BNSF boosts revenue, income in Q1; parent company CEO Buffett to step down

BNSF Railway Co. reported first-quarter 2025 revenue rose 1% to $5.7 billion and net income climbed 6% to $1.2 billion compared to the same quarter a year ago.

BNSF's Q1 2025 operating income increased 6% to $1.8 billion, while the operating ratio fell 1.6% to 67.9% year over year.

The revenue increase was primarily due to a 4% increase in unit volume and core pricing gains, partially offset by a decrease in average revenue per car/unit resulting from lower fuel surcharge revenue and unfavorable business mix, according to a financial statement posted on BNSF's website.

Revenue changes also resulted from the following:

• Consumer products volumes increased 9% Q1 2025 primarily because of higher intermodal shipments resulting from increased West Coast imports, along with an increase in automotive volume from higher vehicle production;
• Agricultural and energy products volumes decreased slightly primarily due to lower volumes of domestic grains; 
• Industrial products volumes fell 6% primarily due to weather related impacts and lower demand for construction and building products; and 
• Coal volumes rose 2% due to increased demand from higher natural gas prices.

BNSF issued its earnings statement as part of the May 3 annual meeting of its parent company, Berkshire Hathaway Inc. At that meeting, Berkshire Hathaway CEO Warren Buffett announced he would step down as CEO and would be succeeded by Greg Abel, vice chairman of noninsurance operations. Yesterday, the board voted unanimously to make Abel president and CEO on Jan. 1, 2026, and for Buffett to remain as chairman.

Although Buffett is 94 and Abel was announced as his successor in 2021, Buffett's announcement came as a surprise to shareholders, according to news media at the meeting. Berkshire Hathaway acquired BNSF in February 2010, buying all of its shares and taking the company private.

During the annual meeting, Buffett criticized President Donald Trump's trade policy, without naming him, and the president's recently announced tariffs.

“Trade should not be a weapon,” Buffett said, according to CNBC. "I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”

Buffett also said that trade and tariffs can be considered an act of war.

“And I think it’s led to bad things. Just the attitudes it’s brought out. In the United States, I mean, we should be looking to trade with the rest of the world and we should do what we do best and they should do what they do best.”