Cars and Units Rose With BNSF Third-Quarter Earnings
Published: November 10, 2026
By: Adam Burns
After-tax earnings of BNSF increased 19.3 percent in the third quarter of 2026 and 13.0 percent in the first nine months, compared with 2025, Berkshire Hathaway reports in its Form 10-Q for the quarter ended September 30, 2026. The railroad table shows net earnings of $1,729 million for the quarter, against $1,449 million, and $4,664 million for the nine months, against $4,129 million. The same two after-tax figures are the BNSF line in the company segment table. Earnings in 2026 benefited from higher shipping volumes and improved operating efficiencies, partly offset by increases in fuel costs.
BNSF ES44C4 #4218 leads an eastbound intermodal through the busy station area at Fullerton, California on May 6, 2017. Doug Kroll photo.
The railroad
Burlington Northern Santa Fe, LLC operates one of the largest railroad systems in North America, with over 32,500 route miles of track in 28 states. BNSF also operates in three Canadian provinces. The filing groups freight by consumer products, agricultural and energy products, industrial products, and coal. Dollar tables in the filing are stated in millions.
Revenues and volume
Railroad operating revenues increased 14.7 percent in the third quarter and 11.5 percent in the first nine months of 2026 compared with 2025. The table shows operating revenues of $6,870 million against $5,988 million for the quarter, and $19,391 million against $17,390 million for the nine months.
Railroad operating expenses were $4,388 million against $3,841 million for the quarter, and $12,591 million against $11,409 million for the nine months. Railroad operating earnings were $2,482 million against $2,147 million, and $6,800 million against $5,981 million. Other revenues (expenses), net, were $57 million against $44 million, and $173 million against $164 million. Interest expense was $273 million against $279 million for the quarter, and $826 million against $821 million for the nine months. Pre-tax earnings were $2,266 million against $1,912 million, and $6,147 million against $5,324 million. Income taxes were $537 million against $463 million, and $1,483 million against $1,195 million. The effective income tax rate was 23.7 percent against 24.2 percent for the quarter, and 24.1 percent against 22.4 percent for the nine months.
Car and unit volumes increased 3.9 percent in the third quarter and 4.2 percent in the first nine months. Average revenue per car or unit increased 10.5 percent and 7.1 percent, primarily from higher fuel surcharge revenue and higher yield. Pre-tax earnings increased 18.5 percent in the quarter and 15.5 percent in the nine months. The volume table counts cars and units in thousands: 2,607 thousand in the third quarter of 2026 against 2,508 thousand, and 7,494 thousand against 7,192 thousand for the nine months.
Four commodity groups
Consumer products volumes were 1,557 thousand cars and units in the quarter against 1,474 thousand, and 4,421 thousand against 4,194 thousand for the nine months, increases of 5.6 percent and 5.4 percent. The narrative states consumer products operating revenues of $2.5 billion in the quarter and $6.9 billion in the nine months, increases of 16.5 percent and 12.5 percent. The filing attributes the revenue increases to higher average revenue per car or unit, primarily from higher fuel surcharge revenue, and to the volume increases. Volumes rose primarily because of higher intermodal shipments from higher West Coast imports and tightening truck capacity.
Agricultural and energy products volumes were 379 thousand against 350 thousand in the quarter, and 1,152 thousand against 1,043 thousand for the nine months, increases of 8.3 percent and 10.5 percent. The narrative states revenues of $1.9 billion and $5.6 billion, increases of 18.9 percent and 17.2 percent, from higher fuel surcharge revenue, higher yield, and those volume increases. The volume increases were primarily higher grain, petroleum fuels, and oilseeds and meals.
Industrial products volumes were 376 thousand against 362 thousand in the quarter, and 1,067 thousand against 1,044 thousand for the nine months, increases of 3.9 percent and 2.2 percent. The narrative states revenues of $1.5 billion and $4.1 billion, increases of 15.2 percent and 9.1 percent, from higher fuel surcharge revenue and yield, along with the volume increases. Volumes rose primarily on steel, aggregates, minerals, and cement.
Coal volumes were 295 thousand against 322 thousand in the quarter, and 854 thousand against 911 thousand for the nine months, declines of 8.4 percent and 6.3 percent. The narrative states coal operating revenues of $0.8 billion in the quarter and $2.3 billion in the nine months, and calls those slight increases. Higher average revenue per car or unit, from fuel surcharge revenue and yield, was partially offset by the volume declines. The filing attributes the declines primarily to plant retirements and lower demand, attributable to lower natural gas prices.
Expenses and income tax
Railroad operating expenses increased $547 million, or 14.2 percent, in the third quarter and $1.2 billion, or 10.4 percent, in the first nine months. Compensation and benefits expenses rose less than 1 percent in both periods. The filing says wage inflation was substantially offset by improved employee productivity.
Fuel expenses increased $468 million, or 60.6 percent, in the quarter and $941 million, or 42.0 percent, in the nine months, reflecting higher average fuel prices and higher volume, partially offset by increased fuel efficiency. Equipment rents, materials and other expenses increased $27 million, or 6.0 percent, in the quarter and $97 million, or 6.9 percent, in the nine months, primarily from higher volume and increased litigation and casualty related expenses.
Income tax expense increased $74 million, or 16.0 percent, in the quarter and $288 million, or 24.1 percent, in the nine months, primarily from higher pre-tax earnings and from changes in enacted state income tax rates. That 24.1 percent is the narrative’s figure for the increase in nine-month tax expense. The effective income tax rate for the nine months, shown separately in the earnings table, was also 24.1 percent.
Capital spending in the segment note
Note 24, the business-segment table, lists BNSF capital expenditures of $951 million in the third quarter against $998 million a year earlier, and $2,691 million for the first nine months against $2,597 million. Depreciation and amortization in that note were $703 million against $684 million for the quarter, and $2,091 million against $2,034 million for the nine months. Those lines are the segment table. They are separate from the railroad earnings narrative above.
Related reading on American-Rails.com
Sources
- Berkshire Hathaway Inc., Form 10-Q, quarterly period ended September 30, 2026, Commission file number 001-14905, berkshirehathaway.com/qtrly/3rdqtr26.pdf. Item 2, BNSF, states dollars in millions and cars and units in thousands. After-tax earnings increased 19.3 percent in the quarter and 13.0 percent in the first nine months. Net earnings $1,729 million against $1,449 million, and $4,664 million against $4,129 million. The same after-tax figures are the BNSF line in the Results of Operations segment table. Operating revenues $6,870 million against $5,988 million, and $19,391 million against $17,390 million. Car and unit volumes increased 3.9 percent and 4.2 percent. Average revenue per car or unit increased 10.5 percent and 7.1 percent. Pre-tax earnings increased 18.5 percent and 15.5 percent. Commodity narrative uses $2.5 billion, $6.9 billion, $1.9 billion, $5.6 billion, $1.5 billion, $4.1 billion, $0.8 billion, and $2.3 billion. Operating expenses increased $547 million (14.2 percent) and $1.2 billion (10.4 percent). Fuel increased $468 million (60.6 percent) and $941 million (42.0 percent). Note 24 capital expenditures for BNSF: $951 million against $998 million, and $2,691 million against $2,597 million. Depreciation and amortization: $703 million against $684 million, and $2,091 million against $2,034 million. Over 32,500 route miles in 28 states, plus operations in three Canadian provinces.
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