldwide(“EXSIF”).EXSIFisaleadinginternationallessorof intermodaltankcontainerswithafleetofapproximately76,000units,primarilyservingchemicalproducersandlogistics operators. TheCraneServicesgroupisaproviderofmobilecranesandoperatorsinNorthAmericaandAustraliawitha combinedfleetofapproximately1,000cranes,primarilyservingtheenergy,mining,petrochemicalandinfrastructure markets.Cranesareleasedonafullyoperatedandmaintainedservicebasisoronanequipment-onlybasis.TheCrane Servicesgroupissubjuecttocustomerseasonality,withconcentrationofvolumetypicallyinthewarmermonths. TheMedicalgroupdevelops,manufactffurtesandsellsawiderangeofinnovativemedicaldevicesintheextremities fixation,craniomaxillofacialsurgery,rrneurosurgery,aestheticsandcardiacrehabialitationmarkets.Thegroup’sleading-edge medicaltechnologyandproductsareusedgloballytohelpimprovepatientcareandoutcomes.Operationsarebasedinthe U.S.,Europe,AustraliaandChinaandbusinessisconductedprimarilyinNorthandSouthAmerica,Europe,Asiaand Australia. --- Page 41 --- K-15CertainMarmonbusinesses,includingtheRail&LeasingandMedicalgroups,aresubjuecttogovernmentregulation andoversight.Marmonhasnumerousknownenvironmentalmatterswhicharesubjuecttoon-goingmonitoringand/or remediationeffoffrts.Marmonfollowsallfederal,stateandlocalenvironmentalregulations. Otherindustrialproducts CTBInternationalCorp.(“CTB”),headquarteredinMilforffd,Indiana,isaleadingglobaldesigner,manufacturterand marketerofawiderangeofagriculturalsystemsandsolutionsforpreservinggrain,producingpoultry,rrpigsandeggs,andfor processingpoultry,rrfish,vegetablaesandotherfoods.CTBoperatesfromfacilitieslocatedaroundtheglobeandsupporuts customersthroughaworldwidenetworkofindependentdistributorsanddealers. CTBcompeteswithavarietyofmanufactffurtersandsuppluiers,includingmanythatoffeffronlyalimitednumberofthe productsoffeffredbyCTB,aswellasafewthatoffeffrproductsacrossseveralofCTB’sproductlines.Competitionisbasedon theprice,value,reputation,qualityanddesignoftheproductsoffeffredandthecustomerserviceprovidedbydistributors, dealersandmanufactffurtersoftheproducts.CTB’sleadingbrandnames,distributionnetwork,diversifieffdproductline, productsupporutandhigh-qualityproductsenableittocompeteeffeffctively.CTBmanufactffurtesitsproductsprimarilyfrom galvanizedsteel,steelwire,stainlesssteelandpolymermaterials.Theavailabialityofthesematerialsinrecentyearshasbeen adequate. LiquidPowerSpecialtyProductsInc.(“LSPI”),headquarteredinHouston,Texas,isagloballeaderinthescienceof dragreductionapplication(“DRA”)technologybymaximizingtheflowpotentialofpipelines,increasingoperational flexibilityandthroughputcapaacity,andeffiffcienciesforcustomers.LSPIdevelopsinnovativeflowimproversolutionswith customersin27countriesonfivecontinents,treatingover50millionbarrelsofhydrocarbonrliquidsperday.LSPI’sDRARR offeffringispartofacomprehensive,full-servicesolutionthatencompassesindustry-rrleadingtechnology,quality manufactffurting,technicalsupporutandconsulting,areliablaesuppluychain,injenctionequipmentandfieldservice.LSPIis subjuecttoforeign,federal,stateandlocallawstoprotecttheenvironmentandlimitmanufactffurtingwasteandemissions. W&W|AFCOSteel(“W&W|AFCO”)isaleadingstructurtalsteelfabraicatorandsteelconstrucrtionbusinessinNorth America.W&W|AFCOoperates19steelfabraicationplantslocatedacrosstheU.S.W&W|AFCO’sprojectsinclude semiconductorplants,stadiums,high-risebuildings,bridges,miningfacilities,aircrafthangars,militaryprojects,automotive assemblyplants,aswellasinternationalprojects.W&W|AFCO’smultiyearbacklogofprojectsattheendof2025was subsutantial.W&W|AFCOwasacquiredinconnectionwiththeAlleghanyacquisitioninOctober2022,anditsheadquarters areinOklahomaCity,Oklahoma. BerkshireacquiredBellLaboraatories,LLC(“BellLaboratories”)onJuly31,2025.BellLaboraatoriesproduceshigh qualityrodenticidesandotherrodentcontrolproductsforcommercial,agriculturalandretailmarketsandisheadquarteredin Windsor,Wisconsin. OxyChem BerkshirecompletedtheacquisitionofOccidentalPetroleumCorporation’schemicalsbusiness(“OxyChem”)on January2,2026,pursuanttoadefinitiveagreementasofOctober1,2025.Pursuanttotheagreement,Occidentalretained OxyChem’slegacyenvironmentalliabialities.SeeNote2totheaccompanyingConsolidatedFinancialStatements.OxyChem isaleadingproducerofbasicchemicalsthatsupporutcriticalapplicationsinwatertreatment,pharmaceuticals,healthcare, manufactffurting,automotive,personalhygieneandconstrucrtionandotherindustries.OxyChemisheadquarteredinDallas, Texasandoperates21manufactffurtingplantsintheU.S.intenstatesandtwointernationalsitesinCanadaandChile. OxyChemhasapproximately4,000employeesandcontractors. OxyChemisatopthreeNorthAmericanmanufactffurterofpolyvinylchloride(PVC),chlor-alkaliproductsand chlorinatedorganicchemicals.OxyChemconcentratesonthechlorovinylchain,beginningwiththeco-productionofcaustic sodaandchlorine,whicharemarketedtoexternalcustomers.Inaddition,chlorine,togetherwithethylene,isconverted throughaseriesofintermediateproductsintoPVC.OxyChemissubjuecttofederal,state,localandforeigngovernment regulations,includingenvironmentalandworkersafetyregulations,andinvestssignificantresourcestoensurethesafetyof employeesandthecommunitiesinwhichitoperatesandtomaintainfullcompliancewithenvironmentalandgovernmental regulations. OxyChem’sprimaryfeedstocksareethylene,ethane,naturalgasandsalt,whicharegenerallyobtainablaefromseveral sourcesandsuppluiers.MaterialsthatOxyChemchoosestopurchasefromasinglesourcearetypicallysubjuecttolong-term suppluycontractstoensurereliabiality. OxyChemoperatesthroughfiveinternationalsalesoffiffcesandmarketsitsproductsworldwidethroughdirectsales, salesagentsanddistributors.OxyChem’sprimarycustomersconsistofleadingchemicalmanufactffurters,severalofwhichare connectedtoOxyChemmanufactffurtingsitesviapipelines.p y --- Page 42 --- K-16Buildingproduc ts Clayton ClaytonHomes,Inc.(“Clayton”),headquarterednearKnoxville,Tennessee,isaverticallyintegratedhousingcompany offeffringoff-sffite(factory)rrandsite-builthomes,includingmodular,manufactffurted,CrossMod™,townhomesandtinyhomes. In2025,Claytonshippedapproximately49,400off-sffitebuilthomes,over83%ofwhichwerebuilttotheDepartmentof Energy’sZeroEnergyReadyHomeprogramrequirements,aswellasapproximately10,000site-builthomes.Claytonalso offeffrshomefinancingandotherfinancialservicesandcompetesonprice,service,locationanddeliveryrrcapabilities. AllClaytonBuilt®off-sffitebuilthomesaredesigned,engineeredandassembledintheU.S.AttheendofDecember 2025,off-sffitebacklogwasapproximately$285million.Claytonconstrucrtsitsoff-sffitehomeswithcomponentslikewindows, interiordoorsandcabinetsmanufactffurtedbyitssuppluydivision.Claytonsellsoff-sffitebuilthomesthroughindependentand company-ownedhomecenters,realtorsandsubdiuvisionchannels.Claytonconsidersitsabilitytooffeffrfinancingtoretail purchasersafactoraffeffctingthemarketpltaceacceptanceofitsoff-sffitebuilthomes.Clayton’sfinffancingprogramsutilize proprietaryloanunderwritingguidelinestoevaluateloanapplicants. Clayton’ssite-builtdivision,ClaytonPropertiesGroup(“CPG”),includesninebuildersacross17stateswith approximately300subdiuvisions,suppluementingtheportfolffioofhousingproductsoffeffredtocustomers.CPGownedand controlledapproximately67,300homesites,withahomeorderbacklogofapproximately$1.2billionattheendofDecember 2025. Accesstokeyhousinginputs,includinglumber,orientedstrandboard,steelandresinproducts,wasadequatein2025. Historically,theavailabialityandpricingoftheseandotherinputshasbeenvolatile.Clayton’shomebuildingbusinessis impactedbychangesinU.S.homemortgageinterestratesandthesuppluyofpre-existinghomesforsale,whichaffeffcthome affoffrdability. Clayton’shomebuildingbusinessregularlymakescapitalandnon-capitalexpenditureswithrespecttocompliance withfederal,stateandlocalenvironmentalregulations,primarilyrelatedtoerosioncontrol,permittingandstormwater protectionforsite-builthomesubdiuvisions.Thefinancingbusinessoriginatesandservicesloanswhicharefederallyregulated bytheConsumerFinancialProtectionBureau,variousstateregulatoryrragenciesandreviewedbytheU.S.Departmentof HousingandUrbarnDevelopment,theGovernmentNationalMortgageAssociationandgovernment-sponsoredenterprises. Shaw ShawIndustriesGroup,Inc.(“Shaw”),headquarteredinDalton,Georgia,isaleadingmanufactffurteranddistributorof carpert,carperrttileandhardsurfaceflooringproducts.Shawdesignsandmanufactffurtesover3,800stylesoftuftedcarperrt,wood andresilientflooringforresidentialandcommercialuseundernumerousbrandandtradenamesandundercertainprivate labeals.Softandhardsurfaceproductsareavailablaeinabroadrangeofpatterns,colorsandtexturtes.Shaw’scarpert manufactffurtingoperationsarefullyintegratedfromtheprocessingofrawmaterialsusedtomakefiberthroughthecarpert finishing.Shaw’sflooringbusinessisprimarilyintheU.S.ShawalsomanufactffurtescarperrttileinChinaandtheU.K.and distributescarperrttilethroughoutEuropeandSoutheastAsia.Itmanufactffurtesordistributesavarietyofhardwood,wood plasticcomposite,stoneplasticcomposite,vinylandlaminatefloorproducts(collectively,“hardsurfaces”).Shaw’s IntegratedSolutionsbusinessalsoprovidesprojectmanagementandinstallationservices. ShawalsooperatesShawSportsTurf,ShawgrassandSouthwestGreensInternational,LLC,whichprovidesynthetic sportsturf,golfgreensandlandscapeturfproducts.Shaw’sWatershedGeosyntheticssubsuidiarysellsinnovativeand patentedenvironmentalsolutionsforutility,wastemanagement,erosioncontrolandminingindustriesandprovidespatented renewablaeenergysolutions. Shawproductsaresoldwholesaletoover42,000retailers,distributorsandcommercialusersthroughouttheworld. Shaw’swholesaleproductsaremarketeddomesticallybyover1,700salariedandcommissionedsalespersonneldirectlyto retailersanddistributorsandtolargenationalaccounts.Shaw’sdistributionfacilities,includingsevencarpert,ninehard surfaces,onesamplefull-serviceandthreesamplesatellitefacilitiesand29redistributioncenters,enableittoprovideprompt andeffiffcientdeliveryrrofitsproductstobothitsretailcustomersandwholesaledistributors. SubsutantiallyallcarperrtmanufactffurtedbyShawistuftedcarperrtmadefromnylon,polypropyleneandpolyester,aswell asrecycledmaterials.During2025,Shawprocessedapproximately92%ofitsrequirementsforcarperrtyarninitsownyarn processingfacilities.Theavailabialityofrawmaterialsisadequate,butcostsareimpactedbypetro-chemicalandnaturalgas pricechanges.AsignificantportionofShaw’ssoft-flooringrawmaterialsderivefromrecycledsources.Rawmaterialcost changesareperiodicallyfactoredintosellingpricestocustomers.y --- Page 43 --- K-17Thesoftfloorcoveringindustryrrishighlycompetitivewithonlyahandfulffofmajoarcompetitorsdomestically.Thereare numerousmanufactffurters,domesticallyandinternationally,thatareengagedinthehardsurfacesflooringsector.Accordingto industryrrestimatespublishedin2025for2024,carpertandrugsaccountforapproximately44%ofthetotalU.S.consumption ofallflooringtypes.Theprincipalcompetitivemeasureswithinthefloorcoveringindustryrrarequality,style,priceand service. JohnsManville JohnsManvilleCorporation(“JM”),basedinDenver,Colorado,isaleadingmanufactffurterandmarketerofpremium- qualityproductsforbuildinginsulation,mechanicalandindustrialinsulation,commercialroofinffgandroofinsulation,aswell asreinforcementfiberglassandtechnicalnonwovens.JMservesmarketsthatincluderesidentialandnonresidentialbuildings, automotiveandtransportation,airhandling,appliance,HVAC,pipeandequipment,airandliquidfiltration,waterproofing, flooring,interiors,aerospaceandwindenergy.FiberglassisthebasicmaterialinmanyofJM’sproducts,althoughJMalso manufactffurtesasignificantportionofitsproductswithothermaterialstosatisfythebroaderneedsofitscustomers. JMregardsitspatentsandlicensesasvaluable;however,itdoesnotconsideranyofitsbusinessestobematerially dependentonanysinglepatentorlicense.JMoperatesover40manufactffurtingfacilitiesinNorthAmericaandEuropeand conductsresearchanddevelopmentatitstechnicalcenterinLittleton,ColoradoandatotherfacilitiesintheU.S.andEurope. Fiberglassismadefromearthenrawmaterialsandrecycledglass.JM’sproductsalsocontainmaterialsotherthan fiberglass,includingchemicalagentstobindmanyofitsglassfibersandvariouschemical-basedandpetrochemical-based materialsusedinroofinffgandotherspecializedproducts.JMusesrecycledmaterialwhenavailablaeandsuitablaetosatisfyffthe broaderneedsofitscustomers.Therawmaterialsusedinthesevariousproductsaregenerallyreadilyavailablaeinsufficffient quantitiesfromvarioussourcestomaintainandexpandcurrentproductionlevels,althoughtheavailabialityofrecycledglass canfluctuate. JM’soperationsaresubjuecttoavarietyoffederal,stateandlocalenvironmentallawsandregulations,whichregulate orimposeliabialityforthedischargeofmaterialsintotheair,landandwaterandgoverntheuseanddisposalofhazardous subsutancesanduseofchemicalsubsutances.ThemostrelevantofthefederallawsaretheFederalCleanAirAct,theClean WaterAct,theToxicSubsutancesControlAct,theResourceConservationandRecoveryActandtheComprehensive EnvironmentalResponse,CompensationandLiabilityAct,whichareadministeredbytheEPA.CanadianandEuropean regulatoryrrauthoritieshavealsoadoptedtheirownenvironmentallawsandregulations.JMcontinuallymonitorsnewand pendingregulationsandassessestheirpotentialimpactonthebusiness.JM’scapitalprojectsregularlyaddressenvironmental compliance,althoughcapitalexpendituresforenvironmentalcompliancearegenerallyinconjunctionwithothercapital projectexpenditures. JMsellsitsproductsthroughawidevarietyofchannelsincludingcontractors,distributors,retailers,manufactffurtersand fabraicators.JMoperatesinhighlycompetitivemarkets.CompetitorsareprimarilylargeU.S.andinternationally-based manufactffurters,aswellassmallerregionalmanufactffurters.JMholdsleadershippositionsinthekeymarketsthatitserves. JM’sproductscompeteprimarilyonvalue,differentiationandcustomization,breadthofproductline,qualityandservice. SalesofJM’sproductsaremoderatelyseasonalduetoincreasesinconstrucrrtionactivitythattypicallyoccurinthesecondand thirdquartersofthecalendaryear. MiTek MiTekIndustries,Inc.(“MiTek”),basedinChesterfield,Missouri,operatesintwoseparatebuildingmarkets: residentialandcommercial.MiTekoperatesworldwidewithsalesinover60countriesandwithmanufactffurtingfacilities and/orsales/engineeringoffiffceslocatedin15countries. Intheresidentialbuildingmarket,MiTekisaleadingsuppluierofengineeredconnectorproducts,construcrtion hardware,engineeringsoftwareandservices,andcomputer-drivenmanufactffurtingmachineryrrtothetrusrrscomponentmarket ofthebuildingcomponentsindustry.rrMiTek’sprimarycustomersarecomponentmanufactffurters,whomanufactffurte prefabffricatedroofandfloortrusrrsesandwallpanelsfortheresidentialbuildingmarket.MiTekalsosellsconstrucrtion hardwaretocommercialdistributorsandretailstoresfordo-it-yourselfcustomers. AsignificantrawmaterialusedbyMiTekishotdippedgalvanizedsheetsteel.Whilesuppluiesareadequate,variations insuppluycanproducesignificantvariationsincostandavailabiality. BenjaminMoore BenjaminMoore&Co.(“BenjanminMoore”),headquarteredinMontvale,NewJersey,isoneofNorthAmerica’s leadingmanufactffurtersofpremiumqualityresidential,commercialandindustrialmaintenancecoatings.BenjaminMooreis committedtoinnovationandsustainablaemanufactffurtingpractices.TheBenjaminMoorepremiumportfolffioincludesAura®, Regal®Select,Ben®,Advance®,ElementGuard®,Woodluxe®,UltraSpec®andothers.TheBenjaminMoorediversifieffd brandsincludespecialtyandarchitecturtalpaintsfromCoronado®andInsl-x®.j --- Page 44 --- K-18BenjaminMoorecoatingsareavailablaethroughmorethan8,000independentlyownedandoperatedpaint,decorating andhardwareretailers,includingapproximately4,000AceHardware(“Ace”)stores,throughouttheU.S.andCanada,aswell as66othercountries.BenjaminMooreisthepreferffredpaintsuppluierforAcestoresthroughanagreementwhichpermitsAce storestocarryspecifiedBenjaminMooreproducts.Additionally,BenjaminMooremanufactffurtesClark+Kensington®and Royal®brands,aswellasthebalanceofAce’sprivatelabealpaintbrands. BenjaminMoorealsoallowscustomerstodirectlyordercoatingsorcolorsamplesonlineorviaitscustomer informationcenterfornationalaccounts.Ordersmaybedeliveredtothecustomeroraretailernearthecustomer. BenjaminMoorecompeteswithnumerousmanufactffurters,distributorsandpaint,coatingsandrelatedproducts retailers.Productquality,productinnovation,breadthofproductline,technicalexpertise,serviceandpricedeterminethe competitiveadvantage.Competitorsincludeotherpremiumpaintanddecoratingstores,massmerchandisers,homecenters, independenthardwarestores,hardwarechainsandmanufactffurter-operateddirectoutlets,suchasSherwin-WilliamsCompany, ThePittsburghPaintsCompany,TheHomeDepot,Inc.,Lowe’sCompanies,IncandFarrow&Ball. ThemostsignificantrawmaterialsinBenjaminMooreproductsaretitaniumdioxide,monomers,polymers,packaging materialsandpigments.Historically,thepurchasedrawmaterialshavebeengenerallyavailablae,withpricingandavailabiality subjuecttofluctuation. BenjaminMoorecomplieswithapplicableregulationsrelatingtoprotectionoftheenvironmentandworkers’safetffy andBenjaminMooreproductsarecompliantwithenvironmentalstandards.BenjaminMoorehascertainknownpast environmentalmatters,whicharesubjuecttoon-goingmonitoringand/orremediationeffoffrts. Acme AcmeBrickCompany(“Acme”),headquarteredinFortWorth,Texas,manufactffurtesanddistributesclaybricks(Acme Brick®)andconcreteblock(Featherlite).Inaddition,Acmedistributesnumerousotherbuildingproductsofother manufactffurters,includingcladding,floorandwalltile,woodflooringandothermasonryrrproducts.Productsaresoldprimarily intheSouthCentralandSoutheasternU.S.throughcompany-operatedsalesoffiffces.Acmedistributesproductsprimarilyto homebuildersandmasonryrrandgeneralcontractors. Acmeoperates12claybrickmanufacturtingsiteslocatedinfourstatesandthreeconcreteblockfacilitiesinTexas.The demandforAcme’sproductsisseasonal,withhighersalesinthewarmerweathermonths,andissubjuecttothelevelof construcrtionactivity,whichiscyclical.Acmealsoownsandleasespropertiesandmineralrightsthatsuppluyrawmaterials usedinmanyofitsmanufacturtedproducts.Acme’srawmaterialssuppluyiscurrentlyadequate. ThebrickindustryrrissubjuecttotheEPAMaximumAchievableControlTechnologyStandards(“MACT”).Asrequired underthe1990CleanAirAct,theEPAdevelopedalistofsourcecategoriesthatrequirethedevelopmentofNational EmissionStandardsforHazardousAirPollutants,whicharealsoreferredtoasMACTStandards(“RulRRe”).Keyelementsof theMACTRuleincludeemissionlimitsestablaishedforcertainhazardousairpollutantsandacidicgases.Acme’sbrickplants complywiththecurrentRule. Consumerproduc ts Recreationalvehicles ForestRiver,Inc.(“ForestRiver”),headquarteredinElkhart,Indiana,manufactffurtesrecreationalvehicles(“RV”), utilitycargotrailers,commercialtrucrks,busesandpontoonboats,whicharesoldintheU.S.andCanadathroughan independentdealernetwork.ForestRiverhasnumerousmanufacturtingfacilitieslocatedinsevenstatesandisaleading manufactffurterofRVswithnumerousbrandnames,includingForestRiver,CoachmenRV,Cherokee,Rockwood,Salem, Wildwood,Surveyor,Sunseeker,Entrada,ForesterandGeorgetown.Utilitycargotrailersaresoldunderavarietyofbrand names.CommercialtrucrrksaresoldundertheRockporkktbrandname.Busesaresoldunderseveralbrandnames,including StarcraftffBus.PontoonboatsaresoldundertheBerkshire,SouthBay,TrifectffaandDocksidebrandnames. TheRVindustryrrishighlycompetitive.Competitionisbasedprimarilyonprice,design,qualityandservice.The industryrrhasconsolidatedoverthepastseveralyearsandisconcentratedinafewcompanies,thelargestofwhichhada marketshareofapproximately39%basedonindustryrrdataasofDecember2025.ForestRiverheldamarketshareof approximately36%atthattime.ForestRiverissubjuecttoregulationsoftheNationalTraffiffcandMotorVehicleSafetyAct, thesafetystandardsforrecreationalvehiclesestablaishedbytheU.S.DepartmentofTransportationandsimilarlawsand regulationsissuedbytheCanadiangovernment.ForestRiverisamemberoftheRecreationalVehicleIndustryrrAssociation,a voluntaryrrassociationofRVmanufactffurterswhichpromotessafetystandardsforRVs.ForestRiverbelievesitsproducts complyinallmaterialrespectswiththestandardsthatgoverntheirproducts. --- Page 45 --- K-19Apparelandfootwear FruirrtoftheLoom,Inc.(“FOL”),headquarteredinBowlingGreen,Kentuctky,manufactffurtesanddistributesbasic apparel,underwear,outerwear,athleticapparelandsportsequipment.ProductsundertheFruirtoftheLoom®and JERZEES®labelsareprimarilysoldinthemassmerchandise,mid-tierchainsandwholesalemarkets.IntheVanityFair Brandsproductline,Vassarette®,Curvation®andRadiantbyVanityFair®aresoldinthemassmerchandisemarket,while otherVanityFair®productsaresoldtomid-tierchainsanddepartmentstores.FOLalsomarketsandsellsathleticapparel andsportsequipmenttoteamdealersandtosportinggoodsretailersundertheRussellAthletic®andSpalding®brands. FOLgenerallyperforffmsitsownknitting,clothfinishing,cutting,sewingandpackagingforapparel.FortheNorth Americanmarket,whichisFOL’spredominantsalesregion,clothmanufactffurtingisprimarilyperformedinHonduras.Labora- intensivecutting,sewingandpackagingoperationsareinCentralAmericaandAsia.FortheEuropeanmarket,productsare eithersourcedfromthird-partycontractorsinEuropeorAsiaorsewninMoroccofromtextilesinternallyproducedin Morocco.Athleticequipment,sportinggoodsandotherathleticapparellinesaregenerallysourcedfromthird-party contractorslocatedprimarilyinAsia. U.S.-growncottonfiberandmanufactffurtedpolyesterfiberarethemainrawmaterialsusedinmanufactffurtingFOL’s products.Currently,suppluiesareadequate.Ifrelationshipswithsuppluierscannotbemaintainedordelaysoccurinobtaining alternativesourcesofsuppluy,productioncanbeadverselyaffeffcted,whichcanresultinacorrespondingadverseeffeffcton resultsofoperations.FOL’smarketsarehighlycompetitive,consistingofmanydomesticandforeignmanufactffurtersand distributors.Competitionisgenerallybaseduponproductfeaturtes,quality,customerserviceandprice. GaranIncorporated(“Garan”),headquarteredinNewYork,NewYork,designs,manufactffurtes,importsanddistributes children’sapparel,includingproductsforboys,girls,toddlersandinfants.Garanmarketsitsproductsunderitsown trademarks,includingGARANIRRMALS®,365KidsfromGaranimals®andeasy-peasy®,aswellascustomerprivate-labeal brandsandlicensedtrademarks,andsellstoadiversifieffdgroupofretailersaswellasthroughitsdirect-to-consumerchannel. GaranoperatesthroughsubsuidiarieslocatedintheU.S.,CentralAmericaandAsia,withsubsutantiallyallproductsdistributed throughitsU.S.-baseddistributioncenters.FechheimerBrothersCompany(“Fechheimers”)manufactffurtesanddistributes uniforms,principallyforthepubluicserviceandsafetymarkets,includingpolice,fire,postalandmilitarymarkets. FechheimersisbasedinCincinnati,Ohio. Throughitssubsuidiaries,BHShoeHoldings,Inc.manufactffurtes,importsanddistributeswork,ruggedoutdoorand casualshoesandwestern-stylefootwearunderseveralbrandnames,includingJustin®,BØRN®,Carolina®,Söfftff®and Double-HBoots®,aswellasunderseveralotherbrandnames.BrooksSports,Inc.,headquarteredinSeattle,Washington, marketsandsellshigh-performancerunningfootwearandappareltospecialtyandnationalretailersanddirectlytoconsumers undertheBrooks®brand.AsignificantvolumeoftheshoessoldbyBerkshire’sshoebusinessesaremanufactffurtedor purchasedfromsourceslocatedoutsidetheU.S.Productsaresoldworldwidethroughavarietyofchannelsincluding departmentstores,footwearchains,specialtystores,catalogsande-commerce,aswellasthroughcompany-ownedretail stores. Otherconsumerproducts TheDuracellCompany(“Duracell”),headquarteredinChicago,Illinois,isaleadingmanufactffurterofhigh-performance alkalineandlithiumcoinbatteries.DuracellmanufactffurtesbatteriesprimarilyintheU.S.,aswellasinEuropeandChinaand providesanetworkofworldwidesalesanddistributioncenters.Duracellsellsitsproductstoadiversegroupofretailersand distributorsacrosstheglobe.Thereareseveralcompetitorsinthebatterymanufactffurtingmarket.Duracellestimatesthatithad a32%marketshareoftheglobalalkalinebatterymarketin2025.Theavailabialityofrawmaterials,whichareprimarilysteel, zinc,manganeseandnickel-basedchemistries,iscurrentlysufficffient. TheconsumerproductsgroupalsoincludesJazwares,LLC,(“Jazwares”),acquiredinOctober2022inconnectionwith Alleghany.Jazwares,headquarteredinPlantation,Florida,isaleadingglobaltoyandconsumerproductsmanufactffurterwitha robustportfolffioofownedandlicensedbrands,suchasSquishmallows™,BLDR™,Pokémon™,HelloKitty™,StarWars™, Disney™,BumBumz™StrangerThings™andFiveNightsatFreddy’s™.Inadditiontotoysandplush,offeffringsalso includevirtuatlgames,costumtes,petproductsandhousewares.Jazwaressellsitsproductsinmorethan100countries. RichlineGroup,Inc.,headquarteredinNewYork,NewYork,operatesfourstrategicbusinessunits:RichlineJewelry,rr LeachGarner,RioGrandeandInverness.Eachbusinessunitisamanufactffurterand/ordistributorofpreciousmetal,non- preciousmetal,diamondandgemproductstospecifictargetmarkets,includinglargejewelryrrchains,departmentstores, shoppingnetworks,massmerchandisers,e-commerceretailersandartisansaswellascertainglobalmanufactffurtersand wholesalersinthemedical,electronicsandaerospaceindustries.AlbeccaInc.,headquarteredinSuwanee,Georgia,operates intheU.S.,Canadaandseveralothercountries,primarilyundertheLarson-Juhl®name(“Larson-Juhl”).Larson-Juhldesigns anddistributesacompletelineofhighquality,brandedcustomframingproducts,includingwoodandmetalmoulding, matboard,foamboard,glassandframingsuppluies.Complementaryrrtoitsframingproducts,LarsonJuhloffeffrsartprintingand fulfillmeffntservices.pp p --- Page 46 --- K-20ServiceandRetailingBusinesses Servicebusinesses Berkshire’sservicebusinessesprovidesharedaircraftownershipprogramsandprofesffsionalaviationtrainingprograms (“aviationservices”),anddistributionofelectroniccomponents.Additionally,servicebusinessesincludefranchisingand servicingofquickservicerestaurants,mediabusinesses(televisionandinformationdistribution),aswellaslogisticsservices businesses.Berkshire’sservicebusinesses,excludingMcLane,employedapproximately31,200peopleattheendof2025. Informationregardingeachoftheseoperationsfollows. NetJets NetJetsistheleaderinprivateaviationservicesandoperatesalarge,diverseprivateaircraftfleetandoffeffrsafull rangeofpersonalizedprivateaviationsolutionstomeetandexceedthehighstandardsofitscustomers.NetJets’global headquartersareinColumbus,OhioanditsEuropeanoperationsarebasedinLisbon,Portugatl.Thesharedownership conceptisdesignedtomeetthetravelneedsofcustomerswhorequirethescale,flexibilityandaccessofalargefleetof aircraftasopposedtorelianceonwholeaircraftownership.Inaddition,sharedownershipprogramsareavailablaefor corporateflightdepartmentsseekingtooutsourcetheirgeneralaviationneedsoraddcapacityforpeakperiodsandforothers thatpreviouslycharteredaircraft. NetJets’programsarefocusedonsafetyandserviceandaredesignedtooffeffrcustomersguaranteedavailabialityof aircraft,predictablaeoperatingcostsandincreasedliquidity.NetJets’sharedaircraftownershipprogramspermitcustomersto acquireaspecificpercentageofacertainaircrafttypeandallowcustomerstoutilizetheaircraftforaspecifiednumberof flighthoursannually.Inaddition,NetJetsoffeffrsprepaidflightcardsandotheraviationsolutionsandservicesforaircraft management,customizedaircraftsalesandacquisition,groundsupporutandflightoperationservicesunderseveralprograms, includingNetJetsShares™,NetJetsLeases™andtheNetJetsCardProgram™. NetJetsissubjuecttotherulesandregulationsoftheU.S.FederalAviationAdministration(“FAA”),thePortuguetse CivilAviationAuthorityandtheEuropeanUnionAviationSafetyAgency.Regulationsaddressaircraftregistration, maintenancerequirements,pilotqualificffationsandairportoperations,includingflightplanningandscheduling,aswellas securityissuesandothermatters.NetJetsmaintainscomprehensivetraininganddevelopmentprogramsincompliancewith regulatoryrrrequirementsforpilots,flightattendants,maintenancemechanicsandotherflightoperationsspecialists,manyof whomarerepresentedbyunions. FlightSafety FlightSafetyisanindustryrrleadingproviderofprofesffsionalaviationtrainingservicesandflightsimulationproducts. FlightSafetyandFlightSafetyTextronAviationTraining,ajointventurtewithTextron,providehightechnologytrainingto pilots,aircraftmaintenancetechnicians,flightattendantsanddispatcherswhooperateandsupporutawidevarietyofbusiness, commercialandmilitaryaircraft.Thetrainingisprovidedusingalargefleetofadvancedfullflightsimulatorsatlearning centersandtraininglocationsintheU.S.,Australia,Brazil,Canada,France,Japaan,Norway,Singaporae,SouthAfriffcaandthe U.K.Compliancewithapplicableenvironmentalregulationsisaninherentrequirementtooperatethefacilities.Thevast majoarityoftheinstructors,trainingprogramsandflightsimulatorsarequalifieffdbytheFAAandotheraviationregulatoryrr agenciesaroundtheworld. FlightSafety,basedinColumbus,Ohio,isalsoaleaderinthedesignandmanufactffurtingoffullflightsimulators,visual systems,displaysandotheradvancedtechnologytrainingdevices.ThisequipmentisusedtosupporutFlightSafetytraining programsandisoffeffredforsaletoairlinesandgovernmentsaroundtheworld.ManufactffurtingfacilitiesareinOklahomaand Illinois.FlightSafetystrivestomaintainandmanufactffurtesimulatorsanddevelopcoursewareusingstate-of-tffhe-art technology,incorporatingcriticalsafetystandardsandprocedurdes.FlightSafetyinvestsinresearchanddevelopment,further advancingthedeliveryrrofnewequipmentandtrainingprograms. TTI TTI,Inc.(“TTI”),headquarteredinFortWorth,Texas,isaglobalspecialtydistributorofpassive,interconnect, electromechanical,discreteandsemiconductorcomponentsusedbycustomersinthemanufactffurtingandassemblingof electronicproducts.TTI’scustomerbaseincludesOEMs,electronicmanufactffurtingservices,originaldesignmanufactffurters andmilitaryandcommercialcustomers,aswellasdesignandsystemengineers.TTI’sdistributionagreementswiththe industry’rrsleadingsuppluiersallowittouniquelyleverageitsproducdtcostandtoexpanditsbusinessbyprovidingnewlines andproductstoitscustomers.TTIoperatessalesoffiffcesanddistributioncentersfrommorethan180locationsthroughout NorthAmerica,SouthAmerica,EuropeandAsia.gy --- Page 47 --- K-21TTIservicesavarietyofindustriesincludingtelecommunications,medicaldevices,computersandoffiffceequipment, military/aerospace,automotiveandindustrialelectronics.TTI’scorebusinessesservecustomersinthedesignthrough productionstagesintheelectroniccomponentsuppluychain,whichsupporutshigh-volumecustomers.ItsMousersubsuidiary supporutsabroaderbaseofcustomerswithlowervolumepurchasesthroughinternet-basedmarketing,anditsXTGdivision servicescustomerswithspecialtysemiconductorsanddesignservices. McLane McLaneCompany,Inc.(“McLane”)provideswholesaledistributionservicesinall50statestocustomersthatinclude conveniencestores,discountretailers,wholesaleclubs,drugrrstores,militarybases,quickservicerestaurantsandcasual diningrestaurants.McLane’smajoarcustomersduring2025includedWalmart(appraoximately17.2%ofrevenues);7-Eleven (appraoximately13.3%ofrevenues);andYum!Brands(appraoximately13.3%ofrevenues).McLane’sbusinessmodelis basedonahighvolumeofsales,rapiadinventoryrrturnoverandstringentexpensecontrols.Operationsaredividedintothree businessunits:retaildistribution,restaurantdistributionandbeveragedistribution. McLane’sretaildistributionunit,basedinTemple,Texas,isaleaderwithintheconveniencestoremarket,serving manynationalconveniencestorechainsandmajoaroilcompanyretailoutlets.Retailoperationsprovideproductsto approximately43,100retaillocationsnationwide.McLane’sretaildistributionunitoperates27distributionfacilitiesin20 states. McLane’srestaurantdistributionunit,basedinCarrollton,Texas,focusesonservingthequickserviceandcasual diningrestaurantindustryrrwithhighquality,timely-deliveredproducts.Operationsareconductedthrough46facilitiesin22 states.Therestaurantdistributionunitservicesapproximately35,300restaurantsnationwide. Throughitssubsuidiaries,McLanealsooperateswholesaledistributorsofdistilledspirits,wineandbeer.Thebeverage unitoperatesasEmpireDistributors,withoperationsconductedthrough14distributioncentersinGeorgia,NorthCarolina, TennesseeandColorado.EmpireDistributorsservicesapproximately30,800retaillocationsintheSoutheasternU.S.and Colorado.McLanehadapproximately24,900employeesattheendof2025. Other XTRACorporation(“XTRA”RR),headquarteredinSt.Louis,Missouri,isaleadingtransportationequipmentlessor operatingundertheXTRALease®brandname.XTRAmanagesadiversefleetofapproximately90,000unitslocatedat47 facilitiesthroughouttheU.S.Thefleetincludesover-the-roadandstoragetrailers,chassis,temperaturte-controlledvansand flatbetdtrailers.XTRAisoneofthelargestlessors(intermsofunitsavailablae)ofover-the-roadtrailersinNorthAmerica. Transportationequipmentcustomersleaseequipmenttocovercyclical,seasonalandgeographicneedsandasasubsutitutefor purchasingequipment.Bymaintainingalargefleet,XTRAprovidescustomerswithabroadselectionofequipmentand quickresponsetimes. IPS-IntegratedProjectServices,LLC(“IPS”)wasacquiredinconnectionwiththeAlleghanyacquisitionin2022.IPS operatesgloballyandprovidesarangeofprofesffsionaldesign,qualificffation/validation,construcrtionandconstrucrtion/pr/oject managementconsultingservicesformanufactffurting,researchlaboraatoryrrandsupporutfacilitieswithinthepharmaceutical, biotechandlifeffsciences,technology,datacenter,industrial,commercialandretailindustriessectors.MostofIPSservices aresubjuecttostrictregulatoryrrcompliancerequirementsthataddstothecomplexityofitsservices. InternationalDairyrrQueenInc.developsandservicesaworldwidesystemofapproximately7,800franchised restaurantsoperatingprimarilyunderthenamesDQGrillandChill®,DairyQueen®,DQ®andOrangeJulius®thatoffeffr variousdairyrrdesserts,beverages,preparedfoodsandblendedfruitdrinks.BusinessWireInc.(“BusinessWire”)transmits full-textnewsreleases,regulatoryrrfilings,photosandothermultimediacontentprimarilytojournalists,financial profesffsionals,investorservicesandregulatoryrrauthorities.ReleasesaredistributedgloballyviaBusinessWire’spatentedNX network.CORTBusinessServicesCorporation(“CORT”)isaleadingnationalproviderofrentalfurnitureandrelated servicesinthe“rent-to-rent”segmentofthefurniturerentalindustry.rrCORTprimarilyrentsfurnituretoindividuadls, businesses,governmentagenciesandthetradeshowandeventsindustry.rrCORTalsosellsnewandusedfurniture.WPLG, Inc.isanindependenttelevisionbroadcastingstationservingtheMiami/Ft.LauderdalemarketandoperatesWPLG-TV, local10.com,MeTVSouthFloridaandHeroes&IconsNetworkinSouthFlorida.CharterBrokerageHoldingsCorp.isa leadingnon-assetbasedthirdpartylogisticsprovidertovariousindustries. Retailingbusinesses Berkshire’sretailingbusinessesincludeautomotive,homefurnishingsandseveralotheroperationsthatsellvarious consumerproductsandservices.Berkshire’sretailingbusinesses,excludingPilot,employedapproximately25,400peopleat theendof2025.Informationregardingeachoftheseoperationsfollows. --- Page 48 --- K-22BerkshireHathawayAutomotive BerkshireHathawayAutomotive,Inc.(“BHA”)isoneofthelargestautomotiveretailersintheU.S.,operating108 newvehiclefranchisesthrough83dealershipslocatedprimarilyinmajoarmetropolitanmarketsintheU.S.Thedealerships sellnewandusedvehicles,vehiclemaintenanceandrepairservices,extendedservicecontracts,vehicleprotectionproducts andotherafteffrmarketproducts.BHAalsoarrangesfinancingforitscustomersthroughthird-partylenders.BHAoperates31 collisioncentersdirectlyconnectedtothedealerships’operationsandownsandoperatestwoautoauctionsandan automotivefluidmaintenanceproductsdistributor. DealershipoperationsarehighlyconcentratedintheArizonaandTexasmarkets,withapproximately75%of dealership-relatedrevenuesderivedfromsalesinthesemarkets.BHAmaintainsfranchiseagreementswith26different vehiclemanufactffurters,althoughitderivesasignificantportionofitsrevenuefromtheToyota/Lexus,GeneralMotors, Ford/Lddincoln,Nissan/InfinitiandHonda/Acurabrands.Thesemanufactffurtersnormallyrepresentapproximately90%ofthe revenuegeneratedbyBHA’sdealerships. Theretailautomotiveindustryrrishighlycompetitive.BHAfacescompetitionfromlargepublicandprivatedealership groupsandfromindividualfranchiseddealerships.Giventheretailpricetransparencyavailablaethroughonlineplatforms, andthefactthatfranchiseddealersacquirevehiclesfromthemanufactffurtersonthesametermsirrespectiveofvolume,the locationandqualityofthedealershipfacility,customerserviceandtransactionspeedarekeydifferentiatorsinattracting customers. BHA’soverallrelationshipswiththeautomobilemanufactffurtersaregovernedbyframeworkagreements.The frameworkagreementscontainprovisionsrelatingtothemanagement,operation,acquisitionandownershipstructureof BHA’sdealerships.FailuretomeetthetermsoftheseagreementscouldadverselyimpactBHA’sabialitytoacquireadditional dealershipsrepresentingthosemanufactffurters.Additionally,theseagreementscontainlimitationsonthenumberof dealershipsfromaspecificmanufacturterthatmaybeownedbyBHA. Individualdealershipsoperateunderfranchiseagreementswiththemanufactffurter,whichgrantsthedealershipentitya non-exclusiverighttosellthemanufactffurter’sbrandofvehiclesandoffeffrrelatedpartsandservicewithinaspecifiedmarket area,aswellastherighttousethemanufactffurter’strademarks.Theagreementscontainvariousrequirementsandrestrictions relatedtothemanagementandoperationofthefranchiseddealershipandprovideforterminationoftheagreementbythe manufactffurterornon-renewalforavarietyofcauses.Statesgenerallyhaveautomotivedealershipfranchiselawsthatprovide subsutantialprotectiontothefranchisee,anditisdifficultforamanufactffurtertoterminateornotrenewafranchiseagreement outsideofbankruptrrcyorwith“goodcause”undertheapplicablestatefranchiselaw. BHAalsodevelops,underwritesandadministersvariousvehicleprotectionplanssoldtoconsumersthroughBHA’s dealershipsandthird-partydealerships.BHAalsodevelopsproprietarytrainingprogramsandmaterialsandprovidesongoing monitoringandtrainingofthedealership’sfinanceandinsurancepersonnel. Homefurnishings ThehomefurnishingsretailingbusinessesconsistofNebraskaFurnitureMartInc.(“NFM”),R.C.WilleyHome Furnishings(“R.C.Willey”),StarFurnitureCompany(“Star”)andJordan’sFurniture,Inc.(“Jordan’s”).Thesebusinesses offeffrawideselectionoffurniturte,beddingandaccessories.Inaddition,NFMandR.C.Willeysellafulllineofmajoar householdappliances,electronics,floorcoveringsandotherhomefurnishings,andoffeffrcustomerfinancingtocomplement theirretailoperations.Animportantfeaturteofeachofthesebusinessesistheirabilitytocontrolcostsandtoproducdehigh businessvolumebyoffeffringsignificantvaluetotheircustomers. NFMoperatesitsbusinessfromfourretailcomplexeswithalmost4.5millionsquarefeetofretail,warehouseand administrativefacilitieslocatedinOmaha,Nebraska,Clive,Iowa,KansasCity,KansasandTheColony,Texas.NFMalso ownsHomemakersFurniturelocatedinUrbarndale,Iowa,whichhasapproximately600,000squarefeetofretail,warehouse andadministrativespace.NFMisthelargesthomefurnishingsretailerineachofthesemarkets.R.C.Willey,basedinSalt LakeCity,Utah,currentlyoperatestenfull-lineretailhomefurnishingsstoresandthreedistributioncenters.Thesefacilities includeapproximately1.3millionsquarefeetofretailspacewithfourstoreslocatedinUtah,onestoreinMeridian,Idaho, threestoresinNevada(LasVegasandReno)andtwostoresintheSacramento,Califorffniaarea. Jordan’soperatesaretailfurniturebusinessfromeightlocationswithapproximately1millionsquarefeetofretail spaceinstoreslocatedinMassachusetts,NewHampshire,RhodeIsland,MaineandConnecticut.Theretailstoresare supporutedbyan800,000squarefootdistributioncenterinTaunton,Massachusetts.Jordan’sisthelargestfurnitureretailer, asmeasuredbysales,inMassachusetts,MaineandNewHampshireandiswellknowninitsmarketsforitsuniquestore arrangementsandadvertisingcampaigns.StaroperateshomefurnishingsretailstoresinTexas.Star’sretailfacilities currentlyincludeabout700,000squarefeetofretailspacein10locationsinTexas,includingseveninHouston.y g --- Page 49 --- K-23PilotTravelCenters In2017,Berkshireacquireda38.6%noncontrollinginterestinPilotTravelCentersLLC(“Pilot”).OnJanuary31, 2023,Berkshireacquiredanadditional41.4%interestandattainedcontrolofPilotandbeganconsolidatingPilotforfinancial reportingpurposrresbeginningFebruarrry1,2023.OnJanuary16,2024,Berkshireacquiredtheremaining20%noncontrolling interestandPilotbecameanindirectwholly-ownedsubsuidiary. Pilotoperates675travelcenterand82fuel-onlyretaillocationsacrosstheU.S.andinfiveCanadianprovinces, primarilyunderthenamesPilotorFlyingJ,through663company-ownedlocations,aswellasthrough94locationsheldin unconsolidatedjointventurtes.PilotandsubsuidiariesalsoconductwholesalefuelandfuelmarketingbusinessesintheU.S. andselldieselfuelatover150locationsintheU.S.andCanadathroughvariousthird-partyarrangementsinwhichPilot procuresandsellsdieselfueltoconsumersatlocationsownedbythethirdparties.Pilotalsooperatesawaterdisposal businessintheoilfieldssector. Pilotsoldapproximately10.9billiongallonsoffuel(primarilydiesel,gasolineanddieselexhaustfluid)in2025 throughitsvariouscompany-ownedretaillocations,third-partyarrangementsandwholesalebusinesses.ThePilotoperated jointventurtesalsosoldapproximately900milliongallonsoffuelin2025.Additionally,Pilotprovideschargingstationsfor electricvehiclesatapproximately245travelcentersinconnectionwithanagreementwithGeneralMotorstodevelopa nationwideelectricvehiclefastchargernetworkofupto2,000chargingstallsinupto500U.S.locations.Pilotand subsuidiarieshadapproximately29,300employeesattheendof2025. Pilot’stravelcentersaregenerallylocatedclosetoaninterstatehighwayandoffeffrpetroleumproducts,merchandise, foodandotherservicesandamenitiestoconsumers,travelersandprofesffsionaltrucrkdrivers.Thetravelcenterindustryrris concentratedamongafewlargeoperators,includingLove’sTravelStopsandTravelCentersofAmerica,althoughthereare numerousindependentoperatorsthatoperateonetotentravelcenters.Pilot’stop10customersfordieselsalesaccountedfor approximately10%oftotaldieselgallonssoldin2025,whilePilot’stop10fuelsuppluiersaccountedforapproximately45% ofgallonspurchasedin2025. Pilotissubjuecttofederal,stateandlocallawsandregulationsrelatingtotheenvironment.Theselawsgenerally provideforcontrolofpollutantsreleasedintotheenvironmentandrequireresponsiblepartiestoundertakeremediationof hazardouswastedisposalsites.Penaltiesmaybeimposedfornon-compliance.Theretirementofcertainlong-livedassets (suchaspetroleumtanks,dispensersanddisposalwells)mayresultinassetretirementobligations. Other Otherretailingbusinessesincludethreejewelryrrcompanies.BorsheimJewelryrrCompany,Inc.(“Borsheims”)operates fromasinglestoreinOmaha,Nebraska.Borsheimsisahigh-volumeretailerofluxuryrrjewelry,rrengagementrings,watches, homedécorandrepairservices.Helzberg’sDiamondShops,LLC(“Helzberg”)isbasedinNorthKansasCity,Missouri,and operatesachainof161retailjewelryrrstoresin34states,whichincludesapproximately350,000squarefeetofretailspace. Helzberg’sstoresareinmalls,outletmallsandotherretailvenues,andoperateunderthenameHelzbergDiamonds®, HelzbergDiamondsOutlet®orHelzberg®.BenBridgeJeweler(“BenBridge”),basedinSeattle,Washington,operatesretail jewelryrrstoresundertheBenBridgeJewelerandsixotherbrandnamesinninewesternstates.TheBenBridgeJeweler locationsoffeffrloosediamonds,finishedjewelryrrandhigh-endtimepieces.BenBridgealsooperatessevenboutiquesthatsell timepiecesofspecificffbrands,includingRolex,Tudor,GrandSeiko,Omega,IWCandBreitling. See’sCandyShops,Incorporated(“See’s”)producesboxedchocolatesandotherconfectffioneryproductswithan emphasisonqualityanddistinctivenessintwolargekitchensinLosAngelesandSouthSanFranciscoandafacilityin Burlingame,Califorffnia.See’soperatesapproximately250retailandvolumesavingstoreslocatedmainlyinCaliforffniaand otherWesternstates,aswellasappraoximately100seasonallocations.See’srevenuesarehighlyseasonalwithapproximately halfofitsannualrevenuesearnedinthefourthquarter. ThePamperedChef,ffLtd.(“PamperedChef”)ffisapremierdirectsellerofdistinctivehigh-qualitykitchenwareproducts withsalesandoperationsintheU.S.,Canada,Germany,AustriaandFranceandoperationsinChina.PamperedChef’sff productportfolffioconsistsofover400PamperedChef®bffrandedkitchenwareitemsincategoriesrangingfromstonewareand cutlerytogrillingandentertaining.PamperedChef’sffproductsareavailablaethroughitssalesforceofindependentcooking consultantsandonline. --- Page 50 --- K-24OrientalTradingCompany(“OTC”)isanonlineretailerforfunvalue-pricedpartysuppluies,seasonalproducts,artsand craftsff,toysandnovelties,schoolsuppluies,educdationalgamesandpatientgiveaways.OTC,headquarteredinOmaha, Nebraska,servesabroadbaseofoverthreemillioncustomersannually,includingconsumers,schools,churches,medicaland dentaloffiffcesandotherbusinesses.OTCoffeffrsauniqueassortmentofover70,000funvalue-pricedproductsemphasizing proprietarydesigns.OTCoperatesbothdirect-to-consumerandbusiness-to-businessbrandsincludingOrientalTrading®, FunExpress®,MindWare®,SmileMakers®,MorrisCostumes®andHalloweenExpress.com®andutilizesamulti-channel marketingapproachalongwithdedicatedsalesteamstopromoteonlinesales. DetlevLouisMotorrad(“Louis”),headquarteredinHamburg,Germany,isaleadingretailerofmotorcycleclothing andequipmentinEurope.Louiscarriesover50,000differentstoreandprivatelabealproducts,mainlycoveringtheareasof clothing,technicalequipmentandleisure.Louishasover80storesinGermany,Austria,SwitzerlandandtheNetherlandsas wellasanonlinebusinesswithonlineshopsinvariouslanguagesinEurope. AdditionalinformationwithrespecttoBerkshire’sbusinesses Revenue,earningsbeforetaxesandidentifiaffblaeassetsattributabletoBerkshire’sreportablaebusinesssegmentsare includedinNote26toBerkshire’sConsolidatedFinancialStatementscontainedinItem8,FinancialStatementsand SuppluementaryData.AdditionalinformationregardingBerkshire’sinvestmentsinfixedmaturityandequitysecuritiesis includedinNotes3,4and5toBerkshire’sConsolidatedFinancialStatements. Berkshiremaintainsawebsite(http://www.berkshirehathaway.com)whereitsannualreports,certaincorporate governancedocuments,pressreleases,interimshareholderreportsandlinkstoitssubsuidiaries’websitescanbefound. Berkshire’speriodicreportsfiledwiththeSEC,whichincludeForm10-K,Form10-Q,Form8-Kandamendmentsthereto, maybeaccessedbythepublicfreeofchargefromtheSECandthroughBerkshire.Electroniccopiesofthesereportscanbe accessedattheSEC’swebsite(http:t//www.sec.gov)andindirectlythroughBerkshire’swebsite (http://www.berkshirehathaway.com).Copiesofthesereportsmayalsobeobtained,freeofcharge,uponwrittenrequestto: BerkshireHathawayInc.,3555FarnamStreet,Omaha,NE68131,Attn:CorporateSecretary.rr Item1A.RiskFactors Berkshireanditssubsuidiaries(referredtohereinas“we,”“us,”“our”orsimilarexpressions)aresubjuecttocertainrisks anduncertaintiesinitsbusinessoperationswhicharedescribedbelow.Therisksanduncertaintiesdescribedbelowarenot theonlyrisksweface.Additionalrisksanduncertaintiesthatarepresentlyunknownorarecurrentlydeemedimmaterialmay alsoimpairourbusinessoperations. GeneralBusinessRisks Terroristactscouldhurtouroperatingbusinesses. Anuclear,biologicalorchemicalterroristattackorarmedterroristincursionscouldproducesignificantlossestoour worldwideoperations.Ourbusinessoperationscouldbeadverselyaffeffctedfromsuchactsthroughthelossofhumanlife,ff destructionofproductionfacilitiesandinformationsystemsorotherpropertydamage.Wesharetheseriskswithall businesses. Cybersecurityriskscouldresultineconomiclossestoourbusinessesandreputationaldamage. Werelyontechnologyinvirtuatllyallaspectsofourbusiness.Likethoseofmanylargebusinesses,certainofour informationsystemshavebeensubjuecttocyberthreats,includingcomputerviruses,maliciouscodes,unauthorizedaccess, phishingeffoffrts,denial-of-serviceattacksandothercyber-attacks.Weexpectcontinuedexposuretosuchattacksinthefuture andattackshavebecomemoresophisticatedandfrequent.Asignificantdisruptrionorfailureofourtechnologysystemscould resultinserviceinterruptuions,safetyfailures,securityevents,regulatoryrrcompliancefailures,aninabilitytoprotect informationandassetsagainstunauthorizedusersandotheroperationaldifficulties.Cyber-attacksperpetratedagainstour systemscouldresultinlossofassetsandcriticalinformationandexposeustoremediationcostsandreputationdamage. --- Page 51 --- K-25Althoughwehavetakenstepsintendedtomitigatetheserisks,includingbusinesscontinuityplanning,disaster recoveryplanningandbusinessimpactanalysis,asignificantdisruptrrionorcyberintrusrionatoneormoreofoursignificant operationscouldadverselyaffeffctourresultsofoperations,financialconditionand/orliquidity.Additionally,ifweareunablae toacquire,develop,implement,adoptorprotectrightsaroundnewtechnology,wemaysufferacompetitivedisadvantage, whichcouldalsohaveanadverseeffeffctonourresultsofoperations,financialconditionand/orliquidity. Cyber-attackscouldfurtheradverselyaffeffctourabilitytooperateourfacilities,informationtechnologyandbusiness systemsorcouldcompromiseconfidffentialcompany,customerandemployeeinformation.Political,economic,socialor financialmarketinstabilityordamagetoorinterferffencewithouroperatingassets,customersorsuppluiersfromcyber-attacks mayresultinbusinessinterruptuions,lostrevenues,highercommodityprices,disruptrioninfuelsuppluies,lowerenergy consumption,unstablaemarkets,increasedsecurity,repairsandothercosts,includingpenaltiesandlegalproceedings,ormay materiallyadverselyaffeffctusinwaysthatcannotbepredictedatthistime.Anyoftheseriskscouldmateriallyaffeffctour consolidatedfinancialresults.Furthermore,instabilityinthefinancialmarketsresultingfromterrorism,sustainedor significantcyber-attacksorwarcouldalsohaveamaterialadverseeffeffctonourabilitytoraisecapital.Wesharetheserisks withallbusinesses. Geopoliticaleventscouldcauselossestoourbusinessandlossesinthevaluesofsecuritiesweown. Webelieverisksofadverseeffeffctsfromgeopoliticaleventsarerising,througharmedanddiplomaticconflicffts involvinggovernmentsinvariouspartsoftheworld.GovernmentpoliciesandactionstakenintheU.S.andelsewhere, includingresponsesofothergovernmentstosuchactionsmayadverselyaffeffctouroperatingbusinessesthroughreduced sales,increasedoperatingcostsorsanctions,restrictedsuppluychains,physicaldamagetoourpropertiesandlossoflifeffofour employeesandlossesinthevaluesofthesecuritiesweown.Inaddition,internationaltradepoliciesintheU.S.and elsewhere,includingtariffsandotherbarriers,couldnegativelyimpactouroperatingresults.Wesharetheseriskswithall businesses. Wearedependentonafewkeypeopleforourmajoarinvestmentandcapitalallocationdecisions. InMay2025,Berkshire’sBoardofDirectorsappointedMr.GregoryrrE.AbeltosucceedMr.WarrenE.Buffetfftas ChiefExecutiveOffiffcereffeffctiveJanuary1,2026.Majoarcapitalallocationandinvestmentdecisionsaretheresponsibilityof Mr.Abel.Mr.AjitJainisViceChairmanofBerkshire’sinsuranceoperations.Mr.AdamJohnsonisPresidentofBerkshire’s ConsumerProducts,ServiceandRetailingoperations.Mr.JainandMr.JohnsoneachreportdirectlytoMr.Abel. Ifforanyreasontheservicesofourkeypersonnelweretobecomeunavailablae,therecouldbeamaterialadverseeffeffct onouroperations.TheBoardcontinuallymonitorsthisrisk.WebelievethattheBoard’ssuccessionplans,togetherwiththe outstandingmanagersrunningournumeroushighlydiversifieffdoperatingunits,helpstomitigatethisrisk. Weneedqualifieffdpersonneltomanageandoperateourvariousbusinesses. Inourdecentralizedbusinessmodel,weneedqualifieffdandcompetentmanagementtodirectday-to-daybusiness activitiesofouroperatingsubsuidiariesandtomanagechangesinfuturebusinessoperationsduetochangingbusinessor regulatoryrrenvironments.Ouroperatingsubsuidiariesalsoneedqualifieffdandcompetentpersonneltoexecutebusinessplans andservetheircustomers,suppluiersandotherstakeholders.Ourinabilitytorecruirrt,trainandretainqualifieffdandcompetent managersandpersonnelcouldnegativelyaffeffcttheoperatingresults,financialconditionandliquidityofoursubsuidiariesand Berkshireasawhole.Further,laboradisruptrrionsorstrikesatoursubsuidiaries,ourcustomersorwithinoursuppluychainscould reduceoursales,increaseourcostsandnegativelyimpactourperiodicoperatingresults. Investmentsareunusuallyconcentratedinequitysecuritiesandfairvaluesaresubjecttolossinvalue. Weconcentrateahighpercentageoftheequitysecurityinvestmentsofourinsurancesubsuidiariesinrelativelysmall numberofissuers.Asignificantdeclineinthefairvaluesofourlargerinvestmentsinequitysecuritiesmayproducea materialdeclineinourconsolidatedshareholders’equityandourconsolidatedearnings. Sincealargepercentageofourequitysecuritiesareheldbyourinsurancesubsuidiaries,significantdecreasesinthefair valuesoftheseinvestmentswillproducesignificantdeclinesinthestatuttoryrrsurplusofourinsurancesubsuidiaries.Ourlarge statuttoryrrsurplusisacompetitiveadvantage,andalong-termmaterialdeclinecouldhaveanadverseeffeffctonourclaims- payingabilityratingsandourabilitytowritenewinsurancebusiness,thuspotentiallyreducingourfutureunderwriting profitsff. --- Page 52 --- K-26Competitionandtechnologymayerodeourbusinessfranchisesandresultinlowerearnings. Eachofouroperatingbusinessesfacesintensecompetitionwithinmarketsinwhichtheyoperate.Whilewemanage ourbusinesseswiththeobjectiveofachievinglong-termsustainablaegrowthbydevelopingandstrengtheningcompetitive advantages,manyfactors,includingtechnologicalchanges,disruptriveinnovationsanddifficultiesinenforcing,protecting anddefendingourintellectualproperties,mayerodeorpreventthestrengtheningofcompetitiveadvantages.Accordingly, ourfutureoperatingresultswilldependtosomedegreeonouroperatingunitssuccessfulfflyprotectingandenhancingtheir competitiveadvantages.Ifouroperatingbusinessesareunsuccessfulffintheseeffoffrts,ourperiodicoperatingresultsinthe futuremaydecline. Unfavorablegeneraleconomicconditionsmaysignificffantlyreduceouroperatingearningsandimpairourabilityto accesscapitalmarketsatareasonablecost. Ouroperatingbusinessesaresubjuecttonormaleconomiccyclesaffeffctingthegeneraleconomyorthespecific industriesinwhichtheyoperate.Significantdeteriorationsofeconomicconditions,includingsignificantinflationover prolongedtimeperiodscouldproduceamaterialadverseeffeffctononeormoreofoursignificantoperations.Inaddition,our utilitiesandenergybusinessesandourrailroadbusinessregularlyutilizedebtasacomponentoftheircapitalstructuresand dependonhavingaccesstoborrowedfundsthroughthecapitalmarketsatreasonablaerates.Totheextentthataccesstothe capitalmarketsisrestrictedorthecostoffundingincreases,theseoperationscouldbeadverselyaffeffcted. Epidemics,pandemicsorothersimilaroutbreakscouldhurtouroperatingbusinesses. Theoutbrteakofepidemics,pandemicsorothersimilaroutbrteaksinthefuturemayadverselyaffeffctouroperations, includingthevalueofourequitysecuritiesportfolffio.Thismaybeduetoclosuresorrestrictionsrequestedormandatedby governmentalauthorities,disruptriontosuppluychainsandworkforce,reductionofdemandforourproductsandservices, creditlosseswhencustomersandothercounterparrtiesfailtosatisfytheirobligationstous,andvolatilityinglobalequity securitiesmarkets,amongotherfactors.Wesharemostoftheseriskswithallbusinesses. Regulatorychangesmayadverselyimpactourfutureoperatingresults. Overtime,regulatoryrrinitiativeshavebeenadoptedintheUnitedStatesandelsewhereforavarietyofreasons, includingasresponsestofinancialmarketscrises,globaleconomicrecessions,andsocialandenvironmentalissues.Such initiativesaddress,forexample,theregulationofbanksandothermajoarfinancialinstitutions,theregulationofproducdtsand servicesandenvironmentalandclimatechangemattersandincometaxpolicy.Theseinitiativesimpacteachofour businesses,albeitinvaryingways.Increasedregulatoryrrcompliancecostscouldhaveasignificantnegativeimpactonour operatingbusinesses,aswellasonthebusinessesinwhichwehavesignificant,butnotcontrolling,economicinterests.We cannotpredictwhethersuchinitiativeswillhaveamaterialadverseimpactonourconsolidatedfinancialposition,resultsof operationsorcashflows. Dataprivacyandartificffialintelligencelawsandregulationshavebeenenactedorareunderdevelopmentinvarious jurisdictionsintheU.S.andthroughouttheworld.Theseregulationsaddressnumerousaspectsrelatedtothesecurityof personalinformationthatisstoredinourinformationsystems,networksandfacilitiesandtheuseofartificffialintelligence tools.Failuretocomplywiththeseincreasedlawsandregulationscouldresultinreputationdamageandsignificanteconomic penalties. Climatechangeandtheregulationofgreenhousegas(“GHG”)emissionsmayimpactourbusinesses. Climateandweather-relatedeventsandtheregulationofGHGemissionscouldimpactourbusinessestovarying degrees.Climate-relatedevents,includinghurricanes,floods,wildfires,andotherextremeweathereventsmayincreasethe physicalrisksandimpactstoouroperations.Anincreaseinthefrequencyorintensityofextremeweathereventsandstorms couldnegativelyimpactthephysicalassetsofournon-insuranceoperationsandcouldproducelossesaffeffctingour businesses.Similarly,extremeweathereventsmayproducdelossesaffeffctingourinsuranceoperations,astheirprimary businessistomonitor,assessandpricerisk,includingclimate-relatedrisk,atanexpectedeconomicprofitfftoaddresstherisk- transferffneedsoftheirinsurancecustomers. AdditionalGHGandclimate-relatedpolicies,includinglegislation,mayemergethatinfluencethetransitiontoalower GHG-emittingeconomyandcould,inturn,influencecostsforourbusinessestocomplywiththosepolicies,includingBNSF andBHE,whichcombinedrepresentthevastmajoarityofBerkshire’sdirectemissions.Thefailuretocomplywithnewor existingregulationsorreinterpretationofexistingregulationsrelatingtoclimatechangecouldhaveasignificantadverse effeffctonourfinancialresults. --- Page 53 --- K-27Risksuniquetoourregulatedbusinesses Ourtoleranceforunderwritingriskassumedinourvariousinsurancebusinessesmayresultinsignificffant underwritinglosses. Whenproperlypaidfortheriskassumed,wehavebeenandwillcontinuetobewillingtoassumemoreriskfroma singleeventthananyotherinsurerhasknowinglyassumed.Accordingly,wecouldincurasignificantlossfromasingle catastropheeventresultingfromanaturaldisasterorman-madecatastrophessuchasterrorismorcyber-attacks.Weemploy variousdisciplinedunderwritingpracticesintendedtomitigatepotentiallosses,attempttoconsiderallpossiblecorrelations andavoidwritinggroupsofpoliciesfromwhichpre-taxlossesfromasinglecatastropheeventmightaggregateinexcessof $15billion.However,despiteoureffoffrts,itispossiblethatlossescouldmanifestinwaysthatwedonotanticipateandthat ourriskmitigationstrategiesarenotdesignedtoaddress.Variousprovisionsofourpolicies,negotiatedtolimitourrisk,such aslimitationsorexclusionsfromcoverage,maynotbeenforceableinthemannerweintend,asitispossiblethatacourtor regulatoryrrauthoritycouldnullifyfforvoidanexclusionorlimitation,orlegislationcouldbeenactedmodifyingorbarringthe useoftheseexclusionsandlimitations.Ourtoleranceforsignificantinsurancelossesmayresultinlowerreportedearningsin afutureperiod. Theprincipalcostassociatedwiththepropertyandcasualtyinsurancebusinessisclaims.Inwritingpropertyand casualtyinsurancepolicies,wereceivepremiumstodayandpromisetopaycoveredlossesinthefuture.However,itwilltake decadesbeforeallclaimsthathaveoccurredasofanygivenbalancesheetdatewillbesettled.Althoughwebelievethat recordedliabialitiesforunpaidlossesareadequate,wewillnotknowwhethertheseliabialitiesorthepremiumschargedforthe coveragesprovidedweresufficientuntilwellafteffrthebalancesheetdate.Estimatinginsuranceclaimcostsisinherently imprecise.Itispossiblethatsignificffantclaimsmayemergeordevelopinthefuturefromthepolicieswehavewritteninthe past. Asindustryrrpracticesandlegal,socialandenvironmentalconditionsevolve,unexpectedandunintendedissuesrelated toclaimsandcoveragemayemerge,includingneworexpandedtheoriesofliabiality,increasedfrequencyoflitigationdriven, inpart,bytheincreasingtrendofthird-partylitigationfunding,andothersocialinflationtrendssuchasjuriesawarding increasinglylargerverdicts.Theseorotherchangescouldimposenewfinancialobligationsonusbyextendingcoverage beyondourunderwritingintentandresultinincreasedlitigationcostsandadversejudicialawards.Insomeinstances,these changesmaynotbecomeapparentuntilsometimeafteffrwehaveissuedinsuranceorreinsurancecontractsthatareaffeffctedby thechanges.Asaresult,thefullextentofliabialityunderourinsuranceorreinsurancecontractsmaynotbeknownformany yearsafteffracontractisissued.Ourestimatedunpaidlossesarisingundercontractscoveringpropertyandcasualtyinsurance risksarelarge($151.8billionatDecember31,2025),andasmallpercentageincreasetothoseliabialitiescanresultina materialreductioninreportedearnings. Changesinregulationsandregulatoryactionscanadverselyaffeffctouroperatingresultsandourabilitytoallocate capital. Ourinsurancebusinessesaresubjuecttoregulationinthejurisdictionsinwhichweoperate.Suchregulationsmayrelate to,amongotherthings,thetypesofbusinessthatcanbewritten,theratesthatcanbechargedforcoverage,thelevelof capitalthatmustbemaintainedandrestrictionsonthetypesandsizeofinvestmentsthatcanbemade.Regulationsmayalso restrictthetimingandamountofdividendpaymentstoBerkshirebythesebusinesses.U.S.stateinsuranceregulatorsand internationalinsuranceregulatorsarealsoactivelydevelopingvariousregulatoryrrmechanismstoaddresstheregulationof largeinternationallyactiveinsurancegroups,includingregulationsconcerninggroupcapital,liquidity,governanceandrisk management.Accordingly,changesinregulationsrelatedtotheseorothermattersorregulatoryrractionsimposingrestrictions onourinsurancebusinessesmayadverselyimpactourresultsofoperationsandrestrictourabilitytoallocatecapital. OurrailroadbusinessconductedthroughBNSFisalsosubjuecttoasignificantnumberoflawsandregulationswith respecttoratesandpractices,taxes,railroadoperationsandavarietyofhealth,safety,labora,environmentalandother matters.FailuretocomplywithapplicablelawsandregulationscouldhaveamaterialadverseeffeffctonBNSF’sbusiness. Governmentsmaychangethelegislativeand/orregulatoryrrframeworkwithinwhichBNSFoperates,withoutprovidingany recourseforanyadverseeffeffctsthatthechangemayhaveonthebusiness.Complyingwithlegislativeandregulatoryrrchanges mayposesignificantoperatingandimplementationrisksandrequiresignificantcapitalexpenditures.BNSFcanbeexposed tosignificantlitigationcostsandlossesarisingfromthesemattersandfromongoingbusinessoperations.q g --- Page 54 --- K-28BNSFderivessignificantrevenuesfromthetransportationofenergy-relatedcommodities,includingcoal.Changesin governmentpoliciesthatlimit,restrictordisplacecoalasafuelsourceingeneratingelectricity,orlimitorrestrictother commoditiesthatBNSFtransports,couldadverselyaffeffctrevenuesandearnings.Asacommoncarrier,BNSFisalso requiredtotransporttoxicinhalationhazardchemicalsandotherhazardousmaterials.Thereleaseofhazardousmaterials couldexposeBNSFtosignificantclaims,losses,penaltiesandenvironmentalremediationobligations.Changesinthe regulationoftherailindustryrrcouldnegativelyimpactBNSF’sabialitytodeterminepricesforrailservicesandtomakecapital improvementstoitsrailnetwork,resultinginanadverseeffeffctonourresultsofoperations,financialconditionand/or liquidity. TheU.S.freighttransportationinfrastructurteisintegrated.BNSF’soperationsmaybenegativelyaffeffctedbyservice disruptrionsofotherentities,suchasports,passengertrains,andotherrailroads,whichinterchangewithBNSFRailway.A prolongedservicedisruptrionatanyoftheseentitiescouldhaveadverseconsequencesonBNSF.Significantconsolidationor integrationinvolvingparticipantswithinthefreighttransportationindustry,rrincludingmergersamongmajoarrailcarriers,may leadtooperationaldisruptrionsacrosstherailnetworkandbroadersuppluychain,whichcouldnegativelyimpactBNSF’s operatingresults,financialconditionandliquidity. OurutilitiesandenergybusinessesoperatedunderBHEarehighlyregulatedbynumerousfederal,state,localand foreigngovernmentalauthoritiesinthejurisdictionsinwhichtheyoperate.Theselawsandregulationsarecomplex,dynamic andsubjuecttonewinterpretationsorchange.Regulationsaffeffctalmosteveryrraspectofourutilitiesandenergybusinesses. Regulationsbroadlyapplyandmaylimitmanagement’sabilitytoindependentlymakeandimplementdecisionsregarding numerousmattersincluding:acquiringbusinesses;construcrting,acquiring,disposingorretiringofoperatingassets;operating andmaintaininggeneratingfacilitiesandtransmissionanddistributionsystemassets;complyingwithpipelinesafetyand integrityandenvironmentalrequirements;settingrateschargedtocustomers;establaishingcapitalstructurtesandissuingdebt; managingandreportingtransactionsbetweenourdomesticutilitiesandourothersubsuidiariesandaffiffliates;andpaying dividendsorsimilardistributions.Failuretocomplywithorreinterpretationsofexistingregulationsandnewlegislationor regulations,suchasthoserelatingtoairquality,climatechange,emissionsperformancestandards,waterquality,coalash disposalandotherenvironmentalmatters,orchangesinthenatureoftheregulatoryrrprocessmayhaveasignificantadverse impactonourfinancialresults.Furthermore,ourregulatedenergysubsuidiariesareexposedtolossesarisingfromwildfires andrelatedlitigationandjudicialoutcomes.Theenergyrateschargedbyourregulatedenergysubsuidiariestocustomersare basedonthecostsofthebusinessandrequireregulatoryapproval.Totheextentcostsarenotrecoverablaethroughapproved rates,theoperatingresultsandfinancialconditionofthesebusinessescanbenegativelyimpacted,perhapsmaterially. BNSFrequiressignificantongoingcapitalinvestmenttoimproveandmaintainitsrailroadnetworksothat transportationservicescanbesafelyandreliablayprovidedtocustomersonatimelybasis.BHEalsorequiressignificant capitaltoconstrucrrt,operateandmaintaingeneration,transmissionanddistributionsystemstomeettheircustomers’needs andreliabialitycriteria.Systemassetsneedtobeoperationalforlongperiodsoftimetojustifyffthefinancialinvestment.The operationalorfinancialfailureofcapitalprojectsmaynotberecoverablaethroughratesthatarechargedtocustomers.Further, asignificantportionofcostsofcapitalimprovementsmaybefundedthroughdebt.Restrictedaccesstodebtcapitalmarkets byBNSForBHEcouldadverselyaffeffcttheresultsofoperations,liquidityand/orcapitalresourcesofthesebusinesses. Item1B.UnresolvedStaffffComments None. Item1C.Cybersecurity Berkshirerecognizesthatmaintainingprocessesforidentifyiffng,assessing,andmanagingcybersecuritythreatsis importantindealingwithitssignificantbusinessrisks.Assuch,Berkshirehasimplementedaframeworkforcybersecurity andcyber-relatedinformationmanagementacrossBerkshire’sdiversegroupsofbusinesses.Theframeworkpermitseach BerkshireBusinessGroup(“BusinessGroup”)totailorsolutionstoidentify,ffmanage,andmitigaterisksbasedontheirown assessmentoftheiruniquecybersecurityrisksinconjunctionwitheachBusinessGroup’soverallriskmanagementprocesses. Atthesametime,theframeworkhelpsenableconsistentandappropriatecomplianceinreportingmaterialcybereventsand risksacrossBerkshire. EachBusinessGroup’sChiefInformationSecurityOffiffcer(“CISO”)onatleastanannualbasisistoprovideareport totheBusinessGroup’sseniormanagement,regardingthestateoftheircybersecurityprogramanditsmaterialcyberrisks. ThesereportsarealsosharedwithBerkshire’sinternalauditgrouptoinformandenhancetheoverallriskmanagement processes.Inaddition,eachBusinessGroupisrequiredtomaintainanincidentreportingprocesstoreportsignificant cybersecurityeventstoBerkshire.BerkshireanditsBusinessGroupsengageandpartnerwithawiderangeofthirdpartiesto assess,audit,educdate,implement,operate,protect,andremediatevariouscybersecurityrelatedelements. --- Page 55 --- K-29BerkshireanditsBusinessGroupsrelyonthird-partyserviceprovidersforavarietyofproductsandservicestorun theirinformationsystems.ThisdependenceexposesBerkshireandtheBusinessGroups,alongwithotherswhousethese serviceproviders,totheimpactofacyber-attackontheirserviceproviders.Onoccasion,acyber-attackonathird-party serviceprovidercouldhaveasignificantfinancial,operationalorreputationalimpacttoBerkshire.BerkshireanditsBusiness Groupscontinuouslymonitortherisksassociatedwithitsserviceproviders. TheAuditCommitteeofBerkshire’sBoardofDirectorshasresponsibilityforoversightofBerkshire’scybersecurity riskmanagementprogram.TheAuditCommitteereceivesperiodicreportsregardingthenumberofandimpactfrom cybersecurityincidentsreportedthroughBerkshire’scybersecurityincidentreportingprocess.Additionally,theAudit Committeeisupdatedoncybersecuritytrendsandrelatedissues.Furthermore,theAuditCommitteeapprovesandreceives updatesontheworkplkanperformedbyBerkshire’sinternalauditgroupthatfocusesoninformationtechnologyand cybersecurityrisks.Thisincludesauditprocedurdesrelatedtointernalandexternalpenetrationtesting,attacksimulations, vulnerabialityassessments,cybersecurityprogramreviewsandotherauditsdesignedtoinvestigatespecificrisks.The frequencyoftheseupdatesisdeterminedbytheAuditCommitteeinconjunctionwithBerkshire’sseniormanagement. InadditiontotheAuditCommittee’soversight,theseniormanagementofBerkshire’sBusinessesGroupsare responsiblefortheday-to-dayoperationsofprotectingtheirbusinesses’informationsystems.EachBusinessGroupis requiredtoreportsignificantcybersecurityeventstoBerkshire.Berkshire’sseniormanagementreviewsincidentreportsto determinewhetheracyberincidentreportshouldbefiledwiththeSEC. Item2.DescriptionofProperties ThepropertiesusedbyBerkshire’sbusinesssegmentsaresummarizedinthissection.Berkshire’srailroadandutilities andenergybusinesses,inparticular,utilizeconsiderablephysicalassetsintheirbusinesses. BurlingtonNorthernSantaFe ThroughBNSFRailway,BNSFoperatesover32,500routemilesoftrack(excludingmultiplemaintracks,yardtracks andsidings)in28states.BNSFalsooperatesinthreeCanadianprovinces.BNSFownsover23,000routemiles,including easements,andoperatesover9,000routemilesoftrackagerightsthatpermitBNSFtooperateitstrainswithitscrewsover otherrailroads’tracks.AsofDecember31,2025,thetotalBNSFRailwaysystem,includingsingleandmultiplemaintracks, yardtracksandsidings,consistedofover50,000operatedmilesoftrack. BNSFoperatesvariousfacilitiesandequipmenttosupporutitstransportationsystem,includingitsinfrastrucrture, locomotivesandfreightcars.Italsoownsorleasesotherequipmenttosupporutrailoperations,suchasvehicles.Supporut facilitiesforrailoperationsincludeyardsandterminalsthroughoutitsrailnetwork,systemlocomotiveshopstoperform locomotiveservicingandmaintenance,acentralizednetworkoperationscenterfortraindispatchingandnetworkoperations monitoringandmanagement,computers,telecommunicationsequipment,signalsystemsandothersupporutsystems.Transferff facilitiesaremaintainedforrail-to-railaswellasintermodaltransferffofcontainers,trailersandotherfreighttraffiffcand includeapproximately27intermodalhubslocatedacrossthesystem.BNSFownsorholdsundernon-cancelableleases exceedingoneyearapproximately6,700locomotivesand70,700freightcars,inadditiontomaintenanceofwayandother equipment. Intheordinaryrrcourseofbusiness,BNSFincurssignificantcostsinrepairingandmaintainingitsproperties.In2025, BNSFrecordedapproximately$2.4billioninrepairsandmaintenanceexpense. BerkshireHathawayEnergy BHE’senergypropertiesconsistofthephysicalassetsnecessarytosupporutitselectricityandnaturalgasbusinesses. PropertiesofBHE’selectricitybusinessesincludeelectricgeneration,transmissionanddistributionfacilities,aswellascoal miningassetsthatsupporutcertainofBHE’selectricgeneratingfacilities.PropertiesofBHE’snaturtalgasbusinessesinclude naturalgasdistributionfacilities,interstatepipelines,storagefacilities,liquefiednaturalgasfacilities,compressorstations andmeterstations.ThetransmissionanddistributionassetsareprimarilywithineachofBHE’sutilityserviceterritories.In additiontothesephysicalassets,BHEhasrights-of-wffay,mineralrightsandwaterrightsthatenableBHEtoutilizeits facilities.Pursuanttoseparatefinancingagreements,themajoarityofBHE’senergypropertiesarepledgedorencumberedto supporutorotherwiseprovidethesecurityfortherelatedsubsuidiarydebt. --- Page 56 --- K-30BHEoritsaffiffliatesownorhaveinterestsinthefollowingtypesofoperatingelectricgeneratingfacilitiesatDecember 31,2025: EnergySourceEntity LocationbySignificffanceFacility Net Capacity (MW)(1)Net Owned Capacity (MW)(1) Wind PacifiCorp,MEC,BHECanada, BHEMontanaandBHE RenewablaesIowa,Wyoming,Texas,Montana, Nebraska,Washington,Califorffnia, Illinois,Canada,OregonandKansas 13,642 13,642 NaturalgasPacifiCorp,MEC,NVEnergy, BHECanadaandBHE RenewablaesNevada,Utah,Iowa,Wyoming,Illinois, Washington,Oregon,Texas,NewYork, ArizonaandCanada 13,193 12,430 Coal PacifiCorpandMEC Iowa,Utah,Wyoming,Coloradoand Montana 11,272 6,856 Solar MEC,NVEnergy,Northern PowergridandBHERenewablaesCaliforffnia,Australia,Nevada,Texas, Arizona,IowaandMinnesota 2,270 2,122 HydroelectricPacifiCorp,MECandBHE RenewablaesWashington,Oregon,Idaho,Utah, Hawaii,Montana,Illinois,Califorffniaand Wyoming 984 984 Nuclear MEC Illinois 1,822 455 GeothermalPacifiCorpandBHERenewablaesCaliforffniaandUtah 377 377 Total 43,560 36,866 (1)1FacilityNetCapaca ityinmegawe atts(MW)repreesentsthelesserofnominalratingsoranylimitationsunde rapplicable interconne ction,powerpurchase,orotheragreementsforintermittentresourcesand thetotalnetdepeendabl e capabia lityavailableduringsummerconditionsforallotherunits.Anintermittentresource’snominalratingisthe manufacffturer’scontractuallyspecifieidcapabia lity(inMW)unde rspecifieidconditions.NetOwnedCapaca ityindicates BHE’HHsownershrripofFacilityNetCapaca ity. AsofDecember31,2025,BHE’ssubsidiariesalsohaveelectricgeneratingfacilitiesthatareunderconstrucrtionin Iowa,Nevada,Montana,WestVirginiaandCaliforffniahavingtotalFacilityNetCapaacityandNetOwnedCapaacityof1,949 MW.BHE’ssubsuidiariesalsohavebatteryenergystoragesystemsinNevada,Montana,Califorffnia,WestVirginiaand OregonhavingtotalFacilityNetCapaacityandNetOwnedCapaacityinoperationof320MWandunderconstrucrrtionof543 MW. PacifiCorp,MECandNVEnergyownelectrictransmissionanddistributionsystems,includingapproximately28,200 milesoftransmissionlinesandapproximately1,650subsutations,andgasdistributionfacilities,includingapproximately 29,000milesofgasmainsandservicelines. TheBHEGT&Spipelinesystemconsistsofapproximately5,400milesofnaturalgastransmission,gatheringand storagepipelineslocatedinportionsofMaryland,NewYork,Ohio,Pennsylvania,Virginia,WestVirginia,SouthCarolina andGeorgia.Storageservicesareprovidedthroughtheoperationof17undergroundnaturalgasstoragefieldslocatedin Pennsylvania,WestVirginiaandNewYork.BHEGT&Salsooperates,asthegeneralpartner,andholdsa75%limited partnershipinterestinoneliquefiednaturalgasexport,importandstoragefacilityinMarylandandoperatesandhasinterests inthreesmallerliquefiednaturalgasfacilitiesinAlabama,FloridaandPennsylvania. NorthernNatural’spipelinesystemconsistsofapproximately14,100milesofnaturalgaspipelines,including approximately5,700milesofmainlinetransmissionpipelinesandapproximately8,400milesofbranchandlateralpipelines. NorthernNatural’send-useanddistributionmarketareaincludespointsinIowa,Nebraska,Minnesota,Wisconsin,South Dakota,MichiganandIllinoisanditsnaturalgassuppluyanddeliveryrrserviceareaincludespointsinKansas,Texas, OklahomaandNewMexico.Storageservicesareprovidedthroughtheoperationofoneundergroundnaturalgasstorage fieldinIowa,twoundergroundnaturalgasstoragefacilitiesinKansasandtwoliquefiednaturalgasstoragepeakingunits, oneinIowaandoneinMinnesota. KernRiver’ssystemconsistsofapproximately1,400milesofnaturalgaspipelines,whichextendsfromthesystem’s pointoforiginationinWyomingthroughtheCentralRockykkMountainsintoCaliforffnia. NorthernPowergrid(Northeast)andNorthernPowergrid(Yorkshire)operateanelectricitydistributionnetworkthat includesapproximately17,000milesofoverheadlines,approximately44,700milesofundergroundcablesand approximately860majoarsubsutations.AltaLink’selectricitytransmissionsystemincludesapproximately8,300milesof transmissionlinesandapproximately310subsutations. --- Page 57 --- K-31OtherSegments SignificantphysicalpropertiesusedbyBerkshire’sotherbusinesssegmentsaresummarizedbelow: NumberofProperties Business Country Locations Property/Facilitytype Owned Leased Insurance U.S. Officesandclaimscenters 9 79 Offiffces 4 74 Non-U.S.Locationsin24countriesOffiffces 1 63 ManufactffurtingU.S. Manufactffurtingfacilities 501 130 Offiffces/Warehouses 257 514 Retail/Showrooms 245 220 Housingsubdiuvisions 283 — Non-U.S.Locationsin58countriesManufactffurtingfacilities 167 87 Offiffces/Warehouses 122 459 Pilot U.S. Travelcenters 514 94 Offiffces/Warehouses 4 33 Fuelmixing/Processing facilities 2 25 Product/Railterminals 9 3 Cardlock/Fkkuelstops — 55 Saltwaterdisposalwells 138 — Ethanolplant 1 — McLane U.S. Distributioncenters/Offices 62 30 Service U.S. Trainingfacilities/Hangars 11 77 Offiffces/Distribution 14 130 Productionfacilities 3 3 Leasing/Showrooms/Retail 41 25 Non-U.S.Locationsin19countriesTrainingfacilities/Hangars 1 15 Offiffces/Distribution 1 45 Retailing U.S. Offices/Warehouses 22 25 Retail/Showrooms 145 454 Non-U.S.Locationsin7countriesRetail/Offices/Warehouses 1 96 Item3.LegalProceedings Berkshireanditssubsuidiariesarepartiesinavarietyoflegalactionsthatroutinelyariseoutofthenormalcourseof business,includinglegalactionsseekingtoestablaishliabialitydirectlythroughinsurancecontractsorindirectlythrough reinsurancecontractsissuedbyBerkshiresubsuidiaries.Plaintiffsffoccasionallyseekpunitiveorexemplaryrrdamages.Wedo notbelievethatsuchnormalandroutinelitigationwillhaveamaterialeffeffctonourfinancialconditionorresultsof operations. ReferenceismadetoNote27totheaccompanyingConsolidatedFinancialStatementsforinformationconcerning certainlitigationinvolvingBerkshiresubsuidiaries.Berkshireandcertainofitssubsuidiariesarealsoinvolvedinotherkindsof legalactions,someofwhichassertormayassertclaimsorseektoimposefinesandpenalties.Wecurrentlybelievethatany liabialitythatmayarisefromotherpendinglegalactionswillnothaveamaterialeffeffctonourconsolidatedfinancialcondition orresultsofoperations. Item4.MineSafetyDisclosures InformationregardingtheCompany’sminesafetyviolationsandotherlegalmattersdisclosedinaccordancewith Section1503(a)oftheDodd-FrankReformActisincludedinExhibit95tothisForm10-K. --- Page 58 --- K-32ExecutiveOffiffcersoftheRegistrant FollowingisalistoftheRegistrant’snamedexecutiveoffiffcersthroughDecember31,2025: Name AgePositionwithRegistrant Since WarrenE.Buffett 95ChairmanoftheBoardofDirectorsandChiefExecutiveOffiffcer 1970 GregoryrrE.Abel 63ViceChairman–Non-InsuranceOperations 2018 AjitJain 74ViceChairman–InsuranceOperations 2018 MarcD.Hamburg 76SeniorVice-President–ChiefFinancialOffiffcer 1992 Eachexecutiveoffiffcerserves,inaccordancewiththeby-lawsoftheRegistrant,untilthefirstmeetingoftheBoardof Directorsfollowingthenextannualmeetingofshareholdersanduntilasuccessorischosenandqualifieffdoruntilsuch executiveoffiffcersoonerdies,resigns,isremovedorbecomesdisqualifieffd.EffeffctiveJanuary1,2026,Mr.Abelbecame Berkshire’sChiefExecutiveOffiffcer.Mr.BuffettremainstheChairmanofBerkshire’sBoardofDirectors. FORWARD-LOOKINGSTATEMENTS Investorsarecautionedthatcertainstatementscontainedinthisdocumentaswellassomestatementsinperiodicpress releasesandsomeoralstatementsofBerkshireoffiffcialsduringpresentationsaboutBerkshireoritssubsuidiariesare“forward- looking”statementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995(the“Act”).Forward-looking statementsincludestatementswhicharepredictiveinnature,whichdependuponorrefertofutureeventsorconditions,or whichincludewordssuchas“expects,”“anticipates,”“intends,”“plans,”“believes,”“estimates”orsimilarexpressions.In addition,anystatementsconcerningfuturefinancialperforffmance(includingfuturerevenues,earningsorgrowthrates), ongoingbusinessstrategiesorprospectsandpossiblefutureBerkshireactions,whichmaybeprovidedbymanagement,are alsoforward-lookingstatementsasdefinedbytheAct.Forward-lookingstatementsarebasedoncurrentexpectationsand projectionsaboutfutureeventsandaresubjuecttorisks,uncertaintiesandassumptionsaboutBerkshireanditssubsuidiaries, economicandmarketfactorsandtheindustriesinwhichwedobusiness,amongotherthings.Thesestatementsarenot guaranteesoffutureperformanceandwehavenospecificintentiontoupdatethesestatements. Actualeventsandresultsmaydiffermateriallyfromthoseexpressedorforecastedinforward-lookingstatementsdue toanumberoffactors.Theprincipalriskfactorsthatcouldcauseouractuatlperformanceandfutureeventsandactionsto differmateriallyfromsuchforward-lookingstatementsinclude,butarenotlimitedto,changesinmarketpricesofour investmentsinequitysecurities;theoccurrenceofoneormorecatastrophicevents,suchasanearthquake,hurricane, geopoliticalconflicfft,actofterrorismorcyber-attackthatcauseslossesinsuredbyourinsurancesubsuidiariesand/orlossesto ourbusinessoperations;thefrequencyandseverityofepidemics,pandemicsorotheroutbrteaks,andothereventsthat negativelyaffeffctouroperatingresultsandrestrictouraccesstoborrowedfundsthroughthecapitalmarketsatreasonablae rates;changesinlawsorregulationsaffeffctingourinsurance,railroad,utilitiesandenergyandfinancesubsuidiaries;changesin federalincometaxlaws;andchangesingeneraleconomicandmarketfactorsthataffeffctthepricesofsecuritiesorthe industriesinwhichwedobusiness. PartII Item5.MarketforRegistrant’sCommonEquity,RelatedSecurityHolderMattersandIssuerPurchasesofEquity Securities MarketInformation Berkshire’sClassAandClassBcommonstockarelistedfortradingontheNewYorkStockExchange,trading symbols:BRK.AandBRK.B,respectively. Shareholders Berkshirehadapproximately950recordholdersofitsClassAcommonstockand16,500recordholdersofitsClassB commonstockatFebruarry13,2026.Recordownersincludednomineesholdingatleast296,000sharesofClassAcommon stockand1,385,000,000sharesofClassBcommonstockonbehalfofbeneficial-but-not-of-recordowners. Dividends Berkshirehasnotdeclaredacashdividendsince1967. --- Page 59 --- K-33CommonStockRepurchaseProgram In2025,Berkshire’scommonstockrepurchaseprogramwasamendedtopermitBerkshiretorepurchaseitsClassA andClassBcommonstockatanytimethatBerkshire’sChiefExecutiveOffiffcer,afteffrconsultationwiththeChairmanofthe Board,believesthattherepurchasepriceisbelowBerkshire’sintrinsicvalue,conservativelydetermined.Priortothe amendment,theprogrampermittedWarrenBuffett,Berkshire’sChairmanoftheBoardofDirectorsandChiefExecutive Offiffcer,torepurchaseBerkshire’scommonstockunderthesamecriteria.Repurchasesmaybeintheopenmarketorthrough privatelynegotiatedtransactions.NoClassAorClassBshareswererepurchasedinthefourthquarterof2025. PeriodTotalnumberof sharespurchasedAverageprice paidpershareTotalnumberof sharespurchased aspartofpublicly announcedprogramMaximumnumberor valueofsharesthatyet mayberepurchased undertheprogram October —$ — — * November —$ — — * December —$ — — * —————— *TheprogramdoesnotspecifyiamaxiaamumnumberofsharestoberepurechasedorobligateBerkshkkiretorepurechaseany specificidollaramount ornumberofClassAorClassBsharesandthereisnoexpirationdatetotherepurechaseprogram. Berkshkkirewillnotrepurechaseitscommo nstockiftherepurechasesreducethevalueofBerkshkkire’sconsolidatddedcash,cash equivalentsttandU.S.TreasuryBillsholdingstolessthan$30billion. StockPerforffmanceGraph Thefollowingchartcomparesthevalueof$100investedinBerkshirecommonstockonDecember31,2020and subsuequentvalueswithasimilarinvestmentintheStandard&Poor’s500StockIndexandintheStandard&Poor’sProperty &CasualtyInsuranceIndex**. —————— *CumulativereturnfortheStanda rd&Poor’sindicesbasedonreinvestmentofdividends. **ItisdifficiulttodevelopagroupofcompaniescomparabletoBerkshkkire.Berkshkkireownssubsidiariesengagedinnumerous diverserrbusinessactivitiesofwhichanimporm tantcomponentisthepropertyttandcasualtyinsurancebusiness.Accordingly,ll BerkshkkireusestheStanda rd&Poor’sPropertytt&CasualtyInsuranceIndexeeforcomparativepurposres. Item6.[Reserved]119105133166196 129142157196217 129 134155213234 80DOLLAR S 100140 120180 160220 200240 2020 2021 2022 2023 2024S&P500Property&Casualty InsuranceIndex*S&P500Index*BerkshireHathawayInc. 2025260 --- Page 60 --- K-34Item7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations ResultsofOperations NetearningsattributabletoBerkshireshareholdersforeachofthepastthreeyearsaredisaggregatedinthetablaethat follows.Amountsareafteffrdeductingincometaxesandexcludeearningsattributabletononcontrollinginterests(inmillions). 2025 2024 2023 Insurance–underwriting $7,258$9,020$5,428 Insurance–investmentincome 12,513 13,6709,567 BNSF 5,4765,031 5,087 BerkshireHathawayEnergy(“BHE”) 3,9793,7302,331 Manufactffurting,serviceandretailing 13,64713,07213,362 Investmentgains(losses) 30,73741,558 58,873 Other-than-temporaryrrimpairmentofinvestmentsinKraftffHeinzandOccidental (8,255) — — Other 1,613 2,9141,575 NetearningsattributabletoBerkshireshareholders $66,968$88,995$96,223 Throughoursubsuidiaries,weengageinnumerousdiversebusinessactivities.Thebusinesssegmentdata(Note26to theaccompanyingConsolidatedFinancialStatements)shouldbereadinconjunctionwiththisdiscussion. Ourperiodicoperatingresultsmaybeaffeffctedinfutureperiodsbytheimpactsofongoingmacroeconomicand geopoliticalconflicfftsandevents,includingtensionsfromdevelopinginternationaltradepoliciesandtariffs,aswellas changesinindustryrrorcompany-specificfactorsorevents.Considerableuncertaintyremainsastotheultimateoutcomeof theseevents.Wearecurrentlyunablaetoreliablaypredicttheultimateimpactonourbusinesses,whetherthroughchangesin theavailabialityofproducts,suppluychaincostsandeffiffciency,andcustomerdemandforourproductsandservices.Itis reasonablaypossibletherecouldbeadverseconsequencesonouroperatingbusinesses,aswellasonourinvestmentsinequity securities,whichcouldsignificantlyaffeffctourfutureresults. Insuranceunderwritinggeneratedafteffr-taxearningsof$7.3billionin2025,$9.0billionin2024and$5.4billionin 2023.Thecomparativeearningsdeclinein2025reflectedlowerearningsfromeachofourunderwritinggroups.Overall underwritingresultsoverthepastthreeyearswereexceptionalcomparedtoresultsoverlongerperiods.However,earnings maydeclineinthefuturefromtheongoingimpactsofcompetitionwithintheindustryrrandrisingclaimcosttrends.Afteffr-tax lossesfromsignificantcatastropheeventswereapproximately$850millionin2025,$1.2billionin2024and$725millionin 2023. Afteffr-taxearningsfrominsuranceinvestmentincomedeclined$1.2billion(8.5%)in2025versus2024,reflecting lowerinterestincome,attributabletolowerinterestrates,anddividendincome.Insuranceinvestmentincomeincreased$4.1 billionin2024comparedto2023,drivenbyhigherinterestincomefromshort-terminvestments.Insuranceinvestment incomein2025wasimpactedbytheeffeffctsoflargecapitaldistributionstoBerkshireattheendof2024.Theincomeearned oninvestments(primarilyU.S.TreasuryBills)heldbyBerkshireisincludedin“other”earningsintheprecedingtablae. Afteffr-taxearningsofBNSFincreased8.8%in2025anddeclined1.1%in2024,comparedtothecorrespondingprior year.Theincreasein2025wasprimarilyattributabletoloweroperatingexpenses,attributabletoimprovedoperating effiffciencies,lowerlitigationaccruarls,theeffeffctofachargein2024fromalaboraagreementandalowereffeffctiveincometax rate.Earningsin2024benefitedfromhigherunitvolume,improvementsinemployeeproductivityandlowerotheroperating costs,andwerenegativelyimpactedbychargesin2024relatedtoalaboraagreementinthefourthquarterandlitigation accruarls. Afteffr-taxearningsofBHEincreased$249million(6.7%)in2025comparedto2024and$1.4billionin2024compared to2023.Theearningsincreasein2025reflectedlowerwildfirelossaccruarlsatPacifiCorp,reducedearningsattributableto noncontrollinginterestsandtheimpactofrealestatebrokeragebusinesslitigationaccruarlsin2024,partiallyoffsffetbylower earningsfromthenaturalgaspipelinesandotherenergybusinesses.Theincreasein2024wasprimarilyduetolowerwildfire lossaccruarrlsandlowerearningsattributabletononcontrollinginterests,partiallyoffsffetbyrealestatebrokeragebusiness litigationaccruarrls. Earningsfromourmanufactffurting,serviceandretailingbusinessesincreased4.4%in2025comparedto2024and decreased2.2%in2024comparedto2023.Resultsamongournumerousoperationsin2025weremixed,withoverall earningsincreasesinourmanufactffurtingandservicesbusinessesandlowerearningsfromtheretailingbusinesses.The earningsdeclinein2024reflectedlowerearningsfromourserviceandretailingbusinesses,partiallyoffsffetbyanoverall increasefromourmanufactffurtingbusinesses. --- Page 61 --- K-35Management’sDiscussionandAnalysis ResultsofOperations Investmentgains(losses)canincludesignificantunrealizedgainsandlossesfromchangesinmarketpricesofour investmentsinequitysecuritiesandinforeigncurrencyexchangeratesapplicabletocertainofourinvestments.Webelieve thatinvestmentgainsandlosses,whetherrealizedfromdispositionsorunrealizedfromchangesinmarketpricesand exchangerates,aregenerallymeaninglessinunderstandingourreportedperiodicresultsorevaluatingourperiodiceconomic performance.Thesegainsandlosseshavecausedandwillcontinuetocausesignificantvolatilityinourperiodicearnings. Investmentgainsin2023alsoincludedanafter-taxnon-cashremeasurementgainofapproximately$2.4billionrelatedtoour previouslyheld38.6%interestinPilotthroughtheapplicationoftheacquisitionaccountingmethod. Werecordedother-than-temporaryrrimpairmentlossesin2025onourinvestmentsinTheKraftffHeinzCompany(“KraKft Heinz”)andOccidentalPetroleumCorporation(“Occidental”)commonstock,whichareaccountedforundertheequity method.SeeNote5totheaccompanyingConsolidatedFinancialStatements. Afteffr-taxotherearningsincludeinvestmentincomenotallocatedtooperatingbusinesses,earningsfromequitymethod investments(excludingthepreviouslymentionedother-than-temporaryrrimpairmentlossesrecognizedonequitymethod investments),foreigncurrencyexchangerategainsandlossesrelatedtoBerkshireandBHFCnon-U.S.Dollardenominated debtandgoodwillimpairmentlosses.Afteffr-taxotherearningsin2025declined$1.3billioncomparedto2024,reflecting afteffr-taxforeigncurrencyexchangeratelossesin2025of$642millioncomparedtoafteffr-taxgainsin2024of$1.15billion, reducedearningsfromequitymethodinvestmentsandincreasedgoodwillimpairmentlosses,partiallyoffsffetbyincreased investmentincome. Insurance—Underwritiniig Ourperiodicunderwritingearningsmaybesubjuecttoconsiderablevolatilityfromthetimingandmagnitudeof significantpropertycatastrophelossevents.Wecurrentlyconsiderconsolidatedpre-taxlossesexceeding$150millionfrom aneventoccurringinthecurrentyeartobesignificant.WeincurredsignificantlossesfromtheSouthernCaliforffniawildfires in2025,HurricanesHeleneandMiltonin2024andstormsand/orfloodsinNewZealandandItalyin2023.Changesin estimatesforunpaidlossesandlossadjudstmentexpenses(“LAE”),includingamountsestablaishedforoccurrencesinprior years,andforeigncurrencytransactiongainsandlossesarisingfromtheremeasurementofnon-functionalcurrency denominatedassetsandliabialitiescanalsosignificantlyaffeffctourperiodicunderwritingresults. Wewriteprimaryinsuranceandreinsurancepoliciescoveringpropertyandcasualtyrisks,aswellaslifeandhealth risks.OurinsuranceandreinsurancebusinessesareGEICO,BerkshireHathawayPrimaryGroup(“BHPrimary”)and BerkshireHathawayReinsuranceGroup(“BHRG”).Westrivetogeneratepre-taxunderwritingearnings(definffedas premiumsearnedlessinsurancelosses/be/nefitsincurredandunderwritingexpenses)overthelongterminallbusiness categories,exceptinourretroactivereinsuranceandperiodicpaymentannuitybusinesses.Time-value-of-moneyconceptsare importantconsiderationsinestablaishingpremiumsreceivedattheinceptionofthesepolicies.Whilenonewretroactive reinsuranceorperiodicpaymentannuitycontractshavebeenwritteninrecentyears,wewillcontinuetorecordchargesto earningsrelatedtotherun-offffofpre-existingcontractsovertheremainingclaimsettlementperiods. Underwritingresultsofourinsurancebusinessesaresummarizedbelow(dollarsinmillions). 2025 2024 2023 Pre-taxunderwritingearnings: GEICO $6,824$7,813$3,635 BHPrimary 785 855 1,374 BHRG 1,851 2,737 1,904 Pre-taxunderwritingearnings 9,460 11,405 6,913 Incometaxes 2,202 2,385 1,485 Netunderwritingearnings $7,258$9,020$5,428 Effeffctiveincometaxrate 23.3% 20.9% 21.5% --- Page 62 --- K-36Management’sDiscussionandAnalysis Insurance—Underwritiniig GEICEEO GEICOwritespropertyandcasualtyinsurancepolicies,primarilyprivatepassengerautomobileinsurance,inall50 statesandtheDistrictofColumbia.GEICOoffeffrsitspoliciesmainlybydirectresponsemethodswheremostcustomers applyforinsurancecoveragedirectlytothecompany.GEICOalsooperatesaninsuranceagencythatoffeffrsinsurance policieswrittenbythirdpartiesforindividualsdesiringcoveragesthataregenerallynotoffeffredbyGEICO.Asummaryof GEICO’sunderwritingresultsfollows(dollarsinmillions). 2025 2024 2023 Amount % Amount % Amount % Premiumswritten $45,193 $42,916 $39,837 Premiumsearned $44,481 100.0$42,252 100.0$39,264 100.0 LossesandLAE 32,144 72.3 30,331 71.8 31,814 81.0 Underwritingexpenses 5,513 12.4 4,108 9.73,815 9.7 Totallossesandexpenses 37,657 84.734,439 81.535,629 90.7 Pre-taxunderwritingearnings $6,824 $7,813 $3,635 2025versus2024 Premiumswrittenincreased$2.3billion(5.3%)in2025comparedto2024,primarilyattributabletoanincreasein policies-in-forceoverthepastyear.Premiumsearnedin2025increased$2.2billion(5.3%)comparedto2024. LossesandLAEincreased$1.8billion(6.0%)in2025comparedto2024.GEICO’slossratio(lossesandLAEto premiumsearned)was72.3%in2025and71.8%in2024.Thelossratioincreasein2025reflectedtheimpactofhigher averageclaimsseverities,partiallyoffsffetbyanincreaseinaverageearnedpremiumsperpolicy,lowercatastrophelossesand acomparativeincreaseinfavorabledevelopmentofprioraccidentyears’claimsestimates.LossesandLAEincurredin2024 fromHurricanesHeleneandMiltonwereapproximately$360million. Privatepassengerautoclaimsfrequenciesdeclinedin2025versus2024forpropertydamageandcollisioncoverages (onetothreepercentrange),whilebodilyinjunrycoveragefrequencyincreased(fourtosixpercentrange).Averageclaims severitiesincreasedin2025forpropertydamageandcollisioncoverages(twotofourpercentrange)andincreasedforbodily injunrycoverages(twelvetofourteenpercentrange)comparedto2024.Lossesandlossadjudstmentexpensesincluded reductionsintheultimatelossestimatesforprioraccidentyears’claimsof$957millionin2025comparedto$550millionin 2024. Underwritingexpensesincreased34.2%in2025comparedto2024.GEICO’sexpenseratio(underwritingexpenseto premiumsearned)was12.4%in2025,anincreaseof2.7percentagepointscomparedto2024.Theincreasesweredrivenby higheradvertisingandotherpolicyacquisitionexpenses.TheearningsfromGEICO’sinsuranceagency(third-party commissions,netofoperatingexpenses)areincludedasareductionofunderwritingexpenses. 2024versus2023 Premiumswrittenincreased$3.1billion(7.7%)in2024comparedto2023,reflectinganincreaseinaveragewritten premiumsperautopolicyof7.8%,primarilyattributabletorateincreases,partiallyoffsffetbya0.5%decreaseinpolicies-in- force.Therateofdeclineinpolicies-in-forceslowedinthefirsthalfof2024,withgrowthexperiencedinthesecondhalfof theyear.Premiumsearnedin2024increased$3.0billion(7.6%)comparedto2023. LossesandLAEdecreased$1.5billion(4.7%)in2024comparedto2023.GEICO’slossratiowas71.8%in2024and 81.0%in2023.Thelossratiodeclinereflectedtheimpactofhigheraverageearnedpremiumsperautopolicyandlower claimsfrequencies,partiallyoffsffetbyincreasesinaverageclaimsseverities,lowerfavorabledevelopmentofprioraccident years’claimsestimatesandlossesfromHurricanesHeleneandMiltonin2024. --- Page 63 --- K-37Management’sDiscussionandAnalysis Insurance—Underwritiniig GEICEEO Claimsfrequenciesdeclinedin2024versus2023forpropertydamage(twotothreepercentrange)andcollision(eight toninepercentrange)coverages,withbodilyinjunrycoveragedownslightly.Averageclaimsseveritiesincreasedin2024for propertydamageandcollision(twotofivepercentrange)andbodilyinjunry(eighttotenpercentrange)coveragescompared to2023.Reductionsintheultimatelossestimatesforprioraccidentyears’claimswere$550millionin2024comparedto $1.5billionin2023. Underwritingexpensesincreased7.7%in2024comparedto2023.GEICO’sexpenseratiowas9.7%in2024, unchangedfrom2023,asimprovedoperatingeffiffcienciesandincreasedoperatingleveragewereoffsffetbyincreased advertisingexpenses. BHPrimaryr BHPrimaryconsistsofnumerousseparatelymanagedbusinessesthatprovideawidevarietyofprimarilycommercial insurancesolutions,includinghealthcareprofesffsionalliabiality,workers’compensation,automobile,generalliabiality,property andspecialtycoverages.BHPrimary’sinsurersincludeBerkshireHathawaySpecialtyInsuranceGroup(“BHSI”),RSUI, CapSapecialty,BerkshireHathawayHomestateGroup(“BHHC”),MedPro,GUARDInsuranceCompanies(“GUARD”), NICOPrimaryGroup(“NICOPrimary”),BerkshireHathawayDirect(“BHDirect”)andU.S.LiabilityInsurancecompanies (“USLI”). AsummaryofBHPrimary’sunderwritingresultsfollows(dollarsinmillions). 2025 2024 2023 Amount % Amount % Amount % Premiumswritten $18,713 $18,836 $18,142 Premiumsearned $18,713 100.0$18,733 100.0$17,129 100.0 LossesandLAE 12,519 66.912,666 67.611,224 65.5 Underwritingexpenses 5,409 28.95,212 27.8 4,531 26.5 Totallossesandexpenses 17,928 95.8 17,878 95.415,755 92.0 Pre-taxunderwritingearnings $785 $855 $1,374 2025versus2024 Premiumswrittenwereslightlylowerin2025comparedto2024.Premiumswrittenincreasedin2025atMedPro (9.0%)(primarilyfromstudetnthealthbusiness),BHHC(7.4%)andNICOPrimary(13.0%)(primarilycommercial automobilebusiness),BHDirect(15.8%)andUSLI(4.9%).Theseincreasesweresubsutantiallyoffsffetbydeclinesinwritten premiumsatGUARD(32.6%)andRSUI(8.7%).GUARD’sdeclinewasduetosignificantvolumereductionsacross numerousproductcategories,includingpersonallines,businessowners’andworkers’compensationbusiness,from initiativestoexitunprofitaffblaelinesandtightenedunderwritingstandards.ThedeclineatRSUIwasprimarilyduetoreduced propertyvolumes. LossesandLAEdeclined$147million(1.2%)in2025comparedto2024,andthelossratiodeclined0.7percentage pointscomparedto2024.Prioraccidentyears’ultimatelossestimatesincreasedbyapproximately$190millionin2025 comparedtoreductionsof$52millionin2024.Claimcostsforliabialitycoveragescontinuetobenegativelyimpactedby unfavfforablesocialinflationtrends,includingtheimpactsofjuryawardsandlitigationcosts.Lossesincurredfromsignificant catastropheeventswereapproximately$305millionin2025and$350millionin2024. Underwritingexpensesincreased$197million(3.8%)in2025comparedto2024.Theexpenseratioincreased1.1 percentagepointsin2025comparedto2024,primarilyduetobusinessmixchanges. --- Page 64 --- K-38Management’sDiscussionandAnalysis Insurance—Underwritiniig 2024versus2023 Premiumswrittenincreased$694million(3.8%)in2024comparedto2023,primarilyduetoincreasesatNICO Primary,BHDirectandBHHC,partiallyoffsffetbya16.3%reductionatGUARD.TheincreasesatNICOPrimaryandBHHC wereprimarilyattributabletocommercialautocoverageandtheincreaseatBHDirectreflectedgrowthacrossseveral productlines.ThedeclineatGUARDwasduetodecisionstoexitunprofitaffblaelinesofbusinessandtotightenunderwriting guidelines,whichbeganin2023. LossesandLAEincreased$1.4billion(12.8%)andthelossratioincreased2.1percentagepointsin2024comparedto 2023.Lossesincurredincludedreductionsofprioraccidentyears’claimsestimatesof$52millionin2024and$537million in2023.Thedeclineinfavorabledevelopmentwasattributabletoincreasesinestimatesforcasualtycoverages.Losses incurredfromsignificantcatastropheeventswereapproximately$350millionin2024andwereminimalin2023. Underwritingexpensesincreased$681million(15.0%)andtheexpenseratioincreased1.3percentagepointsto27.8% in2024comparedto2023.TheincreaseintheexpenseratiowasprimarilyattributabletoBHSIfromchangesinbusiness mixandGUARDduetoincreasedexpensesandtheimpactoflowerpremiumvolumes. BHRGHH BHRGoffeffrsexcess-of-lffossandquota-sharereinsurancecoveragesonpropertyandcasualtyriskstoinsurersand reinsurersworldwidethroughtheNICO,GeneralReandTransReGroups.Wealsowritelifeffandhealthreinsurance coveragesthroughtheGeneralReGroupandBerkshireHathawayLifeInsuranceCompanyofNebraska.Asummaryrrof BHRG’spre-taxunderwritingresultsfollows(inmillions). Pre-taxunderwritingearnings(loss) 2025 2024 2023 Property/casualty $ 3,170$ 3,800$ 3,508 Life/health 374 223 354 Retroactivereinsurance (1,070) (846) (1,541) Periodicpaymentannuity (711) (597) (650) Variableannuity 88 157 233 Pre-taxunderwritingearnings $ 1,851$ 2,737$ 1,904 Property/ttca//sualty Asummaryofproperty/casualtyreinsuranceunderwritingresultsfollows(dollarsinmillions). 2025 2024 2023 Amount % Amount % Amount % Premiumswritten $20,168 $21,899 $22,360 Premiumsearned $20,439100.0$22,239100.0$21,938 100.0 LossesandLAE 11,689 57.212,244 55.112,664 57.7 Underwritingexpenses 5,580 27.3 6,195 27.8 5,766 26.3 Totallossesandexpenses 17,269 84.518,439 82.918,430 84.0 Pre-taxunderwritingearnings $3,170 $3,800 $3,508 2025versus2024 Premiumswrittenin2025declined$1.7billionandpremiumsearneddeclined$1.8billioncomparedto2024, primarilyattributabletovolumereductionsinpropertybusiness.Thevolumedeclinewasattributabletoincreased competitionandlowerrates. --- Page 65 --- K-39Management’sDiscussionandAnalysis Insurance—Underwritiniig LossesandLAEdeclined$555million(4.5%)in2025comparedto2024.Thelossratioincreased2.1percentage pointsin2025comparedto2024.Lossesincurredfromsignificantcatastropheeventswereapproximately$765millionin 2025and$800millionin2024.Additionally,lossesandLAEin2025werereduced$1.1billioncomparedto$1.7billionin 2024fromreductionsofestimatedultimateclaimliabialitiesforprioraccidentyears’claims.Thereductionsweremostly attributabletolower-than-expectedpropertylosses. Underwritingexpensesdecreased$615million(9.9%)in2025comparedto2024,primarilyduetotheimpactoflower premiumsearned.Underwritingexpensesalsoincludedforeigncurrencyexchangelossesfromtheremeasurementofcertain non-functionalcurrencydenominatedliabialitiesof$217millionin2025andgainsof$121millionin2024.Additionally, underwritingexpensesincludeda$490millionchargein2024inconnectionwithasettlementagreementreachedconcerning certainnon-insuranceaffiffliatesthatfiledvoluntaryrrpetitionsunderChapter11ofthebankruptrrcycodeintheUnitedStates BankruptrcyCourtfortheDistrictofNewJerseyin2023.SeeNote27totheaccompanyingConsolidatedFinancial Statements. 2024versus2023 Premiumswrittenin2024declined$461million(2.1%)versus2023,attributabletolowerpropertyvolumes,partly offsffetbygenerallyhigherrates,newbusinessandincreasedparticipationsincertaincasualtylines.Premiumsearnedin2024 increased1.4%comparedto2023. LossesandLAEdeclined$420million(3.3%)andthelossratiodeclined2.6percentagepointsin2024comparedto 2023.Lossesincurredfromsignificantcatastropheeventswereapproximately$800millionin2024and$900millionin 2023.Estimatedultimateclaimliabialitiesforprioraccidentyearswerereduced$1.7billionin2024and$1.4billionin2023, mostlyattributabletolower-than-expectedpropertylosses. Underwritingexpensesincreased$429million(7.4%)andtheexpenseratioincreased1.5percentagepointsin2024 comparedto2023.Underwritingexpensesin2024includedthe$490millionchargeinconnectionwiththepreviously discussedsettlementagreement.Underwritingexpensesalsoincludedpre-taxforeigncurrencyexchangegainsfromthe remeasurementofcertainnon-U.S.Dollardenominatedliabialitiesof$121millionin2024andlossesof$189millionin2023. Beforetheseitems,underwritingexpensesincreased$249million(4.5%)in2024comparedto2023. Lifei/heeealth Asummaryofourlife/ffhealthreinsuranceunderwritingresultsfollows(dollarsinmillions). 2025 2024 2023 Amount % Amount % Amount % Premiumswritten $5,302 $5,007 $5,093 Premiumsearned $5,269 100.0$4,998 100.0$5,072 100.0 Lifeandhealthbenefits 3,927 74.53,415 68.33,593 70.8 Underwritingexpenses 968 18.4 1,360 27.21,125 22.2 Totalbenefitsandexpenses 4,895 92.94,775 95.54,718 93.0 Pre-taxunderwritingearnings $374 $223 $354 Premiumsearnedincreased$271million(5.4%)in2025comparedto2024,primarilyduetoincreasesinnon-U.S. markets.Pre-taxunderwritingearningsin2025increased$151millioncomparedto2024,primarilyduetoincreasedearnings frominternationalandU.S.lifeffandhealthbusiness,reducedlossesinU.S.long-termcarebusinessandincreasedforeign currencyexchangegains. Premiumsearneddeclined$74millionin2024comparedto2023,whichincludedpremiumreductionsof$161million attributabletothecommutationsofseveralU.S.lifecontractsin2023.Otherwise,premiumsearneddeclined$235million (4.5%)in2024comparedto2023,primarilyattributabletoreductionsinnon-U.S.lifeffbusiness.Pre-taxunderwriting earningsdeclined$131millionin2024comparedto2023.Earningsincludedgainsfromlifeffcontractcommutationsof$53 millionin2024and$134millionin2023.Otherwise,underwritingearningsin2024reflecteddecreasedearningsfromnon- U.S.lifeffbusinessandincreasedlossesfromtheU.S.long-termcarebusinessinrun-off,ffpartlyoffsffetbyincreasedearnings fromU.S.lifeffbusiness. --- Page 66 --- K-40Management’sDiscussionandAnalysis Insurance—Underwritiniig Retroactivereinsurance Pre-taxunderwritinglossesfromtherun-offffofretroactivereinsurance,beforeforeigncurrencyexchangegainsand losses,were$950millionin2025,$898millionin2024and$1.5billionin2023,whichreflectedchangesinestimated ultimateliabialitiesandrelateddeferredchargesduringeachperiod.Foreigncurrencyexchangegainsandlosseslargelyderive fromtheremeasurementofliabialitiesofnon-functionalcurrencydenominatedcontractsofU.S.subsuidiaries.Pre-taxforeign currencyexchangelosseswere$120millionin2025comparedtogainsof$52millionin2024andlossesof$57millionin 2023. Estimatedultimateretroactivereinsuranceclaimliabialitiesforprioryears’contractsincreased$261millionin2025, $196millionin2024and$1.1billionin2023.Theneteffeffctsonunderwritingearningsin2025and2024fromtheincreases inultimateclaimliabialities,includingtheimpactofrelatedchangesindeferredcharges,wererelativelyinsignificant.The increaseinliabialitiesin2023primarilyderivedfromhigherestimatesforasbestos,environmentalandothercasualtyclaims, whichincludingtheimpactofchangesindeferredcharges,producedanincrementalpre-taxlossofapproximately$650 million.UnpaidlossesandLAEforretroactivereinsurancecontractswere$31.0billionanddeferredchargeassetson retroactivereinsurancewere$8.1billionatDecember31,2025.Deferredchargebalanceswillbechargedtoearningsover theexpectedremainingclaimssettlementperiods. Periodicpaymentannui ty Beforeforeigncurrencyeffeffcts,pre-taxlossesfromperiodicpaymentannuitycontractswere$603millionin2025, $596millionin2024and$590millionin2023,arisingprimarilyfromtheaccretionofdiscountedannuityliabialities.Periodic paymentannuityliabialitieswere$14.4billionatDecember31,2025,includingliabialitiesof$4.0billionforcontractswithout lifeffcontingencies,aswellastheeffeffctsofdiscountratechangesrecordedinaccumulatedothercomprehensiveincome.Pre- taxforeigncurrencyexchangeratelossesonnon-functionalcurrencydenominatedcontractsofU.S.subsuidiarieswere$108 millionin2025,$1millionin2024and$60millionin2023. Variableannui ty Ourvariableannuityguaranteereinsurancecontractsproducedpre-taxearningsof$88millionin2025,$157millionin 2024and$233millionin2023.Earningsareaffeffctedbychangesinsecuritiesmarkets,interestratesandforeigncurrency exchangerates.Thesecontractshavebeeninrun-offffformanyyears. Insurance—In—vestmentIncome Asummaryofnetinvestmentincomeattributabletoourinsuranceoperationsfollows(dollarsinmillions). Percentagechange 2025 2024 20232025vs20242024vs2023 Interestandotherinvestmentincome $10,175$11,550$6,081 (11.9)% 89.9% Dividendincome 5,086 5,198 5,500 (2.2) (5.5) Pre-taxnetinvestmentincome 15,261 16,748 11,581 (8.9) 44.6 Incometaxes 2,748 3,078 2,014 Netinvestmentincome $12,513$13,670$9,567 Effeffctiveincometaxrate 18.0% 18.4% 17.4% Pre-taxinvestmentincomedeclined8.9%in2025comparedto2024,whichincreased44.6%comparedto2023.The declinein2025reflectedlowerinterestandotherinvestmentincome,primarilyattributabletolowershort-terminterestrates, andreduceddividendincome.Thecomparativeincreaseinpre-taxinvestmentincomein2024reflectedincreasedinterest incomefromhigherU.S.TreasuryBillandshort-terminvestmentbalances,partlyoffsffetbylowerdividendincome.Dividend incomevariesfromperiodtoperiodduetochangesintheinvestmentportfolffioandtheamount,frequencyandtimingof dividendsfrominvestees.Additionally,interestincomeearnedintheinsurancegroupwasaffeffctedbylargecapital distributionstoBerkshireattheendof2024. TheincomeearnedonthecashandinvestmentsfromcapitaldistributedtoBerkshireisincludedinotherearnings shownonpagesK-34andK-54.Wecontinuetobelievethatmaintainingampleliquidityisparamountandinsistonsafety overyieldwithrespecttoshort-terminvestments. --- Page 67 --- K-41Management’sDiscussionandAnalysis Insurance—In—vestmentIncome Investedassetsofourinsurancebusinessesderivefromshareholdercapitalandnetliabialitiesassumedunderinsurance contractsor“floffat.”Themajoarcomponentsoffloatareunpaidlossesandlossadjudstmentexpenses,includingliabialities underretroactivereinsurancecontracts,life,ffannuityandhealthbenefitliabialities,unearnedpremiumsandcertainother liabialities,whicharereducedbyinsurancepremiumsreceivablae,reinsurancereceivablaes,deferredchargesassumedunder retroactivereinsurancecontractsanddeferredpolicyacquisitioncosts.Theeffeffctofdiscountratechangesonlong-duration insurancecontracts,whicharerecordedinaccumulatedothercomprehensiveincome,areexcludedfromfloat,assuch amountsarenotincludedinearningsintheConsolidatedStatementsofEarnings. Floatwasapproximately$176billionatDecember31,2025,$171billionatDecember31,2024and$169billionat December31,2023.Thecostoffloatismeasuredastheratioofpre-taxunderwritingearningstofloatbalances.Our combinedinsuranceoperationsgeneratedpre-taxunderwritinggainsineachofthethreeyearsendingDecember31,2025 andtheaveragecostoffloatwasnegativeineachyear. Asummaryofcashandinvestmentsheldinourinsurancebusinessesfollows(inmillions). December31, 2025 2024 Cash,cashequivalentsandU.S.TreasuryrrBills $ 212,651$ 212,591 Equitysecurities 294,144 263,366 Fixedmaturitysecurities 17,466 15,137 Other,includesloanstoaffiffliates 4,702 5,980 $ 528,963$ 497,074 FixedmaturityinvestmentsasofDecember31,2025wereasfollows(inmillions). Amortized CostUnrealized GainsCarrying Value U.S.Treasury,rrU.S.governmentcorporationsandagencies $ 3,533$ 14$ 3,547 Foreigngovernments 12,487 49 12,536 Corporateandother 1,157 226 1,383 $17,177$ 289$17,466 U.S.governmentobligationsareratedAA+orAa1bythemajoarratingagencies.Approximately95%ofourforeign governmentobligationswereratedAAorhigherbyatleastoneofthemajoarratingagencies.Foreigngovernmentsecurities includeobligationsissuedorunconditionallyguaranteedbynationalorprovincialgovernmententities. BNSFNN BurlingtonNorthernSantaFe,LLC(“BNSF”)operatesoneofthelargestrailroadsystemsinNorthAmerica,withover 32,500routemilesoftrackin28states.BNSFalsooperatesinthreeCanadianprovinces.BNSFclassifiesitsmajoarbusiness groupsbytypeofproductshipped,includingconsumerproducdts,industrialproducts,agriculturalandenergyproducts,and coal.AsummaryofBNSF’searningsfollows(dollarsinmillions). PercentageChange 2025 2024 20232025vs20242024vs2023 Railroadoperatingrevenues $23,350$23,355$23,474 (—%)(0.5)% Railroadoperatingexpenses 15,29515,88616,059 (3.7) (1.1) Railroadoperatingearnings 8,055 7,469 7,415 7.8 0.7 Otherrevenues(expenses),net 218 257 247 (15.2) 4.0 Interestexpense (1,098)(1,078)(1,048) 1.9 2.9 Pre-taxearnings 7,175 6,648 6,614 7.9 0.5 Incometaxes 1,699 1,617 1,527 5.1 5.9 Netearnings $5,476$5,031$5,087 8.8 (1.1) Effeffctiveincometaxrate 23.7% 24.3% 23.1% --- Page 68 --- K-42Management’sDiscussionandAnalysis BNSFNN AsummaryofBNSF’srailroadfreightvolumesbybusinessgroupfollows(cars/uni/tsinthousands). Cars/Units PercentageChange 2025 2024 20232025vs20242024vs2023 Consumerproducts 5,601 5,537 4,765 1.2% 16.2% Industrialproducts 1,382 1,448 1,471 (4.6) (1.6) Agriculturalandenergyproducts 1,421 1,399 1,299 1.6 7.7 Coal 1,218 1,205 1,468 1.1 (17.9) 9,622 9,589 9,003 0.3 6.5 2025versus2024 Railroadoperatingrevenuesdeclinedslightlyin2025comparedto2024.Averagerevenuepercar/urrnitdeclined0.5%, primarilyattributabletolowerfuelsurchargerevenueandunfavfforablebusinessmix,partiallyoffsffetbyhigheryield.Pre-tax earningswere$7.2billionin2025,anincreaseof7.9%comparedto2024.Railroadoperatingearningsincreasedin2025asa resultofloweroperatingexpensesfromimprovedproductivity,lowerlitigationaccruarls,andtheimpactofachargein December2024of$290millionrelatedtotheSMART-TDlaboraunionagreement. Operatingrevenuesfromconsumerproductsdeclined2.8%in2025to$8.2billioncomparedto2024.Revenuesin 2025reflectedloweraveragerevenuepercar/uni/t,partiallyoffsffetbyanincreaseinvolumesof1.2%.Thevolumesincrease wasprimarilyduetohigherintermodalshipmentsresultingfromhigherWestCoastimportsandanewintermodalcustomer, andanincreaseinautomotivevehiclevolumes. Operatingrevenuesfromindustrialproductsdeclined1.5%in2025to$5.0billioncomparedto2024.Revenuesin 2025reflectedlowervolumesof4.6%,partiallyoffsffetbyhigheraveragerevenuepercar/urrnit.Thedeclineinvolumeswas primarilyduetolowershipmentsofconstrucrtionproducts,plasticsandpetroleumproducts. Operatingrevenuesfromagriculturalandenergyproductsincreased3.2%to$6.6billionin2025comparedto2024. Therevenueincreasewasattributabletohigheraveragerevenuepercar/urrnitandhighervolumesof1.6%.Theincreasein volumeswasprimarilyduetohighergrainexportsandpetroleumfuelshipments,partiallyoffsffetbylowerdomesticgrainand feedshipments. Operatingrevenuesfromcoalincreased2.5%to$3.0billionin2025comparedto2024.Therevenueincreasewas attributabletohigheraveragerevenuepercar/uni/tandavolumeincreaseof1.1%.Thevolumeincreasewasprimarilydueto thecompetitiveeffeffctsofhighernaturalgasprices. Railroadoperatingexpenseswere$15.3billionin2025,adeclineof$591million(3.7%)comparedto2024,andthe ratioofrailroadoperatingexpensestorailroadoperatingrevenues(“operatingratio”)in2025declined2.5percentagepoints to65.5%from2024.Compensationandbenefitsexpensein2025decreased$338million(5.8%)comparedto2024, primarilyduetoachargeof$290millioninDecember2024relatedtoaone-timepaymentincludedintheSMART-TDlabora unionagreement,aswellasincreasedemployeeproductivity,partiallyoffsffetbywageinflation.Fuelexpensedeclined$256 million(7.8%)comparedto2024,primarilyduetoloweraveragefuelpricesandimprovedfueleffiffciency.Railroad purchasedservices,equipmentrents,materialsandotherexpensesdecreased$99million(2.4%),primarilyduetoongoing costmanagementeffoffrtsandlowerlitigationaccruarls.Depreciationandamortizationexpensein2025increased$102million (3.9%)comparedto2024duetoalargerfixedassetbase. Incometaxexpenseincreased$82million(5.1%)in2025comparedto2024.Theeffeffctiveincometaxratein2025 declinedversus2024,primarilyduetolowerstateincometaxexpensesarisingfromtheimpactofreductionsinenactedrates duringthesecondquarterof2025. --- Page 69 --- K-43Management’sDiscussionandAnalysis BNSFNN 2024versus2023 Railroadoperatingrevenuesdeclined0.5%in2024comparedto2023,reflectingloweraveragerevenuepercar/uni/tof 6.6%,primarilyattributabletolowerfuelsurchargerevenueandbusinessmixchanges,partiallyoffsffetbyanetvolume increaseof6.5%.Railroadoperatingearningsin2024increasedduetovolumegrowthandloweroperatingexpensesfrom improvedproductivity,partiallyoffsffetbythe$290millionchargerelatedtotheSMART-TDlaboraunionagreementthatwas finalizedinthefourthquarterof2024andbyincreasedlitigationaccruarls. Operatingrevenuesfromconsumerproductsincreased7.1%in2024to$8.4billioncomparedto2023,reflectinga volumeincreaseof16.2%andloweraveragerevenuepercar/uni/t.Thevolumeincreasewasprimarilyduetohigher intermodalshipmentsfromWestCoastimportsandvolumesfromanewintermodalcustomer. Operatingrevenuesfromindustrialproductsdeclined1.2%in2024to$5.1billionfrom2023,reflectingadeclineof 1.6%involume,partiallyoffsffetbyhigheraveragerevenuepercar/urrnit.Thevolumedeclinewasprimarilyduetolower aggregates,taconite,mineralsandwasteshipments,subsutantiallyoffsffetbyhigherplasticsandpetroleumproductsvolumes. Operatingrevenuesfromagriculturalandenergyproductsincreased4.0%to$6.4billionin2024comparedto2023, attributabletoavolumeincreaseof7.7%,partiallyoffsffetbyloweraveragerevenuepercar/urrnit.Thevolumeincreasewas primarilyduetohighergrain,renewablaefuelsandfertilizershipments. Operatingrevenuesfromcoaldecreased22.5%to$2.9billionin2024comparedto2023.Thedecreasewas attributabletoavolumedecreaseof17.9%andloweraveragerevenuepercar/urrnit.Thevolumedeclinewasprimarilydueto lowernaturalgasprices. Railroadoperatingexpenseswere$15.9billionin2024,adecreaseof$173million(1.1%)comparedto2023.The operatingratiodeclined0.4percentagepointsto68.0%in2024versus2023.Railroadcompensationandbenefitsexpenses increased$356million(6.5%)in2024comparedto2023,primarilyduetothe$290millionchargerelatedtotheSMART- TDlaboraunionagreementthatwasfinalizedinDecember2024.TheagreementallowsBNSFtheabilitytoredeploy brakepersonstoconductorsandengineers,whichwillpermitBNSFtomeetshort-termhiringdemands.Fuelexpenses declined$417million(11.3%)comparedto2023,primarilyduetoloweraveragefuelprices,partiallyoffsffetbyhigher volumes.Railroadpurchasedservices,equipmentrents,materialsandotherexpensesdeclined$126million(3.0%),primarily duetocostreductionsacrossnumerousspendcategoriesandlowerpropertytaxes,partiallyoffsffetbyalitigationchargein 2024relatedtoanongoinglegalcasewiththeSwinomishTribe. BHEHH BerkshireHathawayEnergyCompany(“BHE”)isaholdingcompanywithsubsuidiariesthatprimarilyoperatewithin theenergyindustry.rrBHE’sdomesticregulatedutilityinterestsincludePacifiCorp,MidAmericanEnergyCompany(“MEC”) andNVEnergy.BHE’snaturtalgaspipelinesconsistoffivedomesticregulatedinterstatenaturalgaspipelinesystemsanda 75%interestinaliquefiednaturalgasexport,importandstoragefacility.Otherenergysubsuidiariesoperatetworegulated electricitydistributionbusinessesinGreatBritain(“NorthernPowergrid”),aregulatedelectricitytransmission-onlybusiness inAlberta,Canada,andadiversifieffdportfolffioofmostlyrenewablaepowerprojectsandinvestments.AnotherBHEsubsuidiary, HomeServicesofAmerica,Inc.(“HomeServices”),operatesaresidentialrealestatebrokeragebusinessandaresidentialreal estatebrokeragefranchisebusinessintheUnitedStates. --- Page 70 --- K-44Management’sDiscussionandAnalysis BHEHH TheratesBHE’sregulatedutilityandenergybusinesseschargecustomersforenergyandservicesarelargelybasedon thecostsofbusinessoperations,includingincometaxesandareturnoncapital,andaresubjuecttoregulatoryrrapproval.Tothe extentsuchcostsarenotallowedintheapprovedrates,operatingresultswillbeadverselyaffeffcted.AsummaryofBHE’snet earningsfollows(dollarsinmillions). 2025 2024 2023 Revenues: Energyoperatingrevenues $21,871$21,566$21,280 Realestateoperatingrevenues 4,327 4,354 4,322 Otherincome 99 428 406 Totalrevenues 26,297 26,348 26,008 Costsandexpenses: Energycostofsales 6,346 6,616 7,057 Energyoperatingexpenses 10,665 10,403 11,412 Realestateoperatingcostsandexpenses 4,302 4,509 4,316 Interestexpense 2,642 2,528 2,283 Totalcostsandexpenses 23,955 24,056 25,068 Pre-taxearnings 2,342 2,292 940 Incometaxbenefit (1,785)(1,871)(2,022) Netearningsafteffrincometaxes 4,127 4,163 2,962 NoncontrollinginterestsofBHEsubsuidiaries 145 137 352 NetearningsattributabletoBHE 3,982 4,026 2,610 Noncontrollinginterestsandpreferffredstockdividends 3 296 279 NetearningsattributabletoBerkshireshareholders $3,979$3,730$2,331 Effeffctiveincometaxrate (76.2)% (81.6)%(215.1)% BHE’sincometaxbenefitincludessignificantproductiontaxcreditsprimarilyfromwind-poweredelectricity generation.OnJuly4,2025,theOneBigBeautifulffBillAct(the“OBBBA”)wasenacted,introducingsubsutantialrevisionsto energy-relatedU.S.federaltaxpolicy.Amongitsprovisions,theOBBBAacceleratesthephase-outofcleanelectricity productionandinvestmenttaxcreditsandestablaishesnewsourcingrequirementsapplicabletofacilitiescommencing construcrtionafteffrDecember31,2025. AlthoughtheOBBBAdidnothaveamaterialimpactonBHE’s2025financialresults,BHE’sfuturefinancialresults andcapitalexpendituresrelatedtorenewablaeenergy,storageandtechnologyneutralprojects,includingthepotentialimpact ontheeconomicsandviabilityofsuchprojects,maybeaffeffctedbythecombinedeffeffctsoftheOBBBAandbroader macroeconomicandgeopoliticalconditions,includingchangesininternationaltradepoliciesandtariffregimes.However, BHEcurrentlydoesnotbelievetheseitemswillsignificantlyimpactitsbusinessinthenearterm. Netearningsattributabletononcontrollinginterestsandpreferffredstockdividendsincludeearningsattributabletonon- BerkshireownersofBHEcommonstockanddividendsonpreferffredstockheldbyotherBerkshiresubsuidiaries.All remainingnoncontrollinginterestsinBHEcommonstockwereacquiredin2024andthepreferffredstockwasredeemedin 2025. ThediscussionofBHE’soperatingresultsthatfollowsisbasedonafteffr-taxearnings,reflectinghowtheenergy businessesaremanagedandevaluated.AsummaryofnetearningsattributabletoBHEfollows(dollarsinmillions). PercentageChange 2025 2024 20232025vs20242024vs2023 U.S.utilities $2,097$1,961$906 6.9% 116.4% Naturalgaspipelines 1,151 1,2321,079 (6.6) 14.2 Otherenergybusinesses 1,1751,3341,024 (11.9) 30.3 Realestatebrokerage 24(107)13 * * Corporateinterestandother (465)(394)(412) 18.0 (4.4) $3,982$4,026$2,610 (1.1) 54.3 —————— *Notmeaningfulff. --- Page 71 --- K-45Management’sDiscussionandAnalysis BHEHH 2025versus2024 TheU.S.utilitiesoperateindependentlyinseveralstates,includingUtah,Oregon,WyomingandotherWesternstates (PacifiCorp),IowaandIllinois(MEC)andNevada(NVEnergy).Netearningsincreased$136million(6.9%)in2025 comparedto2024.Pre-taxWildfirelossaccruarrlsatPacifiCorpwere$100millionin2025and$346millionin2024.See Note27totheaccompanyingConsolidatedFinancialStatementsforadditionalinformationontheWildfires.Otherwise,net earningsoftheU.S.utilitiesin2025reflectedcomparativeincreasesinelectricutilitymargin,partiallyoffsffetbyincreasesin energyoperatingexpensesandinterestexpenseandlowerotherincomeandincometaxbenefits. TheU.S.utilities’electricutilitymarginwas$8.4billionin2025,anincreaseof$651million(8.4%)comparedto 2024.Theincreasereflectedhigherretailcustomerratesincertainterritories,higherretailcustomervolumesandhigher wholesalepricesandvolumes,partiallyoffsffetbyhigherpurchasedelectricityandthermalgenerationcostofsales.Retail customervolumesincreased2.2%overall(upu9.6%atMECand1.3%atPacifiCorpanddown2.2%atNVEnergy)in2025 comparedto2024,primarilyduetohighercustomerusageandanincreaseintheaveragenumberofcustomers,partially offsffetbyanoverallunfavfforableimpactofweather.Theincreaseinenergyoperatingexpenseswasprimarilyduetohigher depreciationandamortizationexpense,insuranceexpensesandgeneralandplantmaintenancecosts. Netearningsofnaturalgaspipelinesdeclined$81millionin2025comparedto2024.Thedecreasereflectedhigher interestexpense,anincreaseinoperatingexpenses,decreasedmarginongassalesandlowerotherincome,partiallyoffsffetby highertransportationandstoragerevenues. Netearningsofotherenergybusinessesdecreased$159millionin2025comparedto2024.Thedecreasewasprimarily duetolowerearningsatNorthernPowergrid,partiallyoffsffetbyhigherearningsfromtherenewablaeenergybusiness.The decreaseatNorthernPowergridwasfromlowerdistributionrevenuesduetolowertariffsfrominflationadjudstments beginninginthesecondquarterof2025andhigherinterestexpense.Earningsfromtherenewablaeenergybusinessincreased mainlyduetohigherpricingandgenerationatcertainprojects,partiallyoffsffetbyalowerincometaxbenefitfromowned windprojectsmainlyduetoadeclineinproductiontaxcredits. Netearningsofrealestatebrokeragebusinessesincreasedby$131millionin2025comparedto2024,primarily attributabletochargesin2024withrespecttotherealestatebrokerageindustryrrlitigationmatters.InApril2024, HomeServicesagreedtotermswiththeplaintiffsfftosettleallclaimsassertedagainstHomeServicesandcertainofits subsuidiariesandeffeffctuattedanationwideclasssettlement.SeeNote27totheaccompanyingConsolidatedFinancial Statements.Therealestatebrokeragebusinesscontinuestobenegativelyimpactedbythelimitedavailabialityofhomesfor saleandhighhomeprices. CorporateinterestandothernetearningsincludeBHEcorporateinterestexpenseandunallocatedgeneraland administrativeexpensesandincometaxes. 2024versus2023 NetearningsoftheU.S.utilitiesincreased$1.1billion(116.4%)in2024comparedto2023.Pre-taxlossaccruarrls,net ofexpectedinsurancerecoveries,fortheWildfireswere$346millionin2024and$1.7billionin2023.Otherwise,net earningsin2024reflectedcomparativeincreasesinelectricutilitymargin,incometaxbenefitsfromwindproductiontax credits($157million)andotherincome,partiallyoffsffetbyincreasesinotherenergyoperatingexpensesandinterestexpense. TheU.S.utilities’electricutilitymarginwas$7.8billionin2024,anincreaseof$274million(3.6%)comparedto 2023.Theincreasereflectedhigherretailcustomerratesincertainterritoriesandhigherretailcustomervolumes,partially offsffetbyhigherpurchasedelectricitycostofsalesandlowerwholesalevolumesandprices.Retailcustomervolumes increased3.6%overall(upu6.5%atNVEnergy,3.1%atPacifiCorpand1.2%atMEC)in2024comparedto2023,primarily duetoincreasesincustomerusageandtheaveragenumberofcustomers,partiallyoffsffetbyanoverallunfavfforableimpactof weather.Theincreaseinotherenergyoperatingexpenseswasprimarilyduetohighervegetationmanagementandother wildfiremitigationcosts,insuranceexpensesandgeneralandplantmaintenancecosts.Interestexpenseincreased$314 millionin2024over2023,largelyduetoincreasedborrowings,including$4.4billionofsubsuidiarydebtissuedinJanuary 2024. --- Page 72 --- K-46Management’sDiscussionandAnalysis BHEHH Netearningsofnaturalgaspipelinesincreased$153millionin2024comparedto2023.Theincreaseinearnings reflectedreductionsinearningsattributabletononcontrollinginterests,partiallyoffsffetbytheimpactofahighereffeffctive incometaxrate,duetotheacquisitionofanadditional50%limitedpartnerinterestinCovePointonSeptember1,2023. Netearningsofotherenergybusinessesincreased$310millionin2024comparedto2023.Theincreasewasprimarily duetohigherearningsatNorthernPowergrid,partiallyoffsffetbylowerearningsfromtherenewablaeenergybusiness.The increaseatNorthernPowergridwasattributabletohigherdistributionrevenueduetohighertariffsfrominflationadjudstments andlowerincometaxexpenseattributabletochargesrecognizedin2023fortheU.K.EnergyProfitsffLevyandagrouprelief taxbenefitrecognizedin2024,partiallyoffsffetbyunfavfforableresultsfromtheupstreamgasexplorationandproduction businessandhigheroperatingexpenses.Earningsfromtherenewablaeenergybusinessdecreasedmainlyduetolower earningsfromwindtaxequityinvestmentsin2024anddebtextinguishmentgainsrecognizedin2023. Netearningsofrealestatebrokeragebusinessesdecreased$120millionin2024comparedto2023,primarily attributabletochargesinconnectionwiththerealestatebrokerageindustryrrlitigationmatters.Therealestatebrokerage businesswasnegativelyimpactedin2024bythelimitedavailabialityofhomesforsaleandhighhomeprices. Manufacffturingii,ggServiceandRetailing Asummaryofrevenuesandearningsofourmanufactffurting,serviceandretailingbusinessesfollows(dollarsin millions). Percentagechange 2025 2024 2023 2025vs20242024vs2023 Revenues: Manufactffurting $78,487$77,231$75,405 1.6% 2.4% Serviceandretailing 135,843 138,672144,342 (2.0) (3.9) $214,330$215,903$219,747 (0.7) (1.7) Pre-taxearnings: Manufactffurting $12,571$11,895$11,445 5.7% 3.9% Serviceandretailing 4,905 4,948 6,144 (0.9) (19.5) 17,476 16,843 17,589 3.8 (4.2) Incometaxesandnoncontrollinginterests 3,829 3,771 4,227 Netearnings* $13,647$13,072$13,362 Effeffctiveincometaxrate 21.2% 21.7% 22.2% Pre-taxearningsasapercentageofrevenues 8.2% 7.8% 8.0% —————— *Excludescertainacquisitionaccountingexpenses,whichprimarilyrelatetointangibleassetamortizationinconnection withcertainofourbusinessacquisiiitions.Theafteffr-taxaaacquisiiitionaccountingexpensesexcludedfromearningswere$528 millionin2025,$531millionin2024and$693millionin2023.Theseexpensesareincludedin“Other”inthesumma ryof earningsonpageK-34andinthe“Other”earningstableonpageK-54. --- Page 73 --- K-47Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing Manufacffturing Ourmanufactffurtinggroupincludesavarietyofindustrial,buildingandconsumerproductsbusinesses.Asummaryof revenuesandpre-taxearningsofourmanufacturtingoperationsfollows(dollarsinmillions). Percentagechange 2025 2024 2023 2025vs20242024vs2023 Revenues: Industrialproducts $37,301$35,833$34,884 4.1% 2.7% Buildingproducts 26,76426,52525,965 0.9 2.2 Consumerproducts 14,42214,873 14,556 (3.0) 2.2 $78,487$77,231$75,405 Pre-taxearnings: Industrialproducts $6,808$6,017$5,686 13.1% 5.8% Buildingproducts 3,971 4,134 4,187 (3.9) (1.3) Consumerproducts 1,792 1,744 1,572 2.8 10.9 $12,571$11,895$11,445 Pre-taxearningsasapercentageofrevenues: Industrialproducts 18.3% 16.8% 16.3% Buildingproducts 14.8 15.6 16.1 Consumerproducts 12.4 11.7 10.8 Industrialproduc ts Theindustrialproductsgroupincludescomplexmetalcomponentsandproductsforaerospace,powerandgeneral industrialmarkets(PrecisionCastpatrtsCorp.(“PCC”)),specialtychemicals(TheLubruizolCorporation(“Lubrizol”)),metal cuttingtools/systems(IMCInternationalMetalworkingCompanies(“IMC”)),andMarmonHoldings,Inc.(“Marmon”) whichconsistsofnumerousautonomousmanufactffurting,serviceandleasingbusinesses,currentlyaggregatedintoeleven groups.Otherindustrialproductsmembersalsoproduceequipmentandsystemsforthelivestockandagriculturalindustries (CTBInternational),dragreducingagentsforpipelines(LiquidPowerSpecialtyProducts),structurtalsteelfabraication products(W&W|AFCO)andbeginninginAugust2025,rodentcontrolproducts(BellLaboraatories).OnJanuary2,2026, Berkshireacquiredachemicalsbusiness(“OxyChem”)froffmOccidentalPetroleumCorporation.OxyChemresultswillbe includedinBerkshire’sconsolidatedresultsbeginningasofthatdate. 2025versus2024 Revenuesoftheindustrialproductsgroupin2025increased$1.5billion(4.1%)andpre-taxearningsincreased$791 million(13.1%)comparedto2024.Pre-taxearningsasapercentageofrevenuesin2025were18.3%,anincreaseof1.5 percentagepointscomparedto2024.Operatingresultsofthegroupin2025generallyimprovedcomparedto2024.However, weareexperiencingincreasedcostsandreducedavailabialityofcertainrawmaterials,whichcouldnegativelyimpactour earningsin2026. PCC’srevenueswere$10.8billionin2025,anincreaseof4.6%comparedto2024.Revenuesfromaerospaceproducts increased7.5%in2025comparedto2024,primarilyattributabletogrowingdemand.Revenuesfrompowerproducdtsinoil andgasmarketsandgeneralindustrialproductsdeclined,whilerevenuesincreasedfromindustrialgasturbineandcertain non-aerospaceproducts.PCC’spre-taxearningsincreased34.2%in2025comparedto2024,reflectingtheaerospacesales increases,improvedmanufactffurtingandoperatingeffiffcienciesandfavorablechangesinbusinessmix.Earningsin2025also includedinsurancerecoveriesassociatedwithafireatafastenersfacilitythatoccurredinthefirstquarterof2025,which mitigatedthenegativeearningsimpactfromthefire.Futuresalesandearningsgrowthwilldependonsuccessfulfflyincreasing productionandexpandingcapacity,asnecessary,tomeetcustomerdemandandmanagingthroughongoingmacroeconomic risks. Lubruizol’srevenueswere$6.2billionin2025,adeclineof3.0%,comparedto2024.Thedeclinewasattributableto lowersellingpricesandvolumesandunfavfforableproducdtmix.Lubrizol’spre-taxearningsdeclined20.6%in2025compared to2024,reflectingtheeffeffctsoflowersellingpricesandvolumes,highermanufactffurtingcosts,increasedrestructuritngcosts relatedtoexitingcertainbusinessesandlitigationexpenses,partiallyoffsffetbylowerrawmaterialscostsandselling,general andadministrativeexpensesandfavorablaeproductmix. --- Page 74 --- K-48Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing Marmon’srevenueswere$12.8billionin2025,anincreaseof4.7%comparedto2024.Comparativerevenueincreases in2025weregeneratedbythePlumbing&Refrigerationgroup(11.7%),attributabletocopperpricesandspreads,andthe WaterTechnologiesgroup(9.9%),primarilyfromincreasedrefrigeratorfilterandwatersoftenersvolumes.Additionally, revenuesincreasedintheRail&Leasinggroup(7.8%),duetoincreasesintankcarrentalrates,railcarrepairvolumes,tank carsalesaswellasabusinessacquisition,theElectricalgroupu(7.0%),duetohighercopperpricesandspreads,andthe TransportationProductsgroup(5.8%),drivenbyincreasedbrakedrumr,commercialtrailerandautomotiveafteffrmarket demand.TheseincreaseswerepartiallyoffsffetbyrevenuedeclinesintheCraneServicesgroup(12.6%),drivenbythelossof businessduetoincreasedpricecompetition,aswellasreducedwindprojectbusiness,andintheMetalServicesgroup (7.5%),attributabletolowerdemandintheconstrucrrtionandagriculturalequipmentmarkets. Marmon’spre-taxearningsincreased8.5%in2025comparedto2024,drivenbyhigherearningsinthePlumbing& Refrigeration,WaterTechnologies,Rail&LeasingandTransportationProductsgroupsreflectingtheimpactofhigher revenues.TheseincreaseswerepartiallyoffsffetbylowerearningsintheMetalServicesgroup,duetolowerrevenues,an impairmentlossontheElectricalgroup’sjointventurteinIndia,restructurtingchargesintheFoodserviceTechnologiesgroupu andhighermedicalcostsacrossMarmon. IMC’srevenueswereapproximately$4.1billionin2025,anincreaseof3.9%comparedto2024.Theincreasewas primarilyattributabletosalespriceincreases,drivenbyhigherrawmaterialscosts,theimpactofbusinessacquisitionsand changesinsalesmix.IMC’spre-taxearningswereessentiallyunchangedin2025comparedto2024.Earningsin2025were negativelyimpactedbyrisingrawmaterialscostsandchangesinproductmixandincreasedselling,generaland administrativeexpenses.IMCoperatesglobally,andalargeportionofitsproductsaremanufactffurtedinIsrael.IMC’s operationsinIsraelhavenotbeensignificantlyimpactedbytheconflicfftsintheregion. 2024versus2023 Revenuesoftheindustrialproductsgroupincreased$949million(2.7%)andpre-taxearningsincreased$331million (5.8%)in2024comparedto2023.Pre-taxearningsasapercentageofrevenueswere16.8%in2024,anincreaseof0.5 percentagepointscomparedto2023. PCC’srevenueswere$10.4billionin2024,anincreaseof12.0%comparedto2023.Therevenueincreasewas primarilyattributabletohigherdemandforaerospaceproducts,andtoalesserdegree,powergenerationproducts.PCC’spre- taxearningsincreased24.4%in2024comparedto2023,primarilyattributabletosalesincreasesandimproved manufactffurtingandoperatingeffiffciencies. Lubruizol’srevenueswere$6.4billionin2024,relativelyunchangedcomparedto2023,ashighervolumeswere essentiallyoffsffetbylowersellingpricesandunfavfforableproductmix.Salesvolumesincreased4%in2024comparedto 2023,reflectinghighervolumesinboththeadditivesandadvancedmaterialsbusinesses.Lubruizol’spre-taxearnings increased30.7%in2024,primarilyattributabletolowerrawmaterialscosts,highersalesvolumesandlowermanufactffurting costs,partiallyoffsffetbytheimpactoflowersellingpricesandhigherselling,generalandadministrativeexpenses. Marmon’srevenueswere$12.2billionin2024,adeclineof1.7%comparedto2023.Thelargestrevenuedeclineswere experiencedbytheTransportationProductsgroup(18.2%),aswellastheMetalServicesgroup(13.9%)andRetailSolutions group(9.4%),primarilyduetoreducedvolumeandchangesinsalesmix.Conversely,Electricalgrouprevenuesincreased 6.0%duetohighercopperpricesandincreasedvolumes.TheRail&Leasinggrouprevenuesincreased10.5%duetohigher averageleaserenewalratesandincreasedrailcarrepairpricesandvolumes. Marmon’spre-taxearningsdeclined8.7%in2024comparedto2023,reflectinglowerearningsfromthe TransportationProducts,MetalsServicesandRetailSolutionsgroupsduetotherevenuedeclines,theCraneServicesgroup,u attributabletolowerrevenuesandhighercosts,andtheElectricalgroup,reflectinghighermaterialscostsandunfavfforable businessmixchanges.ThesedeclineswerepartiallyoffsffetbyhigherearningsintheRail&Leasing,Medical,Water TechnologiesandFoodserviceTechnologiesgroups. IMC’srevenueswereapproximately$3.9billionin2024,adecreaseof2.2%comparedto2023,attributabletolower organicsalesacrossallmajoarregionsandunfavfforableforeigncurrencytranslationfromastrongerU.S.Dollar,partially offsffetbytheimpactofbusinessacquisitionsandhigherinvestmentincome.IMC’spre-taxearningsdeclined7.8%in2024 comparedto2023,primarilyattributabletolowersalesandgrossmarginratesandincreasedselling,generaland administrativeexpenses,partiallyoffsffetbyhigherinvestmentandotherincome. --- Page 75 --- K-49Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing Buildingproduc ts Thebuildingproductsgroupincludesmanufactffurtedandsite-builthomeconstrucrtionandrelatedlendingandfinancial services(ClaytonHomes).Otherbuildingproductsbusinessesincludeflooring(Shaw),insulation,roofinffgandengineered products(JohnsManville),bricksandmasonryrrproducts(AcmeBrick),paintandcoatings(BenjanminMoore)andresidential andcommercialconstrucrrtionandengineeringproductsandsystems(MiTek). 2025versus2024 Revenuesofthebuildingproductsgroupincreased$239million(0.9%)in2025comparedto2024.Pre-taxearnings declined$163million(3.9%)in2025comparedto2024.Certainofourbuildingproductsbusinessesexperiencedslowing customerdemandin2025,aswellaspricingpressures,attributabletoprevailinggeneraleconomicconditions. ClaytonHomes’revenuesincreased4.3%to$12.9billionin2025comparedto2024.Revenuesfromhomesales increased$152million(1.6%)in2025versus2024.Newhomeunitsalesfortheyeardeclinedslightlyin2025from2024, althoughunitsalesinthefourthquarterof2025declined5.9%versusthesameperiodin2024.Financialservicesrevenues increased12.5%in2025comparedto2024,primarilyduetoincreasedinterestincomefromhigheraverageloanbalances andaverageinterestrates.Loanbalances,netofallowancesforcreditlosses,wereapproximately$29.5billionasof December31,2025,anincreaseof8.6%sinceDecember31,2024.Loanportfolffiosarelargelyfundedbyborrowingsfrom Berkshirefinanceaffiffliates. ClaytonHomes’pre-taxearningswereapproximately$1.9billionin2025,unchangedfrom2024,reflectingincreased earningsfromfinancialservices,offsffetbylowerearningsfromhomebuildingactivities.Theincreaseinfinancialservices earningswasprimarilyduetolowerinsuranceclaimsandhigherinterestincome,partiallyoffsffetbyanincreaseininterest expenseof$291milliononincreasedborrowingsfromaffiffliates.Thecorrespondinginterestincomeonsuchborrowingsis includedinthe“Other”earningssectiononpageK-54. Ourotherbuildingproductsbusinessesgeneratedrevenuesofapproximately$13.8billionin2025,adeclineof$292 million(2.1%)versus2024.Salesvolumesofthesebusinessesin2025weregenerallylowerreflectingslowinghousing marketsintheU.S.,partlyoffsffetbyhigheraveragesellingprices.Pre-taxearningsdeclined$178million(8.1%)and,asa percentageofrevenues,declined1.0percentagepointin2025versus2024.Theearningsdeclinewasprimarilyattributableto lowersalesvolumesandaveragegrossmarginratesandnegativeimpactsofinternationaltradetensions,partiallyoffsffetby lowerrestructurtingandlegalexpensescomparedto2024. 2024versus2023 Revenuesofthebuildingproductsgroupincreased$560million(2.2%)in2024comparedto2023.Pre-taxearnings decreased$53million(1.3%)in2024comparedto2023. ClaytonHomes’revenuesincreased8.5%to$12.4billionin2024comparedto2023.Revenuesfromhomesales increased$565million(6.4%)in2024,reflectinghighernewhomeunitsalesof11.5%,partiallyoffsffetbychangesinsales mixandloweraveragesellingprices.Also,financialservicesrevenuesincreased15.5%in2024comparedto2023,primarily duetoincreasedinterestincomefromhigheraverageloanbalances.Loanbalances,netofallowancesforcreditlosses,were approximately$27.2billionasofDecember31,2024,anincreaseof14.0%sinceDecember31,2023. ClaytonHomes’pre-taxearningsdeclined$115million(5.6%)in2024comparedto2023,attributabletolower earningsfromfinancialservices(4.4%)andmanufactffurtingactivities(9.4%).Thefinancialservicesearningsdeclinereflected increasedlossesfromhomeownerpropertyinsuranceclaims,increasedexpectedloanlossprovisionsduetohigherloan originationsandanincreaseininterestexpenseof$203millionduetoanincreaseinborrowingsfromBerkshirefinance affiffliates.Borrowingsfromaffiffliateswere$24.3billionatDecember31,2024,anincreaseof$6.6billionfromDecember31, 2023.Thedeclineinmanufacturtingearningswaslargelyattributabletolowergrossmarginratesduetotheincreasedcostof buildinghomestotheZeroEnergyReadyHomeProgramrequirements,whichwaspartiallyoffsffetbyincometaxcredits. --- Page 76 --- K-50Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing Ourotherbuildingproductsbusinessesgeneratedrevenuesofapproximately$14.1billionin2024,adeclineof$413 million(2.8%)versus2023.Salesvolumesin2024increasedatJohnsManvilleanddeclinedattheotherbusinessesinthe group,whileaveragesellingpriceswereloweratJohnsManvilleandMiTekandslightlyhigherattheotherbusinesses. Pre-taxearningsofourotherbuildingproductsbusinessesincreased$61million(2.9%)in2024comparedto2023and, asapercentageofrevenues,increased0.9percentagepointsin2024to15.6%.Earningsincreasedin2024fromhigher averagegrossmarginratesarisingfromlowerrawmaterialscostsandimprovedmanufactffurtingeffiffcienciesatcertainofthe businesses,partiallyoffsffetbyhigherselling,generalandadministrativeexpenses.Selling,generalandadministrative expensesineachyearincludedchargesfrombusinessrestructurtingactivitiesanddivestitures,aswellaslegalsettlementsand accruarls. Consumerproduc ts Theconsumerproductsgroupincludesleisurevehicles(ForestRiver),severalapparelandfootwearoperations (includingFruirtoftheLoom,Garan,H.H.BrownShoeGroupandBrooksSports)andamanufactffurterofhigh-performance alkalinebatteries(Duracell).Thisgroupalsoincludesaglobaltoycompany(Jazwares),jewelryrrproducts(Richline)and custompicturteframingproducts(Larson-Juhl). 2025versus2024 Consumerproductsgrouprevenueswere$14.4billionin2025,adecreaseof3.0%comparedto2024.Therevenue declinewasprimarilyduetoFruirrtoftheLoom,JazwaresandDuracell,largelyattributabletolowersalesvolumes.These declineswerepartiallyoffsffetbyincreasesatBrooksSports,ForestRiverandRichline,attributabletocombinationsofhigher volumes,changesinsalesmixand/orhigherpricesdrivenbyhighermaterialsandinputcosts. Pre-taxearningsofourconsumerproductsgroupuincreased2.8%in2025comparedto2024.Inthethirdquarterof 2025,DuracelldeterminedcertainofitsU.S.-manufactffurtedbatteryproductcomponentswereeligibleforrefundablae advancedmanufactffurtingproductionincometaxcreditsbeginninginthe2023taxyear.Duracellrecordedtheeligiblecredits forthe2023,2024and2025periodsin2025.UnderU.S.GAAP,thesecreditsarereflectedinpre-taxearnings,notasincome taxexpense.Beforetheimpactoftheproductioncredits,pre-taxearningsoftheconsumerproductsgroupdeclined significantlyin2025comparedto2024.ThedeclinereflectedlowerearningsfromJazwares,duetoavarietyoffactors, includinglowersalesvolumesandincreasedcostsfromsuppluychaindisruptrions;ForestRiver,primarilyattributableto lowergrossmarginsfromsalesmixchanges;andDuracellandGaran,whichexperiencedlowergrossmarginsandhigher selling,generalandadministrativeexpensesasapercentageofrevenues.Thesedeclineswerepartiallyoffsffetbyhigher earningsfromBrooksSportsattributabletoincreasedsalesandgrossmargins,partiallyoffsffetbyhigherselling,generaland administrativeexpenses. 2024versus2023 Consumerproductsgrouprevenueswere$14.9billionin2024,anincreaseof2.2%comparedto2023.Theincrease wasprimarilyattributabletohigherrevenuesfromForestRiver,BrooksSportsandDuracell,partiallyoffsffetbylower revenuesfromFruirrtoftheLoom,GaranandRichline.ForestRiverrevenuesincreased6.4%in2024,reflectingincreased unitsales,includingtheimpactofbusinessacquisitions.BrooksSportsandDuracellrevenuesincreased9.1%and2.5%, respectively,in2024versus2023.TherevenuereductionsatFruirtoftheLoomandRichlinewereattributabletolowersales volumes,whereasthedeclineatGaranwasattributabletoloweraveragesellingprices. Consumerproductsgrouppre-taxearningsincreased$172million(10.9%)in2024versus2023.Theincreasewas primarilyattributabletohigherearningsfromourapparelandfootwearbusinessesandDuracell,partiallyoffsffetbylower earningsfromJazwares.Apparelandfootwearearningsincreased37.0%in2024from2023,primarilyduetogrossmargin rateincreasesandincreasedgainsonassetsales,aswellasfromthefavorableeffeffctsofpastrestructurtingandcost managementeffoffrts.TheearningsincreaseatDuracellwasattributabletoincreasedgrossmarginsandlowerselling,general andadministrativeexpenses.Thedeclineinearningsin2024fromJazwareswasprimarilyduetoincreasedamortization expense,aswellastheimpactofreducedsalesordersduringthefourthquarter. --- Page 77 --- K-51Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing Serviceandretailing Asummaryofrevenuesandpre-taxearningsofourserviceandretailingbusinessesfollows(dollarsinmillions). Percentagechange 2025 2024 2023 2025vs20242024vs2023 Revenues: Service $22,982$20,697$20,588 11.0% 0.5% McLane 50,998 51,90752,607 (1.8) (1.3) Retailing 19,66519,17719,408 2.5 (1.2) Pilot* 42,198 46,891 51,739 (10.0) (9.4) $135,843$138,672$144,342 Pre-taxearnings: Service $2,702$2,305$2,995 17.2%(23.0)% McLane 676 634 455 6.6 39.3 Retailing 1,337 1,395 1,726 (4.2)(19.2) Pilot* 190 614 968 (69.1)(36.6) $4,905$4,948$6,144 Pre-taxearningsasapercentageofrevenues: Service 11.8% 11.1% 14.5% McLane 1.3 1.2 0.9 Retailing 6.8 7.3 8.9 Pilot* 0.5 1.3 1.9 —————— *InfonrmationforPilotin2023isfortheeleven monthsendedDecember31.Pilot’snetearningsforthemonthending Januaryr31,2023,wereincludedinequitymethodearningsinotherearningsonpageK-54. Service OurservicegroupincludesNetJetsandFlightSafety(aviationservices),whichoffeffrsharedownershipprogramsfor generalaviationaircraftandhightechnologytrainingproductsandservicestooperatorsofaircraft,andTTI,adistributorof electronicscomponents. Ourotherservicebusinessesfranchiseandserviceanetworkofquickservicerestaurants(DairyQueen),lease transportationequipment(XTRA)RRandfurniture(CORT),providethirdpartylogisticsservicesthatprimarilyservethe petroleumandchemicalindustries(CharterBrokerage),distributeelectronicnews,multimediaandregulatoryrrfilings (BusinessWire),providevariousfacilitiesengineeringandconstrucrtionmanagementservices(IPS-IntegratedProject Services,LLC(IPS))andoperateatelevisionstationinMiami,Florida(WPLG).McLane,whichweviewasaservice business,isaddressedseparatelysinceitisdeemedaseparatesegmentforfinancialreportingpurposrres. 2025versus2024 Servicegrouprevenueswere$23.0billionin2025,anincreaseof11.0%comparedto2024,primarilyattributableto higherrevenuesfromaviationservices(9.9%),IPS(24.2%)andTTI(12.3%).Therevenueincreasefromaviationservices reflectedincreasesinthenumberofaircraftinsharedaircraftownershipprograms(6.9%)andin-flighthoursacrossNetJets’ variousprograms(11.3%)andhigheraveragerates.TheincreaseatTTIreflectedincreasingcustomerdemandinmost geographicregionsandcost-basedpriceincreases.TheincreaseatIPSwasattributabletogrowthinlifeffsciencesanddata centerdesign,construcrrtionmanagementandotherconstrucrrtionconsultingservices. Servicegrouppre-taxearningsincreased17.2%in2025comparedto2024,primarilyattributabletoaviationservices andTTI.Pre-taxearningsasapercentageofrevenuesrose0.7percentagepointsin2025to11.8%comparedto2024.The earningsincreasefromaviationserviceswasprimarilyattributabletoincreasedrevenues,partiallyoffsffetbyhigherflight crewandinstructorcostsandhighermaintenance,fuelanddepreciationexpenses,aswellasincreasedgovernmentcontract losses.TheTTIearningsincreasereflectedhigherrevenuesandimprovedoperatingexpenseleverage,partiallyoffsffetby increasedcostofsales. --- Page 78 --- K-52Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing 2024versus2023 Servicegrouprevenueswere$20.7billionin2024,aslightincreasecomparedto2023,reflectingrevenueincreases fromaviationservicesandIPS,partiallyoffsffetbylowerrevenuesfromTTIandXTRA.Aviationservicesrevenuesincreased 9.1%in2024,whileIPSrevenuesincreased14.4%.Theaviationservicesincreasewasprimarilyduetoanincreaseinthe numberofaircraftinsharedaircraftownershipprogramsandincreasesinflighthoursacrossNetJets’variousprograms.The increaseatIPSwasprimarilyduetoincreasedprojectvolume. TTIrevenuesdeclined10.0%in2024comparedto2023.Salesin2024declinedacrossmostregions,marketsand productlines,attributabletoexcessinventoryrrlevelswithinsuppluychains,whichcontributedtolowersalesvolumesand pricingpressures.ThedeclineatXTRAwasduetofewerunitsonlease. Servicegrouppre-taxearningsdeclined23.0%in2024comparedto2023,primarilyattributabletoTTI,aviation servicesandXTRA.Pre-taxearningsasapercentageofrevenuesfell3.4percentagepointsin2024to11.1%comparedto 2023.EarningsfromTTIdeclined51.0%in2024comparedto2023,reflectingtheimpactoflowersalesandprice competition,whichcontributedtoreducedgrosssalesmarginrates,andhigherselling,generalandadministrativeexpenses. Earningsfromaviationservicesdeclined10.9%in2024versus2023,primarilyattributabletoincreasedcostofservicesand leasing,drivenbyhigherflightcrew,maintenance,fuelanddepreciationexpense,aswellasincreasedimpairmentcharges. ThedeclineatXTRAwasprimarilyduetolowerrevenuesandincreasedcosts. McLaccne McLaneCompany,Inc.(“McLane”)operatesawholesaledistributionbusinessthatprovidesgroceryrrandnon-food consumerproductstoretailersandconveniencestores(“retail”)andtorestaurants(“restaurant”).McLanealsooperates businessesthatarewholesaledistributorsofdistilledspirits,wineandbeer(“beverage”).McLane’sretailandrestaurant businessesgenerateveryhighsalesvolumesandlowprofitffmargins. 2025versus2024 McLane’srevenuesdeclined$909million(1.8%)in2025comparedto2024,reflectingonelessweekinitsfiscalyear, lowervolumesandhigherpricesattributabletoinventoryrrcostinflation.McLane’spre-taxearningsincreased$42million (6.6%)in2025comparedto2024,withearningsincreasingintheretailbusinessanddecliningintherestaurantandbeverage businesses. 2024versus2023 McLane’srevenuesdeclined1.3%in2024comparedto2023,reflectinglowerrestaurantbusinesssales(5.7%)and increasedretailbusinesssales(1.0%).Thedeclineinrestaurantsaleswaspartiallyattributabletochangingconsumer preferffencesfordiningatrestaurantsandquick-servicerestaurants,partiallyoffsffetbyimpactsofpriceinflation.McLane’s pre-taxearningsincreased$179million(39.3%)in2024comparedto2023reflectinganincreaseingrossmarginrates, whichmorethanoffsffettheimpactsoflowersalesandhigherselling,generalandadministrativeexpenses. Retailing OurretailingbusinessesincludeBerkshireHathawayAutomotive,Inc.(“BHA”),whichconsistsofover80auto dealershipsthatsellnewandpre-ownedautomobilesandoffeffrrepairservicesandrelatedproducts.BHAalsooffeffrsand insuresvehicleservicecontractsandrelatedinsuranceproducts.Ourretailingbusinessesalsoincludefourhomefurnishings businesses(NFM,R.C.Willey,StarFurnitureandJordan’s),whichsellfurniture,appliances,flooringandelectronics. Otherretailingbusinessesincludethreejewelryrrbusinesses(Borsheims,HelzbergandBenBridge),See’sCandies (confectffioneryproducts),PamperedChef(highqualitykitchentools),OrientalTradingCompany(partysuppluies,school suppluiesandtoysandnovelties)andDetlevLouisMotorrad(“Louis”),aretailerofmotorcycleaccessoriesbasedin Germany.Pilot,whichweviewasprimarilyaretailingbusiness,isaddressedseparatelysinceitisdeemedasegmentfor financialreportingpurposrres. 2025versus2024 Retailinggrouprevenuesincreased2.5%to$19.7billion,whilepre-taxearningsdeclined$58million(4.2%)in2025 comparedto2024.WiththeexceptionofNFM,ourretailingbusinessesgeneratedflatorlowerearningsin2025comparedto theprioryear. --- Page 79 --- K-53Management’sDiscussionandAnalysis Manufacffturingii,ggServiceandRetailing BHA’srevenuesincreased4.2%in2025comparedto2024,duetoa4.5%increaseinnewandpre-ownedvehiclesales revenues,primarilyduetoincreasednewunitssold,higheraveragepricesandchangesinsalesmix.BHA’sfinffance/service contractrevenuesalsoincreased5.8%,whileparts/service/repairoperationsrevenuesincreased2.2%in2025comparedto 2024.BHA’spre-taxearningsdecreased0.6%in2025comparedto2024,attributabletolowergrossprofitffmarginsand higherselling,generalandadministrativeexpenses,partlyoffsffetbyearningsincreasesfromparts/service/repairand finance/servicecontractoperations. Aggregaterevenuesofourotherretailingbusinessesdeclined1.1%in2025comparedto2024.Severalofthese businessesexperiencedsluggishcustomerdemandin2025,attributabletoacombinationofincreasedcompetitionandthe impactsofhighereconomicuncertaintyandchangesinconsumerconfidffence.Aggregatepre-taxearningsfortheremainder ofourretailinggroupdeclined$53millionin2025comparedto2024,generallyreflectinglowergrossmarginsandhigher restructurtingcosts,partiallyoffsffetbylowerselling,generalandadministrativeexpenses. 2024versus2023 Retailinggrouprevenuesdeclined1.2%to$19.2billionin2024comparedto2023.ExceptforBHAandLouis,eachof ourretailingbusinessesexperiencedrevenuedeclinesin2024comparedto2023.BHAvehiclesalesrevenuesincreased0.5% in2024versus2023,reflectinganincreaseinnewvehicleunitsalesof7.9%andadeclineinpre-ownedunitsalesof2.0%. Further,averagevehiclesellingpriceswerelowerin2024versus2023,attributabletoincreasedinventoryrravailabialityand productmixchanges.Revenuesofthehomefurnishingsbusinessesdeclined6.4%in2024versus2023,primarilyattributable tolowersalesvolumesandincreasedpricecompetition.Also,combinedrevenuesofourotherretailbusinessesdeclined 5.8%in2024comparedto2023,attributabletoincreasedcompetitionandsluggishconsumerdemand. Retailinggrouppre-taxearningsdeclined$331million(19.2%)in2024comparedto2023.BHA’spre-taxearnings declined7.9%in2024comparedto2023,primarilyduetolowervehiclegrossprofitffmargins,partiallyoffsffetbyhigher earningsfromfinance/servicecontractandparts/service/repairoperations,aswellaslowerselling,generalandadministrative expenses.Aggregatepre-taxearningsfortheremainderofourretailinggroupdeclined$242million(40.2%)in2024 comparedto2023.Mostoftheseotherretailersgeneratedsignificantlylowerearningsin2024comparedto2023,reflecting lowersalesandgrosssalesmarginratesandhigherselling,generalandadministrativeexpensesaspercentagesofsales. Pilot PilotTravelCenters(“Pilot”)operatestravelcenters,primarilyunderthenamesPilotorFlyingJ,andfuel-onlyretail locations.PilotalsooperateslargewholesalefuelandfuelmarketingplatformsintheU.S. 2025versus2024 Pilot’srevenuesdeclined$4.7billion(10.0%)in2025from2024,primarilyattributabletosignificantvolume reductionsfrombulkfuelsalesandfueltradingactivities,aswellasloweraveragefuelpricesandwholesalefuelvolumes. Thesedeclineswerepartiallyoffsffetbyincreasedretailfuelvolumes. Pilot’spre-taxearningsdeclined$424million(69.1%)in2025comparedto2024.Earningsin2025werenegatively impactedbylowerwholesalefuelandin-storegrossmarginsandhigherselling,generalandadministrativeexpenses, primarilyduetohigheremployeecompensationandbenefits,insuranceandmaintenancecosts,aswellasbychargesfrom adjudstmentstocertainfuel-relatedbalancesheetaccounts.Theseeffeffctswerepartiallyoffsffetbylowerinterestexpense, primarilyattributabletoreducedborrowinglevels,andgainsfromassetdispositions.Pilot’sborrowings,whicharefrom certainBerkshireinsurancesubsuidiaries,were$3.7billionatDecember31,2025. 2024versus2023 Pilot’srevenuesdeclined$9.9billion(17.4%)in2024comparedtothefullyear2023.Thedeclinewasprimarily attributabletoloweraveragefuelpricesandadeclineinvolumesfromnon-corefuelactivities. Pilot’spre-taxearningsdeclined$442million(41.9%)in2024comparedtothefullyear2023.Grosssalesmargins declined4.3%in2024comparedtothefullyear2023,attributabletolowerdieselmarginsfromlowerpricevolatility. Selling,generalandadministrativeexpensesincreased10.3%in2024comparedtothefullyear2023,reflectingincreased depreciationandamortizationexpenses,aswellaslabora,marketingandmaintenancecosts.Interestexpensedeclined30.9% in2024comparedtothefullyear2023,attributabletoreducedborrowingsandlowerrates.InMarch2024,Pilotborrowed $5.7billionfromcertainBerkshireinsurancesubsuidiariesandrepaiditsthenoutstandingthird-partyborrowings. --- Page 80 --- K-54Management’sDiscussionandAnalysis InvestmentGains(Losses) Asummaryofinvestmentgains(losses)follows(dollarsinmillions). 2025 2024 2023 Investmentgains(losses) $39,078$52,799$74,855 Incometaxesandnoncontrollinginterests 8,341 11,241 15,982 Netearnings(loss) $30,737$41,558$58,873 Effeffctiveincometaxrate 21.3% 21.2% 21.3% Unrealizedgainsandlossesarisingfromchangesinmarketpricesofourinvestmentsinequitysecuritiesareincluded inourreportedearnings,whichsignificantlyincreasesthevolatilityofourperiodicnetearningsduetothesizeofourequity securitiesportfolffioandtheinherentvolatilityofequitysecuritiesprices.Unrealizedgainsandlossesonourinvestmentsin equitysecuritiesalsoincludetheeffeffctsofchangesinforeigncurrencyexchangeratesoninvestmentsinnon-U.S.issuers thatareheldbyourU.S.-basedsubsuidiaries. Pre-taxinvestmentgainsandlossesincludednetunrealizedgainsof$40.0billionin2025,$49.3billionin2024and $69.1billionin2023,attributabletochangesinmarketpricesduringeachyearonequitysecuritiesweheldattheendofeach year.Wealsorecordedpre-taxgainsandlossesfrommarketvaluechangesduringeachyearonequitysecuritiessoldduring theyear,includingnetlossesof$18millionin2025andnetgainsof$3.5billionin2024and$2.7billionin2023.Taxablae investmentgainsonequitysecuritiessold,whicharegenerallythedifferencebetweensalesproceedsandtheoriginalcost basisofthesecuritiessold,were$23.7billionin2025,$101.1billionin2024and$5.0billionin2023.Investmentgainsin 2023includedanon-cashpre-taxgainofapproximately$3.0billionrelatedtotheremeasurementofourpre-existinginterest inPilottofairvaluethroughtheapplicationofacquisitionaccountinguponattainingcontrolofPilotforfinancialreporting purposrres. Webelievethatinvestmentgainsandlosses,whetherrealizedfromsalesorunrealizedfromchangesinmarketprices, areofteffnmeaninglessintermsofunderstandingourreportedconsolidatedearningsorevaluatingourperiodiceconomic performance.Wecontinuetobelievetheinvestmentgainsandlossesrecordedinearningsinanygivenperiodhaslittle analyticalorpredictivevalue. Othettr Asummaryofafteffr-taxotherearnings(losses)follows(inmillions). 2025 2024 2023 Investmentincome $ 3,566$ 1,445$ 959 Foreigncurrencyexchangerategains(losses)onBerkshire andBHFCnon-U.S.Dollarseniornotes (642) 1,151 211 Goodwillimpairmentlosses (1,555) (399) — Equitymethodearnings 900* 1,519 1,750 Acquisitionaccountingexpenses (528) (531) (693) Otherearnings(losses) (128) (271) (652) $ 1,613$ 2,914$ 1,575 —————— *Excludesother-than-temporaryrimpaim rmentlossesoninvestmentsinKraftffHeinzof$3.76billionandOccidentalof$4.50 billion.SeeNote5totheConsolidatddedFinanc ialStatements. Investmentincomeincludescorporateinterestincomeanddividendincomenotallocatedtooperatingbusinesses. Afteffr-taxcorporateinvestmentincomeincreased$2.1billionin2025comparedto2024and$486millionin2024compared to2023,primarilyduetoincreasedinvestmentsinU.S.TreasuryrrBills,whichderivedlargelyfromcapitaldistributionsfrom Berkshiresubsuidiaries. ForeigncurrencyexchangerategainsandlossesonBerkshire’sandBHFC’sseniornotesrepresenttheeffeffctsof changesinforeigncurrencyexchangeratesrecognizedinearningsfromtheperiodicrevaluationofnon-U.S.Dollar denominatedseniornoteliabialitiesintoU.S.Dollars.Thegainsandlossesrecordedinanygivenperiodcanbesignificantdue tothesizeoftheborrowingsandtheinherentvolatilityinforeigncurrencyexchangerates. --- Page 81 --- K-55Management’sDiscussionandAnalysis Othettr Thegoodwillimpairmentlossesrecordedin2025and2024derivedfromBerkshire’spastbusinessacquisitions.The impairmentlossesin2025relatedtocertainbuildingproducts,consumerproductsandretailingbusinesses,whereasthe lossesin2024relatedtocertainservicesandconsumerproducdtsbusinesses.Afteffr-taxequitymethodinvestmentearnings shownintheprecedingtablaedeclined$619millionin2025comparedto2024,primarilyduetolowerearningsfrom Occidentaland,toalesserextent,KraftffHeinz.Afteffrtaxequitymethodinvestmentearningsdeclined$231millionin2024 comparedto2023,primarilyduetolowerearningsfromKraftffHeinzandtheinclusionofPilotforthemonthofJanuary 2023. Acquisitionaccountingexpensesincludechargesarisingfromtheapplicationoftheacquisitionmethodofaccounting inconnectionwithcertainofBerkshire’spastbusinessacquisitions.Thesechargesareprimarilyfromtheamortizationof intangibleassetsrecordedinconnectionwiththoseacquisitions.Otherearningsandlossesprimarilyincludeunallocated corporategeneralandadministrativeexpenses,interestexpense,incometaxexpenseandinterestincomeoncertain intercompanyloans. FinancialCondition OurConsolidatedBalanceSheetcontinuestoreflectsignificantliquidityandaverystrongcapitalbase.Berkshire’s shareholders’equityatDecember31,2025was$717.4billion,anincreaseof$68.1billionsinceDecember31,2024.Net earningsattributabletoBerkshireshareholderswere$67.0billionfor2025andincludedafteffr-taxinvestmentgainsof approximately$30.7billionandafteffr-taximpairmentlossesof$8.3billiononourequitymethodinvestments.Investment gainsandlossesfromchangesinthemarketpricesofourinvestmentsinequitysecuritiesusuallyproducesignificant volatilityinourearnings. Berkshire’scommonstockrepurchaseprogrampermitsBerkshiretorepurchaseitsClassAandClassBsharesat pricesbelowBerkshire’sintrinsicvalue,asconservativelydeterminedbyBerkshire’sChiefExecutiveOffiffcerafteffr consultationwiththeChairmanoftheBoard.Wearenotcommittedtoaminimumorsubjuecttoamaximumrepurchase amount.Wewillnotrepurchaseourstockifitreducesourconsolidatedcash,cashequivalentsandU.S.TreasuryBills holdingstobelow$30billion.Financialstrengthandredundantliquiditywillalwaysbeofparamountimportanceat Berkshire.Therewerenosharerepurchasesin2025. AtDecember31,2025,ourinsuranceandotherbusinessesheldcash,cashequivalentsandU.S.TreasuryrrBills(netof payablaesforunsettledpurchases)of$369.0billion.Investmentsinequityandfixedmaturitysecurities,excludingourequity methodinvestments,were$315.6billion.During2025,wepaid$16.9billiontoacquireequitysecuritiesandwereceived $30.7billionfromsalesofequitysecurities. ExcludingborrowingsofBHEandBNSF,ourborrowingsatDecember31,2025were$45.8billion,predominantly issuedbyBerkshireandBHFC.Berkshire’soutstandingdebtatDecember31,2025was$22.7billion,anincreaseof$1.6 billionfromDecember31,2024.Atvariousdatesin2025,Berkshireissuedapproximately¥451.6billion(appraoximately $3.0billion)ofseniornotes.Theborrowingshaveinterestratesrangingfrom1.35%to3.12%andmaturitydatesranging from2028to2055.In2025,Berkshirerepaidapproximately$1.9billionofmaturingdebt.Additionally,thecarryingvalueof Berkshire’snon-U.S.Dollardenominateddebtincreasedapproximately$500millionin2025duetochangesinforeign currencyexchangerates. SeniornoteborrowingsofBHFC,awholly-ownedfinancingsubsuidiary,wereapproximately$18.3billionatDecember 31,2025,anincreaseof$347millionfromDecember31,2024,primarilyduetotheimpactofchangesinforeigncurrency exchangerates.BHFC’sborrowingsareusedtofundaportionofloansoriginatedandacquiredbyClaytonHomesand equipmentheldforleasebyMarmon’srailcarleasingbusiness.BerkshireguaranteesBHFC’sseniornotesforthefulland timelypaymentofprincipalandinterest. BNSF’soutstandingdebtwas$24.1billionasofDecember31,2025,anincreaseof$565millionfromDecember31, 2024.In2025,BNSFissued$1.85billionofdebenturtesduein2056withaweightedaverageinterestrateof5.65%and repaid$1.3billionoftermdebt. BHE’saggregateborrowingswereapproximately$59.3billionatDecember31,2025,anincreaseof$2.9billionfrom December31,2024.In2025,BHEsubsuidiariesissued$4.3billionoftermdebtwithaweightedaverageinterestrateof6.2% andmaturitydatesrangingfrom2035to2056.In2025,BHEanditssubsuidiariesrepaidtermdebtof$2.7billionand increasedshort-termborrowingsbyapproximately$875million.In2026,BHEsubsuidiariesissued$1.5billionoftermdebt withaweightedaverageinterestrateof6.4%andmaturitydatesrangingfrom2029to2056.Berkshiredoesnotguaranteethe repaymentofanyborrowingsofBNSF,BHEortheirsubsuidiaries. --- Page 82 --- K-56Management’sDiscussionandAnalysis FinancialCondition In2025,ourdiversegroupofbusinessesgeneratednetoperatingcashflowsof$46.0billion.Ourconsolidatedcapiatal expendituresforproperty,plantandequipmentandequipmentheldforleasewere$20.9billionin2025,whichincluded capitalexpendituresof$14.4billionbyBNSFandBHE.BNSFandBHEmaintainverylargeinvestmentsincapitalassets (property,plantandequipment)andregularlymakesignificantcapitalexpendituresinthenormalcourseofbusiness.BHE andBNSFforecastcapitalexpendituresin2026ofapproximately$15billion.OnJanuary2,2026,Berkshireacquired Occidental’schemicalsbusiness(“OxyChem”)forapproximately$9.5billion. ContractualObligations Wearepartytocontractsassociatedwithongoingbusinessactivities,whichwillresultincashpaymentsto counterparrtiesinfutureperiods.OurannualdebtmaturitiesforthenextfiveyearsaresummarizedinNote19tothe ConsolidatedFinancialStatements.Wealsocurrentlyexpecttopayinterestonourdebtrangingfrom$4.9billionin2026to $4.3billionin2030basedonborrowingsoutstandingatDecember31,2025.Certainotherobligationsareincludedinour ConsolidatedBalanceSheets,suchasoperatingleaseliabialitiesandsharedaircraftrepurchaseliabialitiesofNetJets.Estimated paymentsoftheseliabialitiesineachofthenextfiveyearsareasfollows:$2.0billionin2026;$2.1billionin2027;$2.4 billionin2028;$2.1billionin2029;and$2.3billionin2030. Wearealsoobligatedtopayclaimsarisingfromourpropertyandcasualtyinsurancecompanies.Suchliabialities, includingamountsfromretroactivereinsurance,wereapproximately$152billionatDecember31,2025.In2025,ourloss andLAEpaymentsforoccurrencespriorto2025wereapproximately$30billion.Ourforecastedclaimpaymentsin2026are currentlyexpectedtoexceed$30billionwithrespecttoclaimsoccurringpriorto2026.However,thetimingandamountof thepaymentsunderinsuranceandreinsurancecontractsarecontingentupontheoutcomeoffutureeventsandcanbehighly uncertain.Actualpaymentswilllikelyvary,perhapsmaterially,fromforecastedpayments.Weanticipatethatclaims paymentswillbefundedbyoperatingcashflows. Otherobligationspertainingtotheacquisitionofgoodsorservicesinthefuture,suchascertainpurchaseobligations, arenotcurrentlyreflectedintheConsolidatedFinancialStatementsandwillberecognizedinfutureperiodsasthegoodsare deliveredorservicesareprovided.AsofDecember31,2025,thelargestcategoriesofourlong-termcontractuatlobligations primarilyrelatedtofuel,capacity,transmissionandmaintenancecontractsandcapitalexpenditurecommitmentsofBHEand BNSF,aircraftpurchasecommitmentsofNetJetsandcommitmentstopurchasecertainmaterials.Wecurrentlyestimate futurepaymentsassociatedwiththesecontractsoverthenextfiveyearswillapproximate$25billion,including$10billionin 2026. CriticalAccountingEstimates Certainaccountingpoliciesrequireustomakeestimatesandjudgmentsindeterminingtheamountsreflectedinour ConsolidatedFinancialStatements.Suchestimatesandjudgmentsnecessarilyinvolvevaryingandsignificantdegreesof uncertainty.Accordingly,certainamountscurrentlyrecordedinourConsolidatedFinancialStatementswilllikelybeadjudsted inthefuturebasedonnewavailablaeinformationandchangesinotherfactsandcircumstances.Adiscussionofourprincipal accountingpoliciesthatrequiredtheapplicationofsignificantjudgmentsasofDecember31,2025follows. Propertyttandcasualtyllinsuranceunpaidlosses WerecordliabialitiesforunpaidlossesandLAE(alsoreferredtoas“grossunpaidlosses”or“claimliabialities”)based uponestimatesoftheultimateamountspayablaeforlosseventsoccurringonorbeforethebalancesheetdate.Thetimingand amountofultimatelosspaymentsarecontingentupon,amongotherthings,thetimingofclaimreportingfrominsuredsand cedingcompaniesandthefinaldeterminationofthelossamountthroughthelossadjudstmentandsettlementprocess. Asofthebalancesheetdate,recordedclaimliabialitiesincludeestimatesforreportedclaimsandforincurred-but-not- reported(“IBNR”)claims.Inthisdiscussion,theperiodbetweenthelossoccurrencedateandlosssettlementdateisreferred toasthe“resolutionperiod.”Propertyclaimstypicallyhaverelativelyshortresolutionperiods,whilecasualtyclaimsusually havelongerresolutionperiods,occasionallyextendingfordecades.Casualtyclaimsaremoresusceptibletolitigationandthe potentialadverseimpactsofthejudicialprocessesandextraordinaryrrjuryawards. Ourconsolidatedclaimliabialities,includingliabialitiesfromretroactivereinsurancecontracts,asofDecember31,2025 wereapproximately$152billion,ofwhichapproximately75%relatedtoGEICOandtheBerkshireHathawayReinsurance Group.Additionalinformationregardingsignificantuncertaintiesinherentintheprocessesandtechniquesforestimating unpaidlossesofthesebusinessesfollows. --- Page 83 --- K-57Management’sDiscussionandAnalysis CriticalAccountingEstimates Propertyttandcasualtyllinsuranceunpaidlosses GEICEEO GEICOpredominantlywritesprivatepassengerautomobileinsurance.AsofDecember31,2025,GEICO’sgrossclaim liabialitieswere$27.5billion,and$26.6billion,netofreinsurance.GEICO’sclaimreservingmethodologiesproduceliabiality estimatesbasedupontheindividualclaims.Thekeyassumptionsaffeffctingourliabialityestimatesincludeprojectionsof ultimateclaimcounts(“freffquency”)andaveragelossperclaim(“severity”).Acombinationofseveralactuatrialestimation methods,includingBornhuetter-Ferguson,chain-laddermethodologiesandclaimclosuremodelsareutilized. Theaggregateclaimliabialityestimatesrecordedattheendof2024werereducedby$957millionduring2025,which producedacorrespondingincreasetopre-taxearnings.TheassumptionsusedtoestimateliabialitiesatDecember31,2025 reflectthemostrecentfrequencyandseverityestimates.Futuredevelopmentofrecordedliabialitieswilldependonwhether actuatlfrequencyandseverityofclaimsaremoreorlessthananticipated. Withrespecttoliabialitiesforbodilyinjunry(“BI”)claims,webelieveitisreasonablaypossiblethataverageclaims severitieswillchangebyatleastonepercentagepointfromtheprojectedseveritiesusedinestablaishingtherecorded liabialitiesatDecember31,2025.AonepercentagepointincreaseordecreaseinBIseveritiescouldproducea$290million increaseordecreaseinrecordedliabialities,withacorrespondingdecreaseorincreaseinpre-taxearnings.Manyofthe economicforcesthatwouldlikelycauseBIseveritytodifferfromexpectationswouldlikelyalsocauseseveritiesforother injunrycoveragestodifferinthesamedirection. BerkshkkireHathawayReinsuranceGroup BHRG’spropertyandcasualtyclaimsarisefromadiverseportfolffioofreinsurancecontractsunderwrittenacross multipleentitiesthroughtheNICO,GeneralReandTransReGroups.AsummaryofBHRG’spropertyandcasualtyunpaid lossesandLAE,otherthanretroactivereinsuranceunpaidlossesandLAE,asofDecember31,2025follows(inmillions). Property Casualty Total Caseliabialities $ 6,990$11,374$18,364 IBNRliabialities 8,740 24,823 33,563 GrossunpaidlossesandLAE 15,730 36,197 51,927 Reinsurancerecoverablae 688 1,323 2,011 NetunpaidlossesandLAE $15,042$34,874$49,916 GrossunpaidlossesandLAEconsistprimarilyoftraditionalpropertyandcasualtycoverageswrittenunderexcess-of-ff lossandquota-sharetreaties.Undercertaincontracts,coveragecanapplytomultiplelinesofbusinesswrittenandtheceding companymaynotreportlossdatabysuchlinesconsistently,ifatall.Inthoseinstances,wejudgmentallyallocatelossesto propertyandcasualtycoveragesbasedoninternalestimates. Thenature,extent,timingandperceivedreliabialityoflossinformationreceivedfromcedingcompaniesvarieswidely dependingonthetypeofcoverageandthecontractuatlreportingterms.Reinsurancecontract(orpolicy)terms,conditionsand coveragesalsotendtolackstandardizationandmaychangerelativelyquicklycomparedtoprimaryinsurancepolicies. --- Page 84 --- K-58Management’sDiscussionandAnalysis CriticalAccountingEstimates Propertyttandcasualtyllinsuranceunpaidlosses Thelossinformationprovidedundermanyfacultative(individualrisk)orperoccurrenceexcess-of-lffosscontractsmay becomparabletotheinformationreceivedunderaprimaryinsurancecontract.However,lossinformationwithrespectto aggregateexcess-of-lffossandquota-sharecontractsisofteffninasummaryformratherthanonanindividualclaimbasis.Loss dataincludescurrentlyrecoverablaepaidlosses,aswellascaselossestimates.Cedingcompaniesinfrequentlyprovidereliable IBNRlossestimates. Lossreportingtoreinsurersistypicallyslowerthanprimaryinsurers.Clientreportingofclaimsinformationisrequired basedonthetermsofthecontractatintervalsrangingfrom30to180daysafteffrtheendofthequarterlyorannualperiod, reportingpracticescanvarybyjurisdiction.Totheextentthatreinsurersassumeandcedeunderlyingrisksfromother reinsurers,furtherdelaysinclaimsreportingmayoccur.Therelativeimpactofreportingdelaysdependsonthetypeof coverage,contractuatlreportingterms,orthemagnitudeoftheclaimrelativetotheattachmentpointofthereinsurance coverage. ThepremiumandlossdataBHRGreceivesisatleastonelevelremovedfromtheunderlyingclaimant,sothereisa riskthatthelossdatareportedisincomplete,inaccurateortheclaimisoutsidethecoverageterms.Wemaintaininternal procedurdestodeterminethattheinformationiscompleteandincompliancewiththecontractterms.Generally,our reinsurancecontractspermitustoauditthecedingcompany’srecordswithrespecttothesubjuectbusinessforcompliance withthetermsofthepolicy.Disputesoccasionallyariseconcerningwhetherclaimsarecoveredbyourreinsurancepolicies, whicharenormallyresolvedthroughnegotiation.Ifdisputescannotberesolved,ourcontractsgenerallyprovidearbirtration oralternativedisputeresolutionprocesses.Webelievetherearenocoveragedisputesatthistimeforwhichanadverse resolutionwouldlikelyhaveamaterialimpactonourconsolidatedresultsofoperationsorfinancialcondition. Establaishingclaimliabialityestimatesforreinsurancerequiresevaluationoflossinformationreceivedfromourclients. Whilewegenerallyrelyonthecedingcompanies’reportedcaselossestimates,wesometimesuseourowncaseliabiality estimate,ifdeemedappropriate.AsofDecember31,2025,ourcaselossestimatesexceededcedingcompanyestimatesby approximately$1.1billion.Wealsoperiodicallyconductdetailedreviewsofindividualclientclaims,whichmaycauseusto adjudstourcaseestimates. Althoughliabialitiesforlossesareinitiallydeterminedbasedonpricingandunderwritinganalysis,weuseavarietyof actuatrialmethodologiesthatplacerelianceontheextrapolationofhistoricaldata,lossdevelopmentpatterns,industryrrdata andotherbenchmarks.TheestimateoftheIBNRliabialitiesalsorequiresjudgmentbyactuatriesandmanagementtoreflectthe impactofadditionalfactorslikechangeinbusinessmix,volume,claimreportingandhandlingpractices,inflation,socialand legalenvironmentandthetermsandconditionsofthecontracts.Themethodologiesgenerallyfallintoorarehybridsofone ormoreofthefollowingcategories: Paidandincurredlossdevelopmentmethodsconsidertheexpectedcaselossemergenceanddevelopmentpatterns, togetherwithexpectedlossratiosbyyear.Factorsaffeffctinglossdevelopmentanalysisinclude,butarenotlimitedto,changes inthefollowing:clientclaimsreportingandsettlementpractices,thefrequencyofclientcompanyclaimreviews,policy termsandcoverage(suchaslossretentionlevelsandoccurrenceandaggregatepolicylimits),losstrendsandlegaltrendsthat resultinunanticipatedlosses.Collectively,thesefactorsinfluenceourselectionsofexpectedcaselossemergencepatterns. IncurredandpaidlossBornhuetter-Fergusonmethodsconsideractuatlpaidandincurredlossesandexpectedreporting patternsofpaidandincurredlosses,takingtheinitialexpectedultimatelossesintoaccounttodetermineanestimateofthe expectedunpaidorunreportedlosses. --- Page 85 --- K-59Management’sDiscussionandAnalysis CriticalAccountingEstimates Propertyttandcasualtyllinsuranceunpaidlosses Frequencycandseveritymethodscommonlyfocusonareviewofthenumberofanticipatedclaimsandtheanticipated claimsseverityandmayalsorelyondevelopmentpatternstoderivesuchestimates.However,ourprocessesandtechniques forestimatingliabialitiesinsuchanalysesgenerallyrelymoreonaper-policyassessmentoftheultimatecostassociatedwith theindividuallossratherthanwithananalysisofhistoricaldevelopmentpatternsofpastlosses. Addiddtionalanalysllis–Insomecaseswehaveestablaishedreinsuranceclaimliabialitiesonacontract-by-contractbasis, determinedfromcaselossestimatesreportedbythecedingcompanyandIBNRliabialitiesthatareprimarilyafunctionofan anticipatedlossratioforthecontractandthereportedcaselossestimate.Liabilitiesareadjudstedupwardordownwardover timetoreflectcaselossesreportedversusexpectedcaselosses,whichweusetoformrevisedjudgmentontheadequacyof theexpectedlossratioandthelevelofIBNRliabialitiesrequiredforunreportedclaims.Anticipatedlossratiosarealsorevised toincludeestimatesofknownmajoarcatastropheevents. Ourclaimliabialityestimationprocessforlineswithshorterresolutionperiods,primarilypropertyexposures,utilizesa combinationofthepaidandincurredlossdevelopmentmethodsandtheincurredandpaidlossBornhuetter-Ferguson methods.Certainproperty,individualriskandaviationexcess-of-lffosscontractstendtogeneratelowfrequency/highseverity losses.Ourprocessesandtechniquesforestimatingliabialitiesundersuchcontractsgenerallyrelymoreonapercontract assessmentoftheultimatecostassociatedwiththeindividuallosseventratherthanwithananalysisofthehistorical developmentpatternsofpastlosses. Forclaimswithlongerresolutionperiods,primarilycasualtyexposures,wemayrelyondifferentmethodsdepending onthematurityofthebusiness,withestimatesforthemostrecentyearsbeingbasedonpricinglossexpectationsandmore matureyearsreflectingthepaidorincurreddevelopmentpatternindications. In2025,wereducedestimatedultimatepre-2025accidentyears’claimliabialitiesby$1.1billion.Thisnetreduction includes$1.5billionattributabletolower-than-expectedreportedpropertylosses,partiallyoffsffetbyincreasedestimatesfor casualtyclaimliabialities.Thenetreductionproducedacorrespondingincreaseinpre-taxearnings. TheportfolffiosofcontractswithinthethreeBHRGGroupsvaryconsiderably,coveringmultiplelinesofbusiness withindiversegeographiacareasandlegalenvironments,whichrequiresustovarytheapplicationofactuatrialmethodsand weightingofassumptionstodeterminetheappropriateultimateclaimsestimates.Giventheheterogeneityofthegroupsof contractsandactuatrialmethodsandassumptionsapplied,webelieveitisnotpossibletoreasonablayquantifyfftheimpactof changesinanysingleorlimitedgroupofassumptionstotheentireportfolffio.Moreover,changesincertainassumptionsofteffn createiterativeimpactsonotheractuatrialassumptions.Accordingly,webelieveitisimpracticabletoprovidemeaningfulff quantificffationoftheimpactofchangestoanylimitednumberofchosenassumptions. BHRG’spropertyandcasualtyunpaidlossandlossadjudstmentexpensescouldbemateriallyhigherorlowerthanthe liabialitiesasofDecember31,2025duetotheinherentuncertaintyofdeterminingultimateclaimscostsforclaimsthathave occurredorwillbedeemedtohaveoccurredasofthebalancesheetdate.Wecurrentlybelieve,however,thatsignificant upwardrevisionsofclaimestimatesaremorelikelyforcasualtyclaims,givenlongerresolutionperiodsandevolving inflation,legal,judicialandmasstortrisks,includingthemanifestationofnewformsofclaimsthatwerenotcontemplated whenthepolicieswerewritten.WebelieveafivepercentincreaseinBHRG’scasualtyclaimliabialitiesovertimeis reasonablaypossible,althoughthisshouldnotbeviewedasaworst-casescenariogiventherisksidentifieffd.Anincreaseof thismagnitudetoourgrossliabialitiesforcasualtyclaimsatDecember31,2025couldproduceanincreaseincasualty liabialitiesofabout$1.8billion,withacorrespondingdecreasetopre-taxearnings. Retroactivereinsurance Ourretroactivereinsurancecontractsindemnifyffinsurancelossesfromeventsoccurringbeforethecontractinception dates.Claimliabialitiesassociatedwiththesecontractspredominatelypertaintocasualtyorliabialityexposuresandweexpect theresolutionperiodswillbeverylong.AtDecember31,2025,grossunpaidlosseswere$31.0billion. Ourcontractsaregenerallysubjuecttomaximumlimitsofindemnificffationand,assuch,wecurrentlyexpectthatthe aggregateremaininglossespayablaeunderourpolicieswillnotexceed$46billion.Whileultimateclaimswillbeaffeffctedby judicialandlegislativechangesaffeffctingasbestos,environmentalormasstortexposures,wecurrentlybelieveitunlikelythat losseswillincreasetothemaximumordeclinebymorethan15%ofourestimatedgrossclaimsliabialityasofDecember31, 2025. --- Page 86 --- K-60Management’sDiscussionandAnalysis CriticalAccountingEstimates Propertyttandcasualtyllinsuranceunpaidlosses Weestablaishliabialityestimatesbyindividualcontract,consideringexposureanddevelopmenttrends,historical aggregatelosspaymentpatternsandprojectexpectedultimatelossesundervariousscenarios.Weapplyjudgmental probabialityfactorstothesescenariostodetermineanexpectedoutcome.Wealsomonitorsubsuequentlosspaymentactivity andcedingcompanyreportsandotheravailablaeinformation.Were-estimateultimatelosseswhensignificanteventsor significantdeviationsfromexpectationsarerevealed. Certainofourcontractsincludeasbestosandenvironmental,aswellasothermasstortexposures.Ourestimated liabialitiesforasbestosandenvironmentalexposureswereapproximately$11.1billionatDecember31,2025.Ceding companiesdonotconsistentlyprovidereliablaeanddetailedunderlyingclaimsdata,particularlywithrespecttomulti-lineor aggregateexcess-of-lffosspolicies.Whenpossible,weconductdetailedanalysesoftheunderlyinglossdatainmakingan estimateofultimateremainingclaimsliabialities.Whendetailedlossinformationisunavailablae,wemayapplyrecentindustryrr trendsandprojectionstoaggregateclientdata.Judgmentsintheseareasnecessarilyconsiderthestabilityofthelegaland regulatoryrrenvironmentunderwhichweexpectclaimswillbeadjuddicated.Legalreformandlegislationandjudicialrulings couldalsohaveasignificantimpactonourultimateliabialities. Overall,weincreasedestimatedultimateliabialitiesforprioryearretroactivereinsurancecontractsby$261millionin 2025,primarilyforasbestos,environmentalandothercasualtyexposures.Thisincrease,includingthechangesindeferred chargeassets,hadaninsignificantimpactonunderwritingearnings. Deferredchargesforretroactivereinsurancecontracts,whichattheinceptiondatesofthecontracts,representthe excessoftheestimatedultimateliabialityforunpaidlossesoverpremiumsreceived.Deferredchargesaresubsuequently adjudstedbasedonthechangestoexpectedultimateliabialitiesandthetimingofactuatlandexpectedfuturelosspayments. Deferredchargeassetswere$8.1billionatDecember31,2025.Weestimatethatdeferredchargeassetswilldecline approximately$800millionin2026,producingacorrespondingchargetopre-taxearnings. OthettrCriticalAccountinttgEstimates OurConsolidatedBalanceSheetatDecember31,2025includesgoodwillofacquiredbusinessesof$83.1billionand indefinite-livedotherintangibleassetsof$18.9billion.Weevaluatetheseassetsforimpairmentannuallyinthefourthquarter andonaninterimbasisifthefactsandcircumstancesleadustobelievethatmorelikelythannottherehasbeenan impairment. Goodwillandindefinite-livedintangibleassetimpairmentreviewsincludeestimatingthefairvaluesofourreporting unitsandofindefinite-livedintangibleassets.Severalmethodsmaybeusedtoestimatefairvalues,includingmarket quotations,multiplesofearningsandothervaluationtechniques,suchasdiscountedprojectedfutureearningsorcashflow methods.Thekeyassumptionsandinputsusedinfairvaluedeterminationsmayincludeforecastingrevenuesandexpenses, cashflowsandcapiatalexpenditures,aswellasanappropriatediscountrateandotherinputs. Significantjudgmentbymanagementisrequiredinestimatingthefairvalueofareportingunitandinperforming impairmentreviews.Duetotheinherentsubjuectivityanduncertaintyinforecastingfuturecashflowsandearningsoverlong periodsoftime,actuatlresultsmaydiffermateriallyfromtheforecasts.Reasonablaeestimatesofthefairvalueofabusiness enterprisemayrangewidely. Ifthecarryingvalueofareportingunitexceedstheestimatedfairvalueofthereportingunit,thentheexcess,limitedto thecarryingamountofgoodwill,ischargedtoearningsasanimpairmentloss.Ifthecarryingvalueoftheindefinite-lived intangibleassetexceedsfairvalue,theexcessischargedtoearningsasanimpairmentloss. AsofDecember31,2025,weconcludedthatmore-likely-thannot,thegoodwillrecordedinourConsolidatedBalance Sheetwasnotimpaired.However,thefairvalueestimatesofthereportingunitsandassetsaresubjuecttochangebasedon marketandeconomicconditions,aswellaseventsaffeffctingourbusinessesortheindustriesinwhichtheyoperate,whichwe cannotreliablaypredict.Itisreasonablaypossiblethatadversechangesinsuchconditionsoreventscouldresultinthe recognitionofimpairmentlossesinourConsolidatedFinancialStatements. --- Page 87 --- K-61Management’sDiscussionandAnalysis CriticalAccountingEstimates OthettrCriticalAccountinttgEstimates Inconnectionwiththeannualgoodwillimpairmentreviewconductedinthefourthquarterof2025,ourestimatedfair valuesoffourreportingunitsdidnotexceedourcarryirrngvaluesbyatleast20%.ThelargestunitwasPilot,whichhadan estimatedfairvalueofapproximately$20.2billionandacarryingvalueof$18.7billion,includinggoodwillof$6.5billion. Theremainingthreeotherreportingunitshadanaggregateestimatedfairvalueofapproximately$7.5billion,which approximatedourcarryingvalues,includinggoodwillof$2.7billionatDecember31,2025. MarketRiskDisclosures OurConsolidatedBalanceSheetsincludesubsutantialamountsofassetsandliabialitieswhosefairvaluesaresubjuectto marketrisks.Oursignificantmarketrisksareprimarilyassociatedwithequityprices,interestrates,foreigncurrency exchangeratesandcommodityprices.Thefairvaluesofourinvestmentportfolffiosremainsubjuecttoconsiderablevolatility. Thefollowingsectionsaddressthesignificantmarketrisksassociatedwithourbusinessactivities. EquityiiPriceRiskii Investmentsinequitysecuritiesrepresentthemostsignificantportionofourconsolidatedinvestmentportfolio. Strategically,westrivetoinvestinbusinessesthatpossessexcellenteconomicsandmanagement,andwepreferfftoinvesta meaningfulffamountineachcompany.Historically,ourinvestmentshavebeenconcentratedinrelativelyfewissuers.At December31,2025,approximately65%oftheaggregatefairvalueofourinvestmentsinequitysecuritieswasconcentrated infivecompanies. Weofteffnholdourinvestmentsforlongperiodsandshort-termpricevolatilityhasoccurredinthepastandwilloccurin thefuture.Wealsomaintainsignificantlevelsofshareholdercapitalandampleliquiditytoprovideamarginofsafetyagainst short-termpricevolatility. Thefollowingtablaesummarizesourinvestmentsinequitysecurities,excludingourinvestmentsinKraftffHeinzand Occidentalcommonstocksthatareaccountedforundertheequitymethod,andtheestimatedeffeffctsofahypothetical30% increaseanda30%decreaseinmarketpricesasofDecember31,2025and2024.Theselected30%hypotheticalincreaseand decreasedoesnotrepresentthebest-orworst-casescenario.Indeed,resultsfromdeclinescouldbefarworseduebothtothe natureofequitymarketsandtheconcentrationsexistinginourinvestmentportfolffio.Dollaramountsareinmillions. FairValueHypothetical PriceChangeEstimated FairValueAfteffr Hypothetical ChangeinPricesEstimated Increase (Decrease) inNetEarnings(1)1 December31,2025 Investmentsinequitysecurities $297,77830%increase$384,849$68,687 30%decrease 210,866 (68,562) December31,2024 Investmentsinequitysecurities $271,58830%increase$351,020$62,615 30%decrease 192,323 (62,483) —————— (1)1Theestimatedincrease(decrddease)eisafteffrincometaxesaa. --- Page 88 --- K-62Management’sDiscussionandAnalysis MarketRiskDisclosures InterestRateRiskii Wealsoinvestinbonds,loansorotherinterestratesensitiveinstruments.Ourstrategyistoacquireororiginatesuch instrumentsatpricesorwithinterestratesconsideredappropriaterelativetotheperceivedcreditrisk.Wealsoissuedebtin theordinarycourseofbusinesstofundbusinessoperationsandforgeneralpurposres.Weattempttomaintainhighcredit ratingstominimizethecostofourdebt.Wegenerallydonotutilizederivativeproducts,suchasinterestrateswaps,to manageinterestraterisksandwedonotattempttomatchmaturitiesofassetsandliabialities. Thefairvaluesofourfixedmaturityinvestments,loansandfinancereceivablaesandnotespayablaeandother borrowingswillfluctuateinresponsetochangesinmarketinterestrates.Increasesanddecreasesininterestratesgenerally translateintodecreasesandincreasesinfairvaluesoftheseinstruments.Additionally,fairvaluesofinterestratesensitive instrumentsmaybeaffeffctedbytheperceivedcreditrisk,prepaymentoptions,liquidityandotherfactors,aswellasgeneral marketconditions. Thefollowingtablaesummarizestheestimatedeffeffctsofhypotheticalchangesininterestratesonoursignificantassets andliabialitiesthataresubjuecttosignificantinterestraterisk.Weassumedthattheinterestratechangesoccurimmediately anduniformlytoeachcategoryrrofinstrumentandthattherewerenosignificantchangestootherfactorsusedtodeterminethe valueoftheinstrument.Thehypotheticalchangesininterestratesdonotreflectthebest-orworst-casescenarios.Actual resultsmaydifferfromthosereflectedinthetablae.Dollarsareinmillions. EstimatedFairValueAfteffrHypotheticalChangein InterestRates(bp=basispoints) Fair Value100bp decrease100bp increase200bp increase300bp increase December31,2025 Assets: Investmentsinfixedmaturitysecurities $17,816$17,953$17,684$17,559$17,439 Investmentsinequitysecurities* 8,805 9,095 8,536 8,277 8,030 Loansandfinancereceivablaes 30,53231,81529,32428,21527,186 Liabilities: Notespayablaeandotherborrowings: Insuranceandother 40,92443,981 38,28535,99433,991 Railroad,utilitiesandenergy 76,803 84,02568,74462,81657,751 December31,2024 Assets: Investmentsinfixedmaturitysecurities $15,364$15,503$15,220$15,086$14,958 Investmentsinequitysecurities* 8,429 8,743 8,142 7,864 7,597 Loansandfinancereceivablaes 27,57928,77426,47625,45524,508 Liabilities: Notespayablaeandotherborrowings: Insuranceandother 40,181 43,34537,46735,12233,082 Railroad,utilitiesandenergy 72,50680,33965,91660,33255,565 —————— *IncludesCumulativePerpetualPreferffredStocks ForeignggCurrencycRiskii Certainofoursubsuidiariesoperateinforeignjurisdictionsandwetransactbusinessinforeigncurrencies.Inaddition, weholdinvestmentsincommonstocksofmajoarmultinationalcompanies,whohavesignificantforeignbusinessandforeign currencyriskoftheirown.Inmostinstances,wedonotattempttomatchassetsandliabialitiesbycurrencyorusederivative contractstomanageforeigncurrencyrisksinameaningfulffway. --- Page 89 --- K-63Management’sDiscussionandAnalysis MarketRiskDisclosures ForeignggCurrencycRiskii OurnetassetssubjuecttofinancialstatementtranslationintoU.S.Dollarsareprimarilyinourinsurance,utilitiesand energyandcertainmanufactffurtingsubsuidiaries.Aportionofourfinancialstatementtranslation-relatedimpactfromchanges inforeigncurrencyexchangeratesisrecordedinothercomprehensiveincome.Inaddition,weincludegainsorlossesfrom changesinforeigncurrencyexchangeratesinnetearningsrelatedtonon-U.S.Dollardenominatedassetsandliabialitiesof BerkshireanditsU.S.-basedsubsuidiaries.Asummaryofthesegains(losses),afteffr-tax,foreachoftheyearsending December31,2025and2024follows(inmillions). 2025 2024 Non-U.S.Dollardenominateddebtincludedinnetearnings $ (642)$1,151 Netliabialitiesundercertainreinsurancecontractsincludedinnetearnings (351) 136 Foreigncurrencytranslationincludedinothercomprehensiveincome 1,502 (1,646) CommodityiiPriceRiskii Oursubsuidiariesusecommoditiesinvariouswaysinmanufactffurtingandprovidingservices.Assuch,wearesubjuectto pricerisksrelatedtovariouscommodities.Inmostinstances,weattempttomanagetheserisksthroughthepricingofour productsandservicestocustomers.Totheextentthatweareunablaetosustainpriceincreasesinresponsetocommodityprice increases,ouroperatingresultswilllikelybeadverselyaffeffcted.Wegenerallydonotutilizederivativecontractstomanage commoditypriceriskstoanysignificffantdegree. Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk See“MarketRiskDisclosures”containedinItem7“Management’sDiscussionandAnalysisofFinancialCondition andResultsofOperations.” Management’sReportonInternalControlOverFinancialReporting ManagementofBerkshireHathawayInc.isresponsibleforestablaishingandmaintainingadequateinternalcontrolover financialreporting,assuchtermisdefinedintheSecuritiesExchangeActof1934Rule13a-15(f).Underthesupeurvisionand withtheparticipationofourmanagement,includingourprincipalexecutiveoffiffcerandprincipalfinancialoffiffcer,we conductedanevaluationoftheeffeffctivenessoftheCompany’sinternalcontroloverfinancialreportingasofDecember31, 2025,asrequiredbytheSecuritiesExchangeActof1934Rule13a-15(c).Inmakingthisassessment,weusedthecriteriaset forthintheframeworkinInternalControl—In—tegreatedFrameworkrr(2013)issuedbytheCommitteeofSponsoring OrganizationsoftheTreadwayCommission.BasedonourevaluationundertheframeworkinInternalControl—In—tegreated Frameworkrr(2013),ourmanagementconcludedthatourinternalcontroloverfinancialreportingwaseffeffctiveasof December31,2025. TheeffeffctivenessofourinternalcontroloverfinancialreportingasofDecember31,2025hasbeenauditedbyDeloitte &ToucheLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportwhichappearsonpageK-64. BerkshireHathawayInc. Februarry28,2026 --- Page 90 --- K-64Item8.FinancialStatementsandSupplementaryData REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM TotheShareholdersandtheBoardofDirectorsof BerkshireHathawayInc. OpinionsontheFinancialStatementsandInternalControloverFinancialReporting WehaveauditedtheaccompanyingconsolidatedbalancesheetsofBerkshireHathawayInc.andsubsuidiaries(the “Company”)asofDecember31,2025and2024,therelatedconsolidatedstatementsofearnings,comprehensiveincome, changesinshareholders’equity,andcashflows,foreachofthethreeyearsintheperiodendedDecember31,2025,andthe relatednotes(collectivelyreferredtoasthe“financialstatements”).WealsohaveauditedtheCompany’sinternalcontrol overfinancialreportingasofDecember31,2025,basedoncriteriaestablaishedinInternalControl—IntegreatedFrameworkrr (2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO). Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionofthe CompanyasofDecember31,2025and2024,andtheresultsofitsoperationsanditscashflowsforeachofthethreeyearsin theperiodendedDecember31,2025,inconforffmitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America.Also,inouropinion,theCompanymaintained,inallmaterialrespects,effeffctiveinternalcontroloverfinancial reportingasofDecember31,2025,basedoncriteriaestablaishedinInternalControl—IntegreatedFrameworkrr(2013)issued byCOSO. BasisforOpinions TheCompany’smanagementisresponsibleforthesefinancialstatements,formaintainingeffeffctiveinternalcontrolover financialreporting,andforitsassessmentoftheeffeffctivenessofinternalcontroloverfinancialreporting,includedinthe accompanyingManagement’sReportonInternalControlOverFinancialReporting.Ourresponsibilityistoexpressan opiniononthesefinancialstatementsandanopinionontheCompany’sinternalcontroloverfinancialreportingbasedonour audits.WeareapublicaccountingfirmregisteredwiththePubluicCompanyAccountingOversightBoard(UnitedStates) (PCAOB)andarerequiredtobeindependentwithrespecttotheCompanyinaccordancewiththeU.S.federalsecuritieslaws andtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommissionandthePCAOB. WeconductedourauditsinaccordancewiththestandardsofthePCAOB.Thosestandardsrequirethatweplanandperform theauditstoobtainreasonablaeassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement,whether duetoerrororfraud,andwhethereffeffctiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects. Ourauditsofthefinancialstatementsincludedperformingprocedurdestoassesstherisksofmaterialmisstatementofthe financialstatements,whetherduetoerrororfraud,andperformingprocedurdestorespondtothoserisks.Suchprocedurdes includedexamining,onatestbasis,evidenceregardingtheamountsanddisclosuresinthefinancialstatements.Ouraudits alsoincludedevaluatingtheaccountingprinciplesusedandsignificffantestimatesmadebymanagement,aswellasevaluating theoverallpresentationofthefinancialstatements.Ourauditofinternalcontroloverfinancialreportingincludedobtaining anunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtesting andevaluatingthedesignandoperatingeffeffctivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincluded performingsuchotherprocedurdesasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovidea reasonablaebasisforouropinions. DefinitionandLimitationsofInternalControloverFinancialReporting Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonablaeassuranceregardingthe reliabialityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposresinaccordancewithgenerally acceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandprocedurdes that(1)pertaintothemaintenanceofrecordsthat,inreasonablaedetail,accuratelyandfairlyreflectthetransactionsand dispositionsoftheassetsofthecompany;(2)providereasonablaeassurancethattransactionsarerecordedasnecessaryto permitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsand expendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthe company;and(3)providereasonablaeassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,or dispositionofthecompany’sassetsthatcouldhaveamaterialeffeffctonthefinancialstatements. Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also, projectionsofanyevaluationofeffeffctivenesstofutureperiodsaresubjuecttotheriskthatcontrolsmaybecomeinadequate becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorprocedurdesmaydeteriorate. --- Page 91 --- K-65REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM(Continued) CriticalAuditMatters Thecriticalauditmatterscommunicatedbelowaremattersarisingfromthecurrent-periodauditofthefinancialstatements thatwerecommunicatedorrequiredtobecommunicatedtotheauditcommitteeandthat(1)relatetoaccountsordisclosures thatarematerialtothefinancialstatementsand(2)involvedourespeciallychallenging,subjuective,orcomplexjudgments. Thecommunicationofcriticalauditmattersdoesnotalterinanywayouropiniononthefinancialstatements,takenasa whole,andwearenot,bycommunicatingthecriticalauditmattersbelow,providingseparateopinionsonthecriticalaudit mattersorontheaccountsordisclosurestowhichtheyrelate. UnpaindLossesandLossAdjuddstmettntExpexxnses—ReferfftoNotes1and16tothefinaiincialstatttemttents CriticalAuditMatterDescriptiion TheCompany’sunpaidlossesandlossadjudstmentexpenses(“claimliabialities”)includeshortdurationpropertyandcasualty insuranceandreinsurancecontracts.Keyassumptionsaffeffctingcertainoftheseclaimliabialitiesincludeanticipatedclaims andtheirseverity,expectedlossratios,andexpectedpatternsofpaidandincurredlosses. Giventhesubjuectivityofestimatingthesekeyassumptions,performingauditprocedurdestoevaluatewhethercertainofthese claimliabialitieswereappropriatelyrecordedasofDecember31,2025requiredahighdegreeofauditorjudgmentandan increasedextentofeffoffrt,includingtheneedtoinvolveouractuatrialspecialists. HowtheCriticalAuditMatterWasAddrddessedintheAudit Ourauditprocedurdesrelatedtothekeyassumptionsaffeffctingcertainoftheseclaimliabialitiesincludedthefollowing,among others: •Wetestedtheoperatingeffeffctivenessofcontrolsoverclaimliabialities,includingthoseoverthekeyassumptions. •Wetestedtheunderlyingdatathatservedasthebasisfortheactuatrialanalysistoevaluatethattheinputstotheactuarial estimatewereaccurateandcomplete. •Withtheassistanceofouractuarialspecialists: •Wedevelopedindependentestimatesoftheclaimliabialities,includinglossdataandindustryrrclaimdevelopment factorsasneeded,andcomparedourestimatestomanagement’sestimates. •Wecomparedprioryearestimatesofexpectedincurredlossestoactuatlexperienceduringthemostrecentyearto identifyffpotentialbiasinmanagement’sdeterminationoftheclaimliabialities. UnpaindLossesandLossAdjuddstmettntExpexxnses—RetrottactiveReinsuranceContrattcts—tt RefeertoNotes1and17tothe finaiincialstatttemttents CriticalAuditMatterDescriptiion TheCompany’sunpaidlossesandlossadjudstmentexpensesunderretroactivereinsurancecontracts(“retroactiveclaim liabialities”)includepropertyandcasualtyretroactivereinsurancecontracts.Keyassumptionsaffeffctingcertainofthese retroactiveclaimliabialitiesincludeanticipatedclaimsandtheirseverity,expectedlossratios,andexpectedpatternsofpaid andincurredlosses. Giventhesubjuectivityofestimatingthesekeyassumptions,performingauditprocedurdestoevaluatewhethercertainofthese claimliabialitieswereappropriatelyrecordedasofDecember31,2025,requiredahighdegreeofauditorjudgmentandan increasedextentofeffoffrt,includingtheneedtoinvolveouractuatrialspecialists. HowtheCriticalAuditMatterWasAddrddessedintheAudit Ourauditprocedurdesrelatedtothekeyassumptionsaffeffctingclaimliabialitiesincludedthefollowing,amongothers: •Wetestedtheoperatingeffeffctivenessofcontrolsoverclaimliabialities,includingthoseoverthekeyassumptions. •Wetestedtheunderlyingdatathatservedasthebasisfortheactuatrialanalysis,includinghistoricalclaims,totestthat theinputstotheactuarialestimatewereaccurateandcomplete. •Withtheassistanceofouractuarialspecialists: •Wedevelopedindependentclaimliabialityestimatesforcertainretroactivereinsurancecontractsandcomparedour estimatestomanagement’sestimates.Forotherretroactivereinsurancecontracts,weevaluatedtheprocessusedby managementtodeveloptheestimatedclaimliabialities. •Wecomparedprioryearestimatesofexpectedincurredlossestoactuatlexperienceduringthemostrecentyearto identifyffpotentialbiasinmanagement’sdeterminationoftheclaimliabialities. /s/Deloitte&ToucheLLP Omaha,Nebraska Februarry28,2026 WehaveservedastheCompany’sauditorsince1985. --- Page 92 --- K-66BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDBALANCESHEETS (dolddlarsinmillions)s December31, 2025 2024 Assets: InsuranceandOthettr: Cashandcashequivalents* $47,719$44,333 Short-terminvestmentsinU.S.TreasuryrrBills** 321,434 286,472 Investmentsinfixedmaturitysecurities 17,816 15,364 Investmentsinequitysecurities 297,778 271,588 Equitymethodinvestments 19,978 31,134 Loansandfinancereceivablaes 29,836 27,798 Otherreceivablaes 44,331 43,887 Inventories 24,424 24,008 Property,plantandequipment 31,885 30,071 Equipmentheldforlease 18,535 17,828 Goodwill 55,945 56,860 Otherintangibleassets 33,802 34,638 Deferredcharges-retroactivereinsurance 8,104 8,797 Other 24,413 24,994 976,000 917,772 Railroad, Utilitiett sandEnergyr: Cashandcashequivalents* 4,158 3,396 Receivablaes 4,387 4,503 Property,plantandequipment 184,740 175,030 Goodwill 27,129 27,020 Regulatoryrrassets 4,821 5,349 Other 20,941 20,811 246,176 236,109 Totalassets $1,222,176$1,153,881 —————— *IncludesU.S.TreasuryBillswithmaturitiesofthreemonthsorlesswhenpurchasedof$17.6billionatDecember31,2025 and$14.4billionatDecember31,2024. **IncludesunsettledpurchasesofU.S.TreasuryBillsof$167millionand$12.8 billionatDecember31,2025and2024, respectively.llSuchamountsttwerealsollincludedinliabilitiesandwerepaidshortlyafteffrtherespectivebalancesheetdate. SeeaccompanyingNotestoConsolidatddedFinanc ialStatements --- Page 93 --- K-67BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDBALANCESHEETS (dolddlarsinmillions)s December31, 2025 2024 Liabilities: InsuranceandOthettr: Unpaidlossesandlossadjudstmentexpenses $120,713$115,151 Unpaidlossesandlossadjudstmentexpenses-retroactivereinsurance 31,048 32,443 Unearnedinsurancepremiums 31,339 30,808 Life,annuityandhealthinsurancebenefits 17,890 17,616 Otherinsurancepolicyholderliabialities 10,312 10,703 Accountspayablae,accruarlsandotherliabialities 38,019 37,489 PayablaeforpurchaseofU.S.TreasuryBills 167 12,769 Aircraftrepurchaseliabialitiesandunearnedleaserevenues 10,686 9,356 Notespayablaeandotherborrowings 45,763 44,885 305,937 311,220 Railroad, Utilitiett sandEnergyr: Accountspayablae,accruarlsandotherliabialities 19,250 18,226 Regulatoryrrliabialities 7,013 7,033 Notespayablaeandotherborrowings 83,318 79,877 109,581 105,136 Incometaxes,principallydeferred 86,955 85,870 Totalliabialities 502,473 502,226 Shareholders’equity: Commonstockatparvalue 8 8 Capiatalinexcessofparvalue 35,612 35,665 Accumulatedothercomprehensiveincome (2,448) (3,584) Retainedearnings 763,186 696,218 Treasuryrrstock,atcost (78,939) (78,939) Berkshireshareholders’equity 717,419 649,368 Noncontrollinginterests 2,284 2,287 Totalshareholders’equity 719,703 651,655 Totalliabialitiesandshareholders’equity $1,222,176$1,153,881 SeeaccompanyingNotestoConsolidatddedFinanc ialStatements --- Page 94 --- K-68BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDSTATEMENTSOFEARNINGS (dolddlarsinmillionsexcep tpershareamounts)tt YearEndedDecember31, 2025 2024 2023 Revenues: InsuranceandOthettr: Insurancepremiumsearned $ 88,902$ 88,257$ 83,403 Salesandservicerevenues 199,524 202,334 207,148 Leasingrevenues 10,034 9,227 8,416 Interest,dividendandotherinvestmentincome 23,261 21,825 15,764 321,721 321,643 314,731 Railroad, Utilitiett sandEnergyr: Railroadtransportationrevenues 23,330 23,355 23,791 Utilityandenergyoperatingrevenues 21,856 21,518 21,232 Servicerevenuesandotherincome 4,537 4,917 4,728 49,723 49,790 49,751 Totalrevenues 371,444 371,433 364,482 Investmentgains(losses) 39,078 52,799 74,855 Costsandexpenses: InsuranceandOthettr: Insurancelossesandlossadjudstmentexpenses 57,307 56,186 57,187 Life,annuityandhealthinsurancebenefits 4,379 3,858 4,029 Insuranceunderwritingexpenses 17,756 16,808 15,270 Costofsalesandservices 160,062 163,642 169,281 Costofleasing 7,685 7,069 6,037 Selling,generalandadministrativeexpenses 29,735 25,642 25,458 Interestexpense 1,329 1,594 1,671 278,253 274,799 278,933 Railroad, Utilitiett sandEnergyr: Freightrailtransportationexpenses 15,366 15,965 16,464 Utilitiesandenergycostofsalesandotherexpenses 16,959 16,984 18,399 Otherexpenses 4,155 4,343 4,016 Interestexpense 3,740 3,606 3,332 40,220 40,898 42,211 Totalcostsandexpenses 318,473 315,697 321,144 Earningsbeforeincometaxesandequitymethodearnings 92,049 108,535 118,193 Equitymethodearnings(losses) (9,590) 1,841 1,973 Earningsbeforeincometaxes 82,459 110,376 120,166 Incometaxexpense 15,199 20,815 23,019 Netearnings 67,260 89,561 97,147 Earningsattributabletononcontrollinginterests 292 566 924 NetearningsattributabletoBerkshireshareholders $ 66,968$ 88,995$ 96,223 NetearningsperaverageequivalentClassAshare $ 46,563$ 61,900$ 66,412 NetearningsperaverageequivalentClassBshare* $ 31.04$ 41.27$ 44.27 AverageequivalentClassAsharesoutstanding 1,438,223 1,437,720 1,448,880 AverageequivalentClassBsharesoutstanding 2,157,335,1392,156,580,2962,173,319,709 —————— *NetearningsperaverageequivalentClassBshareoutstttandingisequaltoone-fifteffen-hundredthdoftheequivalentClassA amount.SeeNote22. SeeaccompanyingNotestoConsolidatddedFinanc ialStatements --- Page 95 --- K-69BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOME (dolddlarsinmillions)s YearEndedDecember31, 2025 2024 2023 Netearnings $67,260$89,561$97,147 Othercomprehensiveincome: Unrealizedgains(losses)oninvestments 141 (82) 477 Applicableincometaxes (23) 9 (100) Foreigncurrencytranslation 1,479 (1,500) 782 Applicableincometaxes 32 (36) (7) Long-durationinsurancecontractdiscountratechanges 210 807 (237) Applicableincometaxes (46) (144) 49 Definedbenefitpensionplans (800) 1,628 578 Applicableincometaxes 174 (350) (123) Other,net (21) (162) (101) Othercomprehensiveincome,net 1,146 170 1,318 Comprehensiveincome 68,406 89,731 98,465 Comprehensiveincomeattributabletononcontrollinginterests 302 557 953 ComprehensiveincomeattributabletoBerkshireshareholders $68,104$89,174$97,512 BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDSTATEMENTSOFCHANGESINSHAREHOLDERS’EQUITY (dolddlarsinmillions)s Berkshireshareholders’equity Commonstock andcapital inexcessof parvalueAccumulated other comprehensive incomeRetained earningsTreasury stockNon- controlling interests Total BalanceatDecember31,2022 $35,175$(5,052)$511,127$(67,826)$8,257$481,681 Netearnings — — 96,223 — 924 97,147 Othercomprehensiveincome,net — 1,289 — — 29 1,318 Acquisitionsofcommonstock — — — (8,976) — (8,976) Transactionswithnoncontrollinginterests (687) — — — (2,974)(3,661) BalanceatDecember31,2023 34,488 (3,763)607,350(76,802) 6,236567,509 Netearnings — — 88,995 — 566 89,561 AdoptionofASU2023-02 — — (127) — — (127) Othercomprehensiveincome,net — 179 — — (9) 170 Acquisitionsofcommonstock — — — (2,918) — (2,918) Transactionswithnoncontrollinginterests 1,185 — — 781 (4,506)(2,540) BalanceatDecember31,2024 35,673 (3,584)696,218 (78,939) 2,287651,655 Netearnings — — 66,968 — 292 67,260 Othercomprehensiveincome,net — 1,136 — — 10 1,146 Transactionswithnoncontrollinginterests (53) — — — (305) (358) BalanceatDecember31,2025 $35,620$(2,448)$763,186$(78,939)$2,284$719,703 SeeaccompanyingNotestoConsolidatddedFinanc ialStatements --- Page 96 --- K-70BERKSHIREHATHAWAYINC. andSubsidiaries CONSOLIDATEDSTATEMENTSOFCASHFLOWS (dolddlarsinmillions)s YearEndedDecember31, 2025 2024 2023 Cashflowsfromoperatingactivities: Netearnings $67,260$89,561$97,147 Adjudstmentstoreconcilenetearningstooperatingcashflows: Investment(gains)losses (39,078)(52,799)(74,855) Depreciationandamortization 13,476 12,855 12,486 Discountaccretiononinvestments,principallyU.S.TreasuryBills (11,964)(11,349)(5,510) Equitymethodinvestmentimpairmentlosses 10,681 — — Other 3,239 (892) (513) Changesinoperatingassetsandliabialities: Unpaidlossesandlossadjudstmentexpenses 3,088 2,173 2,628 Deferredcharges-retroactivereinsurance 693 698 375 Unearnedinsurancepremiums 432 376 1,854 Receivablaesandoriginatedloans (2,426) 626 (1,949) Otherassets (861) (206) 98 Otherliabialities 429 (2,288) 2,570 Incometaxes 1,000 (8,163)14,865 Netcashflowsfromoperatingactivities 45,969 30,592 49,196 Cashflowsfrominvestingactivities: Purchasesofequitysecurities (16,923)(9,237)(16,462) Salesofequitysecurities 30,686 143,359 40,631 PurchasesofU.S.TreasuryrrBillsandfixedmaturitysecurities (586,129)(526,842)(235,007) SalesofU.S.TreasuryBillsandfixedmaturitysecurities 44,769 48,462 52,302 RedemptionsandmaturitiesofU.S.TreasuryrrBillsandfixedmaturitysecurities 503,954353,538 153,201 Acquisitionsofbusinesses,netofcashacquired (1,074) (396)(8,604) Purchasesofproperty,plantandequipmentandequipmentheldforlease (20,927)(18,976)(19,409) Other 1,157 (195) 685 Netcashflowsfrominvestingactivities (44,487)(10,287)(32,663) Cashflowsfromfinancingactivities: Proceedsfromborrowingsofinsuranceandotherbusinesses 3,071 5,528 2,133 Repaymentsofborrowingsofinsuranceandotherbusinesses (3,050)(7,796)(6,027) Proceedsfromborrowingsofrailroad,utilitiesandenergybusinesses 6,101 7,658 5,684 Repaymentsofborrowingsofrailroad,utilitiesandenergybusinesses (3,974)(4,151)(5,284) Changesinshort-termborrowings,net 878 (3,059) 2,407 Acquisitionsoftreasurystock — (2,918)(9,171) Other,principallytransactionswithnoncontrollinginterests (793)(5,622)(4,147) Netcashflowsfromfinancingactivities 2,233 (10,360)(14,405) Effeffctsofforeigncurrencyexchangeratechanges 478 (212) 116 Increaseincashandcashequivalentsandrestrictedcash 4,193 9,733 2,244 Cashandcashequivalentsandrestrictedcashatthebeginningoftheyear 48,376 38,643 36,399 Cashandcashequivalentsandrestrictedcashattheendoftheyear* $52,569$48,376$38,643 *Cashandcashequivalentsttandrestrictedcashattheendoftheyear: InsuranceandOther $ 47,719 $ 44,333 $ 34,268 Railroad,UtilitiesandEnergyr 4,158 3,396 3,754 Restrictedcashincludedddinotherassets 692 647 621 $ 52,569 $ 48,376$ 38,643 SeeaccompanyingNotestoConsolidatddedFinanc ialStatements --- Page 97 --- K-71BERKSHIREHATHAWAYINC. andSubsidiaries NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS December31,2025 (1)Significantaccountingpoliciesandpractices (a)Na atNNureofoperationsandbasisofconsolidatddion BerkshireHathawayInc.(“Berkshire”)isaholdingcompanyowningsubsuidiariesengagedinnumerousdiverse businessactivities,includinginsuranceandreinsurance,freightrailtransportation,utilitiesandenergy,manufactffurting, serviceandretailing.Inthesenotestheterms“us,”“we,”or“our”referfftoBerkshireanditsconsolidatedsubsuidiaries. FurtherinformationregardingBerkshire’sreportablaebusinesssegmentsiscontainedinNote26.Information concerningsignificantbusinessacquisitionscompletedoverthepastthreeyearsappearsinNote2. TheaccompanyingConsolidatedFinancialStatementsincludetheaccountsofBerkshireconsolidatedwiththe accountsofallsubsuidiariesandaffiffliatesinwhichweholdacontrollingfinancialinterestasofthefinancialstatement date.Normallyacontrollingfinancialinterestreflectsownershipofamajoarityofthevotinginterests.Weconsolidate variableinterestentities(“VIE”)whenwepossessboththepowertodirecttheactivitiesoftheVIEthatmost significantlyaffeffctitseconomicperformance,andwe(a)areobligatedtoabsorbthelossesthatcouldbesignificffantto theVIEor(b)holdtherighttoreceivebenefitsfromtheVIEthatcouldbesignificanttotheVIE.Intercompany accountsandtransactionshavebeeneliminated. Wecontinuetobelievethatreportingtherailroad,utilitiesandenergysubsuidiariesseparatelyinourConsolidated BalanceSheetsandConsolidatedStatementsofEarningsisappropriate,giventherelativesignificanceofproperty, plantandequipment,capitalexpendituresanddebt.Further,thesesubsuidiariesarenotsupporutedbyBerkshiredebt guaranteesorotherfinancialcommitments. (b)Ub seUUofestimatesinpreparationoffinffancialstatements WeprepareourConsolidatedFinancialStatementsinconforffmitywithaccountingprinciplesgenerallyaccepted intheUnitedStates(“GAAP”),whichrequiresustomakeestimatesandassumptionsthataffeffctthereportedamounts ofcertainassetsandliabialitiesatthebalancesheetdateandthereportedamountsofcertainrevenuesandexpenses duringtheperiod.Ourestimatesofunpaidlossesandlossadjudstmentexpensesforpropertyandcasualtyinsurance claimsaresubjuecttoconsiderableestimationerrorduetotheinherentuncertaintyinprojectingultimateclaimcosts.In addition,estimatesandassumptionsassociatedwithdeterminationsofdeferredchargesonretroactivereinsurance contracts,fairvaluesofcertainfinancialinstrumentsandevaluationsofgoodwillandindefinite-livedintangibleassets forimpairmentrequireconsiderablejudgment.Additionally,significantestimatesmayberequiredintheevaluationof certainotherlong-livedassetsforimpairmentsandtherecognitionofexpectedcreditlossesonamountsowedtous. Estimatesmaybesubjuecttosignificantadjudstmentsinfutureperiodsduetoongoingmacroeconomicandgeopolitical events,aswellaschangesinindustryrrorcompany-specificfactorsorevents.Actualresultsmaydifferfffromthe estimatesusedinpreparingourConsolidatedFinancialStatements. (c)Cc asCChandcashequivalentsttandshort-terminvestmentsinU.S.TreasuryBills Cashequivalentsconsistofdemanddepositandmoneymarketaccountsandinvestmentswithmaturitiesofthree monthsorlesswhenpurchased.Short-terminvestmentsinU.S.TreasuryrrBillshavematuritiesexceedingthreemonths andlessthanoneyearatthetimeofpurchase. (d)Idd nvIIestmentsinfixedmaturitysecurities Weclassifyinvestmentsinfixedmaturitysecuritiesontheacquisitiondateandateachbalancesheetdate. Securitiesclassifiedasheld-to-maturityarecarriedatamortizedcost,reflectingtheabilityandintenttoholdthe securitiestomaturity.Securitiesclassifiedastradingarecarriedatfairvaluewithchangesinfairvaluereportedin earnings.Allothersecuritiesareclassifiedasavailablae-for-saleandarecarriedatfairvaluewiththeunrealizedgainor lossrecordedinaccumulatedothercomprehensiveincome.Weamortizethedifferencebetweentheoriginalcostand maturityvalueofafixedmaturitysecuritytoearningsusingtheinterestmethod. --- Page 98 --- K-72NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (d)Idd nvIIestmentsinfixedmaturitysecurities Werecordinvestmentgainsandlossesonavailablae-for-salefixedmaturitysecuritiesinearningswhenthe securitiesaresold.Foravailablae-for-salesecuritiesinanunrealizedlossposition,werecognizealossinearningsfor theexcessofamortizedcostoverfairvalueifweintendtosellthesecuritybeforethepricerecovers.Werecordan allowanceforcreditlosses,limitedtotheexcessofamortizedcostoverfairvalue,withacorrespondingchargeto earningsifthepresentvalueofestimatedexpectedcashflowsislessthanthepresentvalueofcontractuatlcashflows. Theallowancemaybesubsuequentlyincreasedordecreasedbasedontheprevailingfactsandcircumstances.The portionoftheunrealizedlossthatisnotrelatedtoacreditlossisrecognizedinaccumulatedothercomprehensive income. (e)Ie nvIIestmentsinequitysecurities WecarryinvestmentsinequitysecuritiesatfairvalueandrecordthechangesinfairvaluesintheConsolidated StatementsofEarningsasacomponentofinvestmentgainsandlosses.Equitysecuritiesincludecertaincommonstock investments,inwhichwehaveelectedthefairvalueoption. (f)Iff nvIIestmentsunde rtheequitymethod Weutilizetheequitymethodtoaccountforinvestmentswhenwepossesstheabilitytoexercisesignificant influence,butnotcontrol,overtheoperatingandfinancialpoliciesoftheinvestee.Theabilitytoexercisesignificant influenceispresumedwhentheinvestorpossessesmorethan20%ofthevotinginterestsoftheinvestee.This presumptionmaybeovercomebasedonspecificfactsandcircumstancesthatdemonstratethattheabilitytoexercise significantinfluenceisrestrictedorifthefairvalueoptioniselected. Weapplytheequitymethodtoinvestmentsincommonstockandotherinvestmentswhensuchinvestments possesssubsutantiallyidenticalsuborudinatedintereststocommonstock,anddonotapplytheequitymethodto investmentsthatarenotin-substancecommonstockasdefinedbyGAAP.Inapplyingtheequitymethod,weincrease ordecreasethecarryingamountoftheinvestmentbyourproportionateshareofthenetearningsorlossesandother comprehensiveincomeoftheinvestee.Werecordadditionalinvestmentsatcostandequitydistributionsreceivedas reductionsinthecarryingvalueoftheinvestment.Ifnetlossesreduceourcarryingamounttozero,additionalnet lossesmayberecordedifotherinvestmentsintheinvesteeareat-risk,evenifwehavenotcommittedtoprovide additionalfinancialsupporuttotheinvestee.Weincludegainsorlossesonthedispositionofequitymethodinvestments inearningsasacomponentofinvestmentgainsorlosses. (g)Lgg oans andfinancereceivables Loansandfinancereceivablaesareprimarilymanufactffurtedhomeloans,andtoalesserextent,commercialloans andsite-builthomeloans.Wecarrysubsutantiallyallloansandfinancereceivablaesatamortizedcost,netofallowances forexpectedcreditlosses,basedonourabilityandintenttoholdsuchloanstomaturity.Acquisitioncostsandloan originationandcommitmentcostspaidandfeesreceived,aswellasacquisitionpremiumsordiscounts,arecapitalized andaccruerdtoinvestmentincomeasyieldadjudstmentsoverthelivesoftheloans. Measurementsofexpectedcreditlossesincludeprovisionsfornon-collection,whethertheriskisprobablaeor remote.Expectedcreditlossesonmanufactffurtedhomeloansarebasedonthenetpresentvalueoffutureprincipal paymentslessestimatedexpensesrelatedtothecharge-offandforeclosureofexpecteduncollectibleloansandinclude provisionsforloansthatarenotinforeclosure.Ourprincipalcreditqualityindicatoriswhethertheloansare performing.Expectedcreditlossestimatesconsiderhistoricaldefaultrates,collateralrecoveryrates,historicalrunoffff rates,interestrates,reductionsoffuturecashflowsformodifiedloansandthehistoricaltimeelapsedfromlast paymentuntilforeclosure,amongotherfactors.Inaddition,ourestimatesconsidercurrentconditionsandreasonablae andsupporutablaeforecasts. Loansareconsidereddelinquentwhenpaymentsaremorethan30dayspastdue.Weplaceloansover90days pastdueonnonaccruarlstatustandaccruerdbutuncollectedinterestisreversed.Subsuequentcollectionsontheloansare firstappliedtotheprincipalandinterestdueforthemostdelinquentamount.Weresumeinterestincomeaccruarloncea loanislessthan90daysdelinquent. --- Page 99 --- K-73NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (g)Lgg oans andfinancereceivables Loansareconsiderednon-performingwhentheforeclosureprocesshasstarted.Oncealoanisintheprocessof foreclosure,interestincomeisnotrecognizeduntiltheforeclosureiscuredortheloanismodified.Onceamodification iscomplete,interestincomeisrecognizedbasedonthetermsofthenewloan.Foreclosedloansarechargedoffffwhen thecollateralissold.Loansnotinforeclosureareevaluatedforcharge-offbasedonindividualcircumstances concerningthefuturecollectabilityoftheloanandtheconditionofthecollateralsecuringtheloan. (h)Oh therreceivables Otherreceivablaesincludebalancesduefromcustomers,insurancepremiumsreceivablaeandreinsurancelosses recoverablae,aswellasotherreceivables.Tradereceivablaes,insurancepremiumsreceivablaesandotherreceivablaesare primarilyshort-terminnaturewithstatedcollectiontermsoflessthanoneyearfromthedateoforigination. Reinsurancerecoverablaesarecomprisedofamountscededunderreinsurancecontractsorpursuanttomandatory government-sponsoredinsuranceprogramsandarisefromunpaidlossesandlossadjudstmentexpensesonpropertyand casualtyclaimsandbenefitsunderlifeffandhealthcontracts.Receivablaesarestatednetofestimatedallowancesfor expectedcreditlosses. Wemeasureexpectedcreditlossesprimarilyutilizingcreditlosshistory.rrInaddition,ourcreditlossestimates considercurrentconditionsandreasonablaeandsupporutablaeforecasts.Inevaluatingexpectedcreditlossesof reinsurancerecoverablaesonunpaidlosses,wereviewthecreditqualityofthecounterparrtyandconsiderright-of-offset provisionswithinreinsurancecontractsandotherformsofcreditenhancementincludingcollateral,guaranteesand otheravailablaeinformation.Wechargeoffffreceivablaesagainsttheallowancesafteffrreasonablaecollectioneffortffsare exhausted. (i)Fi aiFFrvaluemeasurements Fairvalueisdefinedasthepricethatwouldbereceivedtosellanassetorpaidtotransferffaliabialitybetween marketparticipantsintheprincipalmarketorinthemostadvantageousmarketwhennoprincipalmarketexists. Adjudstmentstotransactionpricesorquotedmarketpricesmayberequiredinilliquidordisorderlymarketswhen estimatingfairvalue.Insuchcircumstances,alternativevaluationtechniquesmaybeappropriatetodeterminethe valuethatwouldbereceivedtosellanassetorpaidtotransferffaliabialityinanorderlytransaction.Marketparticipants areassumedtobeindependent,knowledgeable,andableandwillingtotransactanexchangeandnotactingunder duress.Ournonperformanceorcreditriskisconsideredindeterminingthefairvalueofliabialities.Considerable judgmentmayberequiredininterpretingmarketdatausedtodeveloptheestimatesoffairvalue.Accordingly, estimatesoffairvaluepresentedhereinarenotnecessarilyindicativeoftheamountsthatcouldberealizedinacurrent orfuturemarketexchange. (j)Ijj nvIIentories Inventoriesconsistofmanufactffurtedproducdts,goodsorproductsacquiredforresale,materialsandsuppluiesand homesconstrucrtedforsale.Manufactffurtedinventoryrrcostsincludematerials,directandindirectlaboraandfactoryrr overhead.AtDecember31,2025,weusedthelast-in-first-out(“LIFO”)methodtovalue30%ofinventoryrrbalances, withtheremainderprimarilydeterminedunderfirst-in-first-outandaveragecostmethods.Non-LIFOinventoriesare statedatthelowerofcostornetrealizablevalue.Theexcessofcurrentorreplacementcostsovercostsdetermined underLIFOwasapproximately$2.5billionasofDecember31,2025and$2.3billionasofDecember31,2024. (k)Pk ropeorty,ttplantandequipmientandequipmientheldforlease Weuseproperty,plantandequipmentinouroperations.Wealsoownequipmentthatweleasetoothersunder leasecontracts.Werecordadditions,improvementsandbettermentstosuchpropertiesatcost.Withrespectto construcrtedassets,allmaterials,directlaboraandcontractservicesaswellascertainindirectcosts,includinginterest overtheconstrucrtionperiod,arecapitalized.Withrespecttoconstrucrtedassetsthataresubjuecttoauthoritative guidanceforregulatedoperations,capitalizedcostsalsoincludeanallowanceforfundsusedduringconstrucrrtion, whichrepresentsthecostofequityfundsusedtofinancetheconstrucrrtionoftheregulatedfacilities.Normalrepairsand maintenanceandothercoststhatdonotimprovetheproperty,extenditsusefulfflifefforotherwisedonotmeet capiatalizationcriteriaarechargedtoexpenseasincurred. --- Page 100 --- K-74NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (k)Pk ropeorty,ttplantandequipmientandequipmientheldforlease Depreciationexpenseofourregulatedutilitiesandrailroadisgenerallydeterminedusinggroupdepreciation methodswhereratesarebasedonperiodicdepreciationstuditesapprovedbytheapplicableregulator.Undergroup depreciation,acompositerateisappliedtothegrossinvestmentinaparticularclassofproperty,despitedifferffencesin theservicelifefforsalvagevalueofindividualpropertyunitswithinthesameclass.Whensuchassetsareretiredorsold, nogainorlossisrecognized.Gainsorlossesondisposalsofallotherassetsarerecordedthroughearnings.Rangesof estimatedusefulfflivesofdepreciablaeassetsuniquetoourrailroadbusinessareasfollows:trackstructuretandother roadway–10to100yearsandlocomotives,freightcarsandotherequipment–6to45years.Rangesofestimated usefulfflivesofassetsuniquetoourutilitiesandenergybusinessesareasfollows:utilitygeneration,transmissionand distributionsystems–5to80years,interstatenaturalgaspipelineassets–3to80yearsandindependentpowerplants andotherassets–2to50years. Wedepreciateproperty,plantandequipmentusedinoperationsbyourotherbusinessestotheestimatedsalvage valueprimarilyusingthestraight-linemethodoverestimatedservicelives.Rangesofestimatedservicelivesof depreciableassetsusedinourotherbusinessesareasfollows:buildingsandimprovements–5to50years,machineryrr andequipment–3to30yearsandfurniture,fixturtesandother–4to15years.Wedepreciatetheequipmentheldfor leasetoestimatedsalvagevalueprimarilyusingthestraight-linemethodoverestimatedusefulfflivesrangingfrom3to 35years.Weusedecliningbalancedepreciationmethodsforassetswhentherevenue-earningpoweroftheassetis greaterduringtheearlieryearsofitslife.ff Weevaluateproperty,plantandequipmentandequipmentheldforleaseforimpairmentwheneventsorchanges incircumstancesindicatethatthecarryirrngvalueofsuchassetsmaynotberecoverablaeorwhentheassetsareheldfor sale.Upontheoccurrenceofatriggeringevent,weassesswhethertheestimatedundiscountedcashflowsexpected fromtheuseoftheassetandtheresidualvaluefromtheultimatedisposaloftheassetexceedsthecarryingvalue.Ifthe carryingvalueexceedstheestimatedrecoverablaeamounts,wereducethecarryingvaluetofairvalueandrecordan impairmentlossinearnings,exceptwithrespecttoimpairmentofassetsofourregulatedutilityandenergysubsuidiaries wheretheimpactsofregulationareconsideredinevaluatingthecarryingvalue. (l)Ll eases Wearepartytocontractswhereweleasepropertyfromothers.Whenweleaseassetsfromothers,werecord right-of-useassetsandleaseliabialities.Right-of-useassetsrepresentourrighttouseanunderlyingassetforthelease termandleaseliabialitiesrepresentourobligationtomakeleasepaymentsarisingfromthelease.Inthisregard,lease paymentsincludefixedpaymentsandvariablepaymentsthatdependonanindexorrate.Theleasetermisconsidered thenon-cancellablaeleaseperiod.Certainleasecontractscontainrenewaloptionsorothertermsthatprovidevariable paymentsbasedonperformanceorusage.Optionsarenotincludedindeterminingright-of-useassetsorleaseliabialities unlessitisreasonablaycertainthatoptionswillbeexercised.Generally,incrementalborrowingratesareusedin measuringleaseliabialities.Right-of-uffseassetsaresubjuecttoreviewforimpairment.AspermittedunderGAAP,for someleaseswedonotseparateleasecomponentsfromnon-leasecomponentsbyclassofasset.Additionally,wedonot recordassetsorliabialitiesforleaseswithtermsofoneyearorless. (m)Gm oodw illandotherintangibleassets Goodwillrepresentstheexcessoftheacquisitionpriceofabusinessovertheacquisitiondatevaluesofidentified netassetsofthatbusiness.Weevaluategoodwillforimpairmentatleastannually.Whenevaluatinggoodwillfor impairment,weestimatethefairvalueofthereportingunit.Severalmethodsmaybeusedtoestimateareportingunit’s fairvalue,includingmarketquotations,assetandliabialityfairvaluesandothervaluationtechniques,including,butnot limitedto,discountedprojectedfuturenetearningsornetcashflowsandmultiplesofearnings.Whenthecarryirrng amountofareportingunit,includinggoodwill,exceedstheestimatedfairvalue,theexcessuptothebalanceof goodwillischargedtoearningsasanimpairmentloss. --- Page 101 --- K-75NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (m)Gm oodw illandotherintangibleassets Otherintangibleassetswithindefinitelivesarealsotestedforimpairmentatleastannuallyandwheneventsor changesincircumstancesindicatethat,morelikely-than-not,theassetisimpaired.Whentheassetcarryingvalue exceedsfairvalue,theexcessischargedtoearningsasanimpairmentloss.Significantjudgmentisrequiredin estimatingfairvaluesandevaluatinggoodwillandindefinite-livedintangibleassetsforimpairment.Weamortize intangibleassetswithfinitelivesinapatternthatreflectstheexpectedconsumptionofrelatedeconomicbenefitsoron astraight-linebasisovertheestimatedeconomicusefulfflives.Intangibleassetswithfinitelivesarereviewedfor impairmentwheneventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverablae. (n)Rn evenuerecognition Weearninsurancepremiumsonprospectiveproperty/casualtyinsuranceandreinsurancecontractsovertheloss exposureorcoverageperiodinproportiontothelevelofprotectionprovided.Weearnsuchpremiums,inmostcases ratablay,overthetermofthecontractwithunearnedinsurancepremiumscomputedonamonthlyordailypro-ratabasis. Premiumsonretroactiveproperty/casualtyreinsurancecontractsarenormallyreceivedinfullandarefullyearnedat theinceptionofthecontracts,astheunderlyinglosseventscoveredbythepoliciesoccurredpriortocontractinception. Premiumsforlifeffreinsurancecontractsareearnedwhendue.Premiumsforperiodicpaymentannuitycontractsare receivedinfullandfullyearnedattheinceptionofthecontracts.Premiumsearnedarestatednetofamountscededto reinsurers.Premiumsearnedoncontractswithexperience-ratingprovisionsreflectestimatedlossexperienceunder suchcontracts. Salesandservicerevenuesarerecognizedwhengoodsorservicesaretransferffredtoacustomer.Agoodor serviceistransferffredwhen(oras)thecustomerobtainscontrolofthatgoodorservice.Revenuesarebasedonthe considerationweexpecttoreceiveinconnectionwithourpromisestodelivergoodsandservicestoourcustomers. Oursalescontractsprovidecustomerswithproducdtsdirectlyorthroughwholesaleandretailchannelsin exchangeforconsiderationspecifiedunderthecontracts.Contractsgenerallyrepresentcustomerordersforindividual productsatstatedprices.Salescontractsmaycontaineithersingleormultipleperformanceobligations.Ininstances wherecontractscontainmultipleperforffmanceobligations,weallocatetherevenuetoeachobligationbasedonthe relativestand-alonesellingpricesofeachproductorservice. Salesrevenuesreflectreductionsforreturns,allowances,latedeliveryrrpenalties,volumediscountsandother incentives,someofwhichmaybecontingentonfutureevents.Incertaincustomercontracts,salesrevenuesinclude certainstateandlocalexcisetaxesbilledtocustomersonspecifiedproductswhenthosetaxesarelevieddirectlyupon usbythetaxingauthorities.Salesrevenuesexcludesalestaxesandvalue-addedtaxescollectedonbehalfoftaxing authorities.Salesrevenuesincludeconsiderationforshippingandotherfulfillmeffntactivitiesperformedpriortothe customerobtainingcontrolofthegoods.Wealsoelecttotreatconsiderationforsuchservicesthatareperformedafteffr controlhaspassedtothecustomerassalesrevenue. Productsalesrevenuesaregenerallyrecognizedatapointintimewhencontroloftheproducttransferffstothe customer,whichcoincideswithcustomerpickupkorproducdtdeliveryrroracceptance,dependingontermsofthe arrangement.Werecognizesalesrevenuesandrelatedcostsovertimewithrespecttocertaincontracts,including certainbridgeandstructurtalsteel,castings,forgingsandaerostrucrturescontracts.Controloftheproductunitsunder thesecontractstransferffscontinuouslytothecustomerastheproductismanufactffurted.Theseproductsgenerallyhave noalternativeuseandthecontractrequiresthecustomertoprovidereasonablaecompensationifterminatedforreasons otherthanbreachofcontract. --- Page 102 --- K-76NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (n)Rn evenuerecognition Theprincipalperformanceobligationunderourfreightrailtransportationservicecontractsistomovefreight fromapointoforigintoapointofdestination.Theperformanceobligationsarerepresentedbybillsofladingwhich createaseriesofdistinctservicesthathaveasimilarpatternoftransferfftothecustomer.Therevenuesforeach performanceobligationarebasedonvariousfactorsincludingtheproductbeingshipped,theoriginanddestination pairandcontractincentives,whichareoutlinedinvariousprivaterateagreements,commoncarrierpubluictariffs,ff interlineforeignroadagreementsandpricingquotes.Thetransactionpriceisgenerallyapercar/urrnitamountto transportrailcarsfromaspecifiedorigintoaspecifieddestination.Freightrevenuesarerecognizedovertimeasthe serviceisperformedbecausethecustomersimultaneouslyreceivesandconsumesthebenefitsoftheservice.Revenues recognizedrepresenttheportionoftheservicecompletedasofthebalancesheetdate.Invoicesforfreight transportationservicesaregenerallyissuedtocustomersandpaidwithin30daysorless.Customerincentives,which areprimarilyprovidedforshippingaspecifiedcumulativevolumeorshippingto/froffmspecificlocations,arerecorded asreductionstorevenueonapro-ratabasisbasedonactuatlorprojectedfuturecustomershipments. Utilitiesandenergyrevenuesderiveprimarilyfromregulatedelectricityandnaturalgassales.Regulated electricityandnaturalgasrevenuesareprimarilytariff-basedsalesarrangementsapprovedbyvariousregulatoryrr commissions.Thesetariff-basedrevenuesaremainlycomprisedofenergy,transmission,distributionandnaturalgas andhaveperformanceobligationstodeliverenergyproductsandservicestocustomerswhicharesatisfiedovertimeas energyisdeliveredorservicesareprovided.Suchrevenuesareequivalenttotheamountswehavetherighttoinvoice andcorresponddirectlywiththevaluetothecustomeroftheperformancetodateandincludebilledandunbilled amounts.Paymentsfromcustomersaregenerallyduewithin30daysofbilling.Rateschargedforregulatedenergy productsandservicesareestablaishedbyregulatorsorcontractuatlarrangementsthatestablaishthetransactionprice,as wellastheallocationofpriceamongtheseparateperforffmanceobligations.Whenpreliminaryrrregulatedratesare permittedtobebilledpriortofinalapprovalbytheapplicableregulator,certainrevenuecollectedmaybesubjuectto refundandaliabialityforestimatedrefundsisaccruerd. Otherservicerevenuesderivefromcontractswithcustomersinwhichperformanceobligationsaresatisfieffdover time,wherecustomersreceiveandconsumebenefitsasweperformtheservicesoratapointintimewhentheservices arecompleted.Otherservicerevenuesprimarilyderivefromrealestatebrokerage,construcrrtionmanagementand consulting,automotiverepair,aircraftmanagement,aviationtraining,franchisingactivitiesandnewsdistribution. Leasingrevenueisgenerallyrecognizedratablayoverthetermoftheleaseorbasedonusage,ifapplicableunder thetermsofthecontract.Asubsutantialportionofourlessorcontractsareclassifiedasoperatingleases. (o)Lo ossesandlossadjustmentexpenses(“lossesandLAE”)” WerecordliabialitiesforunpaidinsurancelossesandLAEunderpropertyandcasualtyinsuranceandreinsurance contractsforlosseventsthathaveoccurredonorbeforethebalancesheetdate.Suchliabialitiesrepresentthe undiscountedestimatedultimatepaymentamounts. Webaseliabialityestimateson(1)lossreportsfrompolicyholdersandcedents,(2)individualcaseestimatesand (3)estimatesofincurredbutnotreportedlosses.LossesandLAEintheConsolidatedStatementsofEarningsinclude paidclaimsandclaimsettlementcostsandchangesinestimatedunpaidclaimandsettlementcostliabialities.Lossesand LAEintheConsolidatedStatementsofEarningsarestatednetofamountsrecoveredandestimatesofamounts recoverablaecededunderreinsurancecontracts.Reinsurancecontractsdonotrelievethecedingcompanyofits obligationstoindemnifyffpolicyholderswithrespecttotheunderlyinginsuranceandreinsurancecontracts. (p)Rpp etroactivereinsurance WerecordliabialitiesforunpaidlossesandLAEundershort-durationretroactivereinsurancecontractsconsistent withpropertyandcasualtycontractsdescribedinNote1(o).Withrespecttoretroactivereinsurancecontracts,wealso recorddeferredchargeassetsattheinceptionofthecontracts,representingtheexcess,ifany,oftheestimatedultimate claimliabialitiesoverthepremiumsearned.Wesubsuequentlyadjudstdeferredchargeassetsasofthebalancesheetdate basedonchangesintheestimatedtimingandamountofultimatelosspayments,withretrospectiveapplicationtothe inceptionofthecontractusingtheinterestmethod.Theresultingchangesindeferredchargeassetsareincludedasa componentofinsurancelossesandLAEintheConsolidatedStatementsofEarnings. --- Page 103 --- K-77NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (q)Iqq nsIIurancepolicycacquisiiitioncoststt Deferredpolicyacquisitioncostsareincludedinotherassetsandwereapproximately$4.8billionatDecember 31,2025and$4.6billionin2024.Wecapitalizethedirectincrementalcoststhatrelatetothesuccessfulffsaleof insurancecontracts,suchascommissionsandbrokeragecosts,subjuecttoultimaterecoverabiality.Weexpenseother underwritingcostsasincurred.Forshort-durationpropertyandcasualtyinsurancecontracts,deferredpolicy acquisitioncostsarereflectedinexpensesoverthecontracttermastherelatedpremiumsareearned.Forlong-duration lifecontracts,weexpensedeferredpolicyacquisitioncostsataconstantlevelbasedontheexpectedamountof insurancein-forceandtheexpectedtermofthecontractusingtheassumptionsconsistentwiththoseusedin determiningrelatedinsuranceliabialities. (r)Lr ife,annui tyandhealthinsurancebenefitse Liabilitiesforlife,ffannuityandhealthinsurancebenefitsunderlong-durationinsurancecontractsrepresentthe presentvalueofexpectedfuturecashoutflowsfromfuturebenefitpaymentsandcertainnon-acquisitioncosts,lessthe presentvalueofexpectedfuture“netpremiums,”whichistheportionofgrosspremiumsrequiredtoprovideforall expectedfuturebenefitsandvariableexpenses.Periodicpaymentandannuityreinsurancecontractsareregardedas limitedpaymentcontracts.Suchliabialitiesincludethepresentvalueofexpectedfuturepaymentsbasedonthediscount ratesusedtomeasurebenefitliabialitiesanddeferredprofitffliabialities,whicharebasedontheexcessofgrosspremiums receivedoverthenetpremiumsestablaishedattheinceptionofthecontract. Inestimatingfuturecashflows,weconsiderthetimingandamountoffutureclaims,premiumsandexpenses, whichrequireestimatesofexpectedmortality,morbidityandlapsaerates.Cashflowassumptionsarereviewedatleast annually,withtheeffeffctsofassumptionchangesrecordedinearnings.Thediscountrateassumptionsusedtomeasure benefitliabialitiesarerevisedeachreportingperiodbasedontheprevailingupper-medium-gradecorporatebondyields (generallysingle-Aratedcreditratings)thatreflectthedurationandcurrencyattributesoftheliabialities.Inmeasuring benefitliabialities,wegenerallygroupcontractsbycontractissueyear.Theeffeffctsofchangesindiscountratesare recordedinaccumulatedothercomprehensiveincome. (s)Rs egulatedutilitiesandenergyrbusinesses Certainregulatedutilityandenergysubsuidiariespreparetheirfinancialstatementsinaccordancewith authoritativeguidanceforregulatedoperations,reflectingtheeconomiceffeffctsofregulationfromtheabilitytorecover certaincostsfromcustomersandtherequirementtoreturnrevenuestocustomersinthefuturethroughtheregulated rate-settingprocess.Accordingly,certaincostsaredeferredasregulatoryrrassetsandcertainincomeisaccruerdas regulatoryrrliabialities. Regulatoryrrassetsandliabialitiesaresubsuequentlyrecognizedinoperatingexpensesandrevenuesovervarious futureperiods.Regulatoryrrassetsandliabialitiesarecontinuallyassessedforprobablaefutureinclusioninregulatoryrrrates byconsideringfactorssuchasapplicableregulatoryrrorlegislativechangesandrecentrateordersreceivedbyother regulatedentities.Iffutureinclusioninregulatoryrrratesceasestobeprobablae,theamountnolongerprobablaeof inclusioninregulatoryrrratesischargedorcreditedtoearnings(orothercomprehensiveincome,ifapplicable)or returnedtocustomers. (t)Ft orFFeignicurrencyc TheaccountsofcertainsubsuidiariesaremeasuredusingfunctionalcurrenciesotherthantheU.S.Dollar. RevenuesandexpensesinthefinancialstatementsofthesesubsuidiariesaretranslatedintoU.S.Dollarsattheaverage exchangeratefortheperiodandassetsandliabialitiesaretranslatedattheexchangerateasoftheendofthereporting period.Theneteffeffctsoftranslatingthefinancialstatementsofthesesubsuidiariesareincludedinaccumulatedother comprehensiveincome.Gainsandlossesarisingfromtransactionsdenominatedinacurrencyotherthanthefunctional currencyoftheentity,includinggainsandlossesfromtheremeasurementofassetsandliabialitiesduetochangesin currencyexchangerates,areincludedinearnings. --- Page 104 --- K-78NotestoConsolidatedFinancialStatements (1)Significantaccountingpoliciesandpractices (u)Iu ncIIometaxesaa BerkshirefilesaconsolidatedfederalincometaxreturnintheU.S.witheligiblesubsuidiaries.Inaddition,wefile incometaxreturnsinU.S.stateandlocalandforeignjurisdictions.Provisionsforcurrentincometaxliabialitiesare calculatedandaccruerrdonincomeandexpenseamountsexpectedtobeincludedintheincometaxreturnsforthe currentyear.Incometaxesreportedinearningsalsoincludedeferredincometaxprovisions. Deferredincometaxassetsandliabialitiesarecomputedondifferencesbetweenthefinancialstatementbasesand taxbasesofassetsandliabialitiesattheenactedtaxrates.Changesindeferredincometaxassetsandliabialities associatedwithcomponentsofothercomprehensiveincomearechargedorcrediteddirectlytoothercomprehensive income.Otherwise,changesindeferredincometaxassetsandliabialitiesareincludedasacomponentofincometax expense.Theeffeffctondeferredincometaxassetsandliabialitiesattributabletochangesinenactedtaxratesarecharged orcreditedtoincometaxexpenseintheperiodofenactment.Valuationallowancesareestablaishedforcertaindeferred incometaxassetswhenrealizationisdeemedtobeunlikely. Liabilitiesareestablaishedforuncertaintaxpositionstakenorpositionsexpectedtobetakeninincometax returnswhensuchpositions,inourjudgment,donotmeetamore-likely-than-notthresholdbasedonthetechnical meritsofthepositions.Estimatedinterestandpenaltiesrelatedtouncertaintaxpositionsareincludedasacomponent ofincometaxexpense. (v)Av ccountingpronounc ementsadop tedin2025 WeadoptedtheFinancialAccountingStandardsBoard(“FASB”)AccountingStandardsUpdate2023-09, “ImprovementstoIncomeTaxDisclosures”(“ASU2023-09”)in2025utilizingtheretrospectiveapplicationas permittedinthestandard.ASU2023-09providesforenhancedincometaxratereconciliationandincometaxespaid disclosures.SeeNote20. (w)Aw ccountingpronounc ementstobeadop tedsubsequenttoDecember31,2025 InNovember2024,theFASBissuedAccountingStandardsUpdate2024-03,“DisaggregationofIncome StatementExpenses”(“ASU2024-03”),whichrequiresdisclosureofspecificcategoriesunderlyingcertainexpense captaionsontheincomestatement.ASU2024-03maybeadoptedonaprospectiveorretrospectivebasisandis effeffctiveforfiscalyearsbeginningafteffrDecember15,2026,withearlyadoptionpermitted. (2)Significantbusinessacquisitions Ourlong-heldstrategyistoacquirebusinessesthatwebelievepossessconsistentearningpower,goodreturnson equityandableandhonestmanagement.Financialresultsattributabletobusinessacquisitionsareincludedinour ConsolidatedFinancialStatementsbeginningontheirrespectiveacquisitiondates. OnJanuary2,2026,BerkshirecompleteditsacquisitionofOccidentalPetroleumCorporrration’s(“Occidental”) chemicalsbusiness(“OxyChem”)pursuanttoadefinitiveagreementasofOctober1,2025.ConsiderationpaidtoOccidental onJanuary2wasapproximately$9.5billion,whichissubjuecttoadjudstmentpursuanttothetermsoftheagreement.Also pursuanttotheagreement,OccidentalretainedOxyChem’slegacyenvironmentalliabialities.OxyChemisaglobal manufactffurterofbasicchemicals,withapplicationsinwatertreatment,pharmaceuticals,healthcare,construcrtionandother industries. FinaldeterminationsofthevaluesofcertainassetsandliabialitiesofOxyChemarenotcompletedduetotheproximity oftheacquisitiondatetothedateoftheseConsolidatedFinancialStatementsandthecertaincomplexitiesinherentwiththe transaction.WepreliminarilyestimatethevaluesofOxyChemassetsandliabialitieswillapproximate$10.8billionand$1.3 billion,respectively,andthatassetswillprimarilyconsistofproperty,plantandequipment,tradereceivablaes,inventories, equitymethodinvestmentsandintangibleassets.Goodwillisnotexpectedtobematerial.Wedonotbelievethisacquisition willhaveamaterialimpactonourConsolidatedFinancialStatements. --- Page 105 --- K-79NotestoConsolidatedFinancialStatements (2)Significantbusinessacquisitions OnJanuary31,2023,weacquireda41.4%interestinPilotTravelCentersLLC(“Pilot”)forffapproximately$8.2 billion,increasingourownershipinterestto80%.Accordingly,webeganconsolidatingPilot’sfinffancialstatementsinour ConsolidatedFinancialStatements.Priortothattime,weaccountedforour38.6%interestinPilotundertheequitymethod ofaccounting.Inapplyingtheacquisitionmethodofaccounting,weremeasuredourpreviouslyheld38.6%investmentin Pilottofairvalueasoftheacquisitiondate.Werecognizedapre-taxnon-cashremeasurementgainofapproximately$3.0 billionin2023asinvestmentgains,representingtheexcessofthefairvalueofthatinterestoverthecarryingvalueunderthe equitymethod. (3)Investmentsinfixedmaturitysecurities Investmentsinfixedmaturitysecuritiesaresummarizedbytypebelow(inmillions). Amortized CostUnrealized GainsUnrealized LossesFair Value December31,2025 U.S.Treasury,rrU.S.governmentcorporationsandagencies$3,835$ 14$ —$3,849 Foreigngovernments 12,493 58 (9) 12,542 Corporateandother 1,197 232 (4) 1,425 $17,525$ 304$ (13)$17,816 December31,2024 U.S.Treasury,rrU.S.governmentcorporationsandagencies$4,447$ 16$ (4)$4,459 Foreigngovernments 9,443 16 (97) 9,362 Corporateandother 1,324 225 (6) 1,543 $15,214$ 257$(107)$15,364 Investmentsinfixedmaturitysecuritiesaregenerallyclassifiedasavailablae-for-sale.AsofDecember31,2025, approximately95%ofourforeigngovernmentholdingswereratedAAorhigherbyatleastoneofthemajoarratingagencies. TheamortizedcostandestimatedfairvalueoffixedmaturitysecuritiesatDecember31,2025aresummarizedbelowby contractuatlmaturitydates(inmillions).Actualmaturitiesmaydifferfromcontractuatlmaturitiesduetoprepaymentrights heldbyissuers. Dueinone yearorlessDueafteffrone yearthrough fiveyearsDueafteffrfive yearsthrough tenyearsDueafteffr tenyearsMortgage- backed securities Total Amortizedcost $12,875$4,040$ 406$100$ 104$17,525 Fairvalue 12,949 4,083 558 110 11617,816 (4)Investmentsinequitysecurities Investmentsinequitysecuritiesaresummarizedasfollows(inmillions). Cost BasisNet Unrealized GainsFair Value December31,2025 Banks,insuranceandfinance $15,454$88,675$104,129 Consumerproducts 11,899 83,055 94,954 Commercial,industrialandother 58,036 40,659 98,695 $85,389$212,389$297,778 December31,2024 Banks,insuranceandfinance $15,707$75,936$91,643 Consumerproducts 12,658 92,091 104,749 Commercial,industrialandother 47,141 28,055 75,196 $75,506$196,082$271,588, , , , --- Page 106 --- K-80NotestoConsolidatedFinancialStatements (4)Investmentsinequitysecurities Ourinvestmentsinequitysecuritiesovertheyearshavebeenconcentratedinrelativelyfewcompanies.Thefairvalue ofourfivelargestholdingsatDecember31,2025and2024represented65%and71%,respectively,oftheaggregatefair valueofourequitysecuritiesshownintheprecedingtablaes.ThefivelargestholdingsateachdatewereAmericanExpress Company,AppleInc.,BankofAmericaCorporation,TheCoca-ColaCompanyandChevronCorporation. Additionally,weownsharesofOccidentalcommonstock,whichweaccountforundertheequitymethod.SeeNote5. Since2019,wehavealsoownednon-votingCumulativePerpetuatlPreferffredStockofOccidentalandOccidentalcommon stockwarrants.OurinvestmentsintheOccidentalpreferffredstockandOccidentalcommonstockwarrantsarerecordedatfair valueandincludedasequitysecuritiesinourConsolidatedBalanceSheets,assuchinvestmentsarenotin-substancecommon stockunderGAAPandarenoteligiblefortheequitymethod. TheOccidentalpreferffredstockaccruersdividendsat8%perannumandisredeemableattheoptionofOccidental commencingin2029ataredemptionpriceequalto105%oftheliquidationvalue.AsofDecember31,2025,ourinvestment inOccidentalpreferffredstockhadanaggregateliquidationvalueofapproximately$8.5billion.Todate,Occidentalhas redeemedapproximately$1.5billionoftheaggregateliquidationvalueduetoexcessdistributions,asdefinedundertheterms oftheOccidentalpreferffredstockcertificffateofdesignations,toitscommonstockholders. TheOccidentalcommonstockwarrantsallowustopurchaseupto83.9millionsharesofOccidentalcommonstockat anexercisepriceof$59.59pershare.Thewarrantsareexercisablaeinwholeorinpartuntiloneyearafteffrthedatethe preferffredstockisfullyredeemed. AsofDecember31,2025,weowned151.6millionsharesofAmericanExpressCompany(“AmericanExpress”) commonstockrepresenting22.1%oftheoutstandingcommonstockofAmericanExpress.Since1995,wehavebeenparty toanagreementwithAmericanExpresswherebyweagreedtovoteasignificantportionofoursharesinaccordancewiththe recommendationsoftheAmericanExpressBoardofDirectors.Wehavealsoagreedtopassivitycommitmentsasrequested bytheBoardofGovernorsoftheFederalReserveSystem,whichcollectively,inourjudgment,restrictourabilitytoexercise significantinfluenceovertheoperatingandfinancialpoliciesofAmericanExpress.Accordingly,wedonotusetheequity methodwithrespecttoourinvestmentinAmericanExpresscommonstockandwecontinuetorecordourinvestmentatfair value. (5)Equitymethodinvestments Berkshireanditssubsuidiariesholdinvestmentsthatareaccountedforpursuanttotheequitymethod.Themost significantoftheseareourinvestmentsinthecommonstockofTheKraftffHeinzCompany(“KraKftHeinz”)andOccidental. AsofDecember31,2025,weowned27.5%oftheoutstandingKraftffHeinzcommonstockand26.9%oftheoutstanding Occidentalcommonstock,whichexcludesthepotentialeffeffctoftheexerciseofOccidental’soutstandingcommonstock warrants.KraftffHeinzmanufacturtesandmarketsfoodandbeverageproducts,includingcondimentsandsauces,cheeseand dairy,rrmeals,meats,refreshmentbeverages,coffeeandothergroceryrrproducts.Occidentalisanenergycompany,whose activitiesincludeoilandnaturalgasexploration,developmentandproduction. Wealsoowna50%interestinBerkadiaCommercialMortgageLLC(“Berkadia”).JeffeffriesFinancialGroupInc. (“Jefferies”)ownstheother50%interest.Berkadiaengagesinmortgagebanking,investmentsalesandservicing commercial/multi-familyrealestateloans.Berkadia’scommercialpapearborrowingcapacity(limitedto$1.5billion)is supporutedbyasuretypolicyissuedbyaBerkshireinsurancesubsuidiary.Jefferiesisobligatedtoindemnifyffusforone-halfof anylossesincurredunderthepolicy. OurinvestmentsinKraftffHeinz,OccidentalandBerkadiaaresummarizedasfollows(inmillions).KraftffHeinzand Occidentalcommonstocksarepublicly-tradedandthefairvaluesarebasedonquotedmarketpricesasofourbalancesheet dates. CarryingValue FairValue December31, December31, 2025 2024 2025 2024 KraftffHeinz $8,634$13,395$7,897$9,994 Occidental 10,894 17,287 10,894 13,053 Berkadia 450 452 $19,978$31,134 --- Page 107 --- K-81NotestoConsolidatedFinancialStatements (5)Equitymethodinvestments Ourequityinearningsanddistributionsreceivedfromequitymethodinvestmentsforeachofthethreeyearsending December31,2025aresummarizedasfollows(inmillions). EquityinEarnings DistributionsReceived YearendedDecember31, YearendedDecember31, 2025 2024 2023 2025 2024 2023 KraftffHeinz* $(4,393)$745$758$521$521$521 Occidental* (5,302)1,0051,077 247 207 142 Other 105 91 138 107 65 58 $(9,590)$1,841$1,973$875$793$721 —————— *WereporetourequityinOccidental’searningsonaone-quarterlagand,inthesecondquarterof2025,webegane reporeting ourequityinKraftHffeiHHnz’searningsonaone-quarterlag. Inthesecondquarterof2025,werecordedapre-taximpairmentlossofapproximately$5.0billiononourinvestment inKraftffHeinzcommonstockasacomponentofourequityintheearningsofKraftffHeinz,whichreducedthecarryingvalue ofourinvestmenttofairvaluebasedonthequotedmarketprice.Asaresult,Berkshire’sshareofKraftffHeinzshareholders’ equityexceededBerkshire’sequitymethodcarryingvaluebyapproximately$5.0billionatthattime.Thisbasisdifferffence wasattributedtoKraftHffeinz’sindefinite-livedintangibleassetsandgoodwill.InevaluatingourinvestmentinKraftffHeinz forother-than-temporaryrrimpairmentinthesecondquarterof2025,weconsideredourabilityandintenttoholdthe investmentuntilthefairvalueexceedscarryingvalue,themagnitudeanddurationofthedeclineinfairvalue,andthe operatingresultsandfinancialconditionofthecompany,aswellasprevailingeconomicrisksanduncertainties.Giventhese factors,weconcludedthat,inourjudgment,theunrealizedlosswasotherthantemporary.rr OnMay19,2025,Berkshire’srepresentativesontheKraftffHeinzBoardofDirectorsresigned.Sincethetimingand extentoffinancialinformationwereceivefromKraftffHeinzbecamelimitedtotheinformationKraftffHeinzmakespublicly availablae,weconcludedourreceiptofsuchinformationwasnolongersufficientlytimelyforconcurrentinclusioninour ConsolidatedFinancialStatements.Thus,webeganrecognizingtheequitymethodeffeffctsattributabletoourinvestmentin KraftffHeinzonaone-quarterlagbeginningwithoursecondquarterof2025. OurequityinearningsfromKraftffHeinzin2025includedthe$5.0billionimpairmentlosswerecordedinoursecond quarter.Earningsin2025alsoincludedourproportionateshareofKraftHffeinz’snetearningsreportedthroughitsfirstnine monthsof2025beforeourshare($2.4billion)oftheafteffr-taxindefinite-livedintangibleassetandgoodwillimpairment lossesreportedbyKraftffHeinz(appraoximately$8.7billion)initsfirstninemonthsof2025,whichweappliedtothebasis differencethatresultedfromtheimpairmentlosswerecordedinoursecondquarter. SummarizedfinancialinformationofKraftffHeinzfollows(inmillions). September27, 2025December28, 2024 Assets $ 81,695$ 88,287 Liabilities 40,116 38,962 NineMonthsEnded September27, 2025YearEnded December28, 2024YearEnded December30, 2023 Netsales $ 18,588$ 25,846$ 26,640 Netincome/(loss)attributabletocommonshareholders (6,497) 2,744 2,855 --- Page 108 --- K-82NotestoConsolidatedFinancialStatements (5)Equitymethodinvestments Wealsorecordedapre-taximpairmentlossofapproximately$5.7billiononourinvestmentinOccidentalcommon stockinthefourthquarterof2025asacomponentofourequityintheearningsofOccidental,whichreducedthecarrying valueofourinvestmenttofairvaluebasedonthequotedmarketpriceatthattime.Inrecognizingtheimpairmentlossin earnings,weconsideredthemagnitudeanddurationoftheunrealizedloss,aswellastheoperatingresultsandfinancial conditionofthecompany,andprevailingmacroeconomicrisksanduncertainties.Whilewecurrentlyhavenointentionof disposingofanyOccidentalcommonstock,inourjudgment,theunrealizedlosswasotherthantemporary.rrThecarrying valueofourinvestmentinOccidentalcommonstockasofDecember31,2025exceededourshareofOccidentalcommon shareholders’equityasofSeptember30,2025byapproximately$3.4billion. SummarizedfinancialinformationofOccidentalfollows(inmillions). September30, 2025September30, 2024 Assets $ 83,472$ 85,803 Liabilities 46,706 50,869 TwelvemonthsendingSeptember30, 2025 2024 2023 Totalrevenuesandotherincome $ 26,853$ 27,572$ 29,715 Netearningsattributabletocommonshareholders 1,418 3,703 4,471 (6)Investmentgains(losses) Investmentgains(losses)foreachofthethreeyearsendingDecember31,2025aresummarizedasfollows(in millions). 2025 2024 2023 Equitysecurities: Changeinunrealizedinvestmentgains(losses)duringtheyearon securitiesheldattheendoftheyear $39,981$49,297$69,144 Investmentgains(losses)duringtheyearonsecuritiessold (18) 3,523 2,698 39,963 52,820 71,842 Fixedmaturitysecurities: Grossrealizedgains 53 28 139 Grossrealizedlosses (83) (71) (86) Other (855) 22 2,960 $39,078$52,799$74,855 Equitysecuritiesgainsandlossesincludeunrealizedgainsandlossesfromchangesinfairvaluesduringtheyearon equitysecuritieswestillown,aswellasgainsandlossesonsecuritieswesoldduringtheyear.Intheprecedingtablae, investmentgainsandlossesonequitysecuritiessoldduringtheyearrepresentthedifferencebetweenthesalesproceedsand thefairvalueoftheequitysecuritiessoldatthebeginningoftheapplicableyearor,iflater,thepurchasedate. Proceedsfromsalesofequitysecuritieswereapproximately$30.7billionin2025,$143.4billionin2024and$40.6 billionin2023.Taxablaegainsandlossesonequitysecuritiessoldaregenerallythedifferencebetweentheproceedsfrom salesandcostattheacquisitiondateandweregainsof$23.7billionin2025,$101.1billionin2024and$5.0billionin2023. Otherinvestmentgainsincludedapproximately$3.0billionin2023fromtheremeasurementofourpre-existing38.6% interestinPilotthroughtheapplicationofacquisitionaccountingunderGAAP. --- Page 109 --- K-83NotestoConsolidatedFinancialStatements (7)Loansandfinancereceivables Loansandfinancereceivablaesareprincipallymanufactffurtedhomeloans,andtoalesserextent,commercialloansand site-builthomeloansandaresummarizedasfollows(inmillions). December31, 2025 2024 Loansandfinancereceivablaes,beforeallowancesanddiscounts $ 31,997$ 29,700 Allowancesforcreditlosses (1,347) (1,134) Unamortizedacquisitiondiscountsandpoints (814) (768) $ 29,836$ 27,798 Reconciliationsoftheallowanceforcreditlossesonloansandfinancereceivablaesforeachofthethreeyearsending December31,2025follow(inmillions). 2025 2024 2023 Balanceatthebeginningoftheyear $ 1,134$ 950$ 856 Provisionforcreditlosses 385 298 169 Charge-offs,netofrecoveries (172) (114) (75) BalanceatDecember31 $ 1,347$ 1,134$ 950 AtDecember31,2025,subsutantiallyallmanufactffurtedandsite-builthomeloanswereevaluatedcollectivelyfor impairment,andweconsideredappraoximately96%oftheseloanstobecurrentastopaymentstatust.Asummaryof performingandnon-performinghomeloans,beforeallowancesanddiscounts,byyearofloanoriginationasofDecember31, 2025follows(inmillions). OriginationYear 2025 2024 2023 2022 2021 Prior Total Performing$5,861$5,404$4,492$3,344$2,780$9,298$31,179 Non-performing 6 24 29 19 17 64 159 $5,867$5,428$4,521$3,363$2,797$9,362$31,338 (8)Otherreceivables Otherreceivablaesaresummarizedasfollows(inmillions). December31, 2025 2024 Insuranceandother: Insurancepremiumsreceivablae $ 18,656$ 18,548 Reinsurancerecoverablaes 4,975 5,177 Tradereceivablaes 16,126 15,638 Other 5,279 5,199 Allowancesforcreditlosses (705) (675) $ 44,331$ 43,887 Railroad,utilitiesandenergy: Tradereceivablaes $ 3,782$ 3,764 Other 698 862 Allowancesforcreditlosses (93) (123) $ 4,387$ 4,503 Provisionsforcreditlosseswithrespecttootherreceivablaeswere$530millionin2025,$469millionin2024and$513 millionin2023.Charge-offs,netofrecoveries,were$539millionin2025,$498millionin2024and$474millionin2023. --- Page 110 --- K-84NotestoConsolidatedFinancialStatements (9)Inventories Inventoriesofourinsuranceandotherbusinessesarecomprisedofthefollowing(inmillions). December31, 2025 2024 Rawmaterialsandsuppluies $ 5,020$ 5,421 Workinprocessandother 3,625 3,150 Finishedmanufactffurtedgoods 5,698 4,898 Goodsacquiredforresale 10,081 10,539 $ 24,424$ 24,008 Inventories,materialsandsuppluiesofourrailroad,utilitiesandenergybusinessesareincludedinotherassetsandwere approximately$3.2billionatDecember31,2025and$3.0billionatDecember31,2024. (10)Property,plantandequipment Asummaryofproperty,plantandequipmentofourinsuranceandotherbusinessesfollows(inmillions). December31, 2025 2024 Land,buildingsandimprovements $ 22,034$ 20,735 Machineryrrandequipment 34,733 32,475 Furniture,fixturtesandother 6,212 5,501 62,979 58,711 Accumulateddepreciation (31,094) (28,640) $ 31,885$ 30,071 Asummaryofproperty,plantandequipmentofourrailroad,utilitiesandenergybusinessesfollows(inmillions).The utilitygeneration,transmissionanddistributionsystemsandinterstatenaturalgaspipelineassetsareownedbyregulated publicutilityandnaturalgaspipelinesubsuidiaries. December31, 2025 2024 Railroad: Land,trackstructurteandotherroadway $ 76,764$ 74,093 Locomotives,freightcarsandotherequipment 15,772 15,766 Construcrtioninprogress 2,163 1,813 94,699 91,672 Accumulateddepreciation (22,327) (20,411) 72,372 71,261 Utilitiesandenergy: Utilitygeneration,transmissionanddistributionsystems $ 109,815$ 103,015 Interstatenaturalgaspipelineassets 21,334 20,237 Independentpowerplantsandother 15,630 14,840 Construcrtioninprogress 10,591 8,793 157,370 146,885 Accumulateddepreciation (45,002) (43,116) 112,368 103,769 $ 184,740$ 175,030 Property,plantandequipmentdepreciationexpenseforeachofthethreeyearsendingDecember31,2025is summarizedbelow(inmillions). 2025 2024 2023 Insuranceandother $ 3,245$ 3,117$ 2,898 Railroad,utilitiesandenergy 6,901 6,514 6,494 $10,146$ 9,631$ 9,392 --- Page 111 --- K-85NotestoConsolidatedFinancialStatements (11)Equipmentheldforlease Equipmentheldforleaseincludesrailcars,aircraft,andotherequipment,includingover-the-roadtrailers,intermodal tankcontainers,cranes,storageunitsandfurniture.Equipmentheldforleaseissummarizedbelow(inmillions). December31, 2025 2024 Railcars $ 10,355$ 10,137 Aircraft 15,877 14,201 Other 5,660 5,686 31,892 30,024 Accumulateddepreciation (13,357) (12,196) $ 18,535$ 17,828 Equipmentheldforleasedepreciationexpensewas$1,585millionin2025,$1,429millionin2024and$1,266million in2023.FixedandvariableoperatingleaserevenuesforeachofthethreeyearsendingDecember31,2025aresummarized below(inmillions). 2025 2024 2023 Fixed $ 6,911$ 6,456$ 5,902 Variable 3,123 2,771 2,514 $10,034$ 9,227$ 8,416 AsummaryoffutureoperatingleasereceiptsasofDecember31,2025follows(inmillions). 2026 2027 2028 2029 2030 Thereafter Total $ 4,703$ 3,713$ 2,802$ 1,816$ 904$ 230$14,168 (12)Leases Wearepartytocontractswhereweleasepropertyfromothersundercontractsclassifiedasoperatingleases.We primarilyleasebuildings,offiffces,facilitiesandequipment.Operatingleaseright-of-useassetsareincludedinotherassetsand operatingleaseliabialitiesareincludedinaccountspayablae,accruarrlsandotherliabialities.Informationrelatedtoouroperating leasesfollows(dollarsinmillions). Right-of-useassets LeaseliabilitiesWeightedaverage remainingtermin yearsWeightedaverage discountrateusedto measureliabilities December31,2025 $ 6,020$ 6,290 7.8 4.8% December31,2024 5,843 5,996 7.5 4.5% AsummaryofourremainingfutureoperatingleasepaymentsreconciledtoleaseliabialitiesasofDecember31,2025 andDecember31,2024follows(inmillions). Year1Year2Year3Year4Year5ThereafterTotal lease paymentsAmount representing interestLease liabilities December31: 2025 $1,437$1,269$1,022$827$643$2,546$7,744$(1,454)$6,290 2024 1,491 1,161 982 766 600 2,1977,197 (1,201)5,996 ComponentsofoperatingleaseexpenseforeachofthethreeyearsendingDecember31,2025aresummarizedas follows(inmillions). 2025 2024 2023 Operatingleaseexpense $ 1,647$ 1,652$1,535 Short-termleaseexpense 170 171 219 Variableleaseexpense 209 225 216 $ 2,026$ 2,048$1,970 --- Page 112 --- K-86NotestoConsolidatedFinancialStatements (13)Goodwillandotherintangibleassets Reconciliationsofthechangesinthecarryirrngvalueofgoodwillduring2025and2024follow(inmillions). December31, 2025 2024 Balanceatthebeginningoftheyear* $83,880$84,626 Businessacquisitions 459 87 Other,includingimpairmentsandforeigncurrencytranslation (1,265) (833) Balanceattheendoftheyear* $83,074$83,880 —————— *Netofaccumulatedgoodw illimpaim rmentsof$13.0 billionasofDecember31,2025,$11.5billionasofDecember31,2024 and$11.1billionasofDecember31,2023. Otherintangibleassetsaresummarizedbelow(inmillions). December31,2025 December31,2024 Gross carrying amountAccumulated amortizationNet carrying valueGross carrying amountAccumulated amortizationNet carrying value Insuranceandother: Customerrelationships $31,215$9,638$21,577$30,941$8,840$22,101 Trademarksandtradenames 9,0071,143 7,864 9,0071,041 7,966 Patentsandtechnology 5,2374,1961,041 5,3754,3591,016 Other 5,608 2,288 3,320 5,551 1,9963,555 $51,067$17,265$33,802$50,874$16,236$34,638 Railroad,utilitiesandenergy:* Customerrelationshipsandcontracts$1,541$809$732$1,553$728$825 Other 442 134 308 437 126 311 $1,983$943$1,040$1,990$854$1,136 —————— *Includedinotherassets. Intangibleassetswithindefiniteliveswere$18.9billionasofDecember31,2025andDecember31,2024and primarilyrelatedtocertaincustomerrelationshipsandtrademarksandtradenames.Intangibleassetamortizationexpense was$1.7billionin2025and$1.8billionin2024and2023.Estimatedamortizationexpenseoverthenextfiveyearsfollows (inbillions):2026–$1.7;2027–$1.6;2028–$1.4;2029–$1.4and2030–$1.3. (14)Supplementalcashflowinformation Asummaryofsuppluementalcashflowinformationfollows(inmillions). 2025 2024 2023 Cashpaidduringtheyearfor: Incometaxes $13,978$28,544$7,765 Interest: Insuranceandother 1,301 1,362 1,670 Railroad,utilitiesandenergy 3,793 3,577 3,327 Non-cashinvestingandfinancingactivities: Liabilitiesassumedinconnectionwithbusinessacquisitions 28 2210,938 Operatingleaseliabialitiesarisingfromobtainingright-of-useassets 1,640 2,007 1,645 ClassBcommonstockissuedinexchangefornoncontrollinginterests — 1,045 — (15)Insurancesubsidiarydisclosures Paymentsofdividendsbyourinsurancesubsuidiariesarerestrictedbyinsurancestatuttesandregulations.Withoutprior regulatoryrrapproval,ourprincipalinsurancesubsuidiariesmaydeclareuptoapproximately$33billionasordinarydividends during2026.Investmentsinfixedmaturityandequitysecuritiesandshort-terminvestmentsondepositwithU.S.state insuranceauthoritiesinaccordancewithstateinsuranceregulationswereapproximately$5.5billionatDecember31,2025 and$5.6billionatDecember31,2024. --- Page 113 --- K-87NotestoConsolidatedFinancialStatements (15)Insurancesubsidiarydisclosures Combinedshareholders’equityofU.S.-basedinsurancesubsuidiariesdeterminedpursuanttostatuttoryrraccountingrules (SurplrusasRegardsPolicyholders)wasapproximately$333billionatDecember31,2025and$310billionatDecember31, 2024.StatuttoryrrsurplusdiffersfromthecorrespondingamountbasedonGAAPduetodifferencesinaccountingforcertain assetsandliabialities.Forinstance,therecognitionofdeferredchargesonretroactivereinsurance,life,ffannuityandhealth insurancebenefitsliabialities,deferredpolicyacquisitioncosts,unrealizedgainsoncertaininvestmentsanddeferredincome taxesunderGAAPdiffersfromrecognitionunderU.S.statuttoryrrreporting.Inaddition,thecarryingvaluesofcertainassets, suchasgoodwillandnon-insuranceentitiesownedbyourinsurancesubsuidiaries,arenotfullyrecognizedforstatuttoryrr reportingpurposres. Property/casualtyandlife/ffhealthinsurancepremiumswrittenandearnedaresummarizedbelow(inmillions). Property/Casualty Life/Health 2025 2024 2023 2025 2024 2023 Premiumswritten: Direct $66,693$65,495$61,990$ 14$ 19$ — Assumed 19,25520,42220,751 5,3195,0165,126 Ceded (1,874)(2,231)(2,402) (31) (28) (33) $84,074$83,686$80,339$5,302$5,007$5,093 Premiumsearned: Direct $66,351$64,880$60,437$ 14$ 18$ — Assumed 19,303 20,738 20,442 5,2865,008 5,105 Ceded (2,021)(2,359)(2,548) (31) (28) (33) $83,633$83,259$78,331$5,269$4,998$5,072 (16)Unpaidlossesandlossadjudstmentexpenses ReconciliationsofthechangesinunpaidlossesandLAEliabialities(“claimliabialities”),excludingliabialitiesunder retroactivereinsurancecontracts(seeNote17),foreachofthethreeyearsendedDecember31,2025follow(inmillions). 2025 2024 2023 Balanceatthebeginningoftheyear: Grossliabialities $115,151$111,082$107,472 Reinsurancerecoverablaeonunpaidlosses (4,593) (4,893) (5,025) Netliabialities 110,558 106,189 102,447 LossesandLAEincurred: Currentaccidentyear 58,207 57,563 59,244 Prioraccidentyears (1,854) (2,322) (3,541) Total 56,353 55,241 55,703 LossesandLAEpaid: Currentaccidentyear (23,762) (24,139) (25,184) Prioraccidentyears (27,709) (26,436) (27,065) Total (51,471) (50,575) (52,249) Foreigncurrencyeffeffct 817 (297) 288 BalanceatDecember31: Netliabialities 116,257 110,558 106,189 Reinsurancerecoverablaeonunpaidlosses 4,456 4,593 4,893 Grossliabialities $120,713$115,151$111,082 Ourclaimliabilitiesunderpropertyandcasualtyinsuranceandreinsurancecontractsarebaseduponestimatesofthe ultimateclaimcostsassociatedwithclaimeventsthathaveoccurredasofthebalancesheetdateandincludeestimatesfor incurred-but-not-reported(“IBNR”)claims.LossesandLAEincurredandpaidintheprecedingtablaerelatetoevents occurringinthecurrentyear(“currentaccidentyear”)andeventsoccurringinallprioryears(“prioraccidentyears”).Losses andLAEincurredandpaidarenetofreinsurancerecoveries. Currentaccidentyearincurredlossesincludedestimatesforsignificantcatastropheevents(lossesexceeding$150 millionperevent)ofapproximately$1.1billionin2025,$1.5billionin2024and$925millionin2023. --- Page 114 --- K-88NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses Werecordednetreductionsofestimatedultimateclaimliabialitiesforprioraccidentyears’eventsof$1.9billionin 2025,$2.3billionin2024and$3.5billionin2023,whichproducedcorrespondingreductionsinlossesandLAEincurredin thoseperiods.Thesereductions,aspercentagesofthenetliabialitiesatthebeginningofeachyear,were1.7%in2025,2.2%in 2024and3.5%in2023. Ourprimaryinsurancebusinessesreducedprioraccidentyears’ultimateclaimsestimatesby$767millionin2025, $602millionin2024and$2.1billionin2023.Subsutantiallyallofthedeclinein2025wasattributabletopropertycoverages. Thedeclinein2024reflectedreductionsinclaimsestimatesforproperty,medicalprofesffsionalliabialityandworkers’ compensationcoverages,partlyoffsffetbyincreasedestimatesforothercasualtycoverages.Theestimatedliabialityreductions in2023wereacrossproperty,medicalprofesffsionalliabialityandworkers’compensationandothercasualtycoverages. Ourreinsurancebusinessesreducedprioraccidentyears’ultimateclaimsestimatesby$1.1billionin2025,$1.7billion in2024and$1.4billionin2023.Ineachyear,thereductionsreflectedlower-than-expectedpropertylosses.In2025,our reinsurancebusinessesincreasedprioraccidentyearsultimatecasualtyclaimsestimatescomparedtoreductionsin2024and 2023. Estimatednetclaimliabialitiesforenvironmentalandasbestosexposures,excludingliabialitiesunderretroactive reinsurancecontracts,wereapproximately$1.8billionatDecember31,2025and$1.9billionatDecember31,2024.These liabialitiesaresubjuecttochangeduetochangesinthelegalandregulatoryrrenvironment,amongotherfactors.Weareunablae toreliablayestimateadditionallossesorarangeoflossesthatarereasonablaypossibletoarisefromthesefactors. DisaggregatedinformationconcerningourclaimliabialitiesisprovidedbelowandinthepagesthatfollowforGEICO, BerkshireHathawayPrimaryGroup(“BHPrimary”)andBerkshireHathawayReinsuranceGroup(“BHRG”).Inthis discussion,“resolutionperiod”referstotheperiodbetweentheclaimoccurrencedateandclaimsettlementorpaymentdate. Areconciliationofthedisaggregatednetunpaidlossesandallocatedlossadjudstmentexpenses(thelatterreferredtoas “ALAE”)toourconsolidatedclaimliabialitiesasofDecember31,2025follows(inmillions). GEICO BHPrimary BHRG Physical DamageAuto LiabilityMedical Profesffsional LiabilityWorkers’ Compensation/ Other CasualtyPropertyCasualty Total UnpaidlossesandALAE,net$914$23,526$9,721$26,912$14,944$34,538$110,555 Reinsurancerecoverablae 3 899 38 1,401 688 1,323 4,352 UnallocatedLAE 2,396 OtherlossesandLAE 3,410 UnpaidlossesandLAE $120,713 GEICEEO GEICO’sclaimliabialitiespredominantlyrelatetovarioustypesofprivatepassengerautoliabialityandphysicaldamage claims.Forsuchclaims,weestablaishandevaluateunpaidclaimliabialitiesusingstandardactuatriallossdevelopmentmethods andtechniques.Theactuatrialmethodsutilizehistoricalclaimsdata,adjudstedwhendeemedappropriatetoreflectperceived changesinlosspatterns.ClaimliabialitiesincludecaseandIBNRestimates. Casereservesarebasedonacombinationofadjudsterdeterminedliabialitiesandstatisticalliabialities.Theadjudster liabialitiesreflectclaimadjudstersestimatesbasedonthefactsandmeritsofeachclaim.Thestatisticalliabialitiesestimatesare basedonkeyclaimandpolicycharacteristicsandhistoricalultimatelosses,adjudstedforselectedtrendsandappliedto pendingliabialityandphysicaldamageclaims. Forunreportedclaims,IBNRclaimliabialitiesareestimatedbyprojectingtheultimatenumberofclaimsexpected (reportedandunreported)foreachsignificantcoveragebasedonhistoricaldata,fromwhichreportedclaimsaredeductedto producetheestimatednumberofunreportedclaims.Theproductoftheaveragecostperunreportedclaimandthenumberof unreportedclaimsproducestheIBNRliabialityestimate.WemayrecordsuppluementalIBNRliabialitiesincertainsituations whenactuatrialtechniquesaredifficulttoapply. --- Page 115 --- K-89NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses GEICO’snetautophysicaldamageandliabialitylossesandALAEincurredandpaidaresummarizedbyaccidentyear below.IBNRandcasedevelopmentliabialitiesareasofDecember31,2025andarenetofestimatedsalvageandsubruogation recoveries.AnticipatedsalvageandsubruogationrecoveriesareincludedinIBNRreservesandmayresultinnegativeIBNR reserves,primarilyinphysicaldamage.Claimcountsareestablaishedwhenaccidentsthatcouldresultinaliabilityare reportedandarebasedonpolicycoverage.Eachclaimeventmaygenerateclaimsundermultiplecoveragesandmayresultin multiplecounts.The“CumulativeNumberofReportedClaims”includesthecombinednumberofreportedclaimsforallauto policycoverages.Dollarsareinmillions. PhysicalDamage LossesandALAEIncurredthroughDecember31,Cumulative Numberof Accident Year 2024* 2025IBNRandCase Development LiabilitiesReported Claims (in000's) 2024 $ 11,095$ 10,833$ 88 6,496 2025 10,612 (275) 5,828 LossesandALAEincurred$ 21,445 CumulativeLossesandALAEPaidthroughDecember31, Accident Year 2024* 2025 2024 $ 10,495$ 10,728 2025 9,936 LossesandALAEpaid 20,664 NetunpaidlossesandALAEfor2024–2025accidentyears 781 NetunpaidlossesandALAEforaccidentyearsbefore2024 133 NetunpaidlossesandALAE$ 914 AutoLiability LossesandALAEIncurredthroughDecember31,Cumulative Numberof Accident Year 2021* 2022* 2023* 2024* 2025IBNRandCase Development LiabilitiesReported Claims (in000's) 2021$17,481$17,457$17,229$17,033$16,827$ 545 2,461 2022 19,645 18,903 18,818 18,275 1,056 2,397 2023 17,948 18,073 17,234 1,856 1,977 2024 17,081 18,208 3,361 1,842 2025 19,901 5,897 1,742 LossesandALAEincurred$90,445 CumulativeLossesandALAEPaidthroughDecember31, Accident Year 2021* 2022* 2023* 2024* 2025 2021$6,450$12,681$14,863$15,796$16,132 2022 7,614 13,838 16,031 16,853 2023 7,191 12,682 14,555 2024 7,084 12,764 2025 7,590 LossesandALAEpaid 67,894 NetunpaidlossesandALAEfor2021–2025accidentyears 22,551 NetunpaidlossesandALAEforaccidentyearsbefore2021 975 NetunpaidlossesandALAE$23,526 —————— *Unauditedrequiredsuppluementalinfonrmationy g y --- Page 116 --- K-90NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses BHPrimaryr BHPrimary’sliabialitiesforunpaidlossesandLAEprimarilyderivefrommedicalprofesffsionalliabialityandworkers’ compensationandothercasualtyinsurance,whichincludescommercialautoandgeneralliabialityinsurance.Netlossesand ALAEincurredandpaidaresummarizedbyaccidentyearinthefollowingtablaes,disaggregatedbymedicalprofesffsional liabialityandworkers’compensationandothercasualtycoverages.IBNRandcasedevelopmentliabialitiesareasofDecember 31,2025.Thecumulativenumberofreportedclaimsreflectsthenumberofindividualclaimantsandincludesclaimsthat ultimatelyresultedinnoliabialityorpayment.Dollarsareinmillions. MedicalProfesffsionalLiability EstimatesoftheultimateexpectedlossesandLAEincurredformedicalprofesffsionalclaimliabialitiesarebasedona varietyofcommonlyacceptedactuatrialmethodologies,suchasthepaidandincurreddevelopmentmethodandBornhuetter- Fergusonbasedmethods,aswellasothertechniquesthatconsiderinsuredlossexposuresandhistoricalandexpectedloss trends,amongotherfactors.Thesemethodologiesproducdelossestimatesfromwhichwedetermineourbestestimate.In addition,westudytdevelopmentsinolderaccidentyearsandadjudstinitiallossestimatestoreflectrecentdevelopmentsbased uponclaimage,coverageandlitigationexperience. LossesandALAEIncurredthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025IBNRand Case Development LiabilitiesCumulative Numberof Reported Claims (in000's) 2016$1,392$1,416$1,414$1,394$1,341$1,288$1,216$1,188$1,172$1,184$ 64 15 2017 1,4661,4991,4951,4741,3821,3491,3151,3101,321 86 21 2018 1,6021,6501,6591,5801,6161,6061,5831,580 115 24 2019 1,6701,6911,6631,6141,5341,5791,608 129 22 2020 1,7041,7511,6981,6311,6061,584 225 33 2021 1,8521,8551,7871,7141,671 452 26 2022 1,9271,9121,8461,814 650 24 2023 1,9641,9181,892 1,052 26 2024 2,0042,116 1,533 29 2025 1,985 1,803 13 LossesandALAEincurred$16,755 CumulativeLossesandALAEPaidthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025 2016$22$115$274$461$620$712$822$908$957$1,022 2017 27128300 457582 7398779771,051 2018 35166367543728 9491,0801,209 2019 39160314536 7579631,154 2020 34148321531767976 2021 36136333 548787 2022 38182441700 2023 28156404 2024 34178 2025 26 LossesandALAEpaid7,507 NetunpaidlossesandALAEfor2016–2025accidentyears9,248 NetunpaidlossesandALAEforaccidentyearsbefore2016473 NetunpaidlossesandALAE$9,721 —————— *Unauditedrequiredsuppluementalinfonrmationy --- Page 117 --- K-91NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses Workers’CompensationandOtherCasualty Weestablaishcaseliabialitiesforreportedcasualtyandworkers’compensationclaimsbaseduponthefactsand circumstancesoftheclaim.Theexcessoftheultimateprojectedlosses,includingthecasedevelopmentestimatesoverthe case-basisliabialities,isincludedinIBNRliabialities.Weevaluateultimatelossandlossadjudstmentexpenseestimatesfor claimsusingacombinationofcommonlyacceptedactuatrialmethodologies,suchastheBornhuetter-Fergusonandchain- ladderapproaches,incorporatingcombinationsofpaidandincurredlossdata,claimsfrequencyandseveritydata,expected lossratios,aswellasotherdataandassumptions.Forworkers’compensationclaims,paidandincurredlossdataisalso segregatedandanalyzedbystateduetothedifferentstateregulatoryrrframeworksthatmayimpactthedurationandamountof losspayments.Wealsoseparatelystudytthevariouscomponentsofliabialities,suchasemployeelostwages,medical expensesandthecostsofclaimsinvestigationsandadministration. LossesandALAEIncurredthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025IBNRand Case Development LiabilitiesCumulative Numberof Reported Claims (in000's) 2016$2,931$2,848$2,793$2,772$2,815$2,825$2,864$2,840$2,809$2,802$ 226 125 2017 3,4733,3373,2993,3103,3223,3203,3213,3573,385 338 143 2018 3,9983,8863,9674,0304,0914,1774,2304,205 480 164 2019 4,5844,6234,6924,7634,8474,9194,935 599 185 2020 5,0304,8814,7754,7744,8664,918 1,019 159 2021 5,8905,8475,8755,9766,200 1,493 167 2022 6,7816,7536,8626,966 2,329 190 2023 7,2997,3637,514 2,974 190 2024 7,9627,918 4,169 184 2025 8,002 5,548 141 LossesandALAEincurred$56,845 CumulativeLossesandALAEPaidthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025 2016$373$908$1,359$1,765$1,998$2,140$2,303$2,377$2,420$2,468 2017 4801,1331,6452,0502,2792,4922,6732,7842,871 2018 5831,3401,9022,3242,7463,1203,3963,517 2019 7251,5982,2142,8983,4303,8124,015 2020 7361,4982,0662,5983,1383,474 2021 8651,7442,4333,1613,797 2022 9582,0082,9013,711 2023 1,0562,1523,230 2024 1,2452,428 2025 1,289 LossesandALAEpaid30,800 NetunpaidlossesandALAEfor2016–2025accidentyears26,045 NetunpaidlossesandALAEforaccidentyearsbefore2016867 NetunpaidlossesandALAE$26,912 —————— *Unauditedrequiredsuppluementalinfonrmation BHRGHH WeuseavarietyofmethodologiestoestablaishBHRG’sestimatesforpropertyandcasualtyclaimliabialities.These methodologiesincludepaidandincurredlossdevelopmenttechniques,incurredandpaidlossBornhuetter-Ferguson techniquesandfrequencyandseveritytechniques,aswellasground-uptechniqueswhenappropriate.p y --- Page 118 --- K-92NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses Ourclaimliabialitiesareprincipallyafunctionofreportedlossesfromcedingcompanies,casedevelopmentandIBNR liabialityestimates.Caselossestimatesarereportedeitherindividuallyorinbulkasprovidedunderthetermsofthecontracts. Wemayindependentlyevaluatecaselossesreportedbythecedingcompany,andifdeemedappropriate,establaishadditional caseliabialitiesbasedonourestimates. EstimatedIBNRliabialitiesareaffeffctedbyexpectedcaselossemergencepatternsandexpectedlossratios,whichare evaluatedasgroupsofcontractswithsimilarexposuresoronacontract-by-contractbasis.EstimatedcaseandIBNR liabialitiesformajoarcatastropheeventsaregenerallybasedonaper-contractassessmentoftheultimatecostassociatedwith theindividuallossevent.Claimcountdataisnotprovidedconsistentlybycedingcompaniesunderourcontractsoris otherwiseconsideredunreliablae. BHRG’snetlossesandALAEincurredandpaidaredisaggregatedandsummarizedbyaccidentyearbasedonlosses thatareexpectedtohaveshorterresolutionperiods(property)andlossesexpectedtohavelongerresolutionperiods (casualty).Undercertaincontracts,thecoveragecanapplytomultiplelinesofbusinesswrittenbythecedingcompany, whetherproperty,casualtyorcombined,andthecedingcompanymaynotreportlossdatabysuchlinesconsistently,ifatall. Inthoseinstances,weallocatedlossestopropertyandcasualtycoveragesbasedoninternalestimates.IBNRandcase developmentliabialitiesareasofDecember31,2025.Dollarsareinmillions. Property LossesandALAEIncurredthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025IBNRandCase Development Liabilities 2016$3,953$4,542$4,216$4,177$4,172$4,161$4,138$4,127$4,131$4,120$ 17 2017 6,4206,1175,938 5,8105,731 5,6495,6305,6165,613 42 2018 5,5145,6125,4705,3245,3295,278 5,298 5,288 168 2019 5,0025,1344,9064,601 4,5454,508 4,520 128 2020 6,9927,273 6,9076,698 6,5256,469 280 2021 8,1578,0407,7027,398 7,212 269 2022 8,9128,4857,9867,992 709 2023 8,038 7,471 6,963 951 2024 7,838 7,108 2,008 2025 6,579 3,325 LossesandALAEIncurred$61,864 CumulativeLossesandALAEPaidthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025 2016$918$2,228$2,695$3,187$3,456$3,652$3,761$3,840$3,927$3,965 2017 1,3503,5174,5974,951 5,1875,3805,4705,4945,529 2018 1,211 3,108 3,7574,0454,291 4,5004,6274,734 2019 1,0142,8553,5773,9074,0664,1364,223 2020 1,2593,6004,6595,3275,6055,797 2021 1,6304,121 5,4556,1606,526 2022 1,8174,3525,631 6,518 2023 1,773 4,148 5,174 2024 1,7253,595 2025 1,542 LossesandALAEPaid47,603 NetunpaidlossesandALAEfor2016–2025accidentyears14,261 NetunpaidlossesandALAEforaccidentyearsbefore2016683 NetunpaidlossesandALAE$14,944 —————— *Unauditedrequiredsuppluementalinfonrmationpy --- Page 119 --- K-93NotestoConsolidatedFinancialStatements (16)Unpaidlossesandlossadjudstmentexpenses Casualty LossesandALAEIncurredthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025IBNRandCase Development Liabilities 2016$3,811$4,026$3,931$3,897$3,844$3,800$3,771$3,797$3,828$3,834$ 328 2017 4,063 4,5074,3824,2744,2064,1954,2524,253 4,307 406 2018 4,9175,5775,5165,3845,3105,3965,4695,593 632 2019 5,6066,0905,961 5,7895,748 5,8225,918 866 2020 6,248 6,2776,0966,1406,1156,126 1,104 2021 6,3246,3095,9795,9976,014 1,449 2022 6,078 6,1326,0856,217 2,181 2023 6,088 6,1896,123 2,696 2024 6,123 6,233 3,628 2025 6,147 4,678 LossesandALAEincurred$56,512 CumulativeLossesandALAEPaidthroughDecember31, Accident Year2016*2017*2018*2019*2020*2021*2022*2023*2024*2025 2016$656$1,366$1,809$2,174$2,450$2,654$2,828$3,007$3,144$3,235 2017 6091,3191,8392,4902,7402,9593,1873,3743,535 2018 6971,7502,803 3,273 3,6543,973 4,251 4,484 2019 8441,8862,4473,2073,7594,1274,496 2020 871 1,9092,723 3,388 3,9864,427 2021 778 1,7902,6743,2423,840 2022 6231,343 1,9772,853 2023 6941,5902,380 2024 682 1,647 2025 704 LossesandALAEpaid31,601 NetunpaidlossesandALAEfor2016–2025accidentyears24,911 NetunpaidlossesandALAEforaccidentyearsbefore20169,627 NetunpaidlossesandALAE$34,538 —————— *Unauditedrequiredsuppluementalinfonrmation RequiredsuppluementalunauditedaveragehistoricalclaimsdurationinformationbasedonthenetlossesandALAE incurredandpaidaccidentyeardataintheprecedingtablaesfollows.Thepercentagesshowtheaverageportionsofnetlosses andALAEpaidbyeachsucceedingyear,withyear1representingthecurrentaccidentyear. AverageAnnualPercentagePayoutofLossesIncurredbyAge,NetofReinsurance InYear 12345678910 GEICOPhysicalDamage 97%3% GEICOAutoLiability 413213%7%3% BHPrimaryMedicalProfesffsionalLiability 2712131312%10%8%5%5% BHPrimaryWorkers’CompensationandOtherCasualty141613121075322 BHRGProperty 2334169532111 BHRGCasualty 13161311865442y --- Page 120 --- K-94NotestoConsolidatedFinancialStatements (17)Retroactivereinsurance RetroactivereinsurancepoliciesprovideindemnificffationoflossesandLAEofshort-durationinsurancecontractswith respecttounderlyinglosseventsthatoccurredpriortothecontractinceptiondate.Exposuresmayincludesignificant asbestos,environmentalandothermasstortclaims.Retroactivereinsurancecontractsgenerallystipulateaggregatepolicy limits,andourexposuretosuchclaimsunderthesecontractsislikewiselimited.Reconciliationsofthechangesinestimated liabialitiesforretroactivereinsuranceunpaidlossesandLAEforeachofthethreeyearsendedDecember31,2025follow(in millions). 2025 2024 2023 Balanceatthebeginningoftheyear $32,443$34,647$35,415 LossesandLAEincurred 261 247 1,109 LossesandLAEpaid (1,776)(2,399)(1,934) Foreigncurrencyeffeffct 120 (52) 57 BalanceatDecember31 $31,048$32,443$34,647 LossesandLAEincurred $261$247$1,109 Deferredchargeadjudstments 693 698 375 LossesandLAEincurred,includingdeferredchargeadjudstments $954$945$1,484 WeclassifyincurredandpaidlossesandLAEbasedontheinceptiondatesofthecontracts,whichreflectwhenour exposuretolossesbegan.Webelievethatanalysisoflossesincurredandpaidbytheaccidentyearoftheunderlyingeventis oflimitedrelevancegiventhatouragreedexposuretolossescommencedonthespecifiedcontractinceptiondate.Wealso believethattheclassificationofreportedclaimsandcasedevelopmentliabialitieshaslittleornopracticalanalyticalvalue. SubsutantiallyallofthelossesandLAEincurredandpaidrelatedtocontractswithinceptiondatespriorto2020. LossesandLAEincurredincludechangesinestimatedultimateliabialitiesandrelatedadjudstmentstodeferredcharge assetsarisingfromthechangesintheestimatedtimingandamountoflosspayments.In2023,weincreasedestimated ultimateliabialitiesundercertaincontractsby$1.1billion,primarilyattributabletorevisedestimatesforasbestos, environmentalandothercasualtyclaims.Includingadjudstmentstodeferredchargeassets,theincreaseinultimateliabialities producedanincrementalnetexpenseofapproximately$650millionin2023.Deferredchargeassetsonretroactive reinsurancecontractswere$8.1billionatDecember31,2025and$8.8billionatDecember31,2024. Inestablaishingretroactivereinsuranceclaimliabialities,weanalyzehistoricalaggregatelosspaymentpatternsand projectlossesundervariousprobabialityandseverityweightedscenarios.Weexpecttheresolutionperiodsformanycontracts tobeverylong,withsomelastingseveraldecades.Wemonitorclaimpaymentactivityandreviewcedingcompanyreports andotherinformation,includingrelevantinformationconcerningtheunderlyinglosses.Werevisetheexpectedtimingand amountsofultimatelossesperiodicallyorwhensignificanteventsoccur. Ourestimatesofultimateliabialitiesforasbestosandenvironmentalexposuresunderourcontractswereapproximately $11.1billionatDecember31,2025and$11.9billionatDecember31,2024.Wemonitorevolvingcaselawanditseffeffcton asbestos,environmentalandothermasstortclaims.Changinglawsorgovernmentregulations,aswellasnewlyidentified toxinsandinjunryevents,newlyreportedclaims,newtheoriesofliabiality,newcontractinterpretationsandotherfactorscould resultinincreasesintheseliabialities,whichcouldbematerialtoourresultsofoperations.Weareunablaetoreliablayestimate theamountofadditionalnetlossortherangeofnetlossthatisreasonablaypossible. (18)Long-durationinsurancecontracts Asummaryofourlong-durationlife,ffannuityandhealthinsurancebenefitsliabialitiesdisaggregatedbyourprincipal productcategoriesfollows(inmillions). December31, 2025 2024 Periodicpaymentannuity(“Annuities”) $ 10,441 $ 10,276 Lifeandhealth 4,540 4,490 Other 2,909 2,850 $ 17,890$ 17,616 --- Page 121 --- K-95NotestoConsolidatedFinancialStatements (18)Long-durationinsurancecontracts ReconciliationsoftheliabialitiesforeachofourprincipalproducdtcategoriesforeachofthetwoyearsendedDecember 31,2025follow(inmillions).Thisinformationreflectsthechangesindiscountedpresentvaluesofexpectedfuturepolicy benefitsandexpectedfuturenetpremiumsbeforereinsuranceceded.Netpremiumsrepresenttheportionofexpectedgross premiumsthatarerequiredtoprovideforfuturepolicybenefitsandvariableexpenses. Annuities Lifeandhealth 2025 2024 2025 2024 Expectedfuturepolicybenefits: Balanceatthebeginningoftheyear $10,276$11,212$43,784$52,665 Balanceatthebeginningoftheyear-originaldiscountrates11,757 11,681 55,170 65,871 Effeffctsofcashflowassumptionchanges 21 — 80 (348) Effeffctsofactualversusexpectedexperience (14) 3 1,161 (12,711) Changeinbenefits,net (499) (478) 2,138 1,991 Interestaccruarl 557 550 1,362 1,234 Foreigncurrencyeffeffct 108 1 1,336 (867) BalanceatDecember31-originaldiscountrates 11,930 11,757 61,247 55,170 Effeffctsofchangesindiscountrateassumptions (1,489) (1,481)(13,123)(11,386) BalanceatDecember31 $10,441$10,276$48,124$43,784 Expectedfuturenetpremiums: Balanceatthebeginningoftheyear $39,294$46,916 Balanceatthebeginningoftheyear-originaldiscountrates 49,500 58,731 Effeffctsofcashflowassumptionchanges 156 (416) Effeffctsofactualversusexpectedexperience 1,112 (11,104) Changeinpremiums,net 2,135 1,984 Interestaccruarl 1,227 1,099 Foreigncurrencyeffeffct 1,229 (794) BalanceatDecember31-originaldiscountrates 55,359 49,500 Effeffctsofchangesindiscountrateassumptions (11,775)(10,206) BalanceatDecember31 $43,584$39,294 Liabilityforfuturepolicybenefits: BalanceatDecember31 $10,441$10,276$4,540$4,490 Reinsurancerecoverablaes — — (49) (46) BalanceatDecember31,netofreinsurancerecoverablaes$10,441$10,276$4,491$4,444 Expectedfuturepolicybenefitsandexpectedfuturenetpremiumsdeclinedin2024,primarilyattributabletolifeff reinsurancecontractcommutations.Theimpactsofthesecontractcommutationswereincludedintheeffeffctsofactuatlversus expectedexperience. Otherinformationrelatingtoourlong-durationinsuranceliabialitiesasofDecember31,2025and2024follows(dollars inmillions). Annuities Lifeandhealth 2025 2024 2025 2024 Undiscountedexpectedfuturegrosspremiums $ —$ —$113,118$100,413 Discountedexpectedfuturegrosspremiums — — 68,808 58,881 Undiscountedexpectedfuturebenefits 32,552 30,592 101,207 91,493 Weightedaveragediscountrate 5.7% 5.8% 5.1% 4.9% Weightedaverageaccretionrate 4.8% 4.8% 2.6% 2.7% Weightedaverageduration 15years 16years 14years 13yearsp py p p y py --- Page 122 --- K-96NotestoConsolidatedFinancialStatements (18)Long-durationinsurancecontracts GrosspremiumsearnedandinterestexpensebeforereinsurancecededforeachofthetwoyearsendedDecember31, 2025follows(inmillions). GrossPremiums InterestExpense 2025 2024 2025 2024 Annuities $ —$ —$ 557$ 550 Lifeandhealth 3,994 3,830 135 135 (19)Notespayableandotherborrowings Notespayablaeandotherborrowingsofourinsuranceandotherbusinessesaresummarizedbelow(dollarsinmillions). TheweightedaverageinterestratesandmaturitydaterangesarebasedonborrowingsasofDecember31,2025. Weighted Average December31, InterestRate 2025 2024 Insuranceandother: BerkshireHathawayInc.(“Berkshire”): U.S.Dollardenominateddue2026-2047 3.5%$ 3,547$ 3,749 Eurodenominateddue2027-2041 1.4% 4,201 4,733 JapaaneseYendenominateddue2026-2060 1.2% 14,914 12,609 BerkshireHathawayFinanceCorporation(“BHFC”): U.S.Dollardenominateddue2027-2052 3.6% 14,475 14,469 GreatBritainPounddenominateddue2039-2059 2.5% 2,323 2,156 Eurodenominateddue2030-2034 1.8% 1,464 1,290 Othersubsuidiaryborrowingsdue2026-2051 5.1% 3,518 4,564 Short-termsubsuidiaryborrowings 5.6% 1,321 1,315 $ 45,763$ 44,885 Berkshireborrowingsconsistofseniorunsecureddebt.In2025,Berkshirerepaidapproximately$1.9billionof maturingdebt.Atvariousdatesin2025,Berkshireborrowedapproximately¥451.6billion(appraoximately$3.0billion)under seniornoteissuancesandtermloanagreements.Theborrowingshaveinterestratesrangingfrom1.35%to3.12%and maturitydatesrangingfrom2028to2055. BorrowingsofBHFC,awholly-ownedfinancesubsuidiaryofBerkshire,consistofseniorunsecurednotesusedtofund manufactffurtedhousingloansoriginatedoracquiredandequipmentheldforleaseofcertainsubsuidiaries.BHFCborrowings arefullyandunconditionallyguaranteedbyBerkshire.Berkshirealsoguaranteescertaindebtofothersubsuidiaries, aggregatingapproximately$1.7billionatDecember31,2025.Generally,Berkshire’sguaranteeofasubsidiary’sdebt obligationisanabsolute,unconditionalandirrevocableguaranteeofthefullandpromptpaymentwhendueofallpayment obligations. ThecarryingvaluesofBerkshireandBHFCnon-U.S.Dollardenominatedseniornotes(€4.85billion,£1.75billionand ¥2,343billionparatDecember31,2025)reflecttheapplicableexchangeratesasofeachbalancesheetdate.Theeffeffctsof changesinforeigncurrencyexchangeratesduringtheperiodonourborrowingsarerecordedinearningsasacomponentof selling,generalandadministrativeexpenses.Changesintheexchangeratesproducedpre-taxlossesof$840millionin2025 andpre-taxgainsof$1.5billionin2024and$217millionin2023. --- Page 123 --- K-97NotestoConsolidatedFinancialStatements (19)Notespayableandotherborrowings Notespayablaeandotherborrowingsofourrailroad,utilitiesandenergybusinessesaresummarizedbelow(dollarsin millions).TheweightedaverageinterestratesandmaturitydaterangesarebasedonborrowingsasofDecember31,2025. Weighted Average December31, InterestRate 2025 2024 Railroad,utilitiesandenergy: BerkshireHathawayEnergyCompany(“BHE”)andsubsuidiaries: BHEseniorunsecureddebtdue2028-2053 4.4%$11,461$13,107 Subsuidiaryandotherdebtdue2026-2064 4.8% 45,798 42,150 Short-termborrowings 4.9% 1,997 1,123 BurlingtonNorthernSantaFe(“BNSF”)andsubsuidiariesdue2026-2097 4.8% 24,062 23,497 $83,318$79,877 BHEsubsuidiarydebtrepresentsamountsissuedpursuanttoseparatefinancingagreements.Subsutantiallyallofthe assetsofcertainBHEsubsuidiariesare,ormaybe,pledgedorencumberedtosupporutorotherwisesecuresuchdebt.These borrowingarrangementsgenerallycontainvariouscovenants,includingcovenantswhichpertaintoleverageratios,interest coverageratiosand/ordebtservicecoverageratios.BNSF’sborrowingsareprimarilyseniorunsecureddebenturtes.Asof December31,2025,BHE,BNSFandtheirsubsuidiarieswereincompliancewithallapplicabledebtcovenants.Berkshire doesnotguaranteeanyborrowingsofBHE,BNSFortheirsubsuidiaries. In2025,BHEsubsuidiariesissued$4.3billionoftermdebtwithaweightedaverageinterestrateof6.2%andmaturity datesrangingfrom2035to2056.BHEanditssubsuidiariesrepaidtermdebtofapproximately$2.7billionandincreased short-termborrowingsbyapproximately$875million.In2026,BHEsubsuidiariesissued$1.5billionoftermdebtwitha weightedaverageinterestrateof6.4%andmaturitydatesrangingfrom2029to2056.In2025,BNSFissued$1.85billionof debenturtesduein2056withaweightedaverageinterestrateof5.65%andrepaidtermdebtofapproximately$1.3billion. Unusedandavailablaelinesofcreditandcommercialpapearcapacitytosupporutoperationsandprovideadditional liquidityforoursubsuidiarieswereapproximately$10.7billionatDecember31,2025,ofwhichapproximately$9.3billion relatedtoBHEanditssubsuidiaries. Debtprincipalrepaymentsexpectedduringeachofthenextfiveyearsareasfollows(inmillions).Amountsin2026 includeshort-termborrowings. 2026 2027 2028 2029 2030 Insuranceandother $5,759$4,972$3,424$2,603$3,222 Railroad,utilitiesandenergy 4,023 1,659 1,769 3,733 2,571 $9,782$6,631$5,193$6,336$5,793 (20)Incometaxes Ourliabialitiesforincometaxesaresummarizedasfollows(inmillions). December31, 2025 2024 Currentlypayablae $ 902$ 1,806 Deferred 85,597 83,563 Other 456 501 $ 86,955$ 85,870 --- Page 124 --- K-98NotestoConsolidatedFinancialStatements (20)Incometaxes Ourdeferredincometaxassetsandliabialitiesaresummarizedbytypeoftemporaryrrdifferenceasfollows(inmillions). December31, 2025 2024 Deferredincometaxliabialities: Investments,includingunrealizedappreciation $ 48,411$ 47,158 Deferredcharges-retroactivereinsurance 1,702 1,847 Property,plantandequipmentandequipmentheldforlease 34,834 33,590 Goodwillandotherintangibleassets 7,399 7,498 Other 4,528 5,043 96,874 95,136 Deferredincometaxassets: Unpaidinsurancelossesandlossadjudstmentexpenses 1,270 1,226 Unearnedinsurancepremiums 1,323 1,284 Accruerdliabialities 2,535 2,713 Regulatoryrrliabialities 1,388 1,364 Deferredrevenue 2,916 2,539 Other 1,845 2,447 11,277 11,573 Netdeferredincometaxliabiality $ 85,597$ 83,563 Wehavenotestablaisheddeferredincometaxesonaccumulatedundistributedearningsofcertainforeignsubsuidiaries, whichareexpectedtobereinvestedindefinitely.Repatriationofallaccumulatedearningsofforeignsubsuidiarieswouldbe impracticabletotheextentthatsuchearningsrepresentcapitaltosupporutongoingbusinessoperations.Generally,noU.S. federalincometaxeswillbeimposedonfuturedistributionsofforeignearningsundercurrentlaw.However,distributionsto U.S.orotherforeignjurisdictionscouldbesubjuecttowithholdingandotherlocaltaxes. Asummaryofincometaxexpense(benefit)ffineachofthethreeyearsendingDecember31,2025follows(inmillions). 2025 2024 2023 U.S.federal $ 13,044$ 18,481$ 20,764 U.S.state 973 767 763 Foreign 1,182 1,567 1,492 $ 15,199$ 20,815$ 23,019 Current $ 13,332$ 30,464$ 7,642 Deferred 1,867 (9,649) 15,377 $ 15,199$ 20,815$ 23,019 --- Page 125 --- K-99NotestoConsolidatedFinancialStatements (20)Incometaxes AsummaryofincometaxespaidineachofthethreeyearsendingDecember31,2025follows(inmillions).Ineachof thethreeyearsendingDecember31,2025,theU.S.wastheonlyjurisdictioninwhichincometaxespaidexceeded5%ofthe totalpaid. 2025 2024 2023 U.S.federal $ 11,753$ 26,482$ 5,639 U.S.state 825 891 883 Foreign 1,400 1,171 1,243 $ 13,978$ 28,544$ 7,765 Incometaxexpense(benefit)ffisreconciledtotheU.S.federalstatuttoryrrtaxrateforeachofthethreeyearsending December31,2025inthetablaebelow(dollarsinmillions). 2025 2024 2023 Amount % Amount% Amount% Earningsbeforeincometaxes: Domestic $77,083 $105,065 $115,412 Foreign 5,376 5,311 4,754 $82,459 $110,376 $120,166 U.S.federalincometaxatthestatuttoryrrtaxrate$17,31621.0%$23,17921.0%$25,23521.0% Stateandlocalincometaxes,netofU.S.federal effeffct(1)7690.9 606 0.5 603 0.5 U.S.federalincometaxcredits: Energyproductiontaxcredits (2,084)(2.5) (2,039)(1.8) (1,817)(1.5) Other (597)(0.7) (536)(0.5) (369)(0.3) U.S.federalnontaxableornondeductibleitems: Dividendsreceiveddeduction (460)(0.6) (491)(0.4) (678)(0.6) Other 2570.3 (38)— (260)(0.2) Otherdifferences,net (2)— 1340.1 305 0.3 $15,19918.4%$20,81518.9%$23,01919.2% —————— (1)1Ineachyear,nofewerthanfivestates,intheaggregate,repreesentedthemajoarityofstateincometaxesaa. WefileincometaxreturnsintheU.S.andinstate,localandforeignjurisdictions.Wehavesettledincometax liabialitieswiththeU.S.federaltaxingauthority(“IRS”)forfftaxyearsthrough2013,andtheIRSiscurrentlyauditingtax years2014through2020.Wearealsounderauditorsubjuecttoauditwithrespecttoincometaxesinvariousstateandforeign jurisdictions.Itisreasonablaypossiblethatcertainauditswillbesettledin2026. AtDecember31,2025and2024,netunrecognizedtaxbenefitswere$456millionand$501million,respectively.The balanceatDecember31,2025included$421millionintaxpositionsthat,ifrecognized,wouldimpacttheeffeffctivetaxrate. TheOrganizationforEconomicCo-operationandDevelopment(“OECD”)issuedPillarTwomodelrulesintroducinga globalminimumtaxof15%.WhiletheU.S.hasnotadoptedPillarTworules,variouscountrieshaveenactedlegislationto adopttherules.InJanuary2026,theOECDissuedadditionalguidance,includingasafeharborframeworkforcertainU.S.- parentedmultinationalgroups.MostjurisdictionswithPillarTworegimesinforcewillneedfurtherlegislativeactionto incorporatetheguidanceintolocallaw.Wedonotcurrentlyhavematerialoperationsinjurisdictionswithtaxrateslower thanthePillarTwominimumtaxrate,andwedonotcurrentlyexpecttheseruleswillmateriallyincreaseourglobaltaxcosts. ThereremainsuncertaintyastothefinalPillarTwomodelrules. --- Page 126 --- K-100NotestoConsolidatedFinancialStatements (21)Fairvaluemeasurements Oursignificantfinancialassetsandliabialitiesaresummarizedbelow,withfairvaluesshownaccordingtothefairvalue hierarchy(inmillions).Thecarryirrngvaluesofcashandcashequivalents,U.S.TreasuryrrBills,otherreceivablaesandaccounts payablae,accruarrlsandotherliabialitiesareconsideredtobereasonablaeestimatesoforotherwiseapproximatethefairvalues. Carrying ValueFairValueLevel1 Level2 Level3 December31,2025 Investmentsinfixedmaturitysecurities: U.S.Treasury,rrU.S.governmentcorporationsand agencies $3,849$3,849$3,815$34$— Foreigngovernments 12,54212,54212,411 131 — Corporateandother 1,425 1,425 — 983 442 Investmentsinequitysecurities 297,778 297,778 288,232 10 9,536 InvestmentsinKraftffHeinz&Occidentalcommon stock 19,528 18,791 18,791 — — Loansandfinancereceivablaes 29,83630,532 — 294 30,238 Otherassets 141 141 13 119 9 Otherliabialities 188 188 13 119 56 Notespayablaeandotherborrowings: Insuranceandother 45,763 40,924 — 40,892 32 Railroad,utilitiesandenergy 83,318 76,803 — 76,803 — December31,2024 Investmentsinfixedmaturitysecurities: U.S.Treasury,rrU.S.governmentcorporationsand agencies $4,459$4,459$4,425$34$— Foreigngovernments 9,362 9,362 9,199 163 — Corporateandother 1,543 1,543 — 1,041 502 Investmentsinequitysecurities 271,588 271,588 261,910 10 9,668 InvestmentsinKraftffHeinz&Occidentalcommon stock 30,68223,04723,047 — — Loansandfinancereceivablaes 27,798 27,579 — 81026,769 Otherassets 201 201 33 158 10 Otherliabialities 234 234 15 143 76 Notespayablaeandotherborrowings: Insuranceandother 44,88540,181 — 40,158 23 Railroad,utilitiesandenergy 79,87772,506 — 72,506 —, , --- Page 127 --- K-101NotestoConsolidatedFinancialStatements (21)Fairvaluemeasurements Thefairvaluesofsubsutantiallyallofourfinancialinstrumentsweremeasuredusingmarketorincomeapproaches.The hierarchyformeasuringfairvalueconsistsofLevels1through3,whicharedescribedbelow. Level1–Inputsrepresentunadjustedquotedpricesforidenticalassetsorliabialitiesexchangedinactivemarkets. Level2–Inputsincludedirectlyorindirectlyobservableinputs(otherthanLevel1inputs)suchasquotedprices forsimilarassetsorliabialitiesexchangedinactiveorinactivemarkets;quotedpricesforidenticalassetsorliabialities exchangedininactivemarkets;otherinputsthatmaybeconsideredinfairvaluedeterminationsoftheassetsor liabilities,suchasinterestratesandyieldcurves,volatilities,prepaymentspeeds,lossseverities,creditrisksanddefault rates;andinputsthatarederivedprincipallyfromorcorroboratedbyobservablaemarketdatabycorrelationorother means.Pricingevaluationsgenerallyreflectdiscountedexpectedfuturecashflows,whichincorporateyieldcurvesfor instrumentswithsimilarcharacteristics,suchascreditratings,estimateddurationsandyieldsforotherinstrumentsof theissuerorentitiesinthesameindustryrrsector. Level3–Inputsincludeunobservablaeinputsusedinthemeasurementofassetsandliabialities.Managementis requiredtouseitsownassumptionsregardingunobservablaeinputsbecausethereislittle,ifany,marketactivityinthe assetsorliabialitiesanditmaybeunablaetocorroboratetherelatedobservablaeinputs.Unobservablaeinputsrequire managementtomakecertainprojectionsandassumptionsabouttheinformationthatwouldbeusedbymarket participantsinvaluingassetsorliabialities. Reconciliationsofoursignificantassetsandliabialitiesmeasuredandcarriedatfairvalueonarecurringbasiswiththe useofsignificantunobservablaeinputs(Level3)foreachofthethreeyearsendingDecember31,2025follow(inmillions). Balanceatthe beginning oftheyearGains(losses) includedin earningsDispositions and settlementsBalanceatthe endoftheyear Investmentsinequitysecurities: 2025 $ 9,663$ (134)$ —$ 9,529 2024 10,468 (805) — 9,663 2023 12,169 (40) (1,661) 10,468 QuantitativeinformationasofDecember31,2025forthesignificantassetsmeasuredandcarriedatfairvalueona recurringbasiswiththeuseofsignificantunobservablaeinputs(Level3)follows(dollarsinmillions). Fair ValuePrincipal Valuation TechniquesUnobservable InputsWeighted Average Investmentsinequitysecurities: Preferffredstock $8,805DiscountedcashflowExpectedduration 4years Discountforilliquidityand suborudination 325bps Commonstockwarrants 724WarrantpricingmodelExpectedduration 5years Volatility 43% Investmentsinequitysecuritiesintheprecedingtablaeincludeourinvestmentsincertainpreferffredandcommonstock warrants,whichdonothavereadilydeterminablemarketvaluesasdefinedbyGAAP.Theseinvestmentsareprivate placementsandarenottradedinsecuritiesmarkets.Weapplieddiscountedcashflowtechniquesinvaluingthepreferffred stockandwemadeassumptionsregardingtheexpecteddurationoftheinvestmentandtheeffeffctsofilliquidityand suborudinationinliquidation.Invaluingthecommonstockwarrants,weusedawarrantvaluationmodel.Whilemostofthe inputstothewarrantmodelareobservablae,wemadeassumptionsregardingtheexpecteddurationandvolatility. --- Page 128 --- K-102NotestoConsolidatedFinancialStatements (22)Commonstock ThechangesinBerkshire’scommonstockforeachofthethreeyearsendingDecember31,2025areshowninthetablae below.Inaddition,onemillionsharesofpreferffredstockareauthorizedandnoneareissued. ClassA,$5ParValue (1.65millionsharesauthorized)ClassB,$0.0033ParValue (3.225billionsharesauthorized) Issued TreasuryOutstanding Issued Treasury Outstanding BalanceatDecember31,2022651,450(59,886)591,5641,509,969,352(207,715,276)1,302,254,076 ConversionsofClassAto ClassBcommonstock (12,122) —(12,122)18,183,000 —18,183,000 Treasuryrrstockacquired —(11,667)(11,667) —(9,875,568)(9,875,568) BalanceatDecember31,2023639,328 (71,553)567,7751,528,152,352(217,590,844)1,310,561,508 ConversionsofClassAto ClassBcommonstock (15,426) —(15,426)23,139,000 —23,139,000 Treasuryrrstockacquired — (4,787)(4,787) — — — Treasuryrrstockissued — — — — 2,291,631 2,291,631 BalanceatDecember31,2024623,902(76,340)547,5621,551,291,352(215,299,213)1,335,992,139 ConversionsofClassAto ClassBcommonstock (31,727) —(31,727)47,590,500 —47,590,500 BalanceatDecember31,2025592,175(76,340)515,8351,598,881,852(215,299,213)1,383,582,639 EachClassAcommonshareisentitledtoonevotepershare.ClassBcommonstockpossessesdividendand distributionrightsequaltoone-fifffteffen-hundredth(1/1,500)ofsuchrightsofClassAcommonstock.EachClassBcommon sharepossessesvotingrightsequaltoone-ten-thousandth(1/10,000)ofthevotingrightsofaClassAshare.Unlessotherwise requiredunderDelawareGeneralCorporationLaw,ClassAandClassBcommonsharesvoteasasingleclass.Eachshareof ClassAcommonstockisconvertible,attheoptionoftheholder,into1,500sharesofClassBcommonstock.ClassB commonstockisnotconvertibleintoClassAcommonstock.OnanequivalentClassAcommonstockbasis,therewere 1,438,223sharesoutstandingasofDecember31,2025andDecember31,2024. WeprovideearningspersharedataontheConsolidatedStatementsofEarningsforaverageequivalentClassAshares outstandingandaverageequivalentClassBsharesoutstanding.AverageequivalentClassAsharesoutstandingrepresents averageClassAsharesoutstandingplusone-fifteen-hundredth(1/1,500)oftheaverageClassBsharesoutstanding.Average equivalentClassBsharesoutstandingrepresentsaverageClassBsharesoutstandingplus1,500timesaverageClassAshares outstanding. Berkshire’scommonstockrepurchaseprogramcurrentlypermitsBerkshiretorepurchasesharesanytimethat Berkshire’sChiefExecutiveOffiffcer,afteffrconsultationwiththeChairmanoftheBoard,believesthattherepurchasepriceis belowBerkshire’sintrinsicvalue,conservativelydetermined.Theprogramallowssharerepurchasesintheopenmarketor throughprivatelynegotiatedtransactionsanddoesnotspecifyamaximumnumberofsharestoberepurchased.However, repurchaseswillnotbemadeiftheywouldreducethetotalvalueofBerkshire’sconsolidatedcash,cashequivalentsandU.S. TreasuryrrBillholdingsbelow$30billion.Undertheprogram,Berkshireisnotobligatedtorepurchaseanyspecificdollar amountornumberofClassAorClassBshares.Thereisnoexpirationdatetotheprogram. (23)Revenuesfromcontractswithcustomers Thefollowingtablaesummarizescustomercontractrevenuesdisaggregatedbyreportablaesegmentandthesourceofthe revenueforeachofthethreeyearsendedDecember31,2025(inmillions).Otherrevenues,whicharenotconsideredtobe revenuesfromcontractswithcustomersunderGAAP,areprimarilyinsurancepremiumsearned,interest,dividendandother investmentincomeandleasingrevenues. --- Page 129 --- K-103NotestoConsolidatedFinancialStatements (23)Revenuesfromcontractswithcustomers 2025 BNSFBHEManufacffturingService and RetailingPilot*McLaneInsurance, Corporate andotherTotal Manufactffurtedproducts: Industrialandcommercial $—$—$ 30,145$191$—$—$—$30,336 Building — — 19,609— — — —19,609 Consumer — — 17,919— — — —17,919 Groceryrandconveniencestoredistribution — — — — —30,697 —30,697 Foodandbeveragedistribution — — — — —18,585 —18,585 Autosales — — —11,283 — — —11,283 Otherretailandwholesaledistribution — — 3,69715,29041,611 — —60,598 Service 23,2564,013 1,4606,987266897 —36,879 Electricityandnaturalgas —21,338 — — — — —21,338 Total 23,25625,351 72,83033,75141,87750,179 —247,244 Otherrevenues 185931 5,5608,80928936108,390124,200 $23,441$26,282$ 78,390$42,560$42,166$50,215$108,390$371,444 2024 Manufactffurtedproducts: Industrialandcommercial $—$—$ 28,907$210$—$—$—$29,117 Building — — 19,892— — — —19,892 Consumer — — 18,204— — — —18,204 Groceryrandconveniencestoredistribution — — — — —31,841 —31,841 Foodandbeveragedistribution — — — — —18,068 —18,068 Autosales — — —10,802— — —10,802 Otherretailandwholesaledistribution — — 3,39015,03546,433 — —64,858 Service 23,2784,059 1,5705,761 274999 —35,941 Electricityandnaturalgas —20,991 — — — — —20,991 Total 23,27825,050 71,96331,80846,70750,908 —249,714 Otherrevenues 2121,250 5,1857,975149178106,770121,719 $23,490$26,300$ 77,148$39,783$46,856$51,086$106,770$371,433 2023 Manufactffurtedproducts: Industrialandcommercial $—$—$ 28,066$233$—$—$—$28,299 Building — — 20,119— — — —20,119 Consumer — — 17,702— — — —17,702 Groceryrandconveniencestoredistribution — — — — —31,524 —31,524 Foodandbeveragedistribution — — — — —19,040 —19,040 Autosales — — —10,747— — —10,747 Otherretailandwholesaledistribution — — 3,28916,28951,197— —70,775 Service 23,7244,055 1,4575,4742641,079 —36,053 Electricityandnaturalgas —20,647 — — — — —20,647 Total 23,72424,702 70,63332,74351,46151,643 —254,906 Otherrevenues 671,258 4,6507,13620317196,091109,576 $23,791$25,960$ 75,283$39,879$51,664$51,814$96,091$364,482 —————— *RevenuesfromPilotareprincipalilyfuelsales.Revenuesin2023arefortheeleven monthsendingDecember31. Asummaryoftransactionpricesallocatedtothesignificantunsatisfiedremainingperformanceobligationsrelatedto contractswithexpecteddurationsexceedingoneyearasofDecember31,2025andthetimingofwhentheperformance obligationsareexpectedtobesatisfieffdfollows(inmillions). Lessthan 12monthsGreaterthan 12months Total Electricityandnaturalgas $ 3,261$18,107$21,368 Othersalesandservicecontracts 3,833 9,754 13,587 --- Page 130 --- K-104NotestoConsolidatedFinancialStatements (24)Pensionplans CertainBerkshiresubsuidiariessponsordefinedbenefitpensionplans.Planbenefitsaregenerallybasedonyearsof serviceandcompensationorfixedbenefitrates.Plansponsorsmaycontributetotheplanstomeetregulatoryrrrequirementsor maymakediscretionarycontributions.BenefitsunderqualifieffdU.S.andcertainnon-U.S.definedbenefitpensionplansare fundedwithassetsheldintrusrts.Benefitsunderothernon-qualifieffdretirementplansareunfundeffd.Ournetperiodicpension expense(income)foreachofthethreeyearsendingDecember31,2025wasasfollows(inmillions). 2025 2024 2023 Servicecost $95$107$111 Interestcost 627 617 640 Expectedreturnonplanassets (859)(818)(785) Other (67) 41 2 Netperiodicpensionexpense(income) $(204)$(53)$(32) Theaccumulatedbenefitobligation(“ABO”)istheactuarialpresentvalueofbenefitsearnedbasedonserviceand compensationpriortothevaluationdate.TheABOwas$11.1billionatDecember31,2025and$11.2billionatDecember 31,2024.Theprojectedbenefitobligation(“PBO”)istheactuatrialpresentvalueofbenefitsearnedbaseduponserviceand compensationpriortothevaluationdateand,ifapplicable,includesassumptionsregardingfuturecompensationlevels. ReconciliationsofthechangesinplanassetsandPBOsforeachofthetwoyearsendingDecember31,2025andthe assetandliabialitybalancesreflectedintheConsolidatedBalanceSheetsatDecember31,2025and2024follow(inmillions). 2025 2024 Planassets Balanceatthebeginningoftheyear $14,180$13,379 Employercontributions 108 111 Benefitspaid (1,084) (810) Settlementspaid (115) (354) Actualreturnonplanassets 319 1,909 Other 185 (55) Balanceattheendoftheyear $13,593$14,180 Projectedbenefitobligations Balanceatthebeginningoftheyear $11,720$12,767 Servicecost 95 107 Interestcost 627 617 Benefitspaid (1,084) (810) Settlementspaid (115) (354) Actuarial(gains)lossesandother 296 (607) Balanceattheendoftheyear $11,539$11,720 Netfundedstatust-asset(liabiality) $2,054$2,460 Balancesincludedinotherassets $3,100$3,490 Balancesincludedinaccountspayablaeandotherliabialities $1,046$1,030 WeightedaverageassumptionsusedindeterminingPBOsandnetperiodicpensionexpensefollow. 2025 2024 2023 DiscountrateapplicabletoPBOs 5.4% 5.5% 5.0% Expectedlong-termrateofreturnonplanassets 6.3 5.9 6.0 Rateofcompensationincrease,ifapplicable 2.6 2.6 2.6 Discountrateapplicabletonetperiodicpensionexpense 5.5 5.1 5.3 Estimatedbenefitpaymentsoverthenexttenyearsare(inmillions):2026–$883;2027–$881;2028–$873;2029– $893;2030–$880;and2031through2035–$4,355.Oursubsuidiariesexpecttomakecontributionsof$95milliontothe pensionplansin2026.j g --- Page 131 --- K-105NotestoConsolidatedFinancialStatements (24)Pensionplans FairvaluemeasurementsofplanassetsasofDecember31,2025and2024follow(inmillions). FairValueInvestments carriedatnet Total Level1 Level2 Level3 assetvalue December31,2025 Cashandshort-terminvestments $2,061$1,983$ 78$ —$ — Equitysecurities 6,171 5,402 621 148 — Fixedmaturitysecurities 2,951 2,172 779 — — Investmentfundsandother 2,410 234 80 24 2,072 $13,593$9,791$1,558$ 172$2,072 December31,2024 Cashandshort-terminvestments $ 600$ 556$ 44$ —$ — Equitysecurities 9,757 9,036 581 140 — Fixedmaturitysecurities 1,747 953 794 — — Investmentfundsandother 2,076 385 144 23 1,524 $14,180$10,930$1,563$ 163$1,524 Planassetsaregenerallyinvestedwiththelong-termobjectiveofproducingearningstoadequatelycoverexpected benefitobligations.Theexpectedratesofreturnonplanassetsreflectsubjuectiveassessmentsofexpectedlong-term investmentreturns.Generally,pastinvestmentreturnsarenotgivensignificantconsiderationwhenestablaishingassumptions forexpectedlong-termratesofreturnonplanassets.Actualexperiencewilldifferfromtheassumedratesofreturn. Areconciliationofthepre-taxaccumulatedothercomprehensiveincomeofourdefinedbenefitpensionplansforeach ofthetwoyearsendingDecember31,2025follows(inmillions). 2025 2024 Balanceatthebeginningoftheyear $ 1,467$ (161) Amountincludedinnetperiodicpensionexpense (68) 29 Actuarialgains(losses)andother (732) 1,599 Balanceattheendoftheyear $ 667$ 1,467 Oursubsuidiariesmayalsosponsordefinedcontributionretirementplans,suchas401(k)orprofit-ffsharingplans. Employeecontributionsaresubjuecttoregulatoryrrlimitationsandspecificplanprovisions.Severaloftheseplansprovidefor employermatchingcontributionsasspecifiedintheplansandmayprovideforadditionaldiscretionaryemployer contributions.Ourdefinedcontributionplanexpensewasapproximately$1.4billionin2025,$1.3billionin2024and$1.1 billionin2023. (25)Accumulatedothercomprehensiveincome Asummaryofthenetchangesinafteffr-taxaccumulatedothercomprehensiveincomeattributabletoBerkshire shareholdersforeachofthethreeyearsendingDecember31,2025follows(inmillions). Unrealized investment gains(losses)Foreign currency translationLong-duration insurance contractsDefined benefit pensionplansOther Total BalanceatDecember31,2022 $(187)$(6,142)$1,541$(552)$288$(5,052) Othercomprehensiveincome 420 741 (188) 466 (25)1,414 Reclassificationsintonetearnings (43) 8 — (11) (79) (125) BalanceatDecember31,2023 190(5,393)1,353 (97) 184 (3,763) Othercomprehensiveincome (43)(1,647) 662 1,222 2 196 Reclassificationsintonetearnings (30) 1 — 23 (11) (17) BalanceatDecember31,2024 117(7,039)2,015 1,148 175(3,584) Othercomprehensiveincome 90 1,502 164 (570) 37 1,223 Reclassificationsintonetearnings 28 — — (57) (58) (87) BalanceatDecember31,2025 $235$(5,537)$2,179$521$154$(2,448), , --- Page 132 --- K-106NotestoConsolidatedFinancialStatements (26)Businesssegmentdata Berkshire’schiefoperatingdecisionmakeristheChiefExecutiveOffiffcer,whoisultimatelyresponsibleforsignificffant capitalallocationandinvestmentdecisions,aswellasevaluatingtheoperatingperformanceoftheoperatingsegments. Berkshire’snumerousanddiversebusinessesaremanagedonanunusuallydecentralizedbasis.Thesebusinessesare aggregatedintooperatingsegmentsinamannerthatreflectshowBerkshireviewsthebusinessactivities.Certainoperating segmentsareaggregatedintoreportablaebusinesssegmentsbaseduponsimilarproductsorproductlines,marketing strategies,andsellinganddistributioncharacteristics. Berkshire’sreportablaebusinesssegmentsareasfollows. BusinessSegment PrincipalBusinessActivities Insurance: GEICO Underwritingprimarilyprivatepassengerautomobileinsurancepolicies BerkshireHathawayPrimaryGroup (“BHPrimary”)Underwritingmultiplelinesofpropertyandcasualtyinsurancepolicies, primarilycommercialaccounts BerkshireHathawayReinsuranceGroup (“BHRG”)Underwritingexcess-of-lffoss,quota-shareandfacultativereinsurance contracts BurlingtonNorthernSantaFe(“BNSF”)OperatorofalargefreightrailtransportationsysteminNorthAmerica BerkshireHathawayEnergy(“BHE”)O peratorofregulatedelectricandgasutilities,naturalgaspipelinesandother powergenerationanddistributionbusinesses,andrealestatebrokerage activities Manufactffurting Manufactffurtersanddistributorsofnumerousindustrial,consumerand buildingproducts,aswellashomebuildingandrelatedfinancialservices Serviceandretailing Providersofavarietyofservices,includingsharedaircraftownership programs,aviationpilottraining,electroniccomponentsdistribution,and over-the-roadtrailerandfurnitureleasingandretailingoperations,including automobiledealershipsandhomefurnishingsretailers McLaneCompany(“McLane”) Wholesaledistributoroffoodandnon-fooditemstoretailersandrestaurants PilotTravelCenters(“Pilot”)(1)1 OperatorofretailtravelcentersinNorthAmericaandamarketeroffuelona wholesalebasis —————— (1)1Pilot’sstatementofearningsandcapiatalexpendituredatain2023isfortheeleven monthsendingDecember31,2023. EarningsforthemonthofJanuaryr2023weredeterminedunde rtheequitymethodandincludedinequitymethodearnings. ThetabulaarinformationthatfollowsshowsdataofBerkshire’sbusinesssegmentsreconciledtoamountsreflectedin ourConsolidatedFinancialStatements.Intersegmenttransactionsarenoteliminatedfromsegmentresultswhenthose transactionsareconsideredinassessingtheresultsoftherespectivesegmentsandarenotconsideredtobematerial. Furthermore,investmentgainsandlosses,goodwillandindefinite-livedintangibleassetimpairmentsandamortizationof certainacquisitionaccountingadjudstmentsorcertainothercorporateincomeandexpenseitemsarenotconsideredin assessingthefinancialperformanceofoperatingbusinesses.Collectively,theseitemsareincludedincorporate,eliminations andothertoreconcilesegmenttotalstoconsolidatedamounts. Thecostandexpenseinformationprovidedisbasedontheinformationregularlyprovidedtothechiefoperating decisionmaker.GiventhenumberanddiversityofBerkshire’soperatingsegmentsandthedifferencesinrevenuestreams andcoststructurtes,therearewidevariancesintheform,contentandlevelsofsuchexpenseinformationsignificanttothe business.Expensesconsideredsignificantforoneoperatingsegmentmaynotbesignificantinothers. Withrespecttoinsuranceunderwriting,thechiefoperatingdecisionmakerconsiderspre-taxunderwritingearningsto allocateresourcesandcapital,togetherwithperceivedrisksandopportunitiesintheinsurancemarketsthataffeffctratesand risksofloss.Typically,therearenobudgetedorforecastedpremiumsorunderwritingresults. Formostnon-insurancebusinesses,pre-taxearningsareconsideredinallocatingresourcesandcapital,although incometaxesarealsoconsideredatBHE,giventhemagnitudeofproductiontaxcreditsassociatedwithwind-powered electricitygenerationinvestmentsandtherelatedimpactsfromregulation.Thechiefoperatingdecisionmakergenerally considersactuatloperatingresultsversusbudgetsorforecasts,aswellasuniqueperceivedrisksandopportunitiesassociated withtheindividualoperatingbusinesses. --- Page 133 --- K-107NotestoConsolidatedFinancialStatements (26)Businesssegmentdata Weviewourinsurancesegmentaspossessingtwodistinctactivities–underwritingandinvesting.Underwriting decisionsaretheresponsibilityoftheunderwritingmanagers.Accordingly,performanceofunderwritingoperationsis evaluatedwithoutanyallocationofinvestmentincome.Assuch,theinsurancenetinvestmentincomeispresentedinthe aggregateasaseparatecomponentofinsurancesegmentoperatingearnings.Earningsdataofourbusinesssegmentsforeach ofthethreeyearsendedDecember31,2025areshowninthefollowingtablaes(inmillions). 2025 Insurance GEICOBHPrimaryBHRGTotal UnderwritingInvestment Income Total Premiumsearnedandinvestmentincome$44,481$18,713$25,708$88,902$15,310$104,212 Costsandexpenses: LossesandLAE 32,14412,51912,64457,307 — 57,307 Life,annuityandhealthbenefits — — 4,379 4,379 — 4,379 Othersegmentitems 5,513 5,409 6,83417,756 49 17,805 Totalcostsandexpenses 37,65717,928 23,85779,442 49 79,491 Earningsbeforeincometaxes $6,824$785$1,851$9,460$15,261$24,721 2024 Insurance GEICOBHPrimaryBHRGTotal UnderwritingInvestment Income Total Premiumsearnedandinvestmentincome$42,252$18,733$27,272$88,257$16,812$105,069 Costsandexpenses: LossesandLAE 30,331 12,66613,18956,186 — 56,186 Life,annuityandhealthbenefits — — 3,858 3,858 — 3,858 Othersegmentitems 4,108 5,212 7,488 16,808 64 16,872 Totalcostsandexpenses 34,43917,878 24,53576,852 64 76,916 Earningsbeforeincometaxes $7,813$855$2,737$11,405$16,748$28,153 2023 Insurance GEICOBHPrimaryBHRGTotal UnderwritingInvestment Income Total Premiumsearnedandinvestmentincome$39,264$17,129$27,010$83,403$11,619$95,022 Costsandexpenses: LossesandLAE 31,81411,22414,14957,187 — 57,187 Life,annuityandhealthbenefits — — 4,029 4,029 — 4,029 Othersegmentitems 3,815 4,531 6,928 15,274 38 15,312 Totalcostsandexpenses 35,62915,75525,10676,490 38 76,528 Earningsbeforeincometaxes $3,635$1,374$1,904$6,913$11,581$18,494 Othersegmentitemsrelatedtoinsuranceunderwritingincludecommissionsandbrokerageexpensesandother insuranceunderwritingexpenses. BNSF 2025 2024 2023 Revenues $23,533$23,572$23,876 Costsandexpenses: Compensationandbenefits 5,531 5,872 5,551 Fuel 3,011 3,267 3,684 Depreciationandamortization 2,722 2,621 2,627 Interestexpense 1,098 1,078 1,048 Othersegmentitems 3,996 4,086 4,352 Totalcostsandexpenses 16,358 16,92417,262 Earningsbeforeincometaxes $7,175$6,648$6,614 OthersegmentitemsofBNSFincludepurchasedservices,equipmentrentsandmaterialsandotherexpenses. --- Page 134 --- K-108NotestoConsolidatedFinancialStatements (26)Businesssegmentdata BHE 2025 2024 2023 Revenues $26,297$26,348$26,008 Costsandexpenses: Energycostofsales 6,346 6,616 7,057 Energyoperationsandmaintenance 5,445 5,470 6,456 Energydepreciationandamortization 4,180 3,957 3,960 Realestateoperatingcostsandexpenses 4,302 4,509 4,316 Interestexpense 2,642 2,528 2,283 Othersegmentitems 1,040 976 996 Totalcostsandexpenses 23,95524,05625,068 Earningsbeforeincometaxes $2,342$2,292$940 OthersegmentitemsofBHEprimarilyconsistofpropertytaxesandotherexpenses.Energyoperationsand maintenanceincludeslossesassociatedwiththe2020and2022Wildfires.SeeNote27. Manufacffturing ServiceandRetailing 2025 2024 2023 2025 2024 2023 Revenues $78,487$77,231$75,405$42,647$39,874$39,996 Costsandexpenses: Costofsalesandservices 50,93750,70250,38925,57923,818 23,915 Costofleasing 1,1741,1421,051 6,453 5,9175,011 Interestexpense 1,211 934 784 113 118 101 Othersegmentitems 12,59412,558 11,7366,463 6,321 6,248 Totalcostsandexpenses 65,91665,33663,96038,608 36,17435,275 Earningsbeforeincometaxes $12,571$11,895$11,445$4,039$3,700$4,721 Othersegmentitemsofmanufactffurting,serviceandretailingsegmentsprimarilyconsistofselling,generaland administrativeexpenses. McLane Pilot 2025 2024 2023 2025 2024 2023 Revenues $50,998$51,907$52,607$42,198$46,891$51,739 Costsandexpenses: Costofsalesandservices 46,57247,60448,49538,003 42,591 47,505 Depreciationandamortization 214 217 208 1,0951,012 796 Othersegmentitems 3,5363,4523,4492,9102,6742,470 Totalcostsandexpenses 50,32251,273 52,15242,008 46,27750,771 Earningsbeforeincometaxes $676$634$455$190$614$968 OthersegmentitemsofMcLaneincludegeneralandadministrativeexpenses.OthersegmentitemsofPilotprimarily consistofstoreoperating,interestandgeneralandadministrativeexpenses. Reconciliationsofrevenuesandearningsbeforeincometaxesofourbusinesssegmentstotheconsolidatedamountsfor eachofthethreeyearsendedDecember31,2025follows(inmillions). Revenues Earningsbeforeincometaxes 2025 2024 2023 2025 2024 2023 Totaloperatingbusinesses $368,372$370,892$364,653$51,714$53,936$43,637 Investmentgains(losses) — — —39,078 52,79974,855 Equitymethodearnings(losses) — — — (9,590)1,841 1,973 Corporate,eliminationsandother 3,072 541 (171)1,2571,800 (299) $371,444$371,433$364,482$82,459$110,376$120,166 --- Page 135 --- K-109NotestoConsolidatedFinancialStatements (26)Businesssegmentdata Additionalsegmentdataforeachofthethreemostrecentyearsfollows(inmillions). Interestexpense Incometaxexpense(benefitff) Businesssegments 2025 2024 2023 2025 2024 2023 Insurance $ —$ —$ —$4,949$5,462$3,497 BNSF 1,098 1,078 1,048 1,6991,6171,527 BHE 2,6422,528 2,283 (1,785)(1,871)(2,022) Manufactffurting 1,211 934 7842,5292,598 2,487 Serviceandretailing 113 118 101 982 9121,135 McLane 32 22 — 171 152 117 Pilot 227 302 414 27 — 169 5,323 4,9824,6308,5728,8706,910 Reconciliationtoconsolidatedamount Investmentgains(losses) — — — 8,31611,17915,930 Equitymethodearnings(losses) — — — (2,234) 322 223 Corporate,eliminationsandother (254) 218 373 545 444 (44) $5,069$5,200$5,003$15,199$20,815$23,019 Capitalexpenditures Depreciationandamortization Businesssegments 2025 2024 2023 2025 2024 2023 Insurance $109$ 99$ 68$438$411$401 BNSF 3,7963,6903,9202,7222,621 2,627 BHE 10,5899,013 9,148 4,2204,003 4,010 Manufactffurting 2,681 2,7792,7142,4642,4222,290 Serviceandretailing 2,6042,3602,5901,643 1,5221,335 McLane 207 236 264 214 217 208 Pilot 941 799 7051,0951,012 796 $20,927$18,976$19,40912,79612,208 11,667 Reconciliationtoconsolidatedamount Corporate,eliminationsandother 680 647 819 $13,476$12,855$12,486 Goodwillatyear-end Identifiableassetsatyear-end Businesssegments 2025 2024 2025 2024 Insurance $16,557$16,557 $571,145$539,884 BNSF 15,351 15,351 82,53280,813 BHE 11,778 11,669 136,515128,276 Manufactffurting 26,928 27,716 122,132119,860 Serviceandretailing 5,6825,878 39,12437,198 McLane 232 232 7,1357,165 Pilot 6,5466,477 18,828 19,652 $83,074$83,880 977,411932,848 Reconciliationtoconsolidatedamount Corporateandother 161,691137,153 Goodwill 83,07483,880 $1,222,176$1,153,881g g g --- Page 136 --- K-110NotestoConsolidatedFinancialStatements (26)Businesssegmentdata Insurancepremiumswrittenbygeographicregion(baseduponthedomicileoftheinsuredorreinsured)are summarizedbelow(inmillions). Property/Casualty Life/Health 2025 2024 2023 2025 2024 2023 UnitedStates $72,461$71,723$67,831$1,424$1,358$1,285 WesternEurope 5,0025,2525,014 1,5971,4071,323 AsiaPacific 4,5925,043 5,306 1,4691,548 1,760 Allother 2,0191,668 2,188 812 694 725 $84,074$83,686$80,339$5,302$5,007$5,093 Consolidatedsales,serviceandleasingrevenueswere$209.6billionin2025,$211.6billionin2024and$215.6billion in2023.Sales,serviceandleasingrevenuesattributabletotheUnitedStateswere87%in2025,86%in2024and87%in 2023ofsuchamounts.Theremainderofsales,serviceandleasingrevenueswereprimarilyinEurope,theAsia-Pacificregion andCanada.Railroad,utilitiesandenergyrevenueswere$49.7billionin2025and$49.8billionin2024and2023.Railroad, utilitiesandenergyrevenuesattributabletotheUnitedStateswere96%in2025,95%in2024and96%in2023ofsuch amounts.AtDecember31,2025,approximately91%ofourconsolidatedproperty,plantandequipmentandequipmentheld forleasewaslocatedintheUnitedStateswiththeremainderprimarilyintheUnitedKingdomandCanada. (27)Contingenciesandcommitments Wearepartiesinavarietyoflegalactionsthatroutinelyariseoutofthenormalcourseofbusiness,includinglegal actionsseekingtoestablaishliabialitydirectlythroughinsurancecontractsorindirectlythroughreinsurancecontractsissuedby Berkshiresubsuidiaries.Plaintiffsffoccasionallyseekpunitiveorexemplaryrrdamages.Wedonotcurrentlybelievethatsuch normalandroutinelitigationwillhaveamaterialeffeffctonourfinancialconditionorresultsofoperations.Information concerningcertainlegalmattersinvolvingcertainofoursubsuidiariesfollows. Wildfires PacifiCorp,awholly-ownedsubsuidiaryofBerkshireHathawayEnergyCompany(“BHE”),operatesasaregulated electricutilityinUtah,Oregon,WyomingandotherWesternstates. PacifiCorpisadefendantinnumerouscomplaintsanddemandsallegingsimilarclaimsrelatedtowildfiresthathave beenfiledinOregonandCaliforffnia,includingaclassactioncomplaintinOregonforwhichcertainjuryverdictswereissued asdescribedlaterinthisNote.Theplaintiffsffinthesecomplaintsseekdamagesforeconomiclosses,noneconomiclosses, includingmentalsuffering,emotionaldistress,personalinjunryandlossoflife,ffaswellaspunitivedamagesandattorneys’ fees.SeveralinsurancecarriersalsofiledsubruogationcomplaintsinOregonandCaliforffniawithallegationssimilartothose madeintheaforffementionedcomplaints. Additionally,theU.S.andOregonDepartmentsofJusticeissuedcorrespondencetoPacifiCorpregardingthepotential recoveryofcertaincostsanddamagesallegedtohaveoccurredonfederalandstatelandsinconnectionwithcertainofthe wildfires.InDecember2024,theUnitedStatesofAmericafiledacomplaintagainstPacifiCorpinconjunctionwiththe correspondencefromtheU.S.DepartmentofJustice.Thecivilcoversheetaccompanyingthecomplaintdemandsdamages estimatedtoexceed$900million.OnFebruarry20,2026,theUnitedStatesAttorneyfortheDistrictofOregonandtheUnited StatesAttorneyfortheEasternDistrictofCaliforffniaapprovedasettlementagreementfor$575millionbetweenPacifiCorpr andtheUnitedStatesofAmericaresolvingallknownfederalgovernmentcomplaintsanddemandsassociatedwiththe Wildfires.Inaccordancewiththesettlementagreement,PacifiCorpwillpay$575millionwithin10calendardaysofthe Februarry20,2026effeffctivedate.PacifiCorpisactivelycooperatingwiththeOregonDepartmentofJusticeonresolvingthe allegedclaims. AmountssoughtintheremainingunsettledcomplaintsanddemandsfiledinOregonandincertaindemandsin Califorffniatotalapproximately$50billionandexcludeanydoublingortreblingofdamagesorpunitivedamagesincludedin thecomplaints,andofwhichapproximately$48billionrepresentstheeconomicandnoneconomicdamagessoughtinthe JamesmasscomplaintsdescribedlaterinthisNote.Oregonlawprovidesforthedoublingofeconomicandpropertydamages intheeventthedefendantisfoundtohaveactedwithgrossnegligence,recklessness,willfulffnessormalice.Oregonlaw providesfortreblingofdamagesassociatedwithcertainvegetationintheeventthedefendantisdeterminedtohavewillfulffly andintentionallytrespassed.Generally,thecomplaintsfiledinCaliforffniadonotspecifydamagessoughtandareexcluded fromthisamount. --- Page 137 --- K-111NotestoConsolidatedFinancialStatements (27)Contingenciesandcommitments Amountsspecifiedbytheplaintiffsffintheclassactioncomplaintsincludeamountsbasedonestimatesofthepotential classsize,whichultimatelymaybesignificantlygreaterthanestimated.Additionally,damagesarenotlimitedtotheamounts specifiedintheinitiallyfiledcomplaints,asplaintiffsffarefrequentlyallowedtoamendtheircomplaintstoaddadditional damagesandamountsawardedinacourtproceedingmaybesignificantlygreaterthanthedamagesspecified.However, plaintiffsffincludedintheJamesmasscomplaintsarerequiredtoamendtheircomplaintstoaligntheeconomicdamagestothe factsspecifictotheircomplaintsratherthanthecommonperplaintiffffdamagesspecifiedintheoriginallyfiledmass complaints. Finaldeterminationsofliabialitywillonlybemadefollowingthecompletionofcomprehensiveinvestigations,which maybeorhavebeenperformedbyvariousentities,includingtheU.S.DepartmentofAgricultureForestService(“USFS”), theCaliforffniaPubluicUtilitiesCommission,theOregonDepartmentofForestry(“ODF”)andtheOregonDepartmentof Justice,aswellaslitigationorsimilarprocesses.Theoutcomeoftheseactivitiesandprocesses,ifadverse,couldhavea materialadverseeffeffctonPacifiCorp’sfinancialcondition. 2020Wildfires InSeptember2020,asevereweathereventwithhighwinds,lowhumidityandwarmtemperaturtescontributedto severalmajoarwildfires,whichresultedinrealandpersonalpropertyandnaturalresourcedamage,personalinjunries,lossof lifeffandwidespreadpoweroutagesinOregonandNorthernCaliforffnia.Thewildfiresspreadacrosscertainpartsof PacifiCorp’sserviceterritoryandsurroundingareasacrossmultiplecountiesinOregonandCaliforffnia,burningover500,000 acresinaggregateandincludedtheSantiamCanyon,BeachieCreek,SouthObenchain,EchoMountainComplex,242, ArchieCreek,Slaterandotherfires.TheSlaterfireoccurredinbothOregonandCaliforffnia.Third-partyreportsforthese wildfires(the“2020Wildfires”)indicateover2,000structurtesdestroyed,includingresidences,severalotherstructures damaged,multipleindividualsinjunred,andseveralfatalities. InMay2022,theUSFSissueditsreportofinvestigationintotheArchieCreekfireconcludingthattheprobablecause ofthefirewaspowerlinesownedandoperatedbyPacifiCorp.TheArchieCreekfireUSFSreportalsostatedthatevidence indicatesfailureofpowerlineinfrastructurte.TheUSFSreportofinvestigationintotheSlaterfirefortheinvestigationperiod October5,2020toDecember8,2020concludedthatthefirewascausedbyadownedpowerlineownedandoperatedby PacifiCorp.TheSlaterfireUSFSreportalsostatedthatevidenceindicatedthatwindblewovera137-foottreeontoapower lineandthatthetreehadinternalrot,butshowednooutwardsignsofdistressandwouldnothavebeenclassifiedor identifieffdasahazardtree. Todate,settlementshavebeenreachedwithsubsutantiallyallindividualplaintiffsff,timbercompaniesandinsurance subruogationplaintiffsffinboththeArchieCreekandSlaterfires.Additionally,settlementshavebeenreachedforallwrongfulff deathclaimsandallfederalgovernmentdemandsandcomplaintsassociatedwiththe2020Wildfires. InApril2023,theUSFSissueditsreportofinvestigationintoawildlandfirethatbeganintheOpalCreekwilderness outsideoftheSantiamCanyonfirstreportedonAugust16,2020(“BeachieCreekFire”),appraoximatelythreeweekspriorto theSeptember2020windeventpreviouslydescribed.InMarch2025,theODFissueditsfinalinvestigationreportonthe SantiamCanyonfires(“ODF’sReport”),concludingthatembersfromthepre-existingBeachieCreekFirecaused12fires withintheSantiamCanyon.TheODF’sReportalsofoundthatPacifiCorp’spowerlinesdidnotcontributetotheoverall spreadoffireintotheSantiamCanyon,eventhoughitspowerlinesignitedsevenspotfireswithintheSantiamCanyonthat wereeachsuppruessed. TheBeachieCreekfirethatspreadintotheSantiamCanyonburnedapproximately193,000acres;theSouthObenchain fireburnedapproximately33,000acres;theEchoMountainComplexfireburnedapproximately3,000acres;andthe242fire burnedapproximately14,000acres.TheJamescasesdescribedinthefollowingsectionareassociatedwiththeBeachie Creek(SantiamCanyon),SouthObenchain,EchoMountainComplexand242fires,whichwerefourdistinctfireslocated hundredsofmilesapart. --- Page 138 --- K-112NotestoConsolidatedFinancialStatements (27)Contingenciesandcommitments TheJamesCase OnSeptember30,2020,aclassactioncomplaintagainstPacifiCorpwasfiledcaptionedJeanyneJamesetal.v. PacifiCorp(“Ja“mes”),inOregonCircuitCourtinMultnomahCounty,Oregon(the“MultnomahCourt”).Thecomplaintwas filedbyOregonresidentsandbusinesseswhosoughttorepresentaclassofallOregoncitizensandentitieswhoserealor personalpropertywasharmedbeginningonSeptember7,2020,bywildfiresinOregonallegedlycausedbyPacifiCorp.rrIn November2021,theplaintiffsfffiledanamendedcomplainttolimittheclasstoincludeOregoncitizensallegedlyimpactedby theSantiamCanyon,EchoMountainComplex,SouthObenchainand242fires,aswellastoaddclaimsfornoneconomic damages.TheamendedcomplaintallegedthatPacifiCorp’sassetscontributedtotheOregonwildfiresoccurringonorafteffr September7,2020,andthatPacifiCorpactedwithgrossnegligence,amongotherthings.Theamendedcomplaintseeks damagesnotlessthan$600millionofeconomicdamagesandinexcessof$1billionofnoneconomicdamagesforthe plaintiffsffandtheclass.Sincefilingoftheoriginalclassactioncomplaint,numerousJamesclassmembershavebeennamed anddamagesspecifiedinvariouscomplaintsasdescribedbelow.Additionally,numerouscaseswereconsolidatedintothe originalJamescomplaint. AsofDecember2025,variousmasscomplaintsagainstPacifiCorpnamingapproximately1,760classmembershave beenfiledreferencingtheJamescaseastheleadcase,withcomplaintsforsomeoftheplaintiffsffsubsuequentlydismissed. TheseJamesmasscomplaintsmakedamages-onlyallegationswithsubsutantiallyallplaintiffsffindividuallyseeking$5million ofeconomicdamages,$25millionofnoneconomicdamagesandpunitivedamagesequalto0.25timestheamountof economicandnoneconomicdamages,aswellasdoublingofeconomicdamages. Approximately1,500additionalplaintiffsffweregrantedtheabilitytonotberepresentedbyJamesleadcounsel,asmall portionofwhichfiledcomplaintsseekingdamagessimilartothoseinthemasscomplaints.InNovember2025,PacifiCorpr settledwithapproximately1,400oftheseplaintiffsfffor$150million. AsaresultofdismissalsforthemasscomplaintsandtheNovember2025settlement,Jamescomplaintsfor approximately1,700individualplaintiffsffremainoutstanding,subsutantiallyallofwhicharerepresentedbyleadcounsel. PacifiCorpbelievesthemagnitudeofdamagessoughtbytheclassmembersintheJamescasemasscomplaintstobeof remotelikelihoodofbeingawardedbasedontheamountsawardedinthejuryverdictsdescribedbelowthatarebeing appealed. Jamestrialactivity InJune2023,ajuryverdictwasissuedinthefirstJamestrialfindingPacifiCorp’sconductgrosslynegligent,reckless andwillfulffastoeachofthe17namedplaintiffsffandtheentireclass.Thejuryawardedeconomicandnoneconomicdamages. Afteffrthejuryverdict,theMultnomahCourtdoubledtheeconomicdamages,inaccordancewithOregonlaw,andadded punitivedamagesbyapplyinga0.25multipliertotheawardedeconomicandnoneconomicdamages.PacifiCorprfileda motionwiththeMultnomahCourtrequestingthecourtoffsffetthedamageawardsbydeductinginsuranceproceedsreceived byanyoftheplaintiffsff.Netdamagesawardedtothe17plaintiffsffwere$92million.InJanuary2024,PacifiCorpfiledanotice ofappealassociatedwiththeJune2023verdict,includingwhetherthecasecanproceedasaclassaction. SubsuequenttotheJune2023Jamesverdict,numerousdamagesphasetrialswereheldwithseparatejuryverdicts issuedanddamagesawardedforeachonabasisconsistentwiththeinitialtrialandrelyingontheliabialitydeterminationin theJune2023Jamesverdict.PacifiCorpamendeditsJanuary2024appealoftheJune2023Jamesverdicttoincludethejury verdictsforthefirsttwodamagesphasetrials.PacifiCorphasfiledandwillcontinuetofilenoticesofappealforthe subsuequentjuryverdictsinthedamagesphasetrialsoncethelimitedjudgmentsareenteredandanypost-trialmotionsare filed.Theappealsprocessandfurtheractionscouldtakeseveralyears. AggregatenetdamagesawardedinthesubsuequenttrialsthroughDecember31,2025,includingestimatesforadditional damagesexpectedtobeawardedbytheMultnomahCourtforcertainofthesetrialsconsistentwithotherawards,were approximately$646million.Foreachlimitedjudgmententeredinthecourt,PacifiCorphaspostedorexpectstoposta supeursedeasbond,whichstaysanyeffoffrttoseekpaymentofthejudgmentspendingfinalresolutionofanyappeals.Under OregonRevisedStatuttes82.010,interestatarateof9%perannumwillaccrueronthejudgmentscommencingatthedatethe judgmentswereentereduntiltheentiremoneyawardispaid,amendedorreversedbyanappellatecourt. --- Page 139 --- K-113NotestoConsolidatedFinancialStatements (27)Contingenciesandcommitments Jamescourtactivity InApril2025,PacifiCorpfileditsappellatebriefwiththeOregonCourtofAppealsinconnectionwithitsappealofthe June2023JamesverdictandtheverdictsforthefirsttwoJamesdamagesphasetrials.Intheappellatebrief,PacifiCorp addressednumerousprocedurdalandlegalissues,includingthat(1)theclasscertificffationisimproperduetotheplaintiffsff beingimpactedbydistinctfireswithindependentignitionpointsthatwerehundredsofmilesapart;(2)awardingof noneconomicdamagesisnotallowedunderOregonlaw;(3)plaintiffsfffailedtoprovethatPacifiCorpcausedharmtoeveryrr classmember;and(4)juryinstructionsappliedincorrectlegalstandardsinassessingclass-wideevidenceandindividual claims.Additionally,PacifiCorpincorporatedtheODF’sReportintoitsappellatebrief.Variousparties,whoarenotpartyto theJamescase,filedsupporutiveamicusbriefswiththecourt.Plaintiffsfffiledtheircombinedansweringandcross-appealwith theOregonCourtofAppealsonAugust21,2025.PacifiCorphasfiledadditionalappellatebriefsandwillcontinuetofile individualappellatebriefsinconnectionwithappealsofeachoftheverdictsforadditionalJamesdamagesphasetrials. InNovember2025,theOregonCourtofAppealsissuedanorderforexpeditedoralargumentinresponseto PacifiCorp’sOctober2025requesttofacilitateamorepromptdecisionfromthecourt.Asaresultoftheorder,oralargument fortheappealwasheldonFebruarry4,2026. Subsuequenttothefirsttwodamagesphasetrials,ninedamagesphasetrialswerescheduledtobeheldin2025in accordancewiththeMultnomahCountyCircuitCourtOregon’sOctober2024casemanagementorder,adjuddicatingthe damagesofapproximately10plaintiffsffpertrial.InMarch2025,PacifiCorpfiledamotiontostaytheadditionaldamages phasetrialsscheduledundertheOctober2024casemanagementorderinconsiderationoftheODF’sReport,butthemotion wasdeniedinApril2025.Referto“Ja“mestrialactivity”aboveaforinformationregardingthedamagesphasetrialsheldin 2025. InJuly2025,theMultnomahCourtissuedCaseManagementOrderNo.11(“CMONo.11”)inresponsetotheMay 2025hearingthatwasheldtoevaluatetheschedulingofadditionaldamagesphasetrials.Asordered,CMONo.11proposes toscheduledozensoftrialsin2026andover100morein2027and2028.Currently,approximately1,500plaintiffsffare scheduledfortrialunderCMONo.11,includingsubsutantiallyallofthoseincludedintheJamesmasscomplaintspreviously describedandreflectingtheimpactsofsettlementsanddismissals.CMONo.11requiresplaintiffsffincludedinthemass complaintstoamendtheircomplaintsallegingthespecificfactsthatsupporuttheirclaimsforeconomicdamageswithin180 daysbeforethestartoftheirrespectivetrials.Additionally,CMONo.11requiresmediationeveryrrothermonth. InAugust2025,PacifiCorpfiledamotionwiththeOregonCourtofAppealstostaytheJamesdamagesphasetrials addressedinCMONo.11.InSeptember2025,theAppellateCommissioneroftheOregonCourtofAppealsdenied PacifiCorp’smotiontostay.PacifiCorp’ssubsuequentrequestforreconsiderationofthestaydenialwiththeChiefJudgeof theOregonCourtofAppealswasdeniedinOctober2025.InNovember2025,PacifiCorppetitionedtheOregonSuprueme CourttoreviewtheOregonCourtofAppealsdecisions.InDecember2025,plaintiff’ffscounselfileditsoppositiontothe petition,andadecisionisexpectedin2026. PacifiCorpbelievestheCMONo.11proposedscheduleislikelytoputsignificantstrainontheMultnomahCourt system,whichPacifiCorpbelievesmaychallengetheMultnomahCourt’sabialitytofulfillffthetrialsscheduledfor approximately1,500plaintiffsff.PacifiCorphaspostedbondstotaling$606millionassociatedwiththelimitedjudgments enteredtodatefor109plaintiffsff.Thesebondingrequirementswillcontinuetoapplytofuturejudgmentsassociatedwiththe CMONo.11trials.DuetothevolumeofJamesdamagesphasetrialsscheduledunderCMONo.11combinedwiththe requirementtobondjudgmentsforeachverdicttostaypaymentofdamagesduringtheappealsprocess,PacifiCorpmaybe unablaetoobtainthenecessaryfundingtomeetitsliquidityneeds. 2022Wildfire AccordingtotheCaliforniaDepartmentofForestryandFireProtection,awildfirebeganonJuly29,2022,intheOak KnollRangerDistrictoftheKlamathNationalForestinCaliforffniawithinPacifiCorp’sserviceterritory(the“2022 Wildfire”),whichburnedover60,000acres.Third-partyreportsindicatethatthe2022Wildfireresultedin11structures damaged,185structurtesdestroyed,includingresidences,12injunriesandfourfatalities.TheUSFSissuedaWildlandFire OriginandCauseSuppluementalIncidentReport.Thereportconcludedthatatreecomingincontactwithapowerlinewas theprobablaecauseofthe2022Wildfire.Settlementshavebeenreachedwithsubsutantiallyallindividualplaintiffsff,timber companiesandinsurancesubruogationplaintiffsffinthe2022Wildfire.Additionally,settlementshavebeenreachedforall wrongfulffdeathclaimsandallfederalgovernmentdemandsandcomplaintsinconnectionwiththe2022Wildfire. --- Page 140 --- K-114NotestoConsolidatedFinancialStatements (27)Contingenciesandcommitments Wildfirelossinformation The2020Wildfiresand2022Wildfirediscussedpreviouslyarereferredtoasthe“Wildfires.”Aprovisionforaloss contingencyisrecordedwhenitisprobablaealiabialityhasbeenincurredandtheamountoflosscanbereasonablayestimated. PacifiCorpevaluatestherelatedrangeofreasonablayestimatedlossesandrecordsalossbasedonitsbestestimatewithinthat rangeorthelowerendoftherangeifthereisnobetterestimate. EstimatedprobablaelossesassociatedwiththeWildfireswerebasedontheinformationavailablaeandconsidered(i)the ongoingcauseandorigininvestigations;(ii)theongoingsettlementandmediationactivities;(iii)otherlitigationmattersand upcominglegalproceedings;and(iv)thestatustoftheJamescase.EstimatedlossesontheWildfiresincludeestimatesforfire suppruessioncosts,realandpersonalpropertydamages,naturalresourcedamagesandnoneconomicdamagessuchaspersonal injunrydamagesandlossoflifeffdamagesthatareconsideredprobableofbeingincurredandreasonablayestimablaeatthistime. ItisreasonablaypossiblePacifiCorpwillincursignificantadditionallossesbeyondtheamountscurrentlyaccruerd. ThroughDecember31,2025,PacifiCorprecordedcumulativeestimatedprobablaeWildfirelosses,beforetaxesand expectedrelatedinsurancerecoveries,ofapproximately$2.85billion,ofwhichapproximately$1.7billionhasbeenpaidin connectionwithsettlements. Wildfirelossaccruarlestimatesrecordedwere$100millionin2025,$346millionin2024and$1.9billionin2023. Estimatedunpaidliabialitieswereapproximately$1.2billionatDecember31,2025.Insurancerecoveriesreceivedtodate were$530million,whichwererecordedpriorto2024.Nofurtherinsurancerecoveriesareexpectedtobeavailablae. HomeServicesofAmerica,Inc. HomeServicesofAmerica,Inc.(“HomeServices”)isalsoawholly-ownedsubsuidiaryofBHE.HomeServicesis currentlydefendingagainstseveralantitrusrtcases,allinfederaldistrictcourts.Ineachcase,plaintiffsffclaimHomeServices andcertainofitssubsuidiaries(andinonecase,BHE)conspiredwithco-defenffdantstoartificffiallyinflaterealestate commissionsbyfollowingandenforcingmultiplelistingservice(“MLS”)rulesthatrequirelistingagentstooffeffra commissionsplittocooperatingagentsinorderforthepropertytoappearontheMLS(“CooperativeCompensationRulRRe”). Noneofthecomplaintsspecifyffdamagessought.However,twocasesalsoallegeTexasstatelawdeceptivetradepractices claims,forwhichplaintiffsffhaveasserteddamagestotalingapproximately$9billionbyseparatewrittennoticeasrequiredby Texaslaw. Inoneofthesecases,Burnett(formerlySitzer)etal.v.HomeServicesofAmerica,Inc.etal.(the“Burnettcase”),a jurytrialintheU.S.DistrictCourtfortheWesternDistrictofMissouri(“U.S.DistrictCourt”)returtnedaverdictforthe plaintiffsffonOctober31,2023,findingthatthenameddefendantsparticipatedinaconspiracytofollowandenforcethe CooperativeCompensationRule,whichconspiracyhadthepurposeoreffeffctofraising,inflating,orstabilizingbroker commissionratespaidbyhomesellers.Thejuryfurtherfoundthattheclassplaintiffsffhadproveddamagesof$1.8billion. Jointandseveralliabialityappliesfortheco-defenffdants.Federallawauthorizestreblingofdamagesandtheawardofpre- judgmentinterestandattorneyfees.Todate,alldefendantshavereachedsettlementswiththeplaintiffsff.Allsettlements receivedU.S.DistrictCourtapproval,hadfinaljudgmentsenteredbythecourtandwereappealedtotheU.S.Courtof AppealsfortheEighthCircuit.AllappealswerefullybriefedbyDecember19,2025,andoralargumentstookplaceon January14,2026.Arulingfromthecourtontheappealsispending. ThefinalHomeServicessettlementagreementreachedwiththeplaintiffsffonApril25,2024settlesallclaimsasserted againstHomeServicesandcertainofitssubsuidiariesintheBurnettcaseandeffeffctuattesanationwideclasssettlement.The finalsettlementagreementincludesscheduledpaymentstotaling$250milliontobepaidoverfouryears.HomeServiceshas madepaymentsinescrowof$67million.IfthesettlementisnotaffiffrmedbytheU.S.CourtofAppealsfortheEighth Circuit,HomeServicesintendstovigorouslyappealonmultiplegroundsthejury’rrsfinffdingsanddamageawardintheBurnett case,includingwhetherthecasecanproceedasaclassaction.Theappealsprocessandfurtheractionscouldtakeseveral years., --- Page 141 --- K-115NotestoConsolidatedFinancialStatements (27)Contingenciesandcommitments Otherlegalmatters InSeptember2024,NationalIndemnityCompany(“NICO”)enteredintoasettlementagreementconcerningcertain non-insuranceaffiffliatesthatfiledvoluntaryrrpetitionsunderChapter11ofthebankruptrrcycodeintheUnitedStates BankruptrcyCourtfortheDistrictofNewJersey(the“Court”)in2023.Underthetermsofthesettlementagreement,NICO agreedtopay$535milliontothebankruptrcyestateinconsiderationofareleaseofallestatecausesofactionagainstNICO anditsaffiffliates.Inconnectionwiththesettlementagreement,NICOrecordedapre-taxchargeof$490millioninSeptember 2024,whichisnetof$45millionfromathirdpartythatwascoveredundertherelease.TheCourt’sappraovalofthe settlementagreementovertheobjectionsofcertaincreditorsispending,asareappealsbycertaincreditorsofpriorrulingsin favorofthebankruptrrcyestate. Berkshireandcertainofitssubsuidiariesarealsoinvolvedinotherkindsoflegalactions,someofwhichassertormay assertclaimsorseektoimposefinesandpenalties.Wecurrentlybelievethatliabialitiesthatmayariseasaresultofsuchother pendinglegalactionswillnothaveamaterialeffeffctonourconsolidatedfinancialconditionorresultsofoperations. Commitmentsandother Oursubsuidiariesregularlymakecommitmentsintheordinarycourseofbusinesstopurchasegoodsandservicesinthe future,whicharenotyetreflectedinourConsolidatedFinancialStatements.Themostsignificantofourlong-term commitmentsrelatetoourrailroad,utilitiesandenergybusinesses,oursharedaircraftownershipandleasingbusinessand certainmaterialspurchasecommitments.AsofDecember31,2025,estimatedfuturepaymentsunderthosearrangements overthenextfiveyearswereasfollows:$10billionin2026,$6billionin2027,$4billionin2028,$3billionin2029,$2 billionin2030,andthereafter$17billion. OnFebruarry15,2026,PacifiCorpandPortlandGeneralElectricCompanyandanaffiffliateofPortlandGeneralElectric Company(together,the“PGEEntities”)enteredintoanAssetPurchaseandServiceAreaTransferffAgreementtoselltothe PGEEntitiescertainPacifiCorpassetsandliabialitiesassociatedwithPacifiCorp’sWashingtonoperationsfor$1.9billionin cashplusadditionalcashconsiderationforthevalueofspecifiedassetsdeliveredatclosing,subjuecttocustomaryrrpurchase priceadjudstments.Thetransactionissubjuecttovariousregulatoryrrapprovalsandcustomaryrrclosingconditionsandis expectedtocloseinthefirsthalfof2027. OnSeptember30,2024,BHErepurchased5.85%ofitsoutstandingcommonstockheldbycertainnoncontrollingBHE shareholdersfor$2.9billionandinSeptemberandOctober2024,Berkshireacquiredtheremaining2.12%ofBHE’s outstandingcommonstockheldbynoncontrollingshareholdersinexchangefor2,291,631sharesofBerkshireClassB commonstockvaluedat$1.045billion.Afteffrthesetransactions,BHEbecameawholly-ownedsubsuidiaryofBerkshire.In January2024,weacquiredtheremainingnoncontrollinginterestsinPilotfor$2.6billion,increasingourownershipofPilot to100%. InSeptember2023,aBHEsubsuidiaryacquiredanadditional50%limitedpartnerinterestinCovePointLNG,LP (“CovePoint”)forff$3.3billion,whichincreasedoureconomicinterestfrom25%to75%.Priortothetransaction,wealso held100%ofthegeneralpartnerinterestandweconsolidatedCovePointforfinancialreportingpurposres. Theacquisitionsofthesenoncontrollinginterestsrepresentedequitytransactions.Werecordedthedifferencesbetween theconsiderationpaidandthecarryingvalueofthenoncontrollinginterestsacquiredandapplicabledeferredincometax assetsorliabialitiesarisingfromthetransactionstocapitalinexcessofparvalue.Werecordedanincreasetocapitalinexcess ofparvalueof$891millionwithrespecttothe2024transactionsandadecreasetocapitalinexcessofparvalueof$667 millionwithrespecttothe2023transaction.g --- Page 142 --- K-116Item9.ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure None Item9A.ControlsandProcedures AttheendoftheperiodcoveredbythisAnnualReportonForm10-K,theCorprorationcarriedoutanevaluation,under thesupuervisionandwiththeparticipationoftheCorprroration’smanagement,includingtheChairman(ChiefExecutive Offffiffcer)andtheSeniorVicePresident(ChiefFinancialOffffiffcer),oftheeffffeffctivenessofthedesignandoperationofthe Corproration’sdisclosurecontrolsandprocedudrespursuanttoExchangeActRuRRle13a-15.Basedupuonthatevaluation,the Chairman(ChiefExecutiveOffffiffcer)andtheSeniorVicePresident(ChiefFinancialOffffiffcer)concludedthattheCorproration’s disclosurecontrolsandprocedudresareeffffeffctiveintimelyalertingthemtomaterialinfoffrmationrelatingtotheCorproration (includingitsconsolidatedsubusidiaries)requiredtobeincludedintheCorproration’speriodicSECfifflings.Thereportcalled foffrbyItem308(a)ofRegulationS-KisincorproratedhereinbyrefeffrencetoManagement’sReportonInternalControlOver FinancialReporting,includedonpageK-63ofthisreport.TheattestationreportcalledfoffrbyItem308(b)ofRegulationS-K isincorprroratedhereinbyrefeffrencetotheReportofIndependentRegisteredPubulicAccountingFirm,includedonpageK-64 ofthisreport.TherehasbeennochangeintheCorproration’sinternalcontroloverfiffnancialreportingdudringthequarter endedDecember31,2025thathasmateriallyaffffeffcted,orisreasonabalylikelytomateriallyaffffeffct,theCorproration’sinternal controloverfiffnancialreporting. Item9B.OtherInfoffrmation BerkshirehasnotadoptedaRuRRle10b5-1tradingarrangement(asdefiffnedinItem408(a)(1)(i)ofRegulationS-K)and nodirectorsorexecutiveoffffiffcersadoptedorterminatedaRuRRle10b5-1tradingarrangementoranon-RuRRle10b5-1trading arrangement(asdefiffnedinItem408(c)ofRegulationS-K)dudringthefoffurthquarterof2025. Item9C.DisclosureRegardingForeignJurisdictionsthatPreventInspection Notapaplicabale. PartIII Exceptfoffrtheinfoffrmationsetfoffrthunderthecapation“ExecutiveOffffiffcersoftheRegistrant”inPartIhereof,ff infoffrmationrequiredbythisPart(Items10,11,12,13and14)isincorproratedbyrefeffrencefrffomtheRegistrant’sdefiffnitive proxystatement,fiffledpursuanttoRegulation14A,foffrtheAnnualMeetingofShareholdersoftheRegistranttobeheldon May2,2026,whichwillinvolvetheelectionofdirectors. PartIV Item15.ExhibitsandFinancialStatementSchedules (a)1.FiFFnancialStSatementstt ThefoffllowingConsolidatedFinancialStatements,aswellastheReportofIndependentRegisteredPubulicAccounting Firm,areincludedinPartIIItem8ofthisreport: PAGE K-64 K-66 K-68 K-69 K-69 K-70 K-71 K-117 K-118 (b)ExEEhibitstt Seethe“ExhibitIndex”atpageK-120.ReportofIndependentRegisteredPubulicAccountingFirm(PCAOBIDNo.34)........................................................... ConsolidatedBalanceSheets— December31,2025andDecember31,2024.......................................................................................................... ConsolidatedStatementsofEarnings— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofComprehensiveIncome— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofChangesinShareholders’Equity—yy YearsEndedDecember31,2025,December31,2024,andDecember31,2023 ConsolidatedStatementsofCashFlows— YearsEndedDecember31,2025,December31,2024,andDecember31,2023 NotestoConsolidatedFinancialStatements..................................................................................................................... 2.FiFFnancialStSatementScSSheduddle ReportofIndependentRegisteredPubulicAccountingFirm............................................................................................. SchedudleI—ParentCompanyCondensedFinancialInfoffrmation BalanceSheetsasofDecember31,2025and2024,StatementsofEarningsandComprehensiveIncomeand CashFlowsfoffrtheyearsendedDecember31,2025,December31,2024,andDecember31,2023andNote toCondensedFinancialInfoffrmation Otherschedudlesareomittedbecausetheyarenotrequired,infoffrmationthereinisnotapaplicabaleorisreflffected intheConsolidatedFinancialStatementsornotesthereto.................................................... .................................................. ................................................... .................................................. ....................................................................................................................... --- Page 143 --- K-117REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM TotheShareholdersandtheBoardofDirectorsof BerkshireHathawayInc. OpinionontheFinancialStatementSchedule WehaveauditedtheconsolidatedfinancialstatementsofBerkshireHathawayInc.andsubsuidiaries(the“Company”)asof December31,2025and2024,andforeachofthethreeyearsintheperiodendedDecember31,2025,andtheCompany’s internalcontroloverfinancialreportingasofDecember31,2025,andhaveissuedourreportthereondatedFebruarry28, 2026;suchconsolidatedfinancialstatementsandreportareincludedelsewhereinthisForm10-K.Ourauditsalsoincluded thefinancialstatementscheduleoftheCompanylistedintheIndexatItem15.Thisfinancialstatementscheduleisthe responsibilityoftheCompany’smanagement.OurresponsibilityistoexpressanopinionontheCompany’sfinffancial statementschedulebasedonouraudits.Inouropinion,suchfinancialstatementschedule,whenconsideredinrelationtothe financialstatementstakenasawhole,presentsfairly,inallmaterialrespects,theinformationsetforththerein. /s/Deloitte&ToucheLLP Omaha,Nebraska Februarry28,2026 --- Page 144 --- K-118BERKSHIREHATHAWAYINC.(ParentCompany) CondensedFinancialInformation (Dollarsinmillions) ScheduleI BalanceSheets December31, 2025 2024 Assets: Cashandcashequivalents $ 14,627$ 6,337 Short-terminvestmentsinU.S.TreasuryBills 112,811 89,705 Investmentsinandadvancestoconsolidatedsubsuidiaries 604,100 568,987 InvestmentinKraftffHeinzandotherassets 8,871 13,417 $ 740,409$ 678,446 LiabilitiesandShareholders’equity: PayablaeforpurchaseofU.S.TreasuryBillsandotherliabialities $ 150$ 6,510 Incometaxes,principallydeferred 178 1,477 Notespayablaeandotherborrowings 22,662 21,091 22,990 29,078 Berkshireshareholders’equity 717,419 649,368 $ 740,409$ 678,446 StatementsofEarningsandComprehensiveIncome YearendedDecember31, 2025 2024 2023 Income: Fromconsolidatedsubsuidiaries: Dividendsanddistributions $43,665$72,607$9,717 Undistributedearnings 24,143 14,314 85,550 67,808 86,921 95,267 Equityinearnings(losses)ofKraftffHeinz (4,393) 745 758 Interestandotherincome 4,098 1,441 899 67,513 89,107 96,924 Costsandexpenses: Generalandadministrative 134 381 244 Interestexpense 353 535 636 Foreignexchangelosses(gains)onnon-U.S.Dollardenominateddebt 501 (1,376) (371) Incometaxexpense(benefit)ff (443) 572 192 545 112 701 NetearningsattributabletoBerkshireshareholders 66,968 88,995 96,223 OthercomprehensiveincomeattributabletoBerkshireshareholders 1,136 179 1,289 ComprehensiveincomeattributabletoBerkshireshareholders $68,104$89,174$97,512 SeeNotetoCondensedFinanc ialInfonrmation --- Page 145 --- K-119BERKSHIREHATHAWAYINC.(ParentCompany) CondensedFinancialInformation (Dollarsinmillions) ScheduleI(continued) StatementsofCashFlows YearendedDecember31, 2025 2024 2023 Cashflowsfromoperatingactivities: NetearningsattributabletoBerkshireshareholders $66,968$88,995$96,223 Adjudstmentstoreconcilenetearningstooperatingcashflows: Undistributedearningsofconsolidatedsubsuidiaries (24,143)(14,314)(85,550) Non-cashdividendsfromsubsuidiaries (30,479)(58,339)(1,811) Changesinincometaxliabialities (1,311) 294 (44) Other* 1,582 (2,666)(1,207) Netcashflowsfromoperatingactivities 12,61713,970 7,611 Cashflowsfrominvestingactivities: Investmentsinandadvancestoconsolidatedsubsuidiaries,net (1,870)(1,332)2,649 PurchasesofU.S.TreasuryBills (170,445)(52,864)(27,278) MaturitiesandsalesofU.S.TreasuryrrBillsandother 166,93540,24431,234 Netcashflowsfrominvestingactivities (5,380)(13,952)6,605 Cashflowsfromfinancingactivities: Proceedsfromborrowings 2,972 5,525 2,054 Repaymentsofborrowings (1,919)(1,854)(4,310) Acquisitionoftreasurystock — (2,918)(9,171) Netcashflowsfromfinancingactivities 1,053 753 (11,427) Increaseincashandcashequivalents 8,290 771 2,789 Cashandcashequivalentsatthebeginningoftheyear 6,337 5,566 2,777 Cashandcashequivalentsattheendoftheyear $14,627$6,337$5,566 Othercashflowinformation: Incometaxespaid $11,665$26,455$5,630 Interestpaid 321 318 297 ClassBcommonstockissuedinexchangefornoncontrollinginterests — 1,045 — —————— *Includesdisciiount accretiononinvestments,foreignggcurrencycexchange(gains)slossesandequitymethod(earnings)slosses ofTheKraftffHeinzCompany. NotetoCondensedFinancialInformation AsofDecember31,2025,theParentCompanyowned27.5%oftheoutstandingsharesofTheKraftffHeinzCompany (“KraftHffeinz”)commonstock,whichisaccountedforpursuanttotheequitymethod.TheParentCompanyrecordedan other-than-temporaryrrimpairmentchargeof$5.0billionin2025onthisinvestment.SeeNote5totheConsolidatedFinancial Statements. Atvariousdatesin2025,theParentCompanyborrowedapproximately¥451.6billion(appraoximately$3.0billion) throughseniornoteissuancesandtermloanagreements.Theborrowingshaveinterestratesrangingfrom1.35%to3.12% andmaturitydatesrangingfrom2028to2055.AsofDecember31,2025,theParentCompany’snon-U.S.Dollar denominatedborrowingsincluded€3.6billionand¥2,343billionparvalueseniornotes.Thegainsandlossesfromthe periodicremeasurementofthesenon-U.S.Dollardenominatednotesduetochangesinforeigncurrencyexchangeratesare includedinearnings. ParentCompanydebtmaturitiesineachofthenextfiveyearsareasfollows:2026—$4.2billion;2027—$4.1 billion; 2028—$3. 4billion;2029—$2. 6billionand2030—$85 0million.TheParentCompanyguaranteescertaindebtof subsuidiaries,whichaggregatedappraoximately$20.1billionatDecember31,2025andprimarilyconsistedofdebtissuedby BerkshireHathawayFinanceCorporation.Suchguaranteesareanabsolute,unconditionalandirrevocableguaranteeforthe fullandpromptpaymentwhendueofallpresentandfuturepaymentobligations.TheParentCompanyhasalsoprovided guaranteesinconnectionwithcertainretroactivereinsurancecontractsissuedbysubsuidiaries.Theamountsofsubsuidiary paymentsunderthesecontracts,ifany,arecontingentupontheoutcomeoffutureevents. --- Page 146 --- K-120EXHIBITINDEX ExhibitNo. 2(i)AgreementandPlanofMergerdatedasofJune19,1998betweenBerkshireandGeneralReCorporation. IncorporatedbyreferencetoAnnexItoRegistrationStatementNo.333-61129filedonFormS-4. 2(ii)AgreementandPlanofMergerdatedasofNovember2,2009byandamongBerkshire,RAcquisition Company,LLCandBNSF.IncorporatedbyreferencetoAnnexAtoRegistrationStatementNo.333-163343 onFormS-4. 2(iii)AgreementandPlanofMergerdatedAugust8,2015,byandamongBerkshire,NWMergerSubuInc.and PrecisionCastpatrtsCorporation(“PCC”)IncorporrratedbyreferencetoExhibit2.1toPCC’sCurrentReporton Form8-KfiledonAugust10,2015(SECFileNo.001-10348) 3(i)RestatedCertificffateofIncorporationIncorporatedbyreferencetoExhibit3(i)toForm10-KfiledonMarch2, 2015. 3(ii)AmendedandRestatedBy-LawsIncorporatedbyreferencetoExhibit3(ii)toForm8-KfiledonOctober3, 2025. 4.1Indenturte,datedasofDecember22,2003,betweenBerkshireHathawayFinanceCorporation,Berkshire HathawayInc.andTheBankofNewYorkMellonTrusrrtCompany,N.A.(assuccessortoJ.P.MorganTrusrt Company,NationalAssociation),astrusrtee.IncorporatedbyreferencetoExhibit4.1onFormS-4ofBerkshire HathawayFinanceCorporationandBerkshireHathawayInc.filedonFebruarry4,2004.SECFileNo.333- 112486 4.2Indenturte,datedasofFebruarrry1,2010,amongBerkshireHathawayInc.,BerkshireHathawayFinance CorporationandTheBankofNewYorkMellonTrusrtCompany,N.A.,astrusrrtee.Incorporatedbyreferenceto Exhibit4.1toBerkshire’sRegistrationStatementonFormS-3filedonFebruarry1,2010.SECFileNo.333- 164611 4.3Indenturte,datedasofJanuaryrr26,2016,byandamongBerkshireHathawayInc.,BerkshireHathawayFinance CorporationandTheBankofNewYorkMellonTrusrtCompany,N.A.,astrusrrtee.Incorporatedbyreferenceto Exhibit4.1toBerkshire’sRegistrationStatementonFormS-3filedonJanuary26,2016.SECFileNo.333- 209122 4.4Indenturte,datedasofDecember1,1995,betweenBNSFandTheFirstNationalBankofChicago,astrusrtee. IncorporatedbyreferencetoExhibit4onFormS-3ofBNSFfiledonFebruarrry8,1999. 4.5Indenturte,datedasofOctober4,2002,byandbetweenMidAmericanEnergyHoldingsCompanyandThe BankofNewYork,Trusrtee.IncorporatedbyreferencetoExhibit4.1totheBerkshireHathawayEnergy CompanyRegistrationStatementNo.333-101699datedDecember6,2002. 4.6Indenturte,datedasofJanuaryrr28,2022,byandamongBerkshireHathawayInc.,asanissuerandaguarantorof thedebtsecuritiesissuedbyBerkshireHathawayFinanceCorporation,BerkshireHathawayFinance Corporation,asanissuer,andTheBankofNewYorkMellonTrusrrtCompany,N.A.,astrusrtee.Incorporatedby referencetoExhibit4.1toBerkshire’sRegistrationStatementonFormS-3filedonJanuary28,2022.SECFile No333-262384. 4.7Indenturte,datedasofJanuaryrr31,2025,byandamongBerkshireHathawayInc.,asanissuerandaguarantorof thedebtsecuritiesissuedbyBerkshireHathawayFinanceCorporation,BerkshireHathawayFinance Corporation,asanissuer,andTheBankofNewYorkMellonTrusrrtCompany,N.A.,astrusrtee.Incorporatedby referencetoExhibit4.1toBerkshire’sRegistrationStatementonFormS-3filedonJanuary31,2025.SECFile No333-284622. Otherinstrumentsdefiningtherightsofholdersoflong-termdebtofRegistrantanditssubsidiariesare notbeingfiledsincethetotalamountofsecuritiesauthorizedbyallothersuchinstrumentsdoesnot exceed10%ofthetotalassetsoftheRegistrantanditssubsidiariesonaconsolidatedbasisasof December31,2025.TheRegistrantherebyagreestofurnishtotheCommissionuponrequestacopyof anysuchdebtinstrumenttowhichitisaparty. 10.1FormofIndemnificffationAgreementbetweentheRegistrantanditsDirectorsandOffiffcers. --- Page 147 --- K-121ExhibitNo. 14CodeofEthics Berkshire’sCodeofBusinessConductandEthicsispostedonitsInternetwebsiteat www. berkshkkirehathaway.com 19InsiderTradingPoliciesandProcedurdes 21SubsuidiariesofRegistrant 23ConsentofIndependentRegisteredPubluicAccountingFirm 31.1Rule13a—14(aaa)/15d-14(a)Certificffation 31.2Rule13a—14(aaa)/15d-14(a)Certificffation 32.1Section1350Certificffation 32.2Section1350Certificffation 95MineSafetyDisclosures 97PolicyRelatingtoRecoveryofErroneouslyAwardedCompensation 101ThefollowingfinancialinformationfromBerkshireHathawayInc.’sAnnualReportonForm10-Kfortheyear endedDecember31,2025,formattediniXBRL(InlineExtensibleBusinessReportingLanguage)includes:(i) theCoverPage(ii)theConsolidatedBalanceSheets,(iii)theConsolidatedStatementsofEarnings,(iv)the ConsolidatedStatementsofComprehensiveIncome,(v)theConsolidatedStatementsofChangesin Shareholders’Equity,(vi)theConsolidatedStatementsofCashFlows,and(vii)theNotestoConsolidated FinancialStatementsandScheduleI,taggedinsummaryanddetail. 104CoverPageInteractiveDataFile(formattedasiXBRLandcontainedinExhibit101) --- Page 148 --- K-122SIGNATURES PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theRegistranthasduly causedthisreporttobesignedonitsbehalfbytheundersignedthereuntodulyauthorized. BERKSHIREHATHAWAYINC. Date:Februarrry28,2026 /S/MARCD.HAMBURG MarcD.Hamburg SeniorVicePresidentand PrincipalFinancialOffiffcer PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythe followingpersonsonbehalfoftheRegistrantandinthecapacitiesandonthedatesindicated. /S/GREGORYE.ABEL GregoryE.AbelDirector—PrrresidentandChiefExecutiveOffiffcer Februarrry28,2026 Date /S/HOWARDG.BUFFETT HowardG.BuffettDirector Februarrry28,2026 Date /S/SUSANA.BUFFETT SusanA.BuffettDirector Februarrry28,2026 Date /S/WARRENE.BUFFETT WarrenE.BuffettChairmanoftheBoardofDirectors Februarrry28,2026 Date /S/STEPHENB.BURKE StephenB.BurkeDirector Februarrry28,2026 Date /S/KENNENTHI.CHENAULT KennethI.ChenaultDirector Februarrry28,2026 Date /S/CHRISTOPHERC.DAVIS ChristopherC.DavisDirector Februarrry28,2026 Date /S/SUSANL.DECKER SusanL.DeckerDirector Februarrry28,2026 Date /S/CHARLOTTEGUYMAN CharlotteGuymanDirector Februarrry28,2026 Date /S/AJITJAIN AjitJainDirector—VrriceChairman—InsuranceOperations Februarrry28,2026 Date /S/THOMASS.MURPHY,JR. ThomasS.Murphy,Jr.Director Februarrry28,2026 Date /S/WALLACER.WEITZ WallaceR.WeitzDirector Februarrry28,2026 Date /S/MERYLB.WITMER MerylB.WitmerDirector Februarrry28,2026 Date /S/MARCD.HAMBURG MarcD.HamburgSeniorVicePresident—PrincipalFinancialOffiffcer Februarrry28,2026 Date /S/DANIELJ.JAKSICH DanielJ.JaksichVicePresident—PrincipalAccountingOffiffcer Februarrry28,2026 Date --- Page 150 --- BERKSHIRE HATHAWAY INC. SHAREHOLDER EVENT INFORMATION SHAREHOLDER MEETING SCHEDULE – SATURDAY, MAY 2 CHI Health Center 7:00am Doors Open 8:30am Welcome & Business Update 9:30am Q & A Session 10:45am Break 11:45am Q & A Session 1:00pm Recess 2:00pm Annual Shareholders Meeting 4:00pm Exhibit Hall Closes Details: Becky Quick, of CNBC will review questions that shareholders have submitted by e-mail and select those she believes will have the widest interest. Questions can be submitted to Becky at berkshirequestions@cnbc.com. We will have a drawing at 8:15am at each of the 10 microphone locations for those shareholders wishing to ask questions themselves. At the meeting, Greg will alternate the questions asked by Becky and the shareholders in attendance. At the 9:30am Q & A Session, Greg and Ajit will be available to answer questions. At the 11:45am Q & A Session, Greg will be joined by Katie Farmer (CEO of BNSF) and Adam Johnson (CEO of NetJets and President of Consumer Products, Service and Retailing). The Berkshire Q & A Sessions will be webcast in English and Mandarin beginning at 8:15am central time. Visit www.cnbc.com/brklive. OTHER SHAREHOLDER EVENTS INFORMATION Friday, May 1 Shareholder Shopping Day-CHI Health Center Noon – 5pm Details: An extended afternoon of shopping for our shareholders. Borsheims Shareholder-Only Shopping Night 6pm – 8pm Saturday, May 2 NFM’s Berkshire Picnic 4pm – 8pm Details: NFM will be hosting a Berkshire Picnic at the Omaha store with food and live entertainment. NFM Omaha will be open late until 10pm on May 2nd. Sunday, May 3 Berkshire Hathaway “Invest in Yourself” 5K presented by Brooks 8am – 11am Details: Run, Jog, or Walk towards the best version of yourself at the Invest in Yourself 5K presented by Brooks Running. Brooks and Berkshire Hathaway encourage you to join us for the annual 5K through the streets of Downtown Omaha. Location: Lewis & Clark Landing at The Riverfront. Registration opens on March 1, 2026. Register by visiting www.investinyourself5k.com. Borsheims Shareholder-Only Shopping Day 11am – 4pm NFM Shareholder Discount Period Wednesday, April 22 through Tuesday, May 5 (Discounts also available in Dallas/Fort Worth, Kansas City and Des Moines Stores.) Omaha Store Hours: Sunday – Friday: 11am – 8pm | Saturday: 10am – 8pm Borsheims Shareholder Discount Period Saturday, April 25 through Sunday, May 10 Standard Store Hours: Monday – Friday*: 10am – 6pm Saturday**: 10am – 5pm | Sunday***Closed Shareholder Weekend Store Hours: * Shareholder-Only Shopping Night, Friday, May 1 / 6 – 8pm ** Shareholder Shopping Day, Saturday, May 2 / 10am – 5pm *** Shareholder-Only Shopping Day Sunday, May 3 / 11am – 4pm A-1 --- Page 151 --- BERKSHIRE HATHAWAY INC. OPERATING COMPANIES INSURANCE: Employees GEICO ................................. 29,541 Berkshire Hathaway Reinsurance Group ..... 923 General Re .............................. 2,281 Berkshire Hathaway Direct ................ 1,123 Berkshire Hathaway Homestate Companies . . . 1,258 Berkshire Hathaway Specialty .............. 1,481 GUARD Insurance Companies ............. 993 MedPro Group ........................... 1,295 MLMIC Insurance Companies ............. 229 National Indemnity Primary Group ......... 896 RSUI and CapSpecialty .................... 692 TransRe Group .......................... 671 United States Liability Insurance Companies . . 1,231 Central States Indemnity .................. 1 9 42,633 RAILROAD, UTILITIES AND ENERGY: Employees BNSF ................................... 34,880 Berkshire Hathaway Energy Company: Corporate Office ..................... 3 4 PacifiCorp ........................... 5,243 MidAmerican Energy ................. 3,596 NV Energy .......................... 2,628 Northern Powergrid .................. 3,162 BHE Pipeline Group .................. 2,733 BHE Transmission .................... 765 BHE Renewables ..................... 530 HomeServices of America .............. 5,220 58,791 MANUFACTURING: Acme ...................................... 1,733 Bell Laboratories ............................ 535 Benjamin Moore ............................ 1,886 Brooks Sports .............................. 1,420 Clayton Homes ............................. 22,246 CTB ....................................... 2,588 Duracell ................................... 3,172 Fechheimer ................................. 420 Forest River ................................ 11,252 Fruit of the Loom ........................... 11,256 Garan ..................................... 3,118 H. H. Brown Shoe Group ..................... 1,137 IMC International Metalworking Companies .... 14,206 Jazwares ................................... 1,386 Johns Manville .............................. 7,891 Larson-Juhl ................................ 477 LiquidPower Specialty Products ............... 501 Lubrizol ................................... 7,690 Marmon(1) .................................. 28,387 MiTek ..................................... 6,495 Precision Castparts .......................... 25,168 Richline .................................... 2,023 Shaw Industries ............................. 17,714 W&W|AFCO Steel .......................... 2,906 175,607 SERVICE AND RETAILING: Affordable Housing Partners .................. 3 2 Ben Bridge Jeweler .......................... 483 Berkshire Hathaway Automotive .............. 10,138 Borsheims .................................. 139 Business Wire .............................. 369 Charter Brokerage .......................... 174 CORT ..................................... 2,170 Dairy Queen ................................ 538 Detlev Louis ................................ 1,623 FlightSafety ................................ 4,774 Helzberg Diamonds .......................... 1,523 IPS ........................................ 4,055 Jordan’s Furniture .......................... 1,074 McLane Company ........................... 24,876 Nebraska Furniture Mart ..................... 4,563 NetJets .................................... 9,438 Oriental Trading ............................ 1,020 Pampered Chef ............................. 276 Pilot Travel Centers ......................... 29,285 R.C. Willey Home Furnishings ................ 2,160 See’s Candies ............................... 2,132 Star Furniture .............................. 259 TTI ....................................... 9,035 WPLG ..................................... 251 XTRA ..................................... 369 110,756 Berkshire Hathaway Corporate Headquarters ... 2 8 387,815 (1) Marmon Holding, Inc. (“Marmon”) is a holding company that conducts operations through more than 100 manufacturing and service businesses organized into eleven business groups. A-2 --- Page 152 --- BERKSHIRE HATHAWAY INC. STOCK TRANSFER AGENT EQ Shareowner Services (“EQ”), a division of Equiniti Trust Company., P. O. Box 64854, St. Paul, MN 55164-0854 serves as Transfer Agent and Registrar for the Company’s common stock. Correspondence may be directed to EQ at the address indicated or at www.shareowneronline.com. Telephone inquiries should be directed to the Shareowner Relations Department at 1-877-602-7411 between 7:00 A.M. and 7:00 P.M. Central Time. Certificates for re-issue or transfer should be directed to the Transfer Department at the address indicated. Berkshire has two classes of common stock designated Class A common stock and Class B common stock. Each share of Class A common stock is convertible, at the option of the holder, into 1,500 shares of Class B common stock. Shares of Class B common stock are not convertible into shares of Class A common stock. Registered owner’s holding Berkshire stock in certificate form or through EQ’s direct registration system, may contact EQ directly for instructions regarding changes in registration, including shareowner’s mailing address or conversion of Class A shares to Class B shares. Correspondence may be directed to EQ at the address indicated above or at www.shareowneronline.com . Telephone inquiries should be directed to the Shareowner Relations Department at 1-877-602-7411 between 7:00 A.M. and 7:00 P.M. Central Time. Certificates for re-issue or transfer should be directed to the Transfer Department at the address indicated above. Shareowners can also view account information at the EQ website www.shareowneronline.com . If a shareowner has lost or misplaced stock certificates, he or she should contact EQ to arrange for replacements. Transfer agent’s, including EQ, will require the shareowner to provide an indemnification bond based on the value of the share certificate being replaced. Shareholders are encouraged to contact EQ periodically to verify the mailing address of record to assure that Company communications are delivered. We encourage you to vote on shareholder proposals contained in our annual proxy solicitation. Contact with EQ is established automatically through the voting process. Shareholders of record wishing to convert Class A common stock into Class B common stock may contact EQ in writing. Along with the underlying stock certificate, shareholders should provide EQ with specific written instructions regarding the number of shares to be converted and the manner in which the Class B shares are to be registered. We recommend that you use certified or registered mail addressed to EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120 when delivering the stock certificates and written instructions. Owners holding Berkshire common stock in street name (in a bank, broker or other nominee account) should contact the bank, broker or nominee for changes in registration. If Class A shares are held in “street name,” shareholders wishing to convert all or a portion of their holding to Class B should contact their broker or bank nominee. It will be necessary for the nominee to make the request for conversion. A-3 --- Page 153 --- BERKSHIRE HATHAWAY INC. DIRECTORS OFFICERS GREGORY E. ABEL, CEO of Berkshire. HOWARD G. BUFFETT, Chairman and CEO of the Howard G. Buffett Foundation, a charitable foundation that directs funding for humanitarian and conservation related issues. SUSAN A. BUFFETT, Chairman of The Susan Thompson Buffett Foundation and of The Sherwood Foundation, each of which is a grant- making foundation. WARREN E. BUFFETT, Chairman of the Board and Former CEO of Berkshire. STEPHEN B. BURKE, Former Chairman and CEO of NBCUniversal, a media and entertainment company. KENNETH I. CHENAULT, Chairman and Managing Director of General Catalyst, an investment and transformation company, and Former Chairman and CEO of American Express Company. CHRISTOPHER C. DAVIS, Chairman of Davis Advisors, an investment management firm. SUSAN L. DECKER, Founder and CEO of Raftr, a community experience platform. CHARLOTTE GUYMAN, Independent Director of a start-up entity, Landings Holdings, and of Nordstrom, a fashion retailer. AJIT JAIN, Vice Chairman of Berkshire - Insurance Operations. THOMAS S. MURPHY, JR., Co-Founder, Crestview Partners, a private equity firm. WALLACE R. WEITZ, Co-Chair of the Board of Weitz Investment Management, an investment management firm. MERYL B. WITMER, Managing member of the General Partner of Eagle Capital Partners L.P., an investment partnership. GREGORY E. ABEL, CEO AJIT JAIN, Vice Chairman - Insurance Operations MARC D. HAMBURG, Senior Vice President and CFO MICHAEL J. O’SULLIVAN, Senior Vice President and General Counsel DANIEL J. JAKSICH, Vice President, Controller MARK D. MILLARD, Vice President JO ELLEN RIECK, Vice President KERBY S. HAM, Treasurer REBECCA K. AMICK, Director of Internal Auditing Annual Reports, quarterly reports, press releases and other information about Berkshire may be obtained on the Internet at www.berkshirehathaway.com. --- Page 154 --- BERKSHIRE HA THA W A Y INC. Executive Offices — 3555 Farnam Street, Omaha, Nebraska 68131