Utilities & EnergyNarrow moat

Berkshire Hathaway (BRK.B) — moat facet

A regulated utility that earns more after tax than before it, because wind tax credits turn its tax bill into a benefit.

Berkshire Hathaway Energy earns more after tax than before it, and that fact explains most of its economics. It brought in $26,297 million in 2025 and earned $2,342 million before tax, but recorded an income-tax benefit of $1,785 million, so its after-tax contribution to Berkshire was $3,979 million.1 The 10-K says the benefit includes significant production tax credits, primarily from wind generation, and the 2025 tax law revised those credits.2

BHE earnings, pre-tax against after-tax ($M)$940MPre-tax 2023$2,331MAfter-tax 2023$2,292MPre-tax 2024$3,730MAfter-tax 2024$2,342MPre-tax 2025$3,979MAfter-tax 2025After-tax attributable to Berkshire; tax benefit mainly wind production credits. 10-K FY2025
In each year shown, after-tax earnings exceed pre-tax earnings: the tax credits carry much of the profit.

What is inside the line is regulated utilities, gas pipelines and a real-estate brokerage. BHE's 2025 costs show the mix: $6,346 million of energy cost of sales, $5,445 million of utility operations and maintenance, $4,180 million of depreciation, $4,302 million of real-estate operating costs and $2,642 million of interest.3

The history is steady growth by investment. Revenue was $17.6 billion in 2014, $20.0 billion in 2018, $26.4 billion in 2022 and $26.3 billion in 2025.4567 After-tax earnings went from $2.6 billion in 2018 to $3.9 billion in 2022, fell to $2.3 billion in 2023, and recovered to $4.0 billion in 2025.891011

It is paid at regulated rates. A utility earns an allowed return on the capital it invests, which is why BHE spends so heavily: $10,589 million of capital expenditure in 2025 against $4,180 million of depreciation, about 2.5 times.1213 Each dollar invested and approved enters the rate base and earns for decades.

Profitability is thin before tax and uneven. Pre-tax earnings were $2,711 million in 2014 and $2,973 million in 2016, but $940 million in 2023, $2,292 million in 2024 and $2,342 million in 2025.1415 The 2023 trough reflects wildfire loss accruals of $1.7 billion, net of expected insurance recoveries, against $346 million in 2024.16 The pre-tax margin was about 9% in 2025.17

Growth has picked up in 2026. Revenue was $6,735 million in the second quarter, up 4.9%, and $13,396 million across the first half against $12,774 million; after-tax earnings were $891 million in the quarter against $702 million.18 BHE's identifiable assets were $136.5 billion at the end of 2025, the largest of any segment except insurance.19

The outlook is data-centre demand against wildfire liability. The data-centre demand and the capital plan to meet it are covered under BHE & the AI-Power Dividend. The liability sits in the western utility, where the fires occurred.

This is a narrow moat: a regulated monopoly is durable, but its return is set by commissions and its earnings rest partly on federal tax credits. The figure that would change the view is the gap between after-tax and pre-tax earnings, $1.6 billion in 2025. A shrinking gap as the revised credits phase down would mean BHE's contribution depends more on what its regulators allow.

Moat trajectory: Holding steady

Earnings recovered from the 2023 wildfire accruals and grew again in 2026; the tax credits that lift after-tax earnings were revised by the 2025 tax law.

The number that tests this moat
Moat Explorer calc
BHE after-tax earnings less pre-tax earnings
$1.6B in 2025 ($3,979M against $2,342M)

The gap is mostly wind production tax credits. It shrinking as the revised credits phase down would leave BHE's contribution more dependent on regulators.

How it's calculated: 3,979 - 2,342.
Source: Berkshire Form 10-K FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in $26,297 million in 2025 and earned $2,342 million before tax, but recorded an income-tax benefit of $1,785 million, so its after-tax contribution to Berkshire was $3,979 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 ↗
  2. ReportedThe 10-K says the benefit includes significant production tax credits, primarily from wind generation, and the 2025 tax law revised those credits.
    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. ReportedBHE's 2025 costs show the mix: $6,346 million of energy cost of sales, $5,445 million of utility operations and maintenance, $4,180 million of depreciation, $4,302 million of real-estate operating costs and $2,642 million of interest.
    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 ↗
  4. ReportedRevenue was $17.6 billion in 2014, $20.0 billion in 2018, $26.4 billion in 2022 and $26.3 billion in 2025.
    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 ↗
  5. ReportedRevenue was $17.6 billion in 2014, $20.0 billion in 2018, $26.4 billion in 2022 and $26.3 billion in 2025.
    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 ↗
  6. ReportedRevenue was $17.6 billion in 2014, $20.0 billion in 2018, $26.4 billion in 2022 and $26.3 billion in 2025.
    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 ↗
  7. ReportedRevenue was $17.6 billion in 2014, $20.0 billion in 2018, $26.4 billion in 2022 and $26.3 billion 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 ↗
  8. ReportedAfter-tax earnings went from $2.6 billion in 2018 to $3.9 billion in 2022, fell to $2.3 billion in 2023, and recovered to $4.0 billion in 2025.
    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 ↗
  9. ReportedAfter-tax earnings went from $2.6 billion in 2018 to $3.9 billion in 2022, fell to $2.3 billion in 2023, and recovered to $4.0 billion in 2025.
    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 ↗
  10. ReportedAfter-tax earnings went from $2.6 billion in 2018 to $3.9 billion in 2022, fell to $2.3 billion in 2023, and recovered to $4.0 billion in 2025.
    Berkshire Hathaway Form 10-K, FY2024 - float $171 billion (2024), $169 billion (2023) and $164 billion (2022); after-tax earnings by line 2022-2024 (insurance investment income $13,670M in 2024, net earnings $88,995M, investment gains $41,558M); $2.9 billion of share repurchases in 2024 and $9.2 billion in 2023; about 392,400 employees — FY2022-FY2024 · publ. February 2025 · source ↗
  11. ReportedAfter-tax earnings went from $2.6 billion in 2018 to $3.9 billion in 2022, fell to $2.3 billion in 2023, and recovered to $4.0 billion 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 ↗
  12. ReportedA utility earns an allowed return on the capital it invests, which is why BHE spends so heavily: $10,589 million of capital expenditure in 2025 against $4,180 million of depreciation, about 2.5 times.
    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. Moat Explorer calcA utility earns an allowed return on the capital it invests, which is why BHE spends so heavily: $10,589 million of capital expenditure in 2025 against $4,180 million of depreciation, about 2.5 times.
    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 ↗
  14. ReportedPre-tax earnings were $2,711 million in 2014 and $2,973 million in 2016, but $940 million in 2023, $2,292 million in 2024 and $2,342 million in 2025.
    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 ↗
  15. ReportedPre-tax earnings were $2,711 million in 2014 and $2,973 million in 2016, but $940 million in 2023, $2,292 million in 2024 and $2,342 million 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 ↗
  16. ReportedThe 2023 trough reflects wildfire loss accruals of $1.7 billion, net of expected insurance recoveries, against $346 million in 2024.
    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 pre-tax margin was about 9% 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. ReportedRevenue was $6,735 million in the second quarter, up 4.9%, and $13,396 million across the first half against $12,774 million; after-tax earnings were $891 million in the quarter against $702 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 ↗
  19. ReportedBHE's identifiable assets were $136.5 billion at the end of 2025, the largest of any segment except insurance.
    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 ↗
Sources
Generated September 23, 2026