Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Manufacturing, Service and Retailing

IMC’s revenues were approximately $1.3 billion in the second quarter and $2.5 billion in the first six months of 2026, increases of 26.5% and 23.6%, respectively, compared to 2025. IMC has experienced significant raw materials price increases, which began in 2025 and continued through the first six months of 2026. Customer demand and product sales also increased over the first six months of 2026, primarily attributable to customers accelerating purchases. IMC’s pre-tax earnings in the second quarter and first six months of 2026 increased 71.0% and 56.6%, respectively, relative to 2025, reflecting increases in sales and gross margin rates, including favorable fixed manufacturing cost absorption and product sales mix, partially offset by higher raw materials costs and selling expenses. IMC’s earnings over the second half of 2026 are expected to be negatively impacted by the rise in raw materials costs. IMC operates globally, and a large portion of its products are manufactured in Israel. IMC’s operations in Israel have not been significantly impacted by the conflicts in the region.

OxyChem’s revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026. OxyChem generated pre-tax earnings of $149 million in the second quarter and $121 million in the first six months of 2026, which included the impacts of incremental acquisition accounting depreciation and amortization, as well as other transition costs associated with the acquisition. In addition, revenues and earnings increases were also generated in the first six months of 2026 by each of the other industrial products businesses.

Building products

The building products group includes manufactured (factory-built) and site-built home construction and related lending and financial services (Clayton Homes). Other building products businesses currently include flooring (Shaw), insulation, roofing and engineered products (Johns Manville), paint and coatings (Benjamin Moore) and residential and commercial construction and engineering products and systems (MiTek). Berkshire acquired Taylor Morrison Home Corporation, a homebuilder, on July 24, 2026, which will be included in our building products group beginning as of that date. See Note 2 to the accompanying Consolidated Financial Statements.

Revenues of the building products group increased $61 million (0.9%) in the second quarter and declined $118 million (0.9%) in the first six months of 2026 compared to 2025. Pre-tax earnings increased $75 million (7.2%) in the second quarter and were relatively unchanged in the first six months of 2026 compared to 2025. Certain of our building products businesses experienced lower customer demand, attributable to relatively low home construction activity in the first six months of 2026.

Clayton Homes’ revenues were $3.4 billion in the second quarter and $6.3 billion in the first six months of 2026, increases of 2.8% and 0.9%, respectively, compared to 2025. Home sales revenues increased 1.7% in the second quarter and declined 1.3% in the first six months of 2026, relative to the corresponding 2025 periods. New home unit sales increased 2.3% in the second quarter and declined 3.3% in the first six months of 2026 relative to 2025. In the first six months of 2026, average prices for factory-built homes increased 3.3%, attributable to changes in sales mix, while average prices for site-built homes declined 2.3% versus 2025. Financial services revenues increased 9.5% in the first six months of 2026 compared to 2025, primarily due to increased interest income from higher average loan balances and average interest rates. Loan balances, net of discounts and allowances for credit losses, were approximately $30.4 billion as of June 30, 2026, an increase of 7.8% since June 30, 2025. Loan portfolios are largely funded by borrowings from Berkshire finance affiliates.

Clayton Homes’ pre-tax earnings were $468 million in the second quarter and $861 million in the first six months of 2026, declines of 3.5% and 5.9%, respectively, versus 2025. The declines reflected lower earnings from home building, partially offset by increased earnings from financial services. The decline in home building earnings was due to lower year-to-date sales volume and overall gross margin rates and slightly higher selling general and administrative expenses. The increase in financial services earnings was primarily due to higher interest income and lower insurance claims expense, partially offset by increased interest expense on increased borrowings from affiliates. The corresponding interest income from these borrowings is included in the “Other” earnings section on page 47.

Our other building products businesses generated revenues of approximately $3.6 billion in the second quarter and $6.7 billion in the first six months of 2026, declines of $30 million (0.8%) and $173 million (2.5%) respectively, versus 2025, primarily attributable to the transition of Acme Brick to Marmon beginning January 1, 2026. Revenues of the remaining businesses increased 3.4% in the second quarter and 1.6% in the first six months of 2026 compared to 2025. Revenues in 2026 generally reflected higher selling prices and lower volumes across several product categories. Other building products pre-tax earnings increased $92 million (16.6%) in the second quarter and $48 million (4.7%) in the first six months of 2026 compared to 2025. The earnings increases reflected the impact of refunds received in the second quarter of 2026 on trade tariffs paid primarily in 2025, as well as lower restructuring and legal settlement costs, partially offset by the impact of the Acme Brick transition. Before such items, pre-tax earnings declined 8.8% in the second quarter and 8.9% in the first six months of 2026 relative to 2025.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Manufacturing, Service and Retailing

Consumer products

The consumer products group includes leisure vehicles (Forest River), several apparel and footwear operations (including Fruit of the Loom, Garan, H.H. Brown Shoe Group and Brooks Sports) and a manufacturer of high-performance alkaline batteries (Duracell). This group also includes a global toy company (Jazwares), jewelry products (Richline) and custom picture framing products (Larson-Juhl).

Consumer products group revenues were $3.4 billion in the second quarter and $6.9 billion in the first six months of 2026, declines of 2.0% and 1.8%, respectively, compared to 2025. The revenue declines were driven by reductions at Fruit of the Loom and Forest River, primarily attributable to lower sales volumes, unfavorable changes in sales mix and the impacts of exiting unprofitable lines of business at Fruit of the Loom, partially offset by higher average selling prices. These declines were partially offset by revenue increases at Brooks Sports, Duracell, Jazwares and Richline, attributable to combinations of higher volumes, changes in sales mix and/or favorable foreign currency translation effects.

Pre-tax earnings of our consumer products group increased 12.2% in the second quarter and 19.1% in the first six months of 2026 versus 2025. The earnings increase in the first six months of 2026 was primarily attributable to earnings increases from Brooks Sports, Duracell and Jazwares, partially offset by lower earnings from Forest River. The increases at Brooks Sports and Jazwares were primarily attributable to the increases in sales and gross margin rates, as well as the impact of trade tariff refunds received in the second quarter of 2026. The increase at Duracell was largely due to increased advanced manufacturing production tax credits, which are included in pre-tax earnings, partially offset by increased selling, general and administrative expenses. The earnings decline from Forest River was primarily due to the reduction of gross margins from lower sales and unfavorable changes in sales mix, partially offset by lower selling, general and administrative expenses.

Service and retailing

A summary of revenues and pre-tax earnings of our service and retailing businesses follows (dollars in millions).

	Second Quarter								First Six Months
	2026				2025				2026				2025
Revenues:
Service	$	6,874			$	5,677			$	13,308			$	11,170
McLane		12,118				12,601				24,054				24,776
Retailing		5,010				5,011				9,565				9,655
Pilot		14,932				10,109				26,177				20,539
	$	38,934			$	33,398			$	73,104			$	66,140
Pre-tax earnings:
Service	$	879			$	729			$	1,664			$	1,377
McLane		173				176				317				357
Retailing		387				376				683				669
Pilot		290				119				240				287
	$	1,729			$	1,400			$	2,904			$	2,690
Pre-tax earnings as a percentage of revenues:
Service		12.8	%			12.8	%			12.5	%			12.3	%
McLane		1.4				1.4				1.3				1.4
Retailing		7.7				7.5				7.1				6.9
Pilot		1.9				1.2				0.9				1.4

Service

Our service group includes NetJets and FlightSafety (aviation services), which offer shared ownership programs for general aviation aircraft and high technology training products and services to operators of aircraft, and TTI, a distributor of electronics components. Our other service businesses franchise and service a network of quick service restaurants (Dairy Queen), lease transportation equipment (XTRA) and furniture (CORT), provide third party logistics services that primarily serve the petroleum and chemical industries (Charter Brokerage), distribute electronic news, multimedia and regulatory filings (Business Wire), provide various facilities engineering and construction management services (IPS-Integrated Project Services, LLC (IPS)) and operate a television station in Miami, Florida (WPLG). McLane, which we view as a service business, is addressed separately since it is deemed a separate segment for financial reporting purposes.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Manufacturing, Service and Retailing

Service group revenues increased $1.2 billion (21.1%) in the second quarter and $2.1 billion (19.1%) in the first six months of 2026 relative to 2025, driven by TTI, aviation services and IPS. Revenues increased in the first six months at TTI (26.5%), aviation services (15.5%) and IPS (22.5%). The revenue increase at TTI reflected accelerating customer demand, favorable foreign currency translation effects and inventory cost-based price increases. The increase in demand, in part, was attributable to customers responding to potential further price increases and supply chain concerns, including extended inventory order lead times. The revenue increase from aviation services was primarily due to increases in the number of aircraft in shared ownership programs, in-flight hours flown, training hours and average prices. The revenue increase at IPS was primarily attributable to life sciences construction and other construction consulting services.

Service group pre-tax earnings increased $150 million (20.6%) in the second quarter and $287 million (20.8%) in the first six months of 2026 compared to 2025, primarily attributable to TTI and aviation services. Pre-tax earnings as a percentage of revenues rose 0.2 percentage points in the first six months of 2026 compared to 2025. The earnings increases from TTI reflected increases in revenues, favorable foreign currency translation effects and improved expense leverage. Inventory cost and supply chain uncertainties could negatively impact TTI’s gross margins in the future. The earnings increases from aviation services were primarily attributable to increased revenues, partially offset by higher flight crew and instructor costs and higher maintenance, fuel, subcontract and other variable costs.

McLane

McLane Company, Inc. (“McLane”) operates a wholesale distribution business that provides grocery and non-food consumer products to retailers and convenience stores (“retail”) and to restaurants (“restaurant”). McLane also operates businesses that are wholesale distributors of distilled spirits, wine and beer (“beverage”). McLane’s retail and restaurant businesses generate very high sales volumes and low profit margins.

McLane’s revenues declined 3.8% in the second quarter and 2.9% in the first six months of 2026 compared to 2025, primarily due to lower retail business sales (8.9% year-to-date), partially offset by increased restaurant sales (7.4% year-to-date) and gains from asset sales. The decline in retail business sales was attributable to lower volumes, primarily from net customer losses, and changes in business mix. The comparative increase in restaurant business was attributable to increased volumes and cost-based price increases. Pre-tax earnings declined $3 million (1.7%) in the second quarter and $40 million (11.2%) in the first six months of 2026 relative to 2025, reflecting declines in the overall gross margins, partially offset by higher other income and the gains from asset sales in the first quarter of 2026.

Retailing

Our retailing businesses include Berkshire Hathaway Automotive, Inc. (“BHA”), which consists of over 80 auto dealerships that sell new and pre-owned automobiles and offer repair services and related products. BHA also offers and insures vehicle service contracts and related insurance products. Our retailing businesses also include four home furnishings businesses (Nebraska Furniture Mart, R.C. Willey, Jordan’s and Star Furniture), which sell furniture, appliances, flooring and electronics.

Other retailing businesses include three jewelry businesses (Borsheims, Helzberg and Ben Bridge), See’s Candies (confectionery products), Pampered Chef (high-quality kitchen tools), Oriental Trading Company (party supplies, school supplies and toys and novelties) and Detlev Louis Motorrad, a retailer of motorcycle accessories based in Germany. Pilot Travel Centers (“Pilot”), which we view primarily as a retailing business, is addressed separately since it is deemed a segment for financial reporting purposes.

Retailing group aggregate revenues were relatively unchanged in the second quarter and declined 0.9% in the first six months of 2026 compared to 2025. BHA’s revenues represented about 70% of retailing group revenues in the first six months of 2026. BHA’s revenue increased 0.5% in the second quarter and declined 1.3% in the first six months of 2026 compared to 2025. New and pre-owned vehicle retail sales declined 2.0% in the first six months of 2026 compared to 2025, reflecting lower unit sales, partially offset by favorable changes in sales mix. Additionally, BHA’s service contract revenues increased in the first six months of 2026 compared to 2025, while parts/service/repair operation revenues were flat.

Aggregate revenues of the other retailing businesses were relatively unchanged in the second quarter and first six months of 2026 versus 2025. Several of our other retailing businesses continued to experience sluggish customer demand, attributable to a combination of increased competition and the impacts of higher economic uncertainty and changes in consumer confidence.

Retailing group pre-tax earnings increased $11 million (2.9%) in the second quarter and $14 million (2.1%) in the first six months of 2026 compared to 2025. BHA’s pre-tax earnings increased 5.1% in the second quarter and 4.4% in the first six months of 2026 compared to 2025, primarily attributable to increased earnings from service contracts operations, partially offset by lower gross sales margins. Aggregate pre-tax earnings for the remainder of our retailing group declined 2.8% in the second quarter and 5.8% in the first six months of 2026 compared to 2025.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Manufacturing, Service and Retailing

Pilot

Pilot operates travel centers, primarily under the names Pilot or Flying J, and fuel-only retail locations. Pilot also operates large wholesale fuel and fuel marketing platforms in the U.S. Pilot’s revenues increased $4.8 billion (47.7%) in the second quarter and $5.6 billion (27.5%) in the first six months of 2026 compared to 2025. The increases reflected higher fuel prices, partially offset by slightly lower fuel volumes.

Pilot’s pre-tax earnings increased $171 million (143.7%) in the second quarter and declined $47 million (16.4%) in the first six months of 2026 compared to 2025. The increase in the second quarter was primarily due to higher gross margins, partially offset by increases in depreciation and amortization and store operating and general and administrative expenses. The earnings decline in the first six months reflected the impact of gains from asset dispositions in 2025, which did not repeat in 2026, and increases in the expenses previously noted, partially offset by increased gross margins. Gross margins in 2026 were negatively affected by net losses on derivative contracts included in earnings from increases in fuel and commodity prices. The effects of price increases on the underlying physical inventory and commodity values are deferred until sold. Volatility in fuel prices can produce volatility in Pilot’s periodic earnings.

Investment Gains (Losses)

A summary of investment gains (losses) follows (dollars in millions).

	Second Quarter								First Six Months
	2026				2025				2026				2025
Investment gains (losses)	$	16,077			$	6,364			$	14,472			$	(71	)
Income taxes and noncontrolling interests		3,393				1,394				3,028				(3	)
Net earnings (losses)	$	12,684			$	4,970			$	11,444			$	(68	)
Effective income tax rate		21.0	%			21.7	%			21.0	%			14.9	%

Unrealized gains and losses arising from changes in market prices of our investments in equity securities are included in our reported earnings, which significantly increases the volatility of our periodic net earnings due to the magnitude of our equity securities portfolio and the inherent volatility of equity securities prices. Unrealized gains and losses on our investments in equity securities also include the effects of changes in foreign currency exchange rates on investments in equity securities of non-U.S. issuers that are held by our U.S.-based subsidiaries.

Pre-tax investment gains and losses included net unrealized gains of $15.6 billion in the second quarter and $12.8 billion in the first six months of 2026 and $7.6 billion in the second quarter and $1.2 billion in the first six months of 2025 attributable to changes during the period in market prices on equity securities we held at the end of each period. Taxable investment gains and losses on equity securities sold, which are generally the difference between sales proceeds and the original cost basis of the securities sold, were gains of $2.3 billion in the second quarter and $9.5 billion in the first six months of 2026 compared to $5.3 billion in the second quarter and $8.4 billion in the first six months of 2025.

We believe that investment gains and losses, whether realized from sales or unrealized from changes in market prices, are often meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance. We also continue to believe the investment gains and losses recorded in earnings in any given period have little analytical or predictive value.

Other

A summary of after-tax other earnings follows (in millions).

	Second Quarter								First Six Months
	2026				2025				2026				2025
Investment income	$	957			$	866			$	1,924			$	1,735
Foreign currency exchange rate gains (losses) on Berkshire and BHFC non-U.S. Dollar senior notes		326				(877	)			575				(1,590	)
Equity method earnings		211				184		***		366				300		*
Acquisition accounting expenses		(113	)			(124	)			(227	)			(248	)
Other earnings (losses)		(107	)			(17	)			(104	)			(124	)
	$	1,274			$	32			$	2,534			$	73

——————

** Excludes other-than-temporary impairment loss on our investment in Kraft Heinz. See Note 5 to the Consolidated Financial Statements.*

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Other

Investment income includes corporate interest income and dividend income not allocated to operating businesses. After-tax corporate investment income increased $91 million in the second quarter and $189 million in the first six months of 2026 compared to 2025, primarily due to increased investments in U.S. Treasury Bills, including investments derived from capital distributions from Berkshire subsidiaries, partially offset by lower interest rates.

Foreign currency exchange rate gains and losses on Berkshire’s and BHFC’s senior notes represent the effects of changes in foreign currency exchange rates recognized in earnings from the periodic revaluation of non-U.S. Dollar denominated senior note liabilities into U.S. Dollars. The gains and losses recorded in any given period can be significant due to the size of the borrowings and the inherent volatility in foreign currency exchange rates.

Equity method earnings include our proportionate share of earnings of Kraft Heinz, Occidental and Berkadia. After-tax equity method earnings increased $27 million in the second quarter and $66 million in the first six months of 2026 compared to 2025 due to increased earnings from Kraft Heinz, partially offset by lower earnings from Occidental and Berkadia. Historically, we recorded our share of Occidental earnings on a one-quarter lag and, during the second quarter of 2025, we began recording our share of Kraft Heinz’s earnings on a one-quarter lag.

Acquisition accounting expenses include charges arising from the application of the acquisition method of accounting in connection with certain of Berkshire’s past business acquisitions. These charges are primarily from the amortization of intangible assets recorded in connection with those acquisitions. Other earnings and losses primarily include unallocated corporate and other general and administrative expenses, interest expense, income tax expense and interest income on certain intercompany loans.

Financial Condition

Our Consolidated Balance Sheet continues to reflect significant liquidity and a very strong capital base. Berkshire’s shareholders’ equity at June 30, 2026 was $747.9 billion, an increase of $30.5 billion since December 31, 2025. Net earnings attributable to Berkshire shareholders were $35.8 billion for the first six months of 2026 and included after-tax investment gains of approximately $11.4 billion. Investment gains and losses from changes in the market prices of our investments in equity securities usually produce significant volatility in our earnings.

Berkshire’s common stock repurchase program permits Berkshire to repurchase its Class A and Class B shares at prices below Berkshire’s intrinsic value, as conservatively determined by Berkshire’s Chief Executive Officer after consultation with the Chairman of the Board. We are not committed to a minimum or subject to a maximum repurchase amount. We will not repurchase our stock if it reduces our consolidated cash, cash equivalents and U.S. Treasury Bills holdings to below $30 billion. Financial strength and redundant liquidity will always be of paramount importance at Berkshire. Berkshire acquired $4.8 billion of treasury stock in the first six months of 2026, most of which was in the second quarter.

At June 30, 2026, our insurance and other businesses held investments in cash, cash equivalents and U.S. Treasury Bills (net of payables for unsettled purchases) of $359.2 billion. Investments in equity and fixed maturity securities, excluding our equity method investments, were $340.8 billion. On January 2, 2026, Berkshire acquired OxyChem for approximately $9.4 billion. Additionally, Berkshire acquired Taylor Morrison Home Corporation on July 24, 2026, for aggregate cash consideration of approximately $6.8 billion.

Excluding borrowings of BHE and BNSF, our borrowings at June 30, 2026 were $43.3 billion, predominantly issued by Berkshire and BHFC. Berkshire’s outstanding debt at June 30, 2026 was $20.4 billion, a decrease of $2.3 billion since December 31, 2025, primarily attributable to repayments of maturing debt of $3.3 billion and reductions in carrying values due to changes in foreign currency exchange rates, partially offset by debt issued in April. Berkshire issued ¥272.3 billion ($1.7 billion) of senior notes in April 2026 with maturity dates ranging from 2029 to 2056 and a weighted average interest rate of 2.4%.

Senior note borrowings of BHFC, a wholly-owned financing subsidiary, were approximately $18.2 billion at June 30, 2026, a decline of $72 million from December 31, 2025, primarily due to the impact of foreign currency exchange rate changes. BHFC’s borrowings are used to fund a portion of home loans originated and acquired by Clayton Homes and equipment held for lease by Marmon’s railcar leasing business. Berkshire guarantees BHFC’s senior notes for the full and timely payment of principal and interest.

BNSF’s outstanding debt was $23.5 billion as of June 30, 2026, a decrease of $532 million from December 31, 2025. BHE’s aggregate borrowings were $61.8 billion at June 30, 2026, an increase of $2.5 billion from December 31, 2025. In the first six months of 2026, BHE subsidiaries issued $4.6 billion of term debt, with a weighted average interest rate of 5.8% and maturity dates ranging from 2029 to 2056. BHE subsidiaries repaid term debt of $1.3 billion and reduced short-term borrowings by $623 million. Berkshire does not guarantee the repayment of debt issued by BNSF, BHE or any of their subsidiaries or affiliates.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Condition

In the first six months of 2026, our diverse group of businesses generated net cash flows from operating activities of $21.7 billion. Our consolidated capital expenditures for property, plant and equipment and equipment held for lease were $10.6 billion in the first six months of 2026, of which $6.7 billion was attributable to BNSF and BHE. BNSF and BHE maintain very large investments in capital assets (property, plant and equipment) and regularly make significant capital expenditures in the normal course of business. BHE and BNSF forecast capital expenditures of approximately $8.6 billion over the remainder of 2026.

Contractual Obligations

We are party to other contracts associated with ongoing business activities, which will result in cash payments to counterparties in future periods. Certain obligations are included in our Consolidated Balance Sheets, such as borrowings, operating lease liabilities and shared aircraft repurchase liabilities.

We are also obligated to pay claims arising from property and casualty contracts issued by our insurance subsidiaries, including amounts from retroactive reinsurance. However, the timing and amount of the payments under insurance and reinsurance contracts are contingent upon the outcome of future events. Actual payments will likely vary, perhaps materially, from any forecasted payments, as well as from the liabilities recorded in our Consolidated Balance Sheets. We anticipate that these payments will be funded by cash flows from operating activities.

Other obligations pertaining to the acquisition of goods or services in the future, such as certain purchase obligations, are not currently reflected in the Consolidated Financial Statements and will be recognized in future periods as the goods are delivered or services are provided. Except as otherwise disclosed in this Quarterly Report, our contractual obligations as of June 30, 2026 were, in the aggregate, not materially different from those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025.

Critical Accounting Estimates

Certain accounting policies require us to make estimates and judgments in determining the amounts reflected in our Consolidated Financial Statements. Such estimates and judgments necessarily involve varying and possibly significant degrees of uncertainty. Accordingly, certain amounts currently recorded in our Consolidated Financial Statements will likely be adjusted in the future based on new available information and changes in other facts and circumstances. Reference is made to “Critical Accounting Estimates” discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Berkshire’s Annual Report on Form 10-K for the year ended December 31, 2025.

Our Consolidated Balance Sheet as of June 30, 2026 included estimated liabilities for unpaid losses and loss adjustment expenses from property and casualty insurance and reinsurance contracts of $152.9 billion. Due to the inherent uncertainties in the processes of establishing these liabilities, the actual ultimate claim amounts will likely differ from the currently recorded amounts. A small percentage change in estimates of this magnitude can result in a material effect on periodic earnings. The effects from changes in these estimates are recorded as a component of insurance losses and loss adjustment expenses in the period of the change.

Our Consolidated Balance Sheet as of June 30, 2026 included goodwill of acquired businesses of $83.1 billion and indefinite-lived intangible assets of $19.0 billion. In connection with the annual goodwill impairment review conducted in the fourth quarter of 2025, our estimated fair values of four reporting units did not exceed our carrying values by at least 20%, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Our estimated aggregate fair value of these units at that time was approximately $27.7 billion, which exceeded our aggregate carrying value of approximately $26.2 billion. Goodwill of these reporting units totaled approximately $9.2 billion.

Goodwill and indefinite-lived intangible asset impairment reviews include determining the estimated fair values of the reporting units and of the indefinite-lived intangible assets. Several methods and inputs may be used to estimate fair values, and significant judgments are required in making such estimates. Due to the inherent subjectivity and uncertainty in forecasting future cash flows and earnings over long periods of time, actual results may differ materially from the forecasts.

As of June 30, 2026, we concluded that more likely than not, the goodwill and other indefinite-lived intangible assets recorded in our Consolidated Balance Sheet were not impaired. However, the fair value estimates of the reporting units and assets are subject to change based on market and economic conditions, as well as events affecting our businesses or the industries in which they operate, which we cannot reliably predict. It is reasonably possible that adverse changes in such conditions or events could result in the recognition of impairment losses in our Consolidated Financial Statements in the future.

Information concerning accounting pronouncements to be adopted in the future is included in Note 1 to the accompanying Consolidated Financial Statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Berkshire officials during presentations about Berkshire or its subsidiaries are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, or which include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects and possible future Berkshire actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about Berkshire and its subsidiaries, economic and market factors and the industries in which we do business, among other things. These statements are not guarantees of future performance and we have no specific intention to update these statements.

Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to, changes in market prices of our investments in equity securities; the occurrence of one or more catastrophic events, such as an earthquake, hurricane, geopolitical conflict, act of terrorism or cyber-attack that causes losses insured by our insurance subsidiaries and/or losses to our business operations; the frequency and severity of epidemics, pandemics or other outbreaks, and other events that negatively affect our operating results and restrict our access to borrowed funds through the capital markets at reasonable rates; changes in laws or regulations affecting our insurance, railroad, utilities and energy and finance subsidiaries; changes in federal income tax laws; and changes in general economic and market factors that affect the prices of securities or the industries in which we do business.