Berkshire Hathaway Inc. (BRK-B) Revenue-to-Profit Sankey Flow & SEC XBRL Financials
Berkshire Hathaway Inc. (BRK-B) earns a Roarable Rating of B (Buy) with 75/100 RQD Confidence. High-quality cash engine (steady margins, 11% return on capital) with steady institutional support. Even if the broader market gets choppy, the company’s underlying cash engine and big-money support put the odds in buyers’ favor.
How BRK-B Turns Every Dollar of Sales Into Real Bottom-Line Profit
Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory
| Fiscal Year | Revenue | Gross Margin | Op Margin | Net Profit | Free Cash Flow | ROIC % |
|---|---|---|---|---|---|---|
| FY 2025 | $371.44B | 52% | 22.2% | $66.97B | $25.04B | 9.3% |
| FY 2024 | $371.43B | 52% | 29.7% | $89.00B | $11.62B | 13.7% |
| FY 2023 | $364.48B | 52% | 33% | $96.22B | $29.79B | 17.1% |
| FY 2022 | $302.02B | 52% | -10.1% | -$22.76B | $21.89B | -4.8% |
| FY 2021 | $276.19B | 52% | 40.5% | $89.94B | $26.15B | 17.8% |
| FY 2020 | $245.58B | 52% | 22.7% | $42.52B | $26.76B | 9.6% |
Berkshire Hathaway's FY2025 Form 10-K (accession 0001193125-26-083899) signals mounting operational and liability headwinds across its core capital-intensive and regulated subsidiaries. The primary escalations stem from wildfire liabilities and regulatory decoupling at BHE, freight volume stagnation and labor cost stickiness at BNSF, and increased reinvestment yield drag as cash reserves sit exposed to Federal Reserve easing cycles. Disclosure changes highlight expanding contingent liabilities and insurance claims volatility that directly threaten non-insurance operating earnings.
Management's legal team is moving away from characterizing wildfire damages as manageable, isolated regulatory recoveries. The revised language prepares markets for severe, unrecoverable tort liabilities and rating agency pressure on Berkshire Hathaway Energy (BHE) debt, directly impacting earnings coverage and holding company cash upstreaming.
BNSF cannot easily preserve operating margins against inflationary wage structures and elevated network capex. Pricing power against intermodal competitors has deteriorated, turning rail from a cash-flow expander into a margin-dilutive operating segment.
With hundreds of billions allocated to short-dated paper, net interest and dividend income face significant sequential contraction as the Fed cuts policy rates. Berkshire cannot easily redeploy this dry powder into attractive large-scale acquisitions or repurchases at current equity valuations, dampening consolidated earnings per share growth.
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BRK-B Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +3.9% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on BRK-B today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for BRK-B. Explore sector supply chains on /butterfly.
BRK-B Investor FAQ & Complete 8-Part Research Index
100% OPEN ACCESS • SEC EDGAR × CBOE × FREDHow profitable is Berkshire Hathaway Inc. (BRK-B)?
In FY 2025 (10-K), BRK-B converted $371.4B of revenue into a 52% gross margin, 22.2% operating margin, and $25.0B in free cash flow (6.7% FCF margin).