BNSF earnings gain on lower costs

(Photo: Jim Allen/FreightWaves)

BNSF Railway reported pre-tax earnings increased 11.5% in the second quarter to $2 billion from $1.8 billion,and 8.6% to $3.8 billion from $3.5 billion in the first six months of 2025 compared to 2024.

Operating revenues for the Fort Worth-based subsidiary of holding company Berkshire Hathaway increased slightly in both the second quarter and the first six months, to $5.73 billion from $5.71 billion and $11.4 billion from $11.3 billion y/y as lower operating costs offset weaker revenue per car, to $3.7 billion from $3.9 billion, and $7.5 billion from $7.8 billion.

Net earnings climbed to $1.5 billion from $1.2 billion y/y in the quarter, and to $2.7 billion from $2.4 billion in the first six months of the year.

Freight volumes edge higher by 1.4% and 2.7% in the second quarter and first half, respectively, y/y. Average revenue per car declined 1.4% in the second quarter and 2.6% y/y, on lower fuel surcharge revenue and unfavorable business mix, partially offset by core pricing gains. 

Coal volumes improved by 13.7% and 7.3% for the quarter and half, respectively, while consumer products was up by 0.6% and 4.5%. Agricultural and energy carloads were 0.6% better in the quarter but by just 0.1% for the half. Shipments of industrial products fell by 0.6% and 0.1%, respectively.

The company did not comment on the proposed acquisition of Norfolk Southern (NYSE: NSC) by western rival Union Pacific (NYSE: UNP). Berkshire Hathaway earlier denied reports that it was assessing a possible merger with CSX (NASDAQ: CSX).

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.