Berkshire Hathaway's manufacturing segment contributes 20% of revenues, supporting investments and strategic acquisitions

From Zacks Investment Research: 2025-07-02 13:34:00

Berkshire Hathaway’s manufacturing segment accounted for 20% of total revenues in Q1 2025, providing earnings stability and supporting investments in insurance and public equities. Assets like Precision Castparts enhance BRK.B’s value in high-barrier markets. Warren Buffett’s strategy of acquiring businesses with predictable earnings is exemplified by Precision Castparts, despite challenges in the aerospace sector. The manufacturing segment drives sustainable growth through job creation, domestic production reinvestment, and strategic acquisitions. Competitors like 3M and Honeywell also benefit from strong performance in key segments and market leadership. BRK.B stock has gained 6.7% YTD but trades at a higher price-to-book value ratio compared to the industry average. The Zacks Consensus Estimate for BRK.B’s 2025 and 2026 revenues suggests growth, with EPS estimates showing a mix of decline and increase. The stock currently carries a Zacks Rank #3 (Hold).



Read more at Zacks Investment Research: Can Berkshire Hathaway’s Manufacturing Subsidiary Power its Growth? – July 2, 2025