# 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.
- Title: Greg Abel: BNSF Margin Boosts Berkshire Cash Flow | Shortify
- Summary: Berkshire CEO Greg Abel says each 1% BNSF profit margin improvement generates $230 million in cash flow for Berkshire Hathaway. Berkshire Hathaway CEO Greg…
- Keywords: berkshire hathaway, bnsf, greg abel, operating margin, cash flow, berkshire hathaway energy, taylor morrison, finance, money, Greg, Abel, Margin
- Source: The Motley Fool — https://fool.com/investing/2026/10/22/greg-abel-bnsf-profit-margin-cash-flow-berkshire
- Author: James Brumley
- Published: 2026-10-22T09:19:00+00:00
- Read time: 1 min
- Topics: berkshire hathaway, bnsf, greg abel, operating margin, cash flow, berkshire hathaway energy, taylor morrison, finance, money
## 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.
## Key takeaway

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.