Berkshire Hathaway repurchased $9.6 billion of its shares during the third quarter, accelerating capital returns under Chief Executive Greg Abel even as the conglomerate reported a decline in operating earnings.
Results released Saturday showed third-quarter operating earnings of $12.71 billion, down approximately 6% from $13.49 billion a year earlier. Net earnings declined 28% to $22.11 billion, reflecting lower investment gains and weaker insurance performance.
Revenue increased 11% to $105.65 billion, supported partly by acquisitions and growth across several operating businesses.
The share repurchases represent one of the most significant capital-allocation developments since Abel succeeded Warren Buffett as chief executive. Berkshire also repurchased approximately $2 billion of shares in October.
Insurance results were a major source of weakness. Geico’s pretax profit fell approximately 45% as the automobile insurer reduced premiums to compete for customers. Lower underwriting earnings also weighed on Berkshire’s broader insurance operations.
Performance elsewhere was stronger. BNSF railroad earnings increased 19%, Berkshire Hathaway Energy earnings rose 8%, and Precision Castparts recorded a 30% increase in pretax profit.
Berkshire’s substantial liquidity remains central to its investment strategy. Cash and equivalents stood at approximately $356.9 billion, leaving the company with considerable financial capacity despite its accelerated repurchases.
The results present two competing signals: management is deploying more capital into Berkshire shares, while some operating businesses continue facing cost pressures and uneven demand.
Investors will watch whether buybacks continue at a similar pace, whether Geico’s pricing strategy improves underwriting profitability, and how Abel balances acquisitions, public-equity investments and shareholder returns.
