Railroad (BNSF)Wide moat

Berkshire Hathaway (BRK.B) — moat facet

Eleven years without revenue growth, and a margin that rose from 26.5% to 30.5%: a railroad nobody can duplicate.

BNSF is the least changing business Berkshire owns. It brought in $23,533 million in 2025, against $23,239 million in 2014, and earned $7,175 million before tax, a margin of 30.5%.123 After tax it contributed $5,476 million to Berkshire's earnings.4

BNSF revenue ($B)$23.2B2014$19.8B2016$23.9B2018$20.9B2020$25.9B2022$23.6B2024$23.5B2025Berkshire Forms 10-K FY2016-FY2025
Eleven years, the same revenue: the railroad moves with the freight cycle, not upward.

What is inside the line is freight, moved in cars and containers. BNSF carried 9,622 thousand cars and units in 2025: 5,601 thousand of consumer products; 1,421 thousand of agricultural and energy products; 1,382 thousand of industrial products; and 1,218 thousand of coal.5

The history in the filings is a decade without growth. Revenue fell from $23.2 billion in 2014 to $19.8 billion in 2016, recovered to $23.9 billion in 2018, fell to $20.9 billion in 2020, peaked at $25.9 billion in 2022 and has drifted down since.6789 Coal is the part that is shrinking: 1,468 thousand carloads in 2023, 1,218 thousand in 2025.10

It is paid per car, at a rate that includes a fuel surcharge. In 2025 average revenue per car fell 0.5%, mainly on lower fuel surcharges, while volume rose 0.3%.11 Its largest costs in 2025 were compensation and benefits of $5,531 million, fuel of $3,011 million and depreciation of $2,722 million; interest took another $1,098 million.12

Profitability has improved more than revenue. Pre-tax earnings were $6,169 million in 2014, $6,863 million in 2018 and $7,708 million in 2022, then $6,614 million, $6,648 million and $7,175 million.13141516 The margin rose from 26.5% in 2014 to 30.5% in 2025.17 The railroad reinvests heavily: $3.8 billion of capital spending against $2.7 billion of depreciation in 2025.18

The latest quarter was strong. Revenue was $6,601 million in the second quarter of 2026, up 14%, and after-tax earnings rose 6.3%; the 10-Q credits higher shipping volumes and better efficiency, partly offset by higher fuel costs.19 The fuel bill rose from $698 million to $1,173 million in the quarter. Across the first half, revenue was $12,595 million against $11,489 million.20

The outlook depends on freight volumes and on a combination BNSF cannot control. The proposed combination of Union Pacific and Norfolk Southern, which BNSF opposes, is covered on its own page.

This is a wide moat of a particular kind: nobody will build a second railroad across the western United States, but the business does not grow. The number that would change the view is the pre-tax margin, 30.5% in 2025. Held above 30% while volume rises, it would show the railroad earning more from the same track; a fall back toward 27% would say the 2025 improvement was fuel prices, not efficiency.

Moat trajectory: Holding steady

Revenue flat for a decade, margin up to 30.5% in 2025 and revenue up 14% in the June 2026 quarter; coal keeps shrinking.

The number that tests this moat
Moat Explorer calc
BNSF pre-tax margin
30.5% in 2025 ($7,175M on $23,533M), from 28.2% in 2024

Held above 30% as volumes rise would show efficiency gains are real; back toward 27% would say 2025 was fuel prices.

How it's calculated: 7,175 / 23,533; 6,648 / 23,572.
Source: Berkshire Form 10-K FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in $23,533 million in 2025, against $23,239 million in 2014, and earned $7,175 million before tax, a margin of 30.5%.
    Berkshire Hathaway Form 10-K, FY2016 - float approximately $91 billion at 31 December 2016, $88 billion in 2015 and $84 billion in 2014; cash, cash equivalents and U.S. Treasury Bills of the insurance and other businesses $70.9 billion — FY2014-FY2016 · publ. February 2017 · source ↗
  2. ReportedIt brought in $23,533 million in 2025, against $23,239 million in 2014, and earned $7,175 million before tax, a margin of 30.5%.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  3. Moat Explorer calcIt brought in $23,533 million in 2025, against $23,239 million in 2014, and earned $7,175 million before tax, a margin of 30.5%.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  4. ReportedAfter tax it contributed $5,476 million to Berkshire's earnings.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  5. ReportedBNSF carried 9,622 thousand cars and units in 2025: 5,601 thousand of consumer products; 1,421 thousand of agricultural and energy products; 1,382 thousand of industrial products; and 1,218 thousand of coal.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  6. ReportedRevenue fell from $23.2 billion in 2014 to $19.8 billion in 2016, recovered to $23.9 billion in 2018, fell to $20.9 billion in 2020, peaked at $25.9 billion in 2022 and has drifted down since.
    Berkshire Hathaway Form 10-K, FY2016 - float approximately $91 billion at 31 December 2016, $88 billion in 2015 and $84 billion in 2014; cash, cash equivalents and U.S. Treasury Bills of the insurance and other businesses $70.9 billion — FY2014-FY2016 · publ. February 2017 · source ↗
  7. ReportedRevenue fell from $23.2 billion in 2014 to $19.8 billion in 2016, recovered to $23.9 billion in 2018, fell to $20.9 billion in 2020, peaked at $25.9 billion in 2022 and has drifted down since.
    Berkshire Hathaway Form 10-K, FY2020 - after-tax earnings by line 2018-2020 (railroad $5,481M/$5,161M, manufacturing, service and retailing $9,372M/$8,300M, insurance investment income $5,530M/$5,039M in 2019/2020); float $138 billion; Reinsurance Group underwriting -$1,109M/-$1,472M/-$2,700M; impairments $3.0 billion (2018) and $11.0 billion (2020); $24.7 billion of share repurchases in 2020; insurance and other cash $135.0 billion; about 360,000 employees; acquisitions of businesses net of cash $3,279M/$1,683M/$2,532M — FY2018-FY2020 · publ. February 2021 · source ↗
  8. ReportedRevenue fell from $23.2 billion in 2014 to $19.8 billion in 2016, recovered to $23.9 billion in 2018, fell to $20.9 billion in 2020, peaked at $25.9 billion in 2022 and has drifted down since.
    Berkshire Hathaway Form 10-K, FY2022 - float $164 billion (2022) and $147 billion (2021); after-tax earnings by line 2020-2022 (insurance investment income $6,484M in 2022); pre-tax underwriting -$98M in 2022; Reinsurance Group -$930M (2021) and +$1,389M (2022); $7.9 billion of share repurchases in 2022; insurance and other cash $125.0 billion; about 383,000 employees; Alleghany acquired for about $11.5 billion; acquisitions of businesses net of cash $456M (2021) and $10,594M (2022) — FY2020-FY2022 · publ. February 2023 · source ↗
  9. ReportedRevenue fell from $23.2 billion in 2014 to $19.8 billion in 2016, recovered to $23.9 billion in 2018, fell to $20.9 billion in 2020, peaked at $25.9 billion in 2022 and has drifted down since.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  10. ReportedCoal is the part that is shrinking: 1,468 thousand carloads in 2023, 1,218 thousand in 2025.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  11. ReportedIn 2025 average revenue per car fell 0.5%, mainly on lower fuel surcharges, while volume rose 0.3%.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  12. ReportedIts largest costs in 2025 were compensation and benefits of $5,531 million, fuel of $3,011 million and depreciation of $2,722 million; interest took another $1,098 million.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  13. ReportedPre-tax earnings were $6,169 million in 2014, $6,863 million in 2018 and $7,708 million in 2022, then $6,614 million, $6,648 million and $7,175 million.
    Berkshire Hathaway Form 10-K, FY2016 - float approximately $91 billion at 31 December 2016, $88 billion in 2015 and $84 billion in 2014; cash, cash equivalents and U.S. Treasury Bills of the insurance and other businesses $70.9 billion — FY2014-FY2016 · publ. February 2017 · source ↗
  14. ReportedPre-tax earnings were $6,169 million in 2014, $6,863 million in 2018 and $7,708 million in 2022, then $6,614 million, $6,648 million and $7,175 million.
    Berkshire Hathaway Form 10-K, FY2018 - float $123 billion (2018) and $114 billion (2017); pre-tax underwriting by unit 2016-2018 (Reinsurance Group -$3,648M in 2017, total -$3,239M); insurance and other cash about $109 billion — FY2016-FY2018 · publ. February 2019 · source ↗
  15. ReportedPre-tax earnings were $6,169 million in 2014, $6,863 million in 2018 and $7,708 million in 2022, then $6,614 million, $6,648 million and $7,175 million.
    Berkshire Hathaway Form 10-K, FY2022 - float $164 billion (2022) and $147 billion (2021); after-tax earnings by line 2020-2022 (insurance investment income $6,484M in 2022); pre-tax underwriting -$98M in 2022; Reinsurance Group -$930M (2021) and +$1,389M (2022); $7.9 billion of share repurchases in 2022; insurance and other cash $125.0 billion; about 383,000 employees; Alleghany acquired for about $11.5 billion; acquisitions of businesses net of cash $456M (2021) and $10,594M (2022) — FY2020-FY2022 · publ. February 2023 · source ↗
  16. ReportedPre-tax earnings were $6,169 million in 2014, $6,863 million in 2018 and $7,708 million in 2022, then $6,614 million, $6,648 million and $7,175 million.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  17. Moat Explorer calcThe margin rose from 26.5% in 2014 to 30.5% in 2025.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  18. ReportedThe railroad reinvests heavily: $3.8 billion of capital spending against $2.7 billion of depreciation in 2025.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  19. ReportedRevenue was $6,601 million in the second quarter of 2026, up 14%, and after-tax earnings rose 6.3%; the 10-Q credits higher shipping volumes and better efficiency, partly offset by higher fuel costs.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
  20. ReportedAcross the first half, revenue was $12,595 million against $11,489 million.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
Sources
Generated September 23, 2026