Berkshire Hathaway posts Q3 profits, Abel to become CEO in 2026

Berkshire Hathaway reported a sharp rebound in third quarter operating profits and a record cash balance as the conglomerate prepares for a change in leadership. Company filings released Saturday showed operating earnings rose about 34 percent year over year to $13.5 billion for the quarter ended Sept. 30, while cash and short-term investments climbed to a record $381.7 billion. Warren Buffett will remain chairman but is set to step down as chief executive at year-end, with Vice Chair Greg Abel assuming the CEO role in 2026.

The gain in operating results was driven mainly by a turnaround in insurance underwriting, which produced roughly $2.37 billion in after-tax underwriting profit, aided by a relatively quiet U.S. disaster season. Berkshire’s reinsurance and primary insurance operations both returned to profitability after losses a year earlier. Geico’s pretax underwriting profit, however, slipped about 13 percent amid higher claims and increased policy-acquisition costs, even as the business continued to add customers.

Other core businesses contributed to the improvement. Burlington Northern Santa Fe railroad posted a roughly 5 percent rise in operating earnings to about...