Results of Operations Net earnings attributable to Berkshire shareholders are disaggregated in the table that follows. Amounts are after deducting income taxes and exclude earnings attributable to noncontrolling interests (in millions). Second Quarter First Six Months 2026 2025 2026 2025 Insurance – underwriting $ 1,731 $ 1,992 $ 3,448 $ 3,328 Insurance – investment income 3,059 3,367 5,738 6,260 BNSF 1,558 1,466 2,935 2,680 Berkshire Hathaway Energy (“BHE”) 891 702 2,005 1,799 Manufacturing, service and retailing 4,470 3,601 7,669 6,661 Investment gains (losses) 12,684 4,970 11,444 (68 ) Other-than-temporary impairment of investment in Kraft Heinz — (3,760 ) — (3,760 ) Other 1,274 32 2,534 73 Net earnings attributable to Berkshire shareholders $ 25,667 $ 12,370 $ 35,773 $ 16,973 Through our subsidiaries, we engage in numerous diverse business activities. The business segment data (Note 24 to the accompanying Consolidated Financial Statements and Note 26 to the Consolidated Financial Statements included in Form 10-K for the year ended December 31, 2025) should be read in conjunction with this discussion. Our periodic operating results may be affected in future periods by the impacts of ongoing macroeconomic and geopolitical conflicts and events, including wars, developing international trade policies and tariffs, as well as changes in industry or company-specific factors or events. Considerable uncertainty remains as to the ultimate outcome of these events. We are currently unable to reliably predict the ultimate impact on our businesses, whether through changes in the availability of products, supply chain costs and efficiency, and customer demand for our products and services. It is reasonably possible there could be adverse consequences on our operating businesses, as well as on our investments in equity securities, which could significantly affect our earnings. After-tax earnings from insurance underwriting declined 13.1% in the second quarter and increased 3.6% in the first six months of 2026 compared to 2025. We experienced no significant catastrophe events in the first six months of 2026, while after-tax losses from significant events were $850 million in the first six months of 2025. Otherwise, GEICO produced lower underwriting earnings in the first six months of 2026 compared to 2025, which were partially offset by increased earnings from reinsurance and other primary insurance business. After-tax earnings from insurance investment income declined $308 million (9.1%) in the second quarter and $522 million (8.3%) in the first six months of 2026 versus the same periods in 2025, attributable to lower interest income, reflecting lower interest rates. After-tax earnings of BNSF increased 6.3% in the second quarter and 9.5% in the first six months of 2026 compared to 2025. Earnings in 2026 benefited from higher shipping volumes and improved operating efficiencies, partly offset by increases in fuel costs and the impact of higher effective income tax rates, primarily attributable to the impacts of reductions in enacted rates in certain states in the second quarter of 2025. After-tax earnings of BHE increased 26.9% in the second quarter and 11.5% in the first six months of 2026 compared to 2025, which reflected higher earnings from the U.S. utilities and natural gas pipelines businesses, partially offset by lower earnings from other energy businesses. After-tax earnings from our manufacturing, service and retailing businesses increased 24.1% in the second quarter and 15.1% in the first six months of 2026 compared to 2025. The increases were driven by earnings increases in our industrial products manufacturing and our services businesses. Investment gains (losses) regularly include significant unrealized gains and losses from changes in market prices of our investments in equity securities and in foreign currency exchange rates applicable to certain of our investments. We believe that investment gains and losses, whether realized from dispositions or unrealized from changes in market prices and exchange rates, are generally meaningless in understanding our reported periodic results or evaluating our periodic economic performance. These gains and losses have caused, and will continue to cause, significant volatility in our periodic earnings. We recorded an other-than-temporary impairment loss in the second quarter of 2025 on our investment in The Kraft Heinz Company (“Kraft Heinz”), which is accounted for under the equity method. See Note 5 to the accompanying Consolidated Financial Statements. After-tax other earnings increased $1.2 billion in the second quarter and $2.5 billion in the first six months of 2026 compared to 2025. The increases were primarily attributable to the impact of foreign currency exchange rate gains and losses on Berkshire and BHFC non-U.S. Dollar denominated borrowings. The after-tax foreign currency exchange gains were $326 million in the second quarter and $575 million in the first six months of 2026 compared to losses of $877 million in the second quarter and $1.6 billion in the first six months of 2025. 33 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Insurance—Underwriting Our periodic underwriting earnings may be subject to considerable volatility from the timing and magnitude of significant property catastrophe loss events. We currently consider consolidated pre-tax losses exceeding $150 million from an event occurring in the current year to be significant. Changes in estimates for unpaid losses and loss adjustment expenses (“LAE”), including amounts established for occurrences in prior years, and foreign currency transaction gains and losses arising from the remeasurement of non-functional currency denominated assets and liabilities can also significantly affect our periodic underwriting results. We write primary insurance and reinsurance policies covering property and casualty risks, as well as life and health risks. Our insurance and reinsurance businesses are GEICO, Berkshire Hathaway Primary Group (“BH Primary”) and Berkshire Hathaway Reinsurance Group (“BHRG”). We strive to generate pre-tax underwriting earnings (defined as premiums earned less insurance losses/benefits incurred and underwriting expenses) over the long term in all business categories, except in our retroactive reinsurance and periodic payment annuity businesses. We continue to instruct our underwriting managers to decline writing insurance business when the premiums are deemed inadequate to the risks underwritten, without regard to the impact on premium volume. Time-value-of-money concepts are important considerations in establishing premiums received at the inception of our retroactive reinsurance and periodic payment annuity contracts. While no new retroactive reinsurance or periodic payment annuity contracts have been written in recent years, we will continue to record charges to earnings related to the run-off of pre-existing contracts over the remaining claim settlement periods. Underwriting results of our insurance businesses are summarized below (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Pre-tax underwriting earnings: GEICO $ 994 $ 1,821 $ 2,410 $ 3,994 BH Primary 273 63 749 (81 ) BHRG 913 650 1,286 343 Pre-tax underwriting earnings 2,180 2,534 4,445 4,256 Income taxes 449 542 997 928 Net underwriting earnings $ 1,731 $ 1,992 $ 3,448 $ 3,328 Effective income tax rate 20.6 % 21.4 % 22.4 % 21.8 % GEICO GEICO writes property and casualty insurance policies, primarily private passenger auto insurance, in all 50 states and the District of Columbia. Additionally, GEICO writes insurance for certain commercial auto risks, which currently represents less than 5% of premiums written. GEICO offers its policies mainly by direct response methods where most customers apply for insurance coverage directly to the company, and, to a lesser extent, through insurance agencies. GEICO also operates an insurance agency that offers insurance policies written by third parties for individuals desiring coverages that are generally not offered by GEICO, such as homeowners, renters, condominium, life and identity protection insurance. A summary of GEICO’s underwriting results follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 11,124 $ 11,003 $ 22,798 $ 22,509 Premiums earned $ 11,291 100.0 $ 11,064 100.0 $ 22,477 100.0 $ 21,816 100.0 Losses and LAE 8,644 76.6 7,945 71.8 16,921 75.3 15,369 70.4 Underwriting expenses 1,653 14.6 1,298 11.7 3,146 14.0 2,453 11.3 Total losses and expenses 10,297 91.2 9,243 83.5 20,067 89.3 17,822 81.7 Pre-tax underwriting earnings $ 994 $ 1,821 $ 2,410 $ 3,994 34 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Insurance—Underwriting GEICO Premiums written increased $121 million (1.1%) in the second quarter and $289 million (1.3%) in the first six months of 2026 compared to 2025, reflecting an increase in commercial auto business, partially offset by lower average premiums per policy for private passenger auto insurance. Premiums earned increased $227 million (2.1%) in the second quarter and $661 million (3.0%) in the first six months of 2026 compared to 2025. Losses and LAE increased $699 million (8.8%) in the second quarter and $1.6 billion (10.1%) in the first six months of 2026 compared to 2025. GEICO’s loss ratio (losses and LAE to premiums earned) was 76.6% in the second quarter and 75.3% in the first six months of 2026, increases of 4.8 percentage points and 4.9 percentage points, respectively, compared to 2025. The loss ratio increases reflected the impact of higher claims frequencies and average severities. Private passenger auto claims frequencies increased in the first six months of 2026 for bodily injury coverage (five to seven percent range) and property damage and collision coverages (three to five percent range) compared to 2025. Private passenger auto average claims severities in the first six months of 2026 increased for bodily injury coverages (ten to twelve percent range) and property damage and collision coverages (zero to three percent range) compared to 2025. The change in reductions in ultimate loss estimates for prior accident years’ claims in the first six months of 2026 compared to 2025 was relatively insignificant. Underwriting expenses increased $355 million (27.3%) in the second quarter and $693 million (28.3%) in the first six months of 2026 compared to 2025. The expense ratio (underwriting expense to premiums earned) was 14.0% in the first six months of 2026, an increase of 2.7 percentage points compared to 2025. These increases were primarily driven by increases in commissions and advertising expenses. The earnings from GEICO’s insurance agency (third-party commissions, net of operating expenses) are included as a reduction of underwriting expenses. Berkshire Hathaway Primary Group BH Primary consists of numerous separately managed businesses that provide a wide variety of primarily commercial insurance solutions, including healthcare professional liability, workers’ compensation, automobile, general liability, property and specialty coverages. BH Primary’s insurers include Berkshire Hathaway Specialty Insurance Group (“BHSI”), RSUI, CapSpecialty, Berkshire Hathaway Homestate Group (“BHHC”), MedPro, GUARD Insurance Companies (“GUARD”), NICO Primary Group (“NICO Primary”), Berkshire Hathaway Direct (“BH Direct”) and U.S. Liability Insurance companies (“USLI”). A summary of BH Primary’s underwriting results follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 4,620 $ 4,820 $ 9,086 $ 9,243 Premiums earned $ 4,673 100.0 $ 4,677 100.0 $ 9,264 100.0 $ 9,254 100.0 Losses and LAE 3,011 64.4 3,193 68.3 5,803 62.6 6,645 71.8 Underwriting expenses 1,389 29.8 1,421 30.4 2,712 29.3 2,690 29.1 Total losses and expenses 4,400 94.2 4,614 98.7 8,515 91.9 9,335 100.9 Pre-tax underwriting earnings (loss) $ 273 $ 63 $ 749 $ (81 ) Premiums written declined $200 million (4.1%) in the second quarter and $157 million (1.7%) in the first six months of 2026 compared to 2025, reflecting year-to-date declines at RSUI (13.2%) and BHSI (2.6%), as well as BHHC (5.7%) and GUARD (7.5%). Several of our primary insurance businesses reduced property volumes within the U.S. in the first six months of 2026. Losses and LAE declined $182 million (5.7%) in the second quarter and $842 million (12.7%) in the first six months of 2026 relative to 2025. The loss ratio declined 3.9 percentage points in the second quarter and 9.2 percentage points in the first six months compared to 2025. Losses incurred from significant catastrophe occurrences in the first six months of 2025 were approximately $300 million versus none in 2026. The losses in 2025 were from wildfires in Southern California, which occurred in the first quarter. We reduced ultimate loss estimates for prior accident years’ claims by $268 million in the second quarter and $444 million in the first six months of 2026. We increased ultimate loss estimates for prior accident years’ claims by $189 million in the second quarter and $401 million in the first six months of 2025. The reductions in 2026 were primarily attributable to lower-than-expected property losses and, to a lesser extent, casualty losses. The increases in 2025 were primarily due to increases in estimated losses for casualty exposures, partially offset by reductions in property loss estimates. 35 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Insurance—Underwriting Berkshire Hathaway Primary Group Underwriting expenses increased $22 million in the first six months of 2026 compared to 2025. The increase reflected generally higher expenses across our businesses, attributable to a combination of factors, including changes in business mix, and were partially offset by lower expenses at GUARD. Berkshire Hathaway Reinsurance Group The Berkshire Hathaway Reinsurance Group (“BHRG”) offers excess-of-loss and quota-share reinsurance coverages on property and casualty risks to insurers and reinsurers worldwide through the NICO, General Re and TransRe Groups. We also write life and health reinsurance coverages through the General Re Group and Berkshire Hathaway Life Insurance Company of Nebraska. A summary of BHRG’s pre-tax underwriting results follows (in millions). Second Quarter First Six Months 2026 2025 2026 2025 Property/casualty $ 1,138 $ 1,045 $ 1,775 $ 1,113 Life/health 51 52 177 122 Retroactive reinsurance (180 ) (268 ) (426 ) (477 ) Periodic payment annuity (148 ) (213 ) (284 ) (412 ) Variable annuity 52 34 44 (3 ) Pre-tax underwriting earnings $ 913 $ 650 $ 1,286 $ 343 Property/casualty A summary of property/casualty reinsurance underwriting results follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 5,226 $ 5,022 $ 11,218 $ 11,157 Premiums earned $ 5,029 100.0 $ 5,108 100.0 $ 9,941 100.0 $ 10,343 100.0 Losses and LAE 2,442 48.6 2,754 53.9 5,326 53.6 6,353 61.4 Underwriting expenses 1,449 28.8 1,309 25.6 2,840 28.5 2,877 27.8 Total losses and expenses 3,891 77.4 4,063 79.5 8,166 82.1 9,230 89.2 Pre-tax underwriting earnings $ 1,138 $ 1,045 $ 1,775 $ 1,113 Premiums written increased $204 million (4.1%) in the second quarter and were relatively unchanged in the first six months of 2026 compared to 2025. We recorded premiums written in the second quarter and first six months of $483 million from a new whole account reinsurance agreement with certain wholly-owned insurance subsidiaries of Tokio Marine Holdings, Inc. (“Tokio Marine”), which commenced on April 1, 2026. Under the agreement, NICO assumes on a quota-share basis a portion of the non-life premiums written and related losses and expenses of Tokio Marine on risks attaching over a ten-year term. Otherwise, premiums written in the second quarter and first six months of 2026 declined 5.6% and 3.8%, respectively, relative to 2025, primarily due to lower property volumes. Losses and LAE decreased $312 million (11.3%) in the second quarter and $1.0 billion (16.2%) in the first six months of 2026 compared to 2025. The loss ratio in 2026 declined 5.3 percentage points in the second quarter and 7.8 percentage points in the first six months compared to 2025. There were no losses incurred from significant catastrophe event occurrences in the first six months of 2026 compared to $760 million in 2025 from estimated wildfire losses, which occurred in the first quarter. Additionally, changes in prior accident years’ ultimate loss estimates reduced losses and LAE by $609 million in the second quarter and $869 million in the first six months of 2026 compared to $176 million and $506 million, respectively, in the corresponding 2025 periods. The reductions in each period were mostly attributable to lower-than-expected property losses. Underwriting expenses in 2026 increased $140 million (10.7%) in the second quarter and decreased $37 million (1.3%) in the first six months of 2026 compared to 2025. The expense ratio increased 3.2 percentage points in the second quarter and 0.7 percentage points in the first six months of 2026 compared to 2025. Underwriting expenses in 2026 reflected changes in business mix, increases in general and administrative expenses and reduced foreign currency exchange losses related to certain intercompany reinsurance contracts. 36 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Insurance—Underwriting Berkshire Hathaway Reinsurance Group Life/health A summary of our life/health reinsurance underwriting results follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Amount % Amount % Amount % Amount % Premiums written $ 1,479 $ 1,347 $ 2,797 $ 2,590 Premiums earned $ 1,482 100.0 $ 1,346 100.0 $ 2,798 100.0 $ 2,586 100.0 Life and health benefits 1,118 75.4 1,043 77.5 2,022 72.3 1,999 77.3 Underwriting expenses 313 21.2 251 18.6 599 21.4 465 18.0 Total benefits and expenses 1,431 96.6 1,294 96.1 2,621 93.7 2,464 95.3 Pre-tax underwriting earnings $ 51 $ 52 $ 177 $ 122 Premiums earned increased $136 million (10.1%) in the second quarter and $212 million (8.2%) in the first six months of 2026 compared to 2025, primarily due to favorable foreign currency translation effects and increased premiums in the U.S., primarily from U.S. life and Medicare supplement business. Pre-tax underwriting earnings were substantially unchanged in the second quarter and increased $55 million in the first six months of 2026 compared to 2025. The year-to-date increase in earnings was primarily attributable to lower mortality, partly offset by increased foreign currency exchange losses. Retroactive reinsurance Pre-tax underwriting losses, before foreign currency exchange gains and losses, were $427 million in the first six months of 2026 versus $349 million in 2025. Losses reflected changes in estimated ultimate liabilities and related deferred charges during each period. There were no significant changes in the estimated ultimate liabilities during the first six months of 2026 and 2025. Foreign currency exchange gains and losses derive from the remeasurement of liabilities of non-functional currency denominated contracts of U.S. subsidiaries. Pre-tax foreign currency exchange gains and losses were insignificant in 2026, while in 2025, foreign currency exchange losses were $88 million in the second quarter and $128 million in the first six months. Unpaid losses and LAE for retroactive reinsurance contracts were $30.0 billion at June 30, 2026, a decline of $1.1 billion from December 31, 2025, primarily due to loss payments. Deferred charge assets on retroactive reinsurance were $7.7 billion and $8.1 billion at June 30, 2026 and December 31, 2025, respectively. Deferred charge balances will be charged to earnings over the expected remaining claims settlement periods. Periodic payment annuity Pre-tax underwriting losses, before foreign currency impacts, were $152 million in the second quarter and $304 million in the first six months of 2026 versus $126 million in the second quarter and $276 million in the first six months of 2025. These losses derived primarily from the accretion of discounted annuity liabilities. Pre-tax foreign currency exchange gains on non-functional currency denominated contracts of U.S. subsidiaries were $4 million in the second quarter and $20 million in the first six months of 2026 compared to losses of $87 million in the second quarter and $136 million in the first six months of 2025. Annuity liabilities were $14.3 billion at June 30, 2026, which includes the effects of discount rate changes recorded in accumulated other comprehensive income, as well as liabilities of $4.0 billion on contracts without life contingencies. Variable annuity Earnings or losses on our variable annuity guarantee reinsurance contracts are affected by changes in securities markets, interest rates, foreign currency exchange rates and policyholder behavior. While these contracts have been in run-off for many years, periodic earnings are subject to considerable volatility from the inherent volatility of market prices and rates. 37 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Insurance—Investment Income A summary of net investment income attributable to our insurance operations follows (dollars in millions). Second Quarter First Six Months Percentage Change 2026 2025 2026 2025 Second Quarter First Six Months Interest and other investment income $ 2,200 $ 2,524 $ 4,460 $ 5,043 (12.8 )% (11.6 )% Dividend income 1,485 1,479 2,529 2,521 0.4 0.3 Pre-tax net investment income 3,685 4,003 6,989 7,564 (7.9 ) (7.6 ) Income taxes 626 636 1,251 1,304 Net investment income $ 3,059 $ 3,367 $ 5,738 $ 6,260 Effective income tax rate 17.0 % 15.9 % 17.9 % 17.2 % Pre-tax investment income in the second quarter and first six months of 2026 declined 7.9% and 7.6%, respectively, compared to 2025, primarily attributable to lower interest income, reflecting lower short-term interest rates. Dividend income varies from period to period due to changes in the investment portfolio and the amount, frequency and timing of dividends from investees. We continue to believe that maintaining ample liquidity is paramount and insist on safety over yield with respect to short-term investments. Invested assets of our insurance businesses derive from shareholder capital and net liabilities assumed under insurance contracts or “float.” The major components of float are unpaid losses and LAE, including liabilities under retroactive reinsurance contracts, life, annuity and health benefit liabilities, unearned premiums and certain other liabilities, which are reduced by insurance premiums receivable, reinsurance receivables, deferred charges on retroactive reinsurance contracts and deferred policy acquisition costs. The effect of discount rate changes on long-duration insurance contracts, which are recorded in accumulated other comprehensive income, are excluded from float, as such amounts are not included in earnings in the Consolidated Statements of Earnings. Float was approximately $177.5 billion at June 30, 2026, an increase of approximately $1.1 billion from December 31, 2025. The cost of float is measured as the ratio of pre-tax underwriting earnings to float balances. Our combined insurance operations generated pre-tax underwriting earnings in the first six months of 2026 and 2025, and the average cost of float was negative in each period. A summary of cash and investments held in our insurance businesses follows (in millions). June 30, 2026 December 31, 2025 Cash, cash equivalents and U.S. Treasury Bills* $ 210,310 $ 212,651 Equity securities 321,865 294,144 Fixed maturity securities 16,781 17,466 Other, including loans to affiliates 4,360 4,702 $ 553,316 $ 528,963 —————— * Includes unsettled purchases of U.S. Treasury Bills of $771 million at June 30, 2026 and $167 million at December 31, 2025. Such amounts were also included in liabilities and were paid shortly after the respective balance sheet date. Fixed maturity investments as of June 30, 2026 follows (in millions). Amortized Cost Unrealized Gains (Losses) Carrying Value U.S. Treasury, U.S. government corporations and agencies $ 2,809 $ (9 ) $ 2,800 Foreign governments 12,697 (35 ) 12,662 Corporate and other 1,124 195 1,319 $ 16,630 $ 151 $ 16,781 U.S. government obligations are rated AA+ or Aa1 by the major rating agencies. Approximately 95% of our foreign government investments were rated AA or higher by at least one of the major rating agencies. Foreign government securities are issued or unconditionally guaranteed by national or provincial government entities. 38 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations BNSF Burlington Northern Santa Fe, LLC (“BNSF”) operates one of the largest railroad systems in North America, with over 32,500 route miles of track in 28 states. BNSF also operates in three Canadian provinces. BNSF classifies its major business groups by type of product shipped, including consumer products, agricultural and energy products, industrial products and coal. A summary of BNSF’s earnings follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Railroad operating revenues $ 6,562 $ 5,726 $ 12,521 $ 11,402 Railroad operating expenses 4,292 3,713 8,203 7,568 Railroad operating earnings 2,270 2,013 4,318 3,834 Other revenues (expenses), net 67 66 116 120 Interest expense (276 ) (270 ) (553 ) (542 ) Pre-tax earnings 2,061 1,809 3,881 3,412 Income taxes 503 343 946 732 Net earnings $ 1,558 $ 1,466 $ 2,935 $ 2,680 Effective income tax rate 24.4 % 19.0 % 24.4 % 21.5 % A summary of BNSF’s railroad freight volumes by business group follows (cars/units in thousands). Cars/Units Percentage Change Second Quarter First Six Months Second First Six 2026 2025 2026 2025 Quarter Months Consumer products 1,462 1,338 2,864 2,720 9.3 % 5.3 % Agricultural and energy products 388 348 773 693 11.5 11.5 Industrial products 361 350 691 682 3.1 1.3 Coal 268 291 559 589 (7.9 ) (5.1 ) 2,479 2,327 4,887 4,684 6.5 4.3 Railroad operating revenues increased in the second quarter and the first six months of 2026 by 14.6% and 9.8%, respectively, compared to 2025. Car/unit volume increased 6.5% and 4.3%, respectively, in the second quarter and the first six months of 2026 relative to the same periods in 2025. Average revenue per car/unit increased 7.6% in the second quarter and 5.3% in the first six months of 2026, primarily from higher fuel surcharge revenue and higher yield. Pre-tax earnings increased 13.9% in the second quarter and 13.7% in the first six months of 2026 versus 2025. Consumer products operating revenues were $2.4 billion in the second quarter and $4.4 billion in the first six months of 2026, increases of 20.5% and 10.3%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit primarily from higher fuel surcharge revenue and increases in international and domestic volumes. Volumes in the second quarter and the first six months of 2026 increased 9.3% and 5.3%, respectively, in relation to 2025, primarily due to higher intermodal shipments resulting from higher west coast imports, market share gains and tightening truck capacity. Agricultural and energy products operating revenues were $1.9 billion in the second quarter and $3.7 billion in the first six months of 2026, increases of 17.9% and 16.4%, respectively, from 2025. The revenue increases in 2026 were attributable to higher average revenue per car/unit, arising from higher fuel surcharge revenue, higher yield and volume increases of 11.5% in both the second quarter and first six months relative to 2025. The volume increases were primarily due to higher grain exports, petroleum fuels and oilseeds and meals. Industrial products operating revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026, increases of 9.1% and 5.9%, respectively, from 2025. The revenue increases were attributable to higher average revenue per car/unit from higher fuel surcharge revenue and higher yield, along with higher volumes (3.1% in the second quarter and 1.3% in the first six months). The volume increases were primarily due to higher steel, aggregates and cement shipments. Coal operating revenues were $722 million in the second quarter and $1.5 billion in the first six months of 2026, slight increases from the same periods in 2025. The revenue increases were attributable to higher average revenue per car/unit from higher fuel surcharge revenue and higher yield, partially offset by lower volumes. The volume declines were primarily due to plant retirements and lower demand, attributable to lower natural gas prices. 39 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations BNSF Railroad operating expenses increased $579 million (15.6%) in the second quarter and $635 million (8.4%) in the first six months of 2026 compared to 2025. Compensation and benefits expenses increased $26 million (1.9%) in the second quarter and less than 1% in the first six months of 2026 compared to 2025. The increases were primarily due to wage inflation, offset by improved employee productivity. Fuel expenses increased $475 million (68.1%) in the second quarter and $473 million (32.2%) in the first six months of 2026 compared to 2025, reflecting higher average fuel prices in the second quarter and higher volume, partially offset by increased fuel efficiency. Equipment rents, materials and other expenses increased $38 million (8.3%) in the second quarter and $69 million (7.2%) in the first six months of 2026 compared to 2025. The increases were primarily related to higher litigation and casualty related expenses. There were no significant changes in purchased services or depreciation and amortization expense. The effective income tax rate increased 5.4 percentage points in the second quarter and 2.9 percentage points in the first six months of 2026 compared to the same periods in 2025, primarily due to the impact of lower enacted state income tax rates in the second quarter of 2025. BHE Berkshire Hathaway Energy Company (“BHE”) is a holding company with subsidiaries that primarily operate within the energy industry. BHE’s domestic regulated utility interests include PacifiCorp, MidAmerican Energy Company (“MEC”) and NV Energy. BHE’s natural gas pipelines consist of five domestic regulated interstate natural gas pipeline systems and a 75% interest in a liquefied natural gas export, import and storage facility. Other energy subsidiaries operate two regulated electricity distribution businesses in Great Britain (“Northern Powergrid”), a regulated electricity transmission-only business in Alberta, Canada, and a diversified portfolio of mostly renewable power projects and investments. Another BHE subsidiary, HomeServices of America, Inc. (“HomeServices”), operates a residential real estate brokerage business and a residential real estate brokerage franchise business in the United States. The rates BHE’s regulated utility and energy businesses charge customers for energy and services are largely based on the costs of business operations, including income taxes and a return on capital, and are subject to regulatory approval. To the extent such costs are not allowed in the approved rates, operating results will be adversely affected. A summary of BHE’s net earnings follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Revenues: Energy operating revenues $ 5,413 $ 5,130 $ 11,223 $ 10,636 Real estate operating revenues 1,273 1,264 2,135 2,124 Other 49 24 38 14 Total revenues 6,735 6,418 13,396 12,774 Costs and expenses: Energy cost of sales 1,376 1,434 3,046 2,965 Energy operating expenses 2,760 2,725 5,428 5,310 Real estate operating costs and expenses 1,250 1,210 2,129 2,081 Interest expense 745 664 1,445 1,310 Total costs and expenses 6,131 6,033 12,048 11,666 Pre-tax earnings 604 385 1,348 1,108 Income tax benefit* (333 ) (357 ) (763 ) (779 ) Net earnings after income taxes 937 742 2,111 1,887 Noncontrolling interests of BHE subsidiaries 46 40 106 85 Net earnings attributable to BHE 891 702 2,005 1,802 Preferred stock dividends — — — 3 Net earnings attributable to Berkshire shareholders $ 891 $ 702 $ 2,005 $ 1,799 Effective income tax rate (55.1 )% (92.7 )% (56.6 )% (70.3 )% —————— * Includes significant production tax credits primarily from wind-powered electricity generation. 40 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations BHE The discussion of BHE’s operating results that follows is based on after-tax earnings, reflecting how the energy businesses are managed and evaluated. A summary of net earnings attributable to BHE follows (dollars in millions). Second Quarter First Six Months Percentage Change 2026 2025 2026 2025 Second Quarter First Six Months U.S. utilities $ 597 $ 434 $ 956 $ 862 37.6 % 10.9 % Natural gas pipelines 242 183 848 671 32.2 26.4 Other energy businesses 291 303 546 650 (4.0 ) (16.0 ) Real estate brokerage 20 45 8 30 (55.6 ) (73.3 ) Corporate interest and other (259 ) (263 ) (353 ) (411 ) 1.5 14.1 $ 891 $ 702 $ 2,005 $ 1,802 26.9 11.3 The U.S. utilities operate independently in several states, including Utah, Oregon, Wyoming and other Western states (PacifiCorp), Iowa and Illinois (MEC) and Nevada (NV Energy). Net earnings increased $163 million (37.6%) in the second quarter and $94 million (10.9%) in the first six months of 2026 compared to 2025, reflecting increases in electric utility margin and other income combined with higher income tax benefits from recognized production tax credits, partially offset by increases in interest expense and energy operating expenses. The U.S. utilities’ electric utility margin was $2.3 billion in the second quarter and $4.3 billion in the first six months of 2026, increases of $171 million (8.1%) and $218 million (5.4%), respectively, compared to 2025. The second quarter increase reflected higher retail customer volumes and lower thermal generation and purchased electricity cost of sales. The first six months increase reflected higher retail customer rates in certain territories, lower thermal generation cost of sales, higher retail customer volumes and higher wholesale volumes and prices, partially offset by higher purchased electricity cost of sales. Retail customer volumes increased 3.1% overall (up 6.0% at MEC, 4.3% at NV Energy and 0.8% at PacifiCorp) in the first six months of 2026 compared to 2025, primarily due to higher customer usage and an increase in the average number of customers, partially offset by an overall unfavorable impact of weather. The increase in energy operating expenses was primarily due to vegetation management and other wildfire prevention costs, as well as general and plant maintenance costs. Net earnings of natural gas pipelines increased $59 million in the second quarter and $177 million in the first six months of 2026 compared to 2025. The increases reflected higher transportation and storage revenues from a general rate case and higher variable liquefied natural gas revenues from colder weather, mainly in the first quarter of 2026. Net earnings of other energy businesses decreased $12 million in the second quarter and $104 million in the first six months of 2026 compared to 2025. The decreases were primarily due to lower earnings at Northern Powergrid from lower distribution revenues due to lower tariffs from inflation adjustments beginning in the second quarter of 2025 and higher interest expense. Net earnings of real estate brokerage businesses decreased $25 million in the second quarter and $22 million in the first six months of 2026 compared to 2025, primarily due to charges in the second quarter of 2026 associated with a settlement reached in the ongoing real estate industry litigation matters. The real estate brokerage business continues to be negatively impacted by the limited availability of homes for sale and high home prices. Corporate interest and other net losses include BHE corporate interest expense and unallocated general and administrative expenses and income taxes, including tax credits recognized on a consolidated basis. 41 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing A summary of revenues and earnings of our manufacturing, service and retailing businesses follows (dollars in millions). Second Quarter First Six Months Percentage Change Second First Six 2026 2025 2026 2025 Quarter Months Revenues: Manufacturing $ 22,568 $ 19,969 $ 43,240 $ 38,735 13.0 % 11.6 % Service and retailing 38,934 33,398 73,104 66,140 16.6 10.5 $ 61,502 $ 53,367 $ 116,344 $ 104,875 15.2 10.9 Pre-tax earnings: Manufacturing $ 4,117 $ 3,247 $ 7,176 $ 5,963 26.8 % 20.3 % Service and retailing 1,729 1,400 2,904 2,690 23.5 8.0 5,846 4,647 10,080 8,653 25.8 16.5 Income taxes and noncontrolling interests 1,376 1,046 2,411 1,992 Net earnings* $ 4,470 $ 3,601 $ 7,669 $ 6,661 Effective income tax rate 22.8 % 21.8 % 23.2 % 22.3 % Pre-tax earnings as a percentage of revenues 9.5 % 8.7 % 8.7 % 8.3 % —————— * Excludes certain acquisition accounting expenses, primarily related to amortization of intangible assets recorded in connection with certain of our business acquisitions. The after-tax acquisition accounting expenses excluded from earnings were $113 million in the second quarter and $227 million in the first six months of 2026 and $124 million in the second quarter and $248 million in the first six months of 2025. These expenses are included in “Other” in the summary of earnings on page 33 and in the “Other” earnings table on page 47. Manufacturing Our manufacturing group consists of a variety of industrial, building and consumer products businesses. A summary of revenues and pre-tax earnings of these operations follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Revenues: Industrial products $ 12,150 $ 9,543 $ 23,346 $ 18,600 Building products 7,006 6,945 12,995 13,113 Consumer products 3,412 3,481 6,899 7,022 $ 22,568 $ 19,969 $ 43,240 $ 38,735 Pre-tax earnings: Industrial products $ 2,577 $ 1,828 $ 4,508 $ 3,409 Building products 1,117 1,042 1,921 1,927 Consumer products 423 377 747 627 $ 4,117 $ 3,247 $ 7,176 $ 5,963 Pre-tax earnings as a percentage of revenues: Industrial products 21.2 % 19.2 % 19.3 % 18.3 % Building products 15.9 15.0 14.8 14.7 Consumer products 12.4 10.8 10.8 8.9 42 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing Industrial products The industrial products group includes complex metal components and products for aerospace, power and general industrial markets (Precision Castparts Corp. (PCC)), specialty chemicals (The Lubrizol Corporation (Lubrizol)), metal cutting tools/systems (IMC International Metalworking Companies (IMC)), and Marmon Holdings, Inc. (Marmon) which consists of numerous autonomous manufacturing, service and leasing businesses aggregated into twelve groups. Other industrial products members also produce equipment and systems for the livestock and agricultural industries (CTB International), drag reducing agents for pipelines (LiquidPower Specialty Products), structural steel fabrication products (W&W|AFCO) and beginning in August 2025, rodent control products (Bell Laboratories). On January 2, 2026, Berkshire acquired a chemicals business (OxyChem) from Occidental Petroleum Corporation. OxyChem produces basic chemicals and its results are included in Berkshire’s consolidated results beginning as of the acquisition date. Revenues of the industrial products group were $12.2 billion in the second quarter and $23.3 billion in the first six months of 2026, increases of $2.6 billion (27.3%) and $4.7 billion (25.5%), respectively, compared to the same periods in 2025, primarily attributable to business acquisitions and increases at several of our pre-existing business units. Pre-tax earnings increased $749 million (41.0%) in the second quarter and $1.1 billion (32.2%) in the first six months of 2026 compared to 2025. Pre-tax earnings as a percentage of revenues for the group were 19.3% for the first six months of 2026, an increase of 1.0 percentage points compared to 2025. PCC’s revenues were $3.1 billion in the second quarter and $6.0 billion in the first six months of 2026, increases of 14.4% in the second quarter and 11.4% in the first six months compared to 2025. The increases were driven by increased sales of aerospace and industrial gas turbine power products, primarily attributable to strong customer demand and higher prices, due in part to rising costs of certain raw materials. PCC’s pre-tax earnings increased 34.2% in the second quarter and 33.6% in the first six months of 2026 relative to 2025. The earnings increases in 2026 reflected aerospace and industrial gas turbine sales growth, improved manufacturing and operating efficiencies and favorable changes in business mix. Earnings in 2025 and 2026 were impacted by a fire at a fasteners facility that occurred in the first quarter of 2025. Future sales and earnings growth will depend on successfully increasing production and expanding capacity, as necessary, to meet customer demand. Lubrizol’s revenues were $1.8 billion in the second quarter and $3.4 billion in the first six months of 2026, increases of 11.1% and 7.0%, respectively, compared to 2025. The increases were primarily attributable to higher volumes and selling prices and favorable foreign currency translation effects, partially offset by unfavorable product mix. The increases in selling prices were necessitated by significant increases in raw materials, energy and supply chain costs that began in the latter part of the first quarter and continued through the second quarter of 2026, resulting in increased production costs. Lubrizol’s pre-tax earnings increased 23.4% in the second quarter and 16.5% in the first six months of 2026 compared to 2025. The increases were primarily attributable to the impacts of higher sales volumes and selling prices, partially offset by higher raw materials and manufacturing costs and unfavorable product mix. Marmon’s revenues were $3.5 billion in the second quarter and $6.9 billion in the first six months of 2026, increases of 4.9% and 5.4%, respectively, compared to the same periods in 2025. The increases were primarily attributable to the transition of Acme Brick from our building products group to Marmon beginning January 1, 2026. Otherwise, revenues were up marginally in each period. In the first six months of 2026, revenue increases were produced by the Plumbing & Refrigeration (19.2%) and Electrical (11.9%) groups, primarily attributable to higher metals prices and increased volumes in the Plumbing & Refrigeration group. These increases were substantially offset by lower revenues from the Retail Solutions (18.3%), Rail & Leasing (7.9%), Industrial Products (4.6%) and Water Technologies (3.3%) groups, primarily due to combinations of lower sales volumes and business divestitures. Marmon’s pre-tax earnings increased 10.3% in the second quarter and 6.1% in the first six months of 2026 in comparison with 2025, primarily due to gains on business divestitures and real estate disposals and the addition of Acme Brick. Otherwise, operating results among the business groups were mixed. Earnings in the second quarter of 2026 increased in the Rail & Leasing group due to gains on railcar sales, efficiencies in repair operations, and higher lease rates. Plumbing & Refrigeration group earnings in each period of 2026 increased due to higher copper spreads. These increases were partially offset by the lower earnings in the Transportation Products, Water Technologies and Foodservice Technologies groups, attributable to lower sales volumes. 43 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing IMC’s revenues were approximately $1.3 billion in the second quarter and $2.5 billion in the first six months of 2026, increases of 26.5% and 23.6%, respectively, compared to 2025. IMC has experienced significant raw materials price increases, which began in 2025 and continued through the first six months of 2026. Customer demand and product sales also increased over the first six months of 2026, primarily attributable to customers accelerating purchases. IMC’s pre-tax earnings in the second quarter and first six months of 2026 increased 71.0% and 56.6%, respectively, relative to 2025, reflecting increases in sales and gross margin rates, including favorable fixed manufacturing cost absorption and product sales mix, partially offset by higher raw materials costs and selling expenses. IMC’s earnings over the second half of 2026 are expected to be negatively impacted by the rise in raw materials costs. IMC operates globally, and a large portion of its products are manufactured in Israel. IMC’s operations in Israel have not been significantly impacted by the conflicts in the region. OxyChem’s revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026. OxyChem generated pre-tax earnings of $149 million in the second quarter and $121 million in the first six months of 2026, which included the impacts of incremental acquisition accounting depreciation and amortization, as well as other transition costs associated with the acquisition. In addition, revenues and earnings increases were also generated in the first six months of 2026 by each of the other industrial products businesses. Building products The building products group includes manufactured (factory-built) and site-built home construction and related lending and financial services (Clayton Homes). Other building products businesses currently include flooring (Shaw), insulation, roofing and engineered products (Johns Manville), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products and systems (MiTek). Berkshire acquired Taylor Morrison Home Corporation, a homebuilder, on July 24, 2026, which will be included in our building products group beginning as of that date. See Note 2 to the accompanying Consolidated Financial Statements. Revenues of the building products group increased $61 million (0.9%) in the second quarter and declined $118 million (0.9%) in the first six months of 2026 compared to 2025. Pre-tax earnings increased $75 million (7.2%) in the second quarter and were relatively unchanged in the first six months of 2026 compared to 2025. Certain of our building products businesses experienced lower customer demand, attributable to relatively low home construction activity in the first six months of 2026. Clayton Homes’ revenues were $3.4 billion in the second quarter and $6.3 billion in the first six months of 2026, increases of 2.8% and 0.9%, respectively, compared to 2025. Home sales revenues increased 1.7% in the second quarter and declined 1.3% in the first six months of 2026, relative to the corresponding 2025 periods. New home unit sales increased 2.3% in the second quarter and declined 3.3% in the first six months of 2026 relative to 2025. In the first six months of 2026, average prices for factory-built homes increased 3.3%, attributable to changes in sales mix, while average prices for site-built homes declined 2.3% versus 2025. Financial services revenues increased 9.5% in the first six months of 2026 compared to 2025, primarily due to increased interest income from higher average loan balances and average interest rates. Loan balances, net of discounts and allowances for credit losses, were approximately $30.4 billion as of June 30, 2026, an increase of 7.8% since June 30, 2025. Loan portfolios are largely funded by borrowings from Berkshire finance affiliates. Clayton Homes’ pre-tax earnings were $468 million in the second quarter and $861 million in the first six months of 2026, declines of 3.5% and 5.9%, respectively, versus 2025. The declines reflected lower earnings from home building, partially offset by increased earnings from financial services. The decline in home building earnings was due to lower year-to-date sales volume and overall gross margin rates and slightly higher selling general and administrative expenses. The increase in financial services earnings was primarily due to higher interest income and lower insurance claims expense, partially offset by increased interest expense on increased borrowings from affiliates. The corresponding interest income from these borrowings is included in the “Other” earnings section on page 47. Our other building products businesses generated revenues of approximately $3.6 billion in the second quarter and $6.7 billion in the first six months of 2026, declines of $30 million (0.8%) and $173 million (2.5%) respectively, versus 2025, primarily attributable to the transition of Acme Brick to Marmon beginning January 1, 2026. Revenues of the remaining businesses increased 3.4% in the second quarter and 1.6% in the first six months of 2026 compared to 2025. Revenues in 2026 generally reflected higher selling prices and lower volumes across several product categories. Other building products pre-tax earnings increased $92 million (16.6%) in the second quarter and $48 million (4.7%) in the first six months of 2026 compared to 2025. The earnings increases reflected the impact of refunds received in the second quarter of 2026 on trade tariffs paid primarily in 2025, as well as lower restructuring and legal settlement costs, partially offset by the impact of the Acme Brick transition. Before such items, pre-tax earnings declined 8.8% in the second quarter and 8.9% in the first six months of 2026 relative to 2025. 44 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing Consumer products The consumer products group includes leisure vehicles (Forest River), several apparel and footwear operations (including Fruit of the Loom, Garan, H.H. Brown Shoe Group and Brooks Sports) and a manufacturer of high-performance alkaline batteries (Duracell). This group also includes a global toy company (Jazwares), jewelry products (Richline) and custom picture framing products (Larson-Juhl). Consumer products group revenues were $3.4 billion in the second quarter and $6.9 billion in the first six months of 2026, declines of 2.0% and 1.8%, respectively, compared to 2025. The revenue declines were driven by reductions at Fruit of the Loom and Forest River, primarily attributable to lower sales volumes, unfavorable changes in sales mix and the impacts of exiting unprofitable lines of business at Fruit of the Loom, partially offset by higher average selling prices. These declines were partially offset by revenue increases at Brooks Sports, Duracell, Jazwares and Richline, attributable to combinations of higher volumes, changes in sales mix and/or favorable foreign currency translation effects. Pre-tax earnings of our consumer products group increased 12.2% in the second quarter and 19.1% in the first six months of 2026 versus 2025. The earnings increase in the first six months of 2026 was primarily attributable to earnings increases from Brooks Sports, Duracell and Jazwares, partially offset by lower earnings from Forest River. The increases at Brooks Sports and Jazwares were primarily attributable to the increases in sales and gross margin rates, as well as the impact of trade tariff refunds received in the second quarter of 2026. The increase at Duracell was largely due to increased advanced manufacturing production tax credits, which are included in pre-tax earnings, partially offset by increased selling, general and administrative expenses. The earnings decline from Forest River was primarily due to the reduction of gross margins from lower sales and unfavorable changes in sales mix, partially offset by lower selling, general and administrative expenses. Service and retailing A summary of revenues and pre-tax earnings of our service and retailing businesses follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Revenues: Service $ 6,874 $ 5,677 $ 13,308 $ 11,170 McLane 12,118 12,601 24,054 24,776 Retailing 5,010 5,011 9,565 9,655 Pilot 14,932 10,109 26,177 20,539 $ 38,934 $ 33,398 $ 73,104 $ 66,140 Pre-tax earnings: Service $ 879 $ 729 $ 1,664 $ 1,377 McLane 173 176 317 357 Retailing 387 376 683 669 Pilot 290 119 240 287 $ 1,729 $ 1,400 $ 2,904 $ 2,690 Pre-tax earnings as a percentage of revenues: Service 12.8 % 12.8 % 12.5 % 12.3 % McLane 1.4 1.4 1.3 1.4 Retailing 7.7 7.5 7.1 6.9 Pilot 1.9 1.2 0.9 1.4 Service Our service group includes NetJets and FlightSafety (aviation services), which offer shared ownership programs for general aviation aircraft and high technology training products and services to operators of aircraft, and TTI, a distributor of electronics components. Our other service businesses franchise and service a network of quick service restaurants (Dairy Queen), lease transportation equipment (XTRA) and furniture (CORT), provide third party logistics services that primarily serve the petroleum and chemical industries (Charter Brokerage), distribute electronic news, multimedia and regulatory filings (Business Wire), provide various facilities engineering and construction management services (IPS-Integrated Project Services, LLC (IPS)) and operate a television station in Miami, Florida (WPLG). McLane, which we view as a service business, is addressed separately since it is deemed a separate segment for financial reporting purposes. 45 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing Service group revenues increased $1.2 billion (21.1%) in the second quarter and $2.1 billion (19.1%) in the first six months of 2026 relative to 2025, driven by TTI, aviation services and IPS. Revenues increased in the first six months at TTI (26.5%), aviation services (15.5%) and IPS (22.5%). The revenue increase at TTI reflected accelerating customer demand, favorable foreign currency translation effects and inventory cost-based price increases. The increase in demand, in part, was attributable to customers responding to potential further price increases and supply chain concerns, including extended inventory order lead times. The revenue increase from aviation services was primarily due to increases in the number of aircraft in shared ownership programs, in-flight hours flown, training hours and average prices. The revenue increase at IPS was primarily attributable to life sciences construction and other construction consulting services. Service group pre-tax earnings increased $150 million (20.6%) in the second quarter and $287 million (20.8%) in the first six months of 2026 compared to 2025, primarily attributable to TTI and aviation services. Pre-tax earnings as a percentage of revenues rose 0.2 percentage points in the first six months of 2026 compared to 2025. The earnings increases from TTI reflected increases in revenues, favorable foreign currency translation effects and improved expense leverage. Inventory cost and supply chain uncertainties could negatively impact TTI’s gross margins in the future. The earnings increases from aviation services were primarily attributable to increased revenues, partially offset by higher flight crew and instructor costs and higher maintenance, fuel, subcontract and other variable costs. McLane McLane Company, Inc. (“McLane”) operates a wholesale distribution business that provides grocery and non-food consumer products to retailers and convenience stores (“retail”) and to restaurants (“restaurant”). McLane also operates businesses that are wholesale distributors of distilled spirits, wine and beer (“beverage”). McLane’s retail and restaurant businesses generate very high sales volumes and low profit margins. McLane’s revenues declined 3.8% in the second quarter and 2.9% in the first six months of 2026 compared to 2025, primarily due to lower retail business sales (8.9% year-to-date), partially offset by increased restaurant sales (7.4% year-to-date) and gains from asset sales. The decline in retail business sales was attributable to lower volumes, primarily from net customer losses, and changes in business mix. The comparative increase in restaurant business was attributable to increased volumes and cost-based price increases. Pre-tax earnings declined $3 million (1.7%) in the second quarter and $40 million (11.2%) in the first six months of 2026 relative to 2025, reflecting declines in the overall gross margins, partially offset by higher other income and the gains from asset sales in the first quarter of 2026. Retailing Our retailing businesses include Berkshire Hathaway Automotive, Inc. (“BHA”), which consists of over 80 auto dealerships that sell new and pre-owned automobiles and offer repair services and related products. BHA also offers and insures vehicle service contracts and related insurance products. Our retailing businesses also include four home furnishings businesses (Nebraska Furniture Mart, R.C. Willey, Jordan’s and Star Furniture), which sell furniture, appliances, flooring and electronics. Other retailing businesses include three jewelry businesses (Borsheims, Helzberg and Ben Bridge), See’s Candies (confectionery products), Pampered Chef (high-quality kitchen tools), Oriental Trading Company (party supplies, school supplies and toys and novelties) and Detlev Louis Motorrad, a retailer of motorcycle accessories based in Germany. Pilot Travel Centers (“Pilot”), which we view primarily as a retailing business, is addressed separately since it is deemed a segment for financial reporting purposes. Retailing group aggregate revenues were relatively unchanged in the second quarter and declined 0.9% in the first six months of 2026 compared to 2025. BHA’s revenues represented about 70% of retailing group revenues in the first six months of 2026. BHA’s revenue increased 0.5% in the second quarter and declined 1.3% in the first six months of 2026 compared to 2025. New and pre-owned vehicle retail sales declined 2.0% in the first six months of 2026 compared to 2025, reflecting lower unit sales, partially offset by favorable changes in sales mix. Additionally, BHA’s service contract revenues increased in the first six months of 2026 compared to 2025, while parts/service/repair operation revenues were flat. Aggregate revenues of the other retailing businesses were relatively unchanged in the second quarter and first six months of 2026 versus 2025. Several of our other retailing businesses continued to experience sluggish customer demand, attributable to a combination of increased competition and the impacts of higher economic uncertainty and changes in consumer confidence. Retailing group pre-tax earnings increased $11 million (2.9%) in the second quarter and $14 million (2.1%) in the first six months of 2026 compared to 2025. BHA’s pre-tax earnings increased 5.1% in the second quarter and 4.4% in the first six months of 2026 compared to 2025, primarily attributable to increased earnings from service contracts operations, partially offset by lower gross sales margins. Aggregate pre-tax earnings for the remainder of our retailing group declined 2.8% in the second quarter and 5.8% in the first six months of 2026 compared to 2025. 46 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Manufacturing, Service and Retailing Pilot Pilot operates travel centers, primarily under the names Pilot or Flying J, and fuel-only retail locations. Pilot also operates large wholesale fuel and fuel marketing platforms in the U.S. Pilot’s revenues increased $4.8 billion (47.7%) in the second quarter and $5.6 billion (27.5%) in the first six months of 2026 compared to 2025. The increases reflected higher fuel prices, partially offset by slightly lower fuel volumes. Pilot’s pre-tax earnings increased $171 million (143.7%) in the second quarter and declined $47 million (16.4%) in the first six months of 2026 compared to 2025. The increase in the second quarter was primarily due to higher gross margins, partially offset by increases in depreciation and amortization and store operating and general and administrative expenses. The earnings decline in the first six months reflected the impact of gains from asset dispositions in 2025, which did not repeat in 2026, and increases in the expenses previously noted, partially offset by increased gross margins. Gross margins in 2026 were negatively affected by net losses on derivative contracts included in earnings from increases in fuel and commodity prices. The effects of price increases on the underlying physical inventory and commodity values are deferred until sold. Volatility in fuel prices can produce volatility in Pilot’s periodic earnings. Investment Gains (Losses) A summary of investment gains (losses) follows (dollars in millions). Second Quarter First Six Months 2026 2025 2026 2025 Investment gains (losses) $ 16,077 $ 6,364 $ 14,472 $ (71 ) Income taxes and noncontrolling interests 3,393 1,394 3,028 (3 ) Net earnings (losses) $ 12,684 $ 4,970 $ 11,444 $ (68 ) Effective income tax rate 21.0 % 21.7 % 21.0 % 14.9 % Unrealized gains and losses arising from changes in market prices of our investments in equity securities are included in our reported earnings, which significantly increases the volatility of our periodic net earnings due to the magnitude of our equity securities portfolio and the inherent volatility of equity securities prices. Unrealized gains and losses on our investments in equity securities also include the effects of changes in foreign currency exchange rates on investments in equity securities of non-U.S. issuers that are held by our U.S.-based subsidiaries. Pre-tax investment gains and losses included net unrealized gains of $15.6 billion in the second quarter and $12.8 billion in the first six months of 2026 and $7.6 billion in the second quarter and $1.2 billion in the first six months of 2025 attributable to changes during the period in market prices on equity securities we held at the end of each period. Taxable investment gains and losses on equity securities sold, which are generally the difference between sales proceeds and the original cost basis of the securities sold, were gains of $2.3 billion in the second quarter and $9.5 billion in the first six months of 2026 compared to $5.3 billion in the second quarter and $8.4 billion in the first six months of 2025. We believe that investment gains and losses, whether realized from sales or unrealized from changes in market prices, are often meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance. We also continue to believe the investment gains and losses recorded in earnings in any given period have little analytical or predictive value. Other A summary of after-tax other earnings follows (in millions). Second Quarter First Six Months 2026 2025 2026 2025 Investment income $ 957 $ 866 $ 1,924 $ 1,735 Foreign currency exchange rate gains (losses) on Berkshire and BHFC non-U.S. Dollar senior notes 326 (877 ) 575 (1,590 ) Equity method earnings 211 184 * 366 300 * Acquisition accounting expenses (113 ) (124 ) (227 ) (248 ) Other earnings (losses) (107 ) (17 ) (104 ) (124 ) $ 1,274 $ 32 $ 2,534 $ 73 —————— * Excludes other-than-temporary impairment loss on our investment in Kraft Heinz. See Note 5 to the Consolidated Financial Statements. 47 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Other Investment income includes corporate interest income and dividend income not allocated to operating businesses. After-tax corporate investment income increased $91 million in the second quarter and $189 million in the first six months of 2026 compared to 2025, primarily due to increased investments in U.S. Treasury Bills, including investments derived from capital distributions from Berkshire subsidiaries, partially offset by lower interest rates. Foreign currency exchange rate gains and losses on Berkshire’s and BHFC’s senior notes represent the effects of changes in foreign currency exchange rates recognized in earnings from the periodic revaluation of non-U.S. Dollar denominated senior note liabilities into U.S. Dollars. The gains and losses recorded in any given period can be significant due to the size of the borrowings and the inherent volatility in foreign currency exchange rates. Equity method earnings include our proportionate share of earnings of Kraft Heinz, Occidental and Berkadia. After-tax equity method earnings increased $27 million in the second quarter and $66 million in the first six months of 2026 compared to 2025 due to increased earnings from Kraft Heinz, partially offset by lower earnings from Occidental and Berkadia. Historically, we recorded our share of Occidental earnings on a one-quarter lag and, during the second quarter of 2025, we began recording our share of Kraft Heinz’s earnings on a one-quarter lag. Acquisition accounting expenses include charges arising from the application of the acquisition method of accounting in connection with certain of Berkshire’s past business acquisitions. These charges are primarily from the amortization of intangible assets recorded in connection with those acquisitions. Other earnings and losses primarily include unallocated corporate and other general and administrative expenses, interest expense, income tax expense and interest income on certain intercompany loans. Financial Condition Our Consolidated Balance Sheet continues to reflect significant liquidity and a very strong capital base. Berkshire’s shareholders’ equity at June 30, 2026 was $747.9 billion, an increase of $30.5 billion since December 31, 2025. Net earnings attributable to Berkshire shareholders were $35.8 billion for the first six months of 2026 and included after-tax investment gains of approximately $11.4 billion. Investment gains and losses from changes in the market prices of our investments in equity securities usually produce significant volatility in our earnings. Berkshire’s common stock repurchase program permits Berkshire to repurchase its Class A and Class B shares at prices below Berkshire’s intrinsic value, as conservatively determined by Berkshire’s Chief Executive Officer after consultation with the Chairman of the Board. We are not committed to a minimum or subject to a maximum repurchase amount. We will not repurchase our stock if it reduces our consolidated cash, cash equivalents and U.S. Treasury Bills holdings to below $30 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire. Berkshire acquired $4.8 billion of treasury stock in the first six months of 2026, most of which was in the second quarter. At June 30, 2026, our insurance and other businesses held investments in cash, cash equivalents and U.S. Treasury Bills (net of payables for unsettled purchases) of $359.2 billion. Investments in equity and fixed maturity securities, excluding our equity method investments, were $340.8 billion. On January 2, 2026, Berkshire acquired OxyChem for approximately $9.4 billion. Additionally, Berkshire acquired Taylor Morrison Home Corporation on July 24, 2026, for aggregate cash consideration of approximately $6.8 billion. Excluding borrowings of BHE and BNSF, our borrowings at June 30, 2026 were $43.3 billion, predominantly issued by Berkshire and BHFC. Berkshire’s outstanding debt at June 30, 2026 was $20.4 billion, a decrease of $2.3 billion since December 31, 2025, primarily attributable to repayments of maturing debt of $3.3 billion and reductions in carrying values due to changes in foreign currency exchange rates, partially offset by debt issued in April. Berkshire issued ¥272.3 billion ($1.7 billion) of senior notes in April 2026 with maturity dates ranging from 2029 to 2056 and a weighted average interest rate of 2.4%. Senior note borrowings of BHFC, a wholly-owned financing subsidiary, were approximately $18.2 billion at June 30, 2026, a decline of $72 million from December 31, 2025, primarily due to the impact of foreign currency exchange rate changes. BHFC’s borrowings are used to fund a portion of home loans originated and acquired by Clayton Homes and equipment held for lease by Marmon’s railcar leasing business. Berkshire guarantees BHFC’s senior notes for the full and timely payment of principal and interest. BNSF’s outstanding debt was $23.5 billion as of June 30, 2026, a decrease of $532 million from December 31, 2025. BHE’s aggregate borrowings were $61.8 billion at June 30, 2026, an increase of $2.5 billion from December 31, 2025. In the first six months of 2026, BHE subsidiaries issued $4.6 billion of term debt, with a weighted average interest rate of 5.8% and maturity dates ranging from 2029 to 2056. BHE subsidiaries repaid term debt of $1.3 billion and reduced short-term borrowings by $623 million. Berkshire does not guarantee the repayment of debt issued by BNSF, BHE or any of their subsidiaries or affiliates. 48 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Financial Condition In the first six months of 2026, our diverse group of businesses generated net cash flows from operating activities of $21.7 billion. Our consolidated capital expenditures for property, plant and equipment and equipment held for lease were $10.6 billion in the first six months of 2026, of which $6.7 billion was attributable to BNSF and BHE. BNSF and BHE maintain very large investments in capital assets (property, plant and equipment) and regularly make significant capital expenditures in the normal course of business. BHE and BNSF forecast capital expenditures of approximately $8.6 billion over the remainder of 2026. Contractual Obligations We are party to other contracts associated with ongoing business activities, which will result in cash payments to counterparties in future periods. Certain obligations are included in our Consolidated Balance Sheets, such as borrowings, operating lease liabilities and shared aircraft repurchase liabilities. We are also obligated to pay claims arising from property and casualty contracts issued by our insurance subsidiaries, including amounts from retroactive reinsurance. However, the timing and amount of the payments under insurance and reinsurance contracts are contingent upon the outcome of future events. Actual payments will likely vary, perhaps materially, from any forecasted payments, as well as from the liabilities recorded in our Consolidated Balance Sheets. We anticipate that these payments will be funded by cash flows from operating activities. Other obligations pertaining to the acquisition of goods or services in the future, such as certain purchase obligations, are not currently reflected in the Consolidated Financial Statements and will be recognized in future periods as the goods are delivered or services are provided. Except as otherwise disclosed in this Quarterly Report, our contractual obligations as of June 30, 2026 were, in the aggregate, not materially different from those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025. Critical Accounting Estimates Certain accounting policies require us to make estimates and judgments in determining the amounts reflected in our Consolidated Financial Statements. Such estimates and judgments necessarily involve varying and possibly significant degrees of uncertainty. Accordingly, certain amounts currently recorded in our Consolidated Financial Statements will likely be adjusted in the future based on new available information and changes in other facts and circumstances. Reference is made to “Critical Accounting Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025. Our Consolidated Balance Sheet as of June 30, 2026 included estimated liabilities for unpaid losses and loss adjustment expenses from property and casualty insurance and reinsurance contracts of $152.9 billion. Due to the inherent uncertainties in the processes of establishing these liabilities, the actual ultimate claim amounts will likely differ from the currently recorded amounts. A small percentage change in estimates of this magnitude can result in a material effect on periodic earnings. The effects from changes in these estimates are recorded as a component of insurance losses and loss adjustment expenses in the period of the change. Our Consolidated Balance Sheet as of June 30, 2026 included goodwill of acquired businesses of $83.1 billion and indefinite-lived intangible assets of $19.0 billion. In connection with the annual goodwill impairment review conducted in the fourth quarter of 2025, our estimated fair values of four reporting units did not exceed our carrying values by at least 20%, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Our estimated aggregate fair value of these units at that time was approximately $27.7 billion, which exceeded our aggregate carrying value of approximately $26.2 billion. Goodwill of these reporting units totaled approximately $9.2 billion. Goodwill and indefinite-lived intangible asset impairment reviews include determining the estimated fair values of the reporting units and of the indefinite-lived intangible assets. Several methods and inputs may be used to estimate fair values, and significant judgments are required in making such estimates. Due to the inherent subjectivity and uncertainty in forecasting future cash flows and earnings over long periods of time, actual results may differ materially from the forecasts. As of June 30, 2026, we concluded that more likely than not, the goodwill and other indefinite-lived intangible assets recorded in our Consolidated Balance Sheet were not impaired. However, the fair value estimates of the reporting units and assets are subject to change based on market and economic conditions, as well as events affecting our businesses or the industries in which they operate, which we cannot reliably predict. It is reasonably possible that adverse changes in such conditions or events could result in the recognition of impairment losses in our Consolidated Financial Statements in the future. Information concerning accounting pronouncements to be adopted in the future is included in Note 1 to the accompanying Consolidated Financial Statements. 49 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-Looking Statements Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Berkshire officials during presentations about Berkshire or its subsidiaries are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, or which include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible future Berkshire actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about Berkshire and its subsidiaries, economic and market factors and the industries in which we do business, among other things. These statements are not guarantees of future performance and we have no specific intention to update these statements. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to, changes in market prices of our investments in equity securities; the occurrence of one or more catastrophic events, such as an earthquake, hurricane, geopolitical conflict, act of terrorism or cyber-attack that causes losses insured by our insurance subsidiaries and/or losses to our business operations; the frequency and severity of epidemics, pandemics or other outbreaks, and other events that negatively affect our operating results and restrict our access to borrowed funds through the capital markets at reasonable rates; changes in laws or regulations affecting our insurance, railroad, utilities and energy and finance subsidiaries; changes in federal income tax laws; and changes in general economic and market factors that affect the prices of securities or the industries in which we do business. 50