From The Motley Fool · James Brumley · · 1m
Greg Abel: BNSF Margin Boosts Berkshire Cash Flow
Berkshire CEO Greg Abel says each 1% BNSF profit margin improvement generates $230 million in cash flow for Berkshire Hathaway.
In brief
Berkshire CEO Greg Abel says each 1% BNSF profit margin improvement generates $230 million in cash flow for Berkshire Hathaway. Berkshire Hathaway CEO Greg Abel states that every 1 percentage point increase in BNSF's operating margin adds approximately $230 million in annual cash flow for Berkshire Hathaway…
Berkshire's Private Businesses
Berkshire Hathaway's private companies generated $44.5 billion in operating earnings for 2025.
BNSF's Profit Contribution
BNSF accounts for more than 10% of Berkshire Hathaway's total operating income.
CEO Greg Abel's Focus
Berkshire CEO Greg Abel expects BNSF's profit margin to grow for the foreseeable future.
Margin Impact Calculation
Each one-percentage-point improvement in BNSF's operating margin generates approximately $230 million in incremental cash flow.
“Each one-percentage-point improvement in operating margin generates approximately $230 million of incremental operating cash flow for our owners.”
BNSF's Current Performance
BNSF's 2025 revenue was $23.5 billion with a 34.5% operating margin, generating about $8.1 billion in cash flow.
Potential Margin Growth
BNSF could reach CSX's 38% operating margin, generating an additional $700 million in annual pretax income.
What to remember
Berkshire Hathaway CEO Greg Abel states that every 1 percentage point increase in BNSF's operating margin adds approximately $230 million in annual cash flow for Berkshire Hathaway.
