BNSF’s third-quarter earnings rose 19.3% to $1.73 billion as higher freight volumes and improved operating efficiencies helped offset increased fuel costs.
The railroad’s net earnings increased from $1.45 billion in the third quarter of 2025, parent company Berkshire Hathaway (NYSE: BRK-B) reported. Railroad operating revenue climbed 14.7% to $6.87 billion, while car and unit volumes rose 3.9%, for the period ended Sept. 30.
The results extended BNSF’s earnings growth for the year. Through September, net earnings reached $4.66 billion, up 13% from $4.13 billion in the first nine months of 2025. Berkshire attributed the improvement to higher freight volumes and operating efficiencies, partly offset by rising fuel expenses.
BNSF’s railroad operating earnings increased to $2.48 billion in the third quarter from $2.15 billion a year earlier. Railroad operating expenses rose to $4.39 billion from $3.84 billion, but the increase remained below the dollar gain in operating revenue.
After accounting for interest expense and other net revenues and expenses, pretax earnings reached $2.27 billion, compared with $1.91 billion in the year-earlier quarter. Interest expense declined to $273 million from $279 million.
The railroad also benefited from a lower effective income tax rate, which fell to 23.7% from 24.2%. Income tax expense nevertheless increased to $537 million from $463 million as pretax profit grew.
Third-quarter coal shipments declined 8.4%, but coal operating revenue increased slightly to approximately $800 million. Higher average revenue per car or unit, reflecting increased fuel surcharge revenue and yield, more than offset the volume decline, Berkshire said.
The same pattern held over the first nine months, as coal volumes fell 6.3%, while coal operating revenue edged higher to approximately $2.3 billion.
Across the railroad, operating revenue growth substantially exceeded shipment growth. For the first nine months, railroad operating revenue increased 11.5% to $19.39 billion, compared with a 4.2% increase in car and unit volumes. Railroad operating earnings reached $6.80 billion, up from $5.98 billion a year earlier.
BNSF’s stronger quarter came as Berkshire’s total operating earnings declined to $12.71 billion from $13.49 billion a year earlier. The railroad contributed $1.73 billion to that total, compared with $1.45 billion in the third quarter of 2025, providing a larger earnings contribution even as the parent company’s overall operating result weakened.
Why it matters: BNSF’s results showed resilience as earnings increased despite higher fuel costs, while providing a stronger contribution to Berkshire Hathaway during a quarter when the parent company’s overall operating earnings declined.
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