BNSF profits surge due to reduced expenses
BNSF Railway Reports Increased Earnings for Q2 and H1 2025
Fort Worth-based BNSF Railway, a subsidiary of Berkshire Hathaway, has reported impressive earnings growth for the second quarter and first half of 2025.
In the second quarter of this year, BNSF Railway's pre-tax earnings increased by 11.5% to $2 billion compared to the same period in 2024. This growth was driven primarily by lower operating costs, despite a slight decline in average revenue per car. Operating revenues for the quarter slightly increased to $5.73 billion compared to $5.71 billion in Q2 2024.
For the first six months of 2025, BNSF Railway's pre-tax earnings grew by 8.6% to $3.8 billion, up from $3.5 billion in the same period in 2024. The operating revenues for the first half of 2025 were $11.4 billion, a slight increase from $11.3 billion in H1 2024.
The decline in average revenue per car was mainly due to a lower fuel surcharge and less favorable business mix, partially offset by core pricing gains. However, lower operating costs helped improve earnings. Operating costs fell to $3.7 billion in the second quarter from $3.9 billion and $7.5 billion in H1 from $7.8 billion in 2024.
Key sector performance indicators for BNSF Railway include a 13.7% increase in coal volumes in Q2 and 7.3% in H1, consumer products volume growth, slight improvements in agriculture and energy, and small declines in industrial products shipments.
In the second quarter of 2025, net earnings rose to $1.5 billion from $1.2 billion in the same period in 2024. For the first six months of 2025, net earnings climbed to $2.7 billion compared to $2.4 billion in the same period in 2024.
BNSF Railway did not comment on the proposed acquisition of Norfolk Southern (NYSE: NSC) by Union Pacific (NYSE: UNP). Berkshire Hathaway earlier denied reports that it was assessing a possible merger with CSX (NASDAQ: CSX).
In summary, BNSF’s earnings gains in 2025 were primarily the result of higher freight volumes and lower operating costs, despite a decline in revenue per car. The company's strong performance demonstrates its resilience and adaptability in the face of changing market conditions.
- The impressive earnings growth for Q2 and H1 2025 of BNSF Railway, a key player in the industry, was achieved through a combination of higher freight volumes and lower operating costs, despite a decline in revenue per car.
- The financial sector has taken notice of the resilience and adaptability demonstrated by BNSF Railway in the face of changing market conditions, as shown by their strong earnings in 2025, which have been a significant talking point among businesses.
