BNSF profits rise as volume and rates increase

OMAHA, Neb. — BNSF Railway posted higher profits in the first quarter thanks to a combination of volume growth and pricing gains, corporate parent Berkshire Hathaway announced on Saturday.

“The railroad is earning a little more than last year but it’s not earning what it should be earning at the present time,” Berkshire CEO Warren Buffett said at the company’s annual meeting on Saturday. “But that’s solvable and is getting solved. It’s still an incredible asset for Berkshire.”

BNSF’s pre-tax profit increased 5.5% in the quarter, to $1.6 billion, as revenue increased 0.6%, to $5.67 billion. Net income rose 6.2%, to $1.2 billion.

The railway’s operating ratio was 67.9%, a 1.6-point improvement compared to last year’s first quarter, as expenses fell 1.7%.

Revenue in BNSF’s consumer products segment – which includes intermodal and automotive business — increased 3.2% as volume surged 8.6%. “The volume increase was primarily due to higher intermodal shipments resulting from increased west coast imports and an increase in automotive volume from higher vehicle production,” Berkshire said.

Agricultural and energy products revenue increased 0.8%, while volume fell 0.3% as domestic grain shipments declined.

Industrial products revenue declined 3.3% on a 5.9% decrease in volume. “The volume decline was primarily due to weather related impacts and lower demand for construction and building products,” Berkshire said.

Coal revenue sank 4.1% as 1.7% volume growth was not enough to offset a decline in rates. “The volume increase was attributable to increased demand from higher natural gas prices,” Berkshire said.

At the end of the Berkshire Hathaway annual meeting, the 94-year-old Buffett announced that he would step down at the end of the year. Greg Abel, who currently oversees Berkshire’s non-insurance operations — including BNSF — will become the company’s chief executive on Jan. 1, 2026. Buffett will remain Berkshire’s chairman.