Manufacturing, Service & RetailingNarrow moat

Berkshire Hathaway (BRK.B) — moat facet

$214 billion of revenue at 8%: manufacturing earns 16 cents on the dollar, and two giant distributors earn about one.

Manufacturing, service and retailing is the largest part of Berkshire by revenue and the lowest-margin. It brought in about $214 billion in 2025 and earned about $17.5 billion before tax, 8.2%; after tax it contributed $13,647 million.12 Nearly three-quarters of the pre-tax profit comes from manufacturing, 37% of the revenue.3

Pre-tax margin by business, 2025 (%)Manufacturing16.0%Service & retailing9.5%McLane1.3%Pilot0.5%Segment pre-tax earnings / revenue; Berkshire Form 10-K FY2025
Two distributors with 43% of the revenue earn about a cent on the dollar.

What is inside the line is four reporting groups. Manufacturing, from industrial parts to building products and consumer goods, brought in $78,487 million and earned $12,571 million pre-tax, 16.0%. Service and retailing brought in $42,647 million and earned $4,039 million, 9.5%. McLane, the grocery and food-service distributor, brought in $50,998 million and earned $676 million. Pilot's truck stops brought in $42,198 million and earned $190 million.45

The history in the filings is growth by acquisition. The group's revenue was about $140.8 billion in 2018, $134.1 billion in 2020 and $167.3 billion in 2022, then jumped to $219.7 billion in 2023 when Pilot was consolidated.6789 In 2026 OxyChem, a basic-chemicals maker bought for about $9.4 billion on 2 January, joined the manufacturing businesses.10

It is paid the way any manufacturer or retailer is: per product sold, at market prices. That makes the line cyclical. Manufacturing earned $9,366 million pre-tax in 2018 and $8,010 million in 2020, a recession year, then $11,177 million in 2022 and $12,571 million in 2025.111213

Profitability differs across the four groups. Pilot's pre-tax earnings fell from $968 million in 2023 to $190 million in 2025 as its revenue fell from $51.7 billion to $42.2 billion.1415 McLane earns barely more than a cent on each dollar. Manufacturing earns about 16 cents and is where the group's value lies.16

Growth has returned in 2026. The group's revenue rose 10.9% in the first half to $116.3 billion, and its pre-tax earnings rose 16.5% to $10.1 billion; in the second quarter manufacturing's pre-tax earnings rose 26.8%.17 After-tax earnings were $4,470 million in the second quarter, up 24%.18 The 10-Q puts the group's pre-tax margin at 8.7% for the half, against 8.3%.19

The outlook depends on the economy more than anything Berkshire does. These businesses sell to consumers, builders and industry, and they are run by their own managers. Manufacturing's capital spending in 2025, $2.7 billion, roughly matched its $2.5 billion of depreciation; service and retailing spent $2.6 billion against $1.6 billion.20

This is a narrow moat as a whole: many of the individual companies have strong franchises, but the group's margin is held down by two very large, very thin distribution businesses. The number to follow is manufacturing's pre-tax margin, 16.0% in 2025. Above 16% with OxyChem inside it would show the purchase adding to the best part of the group; below 15% would mean it came at a cost.

Moat trajectory: Widening

First-half 2026 revenue up 10.9% and pre-tax earnings up 16.5%, with OxyChem added to manufacturing.

The number that tests this moat
Moat Explorer calc
Manufacturing pre-tax margin
16.0% in 2025 ($12,571M on $78,487M)

The best part of the group. Above 16% with OxyChem inside would show the purchase adding; below 15% would mean it came at a cost.

How it's calculated: 12,571 / 78,487.
Source: Berkshire Form 10-K FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIt brought in about $214 billion in 2025 and earned about $17.5 billion before tax, 8.2%; after tax it contributed $13,647 million.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  2. Moat Explorer calcIt brought in about $214 billion in 2025 and earned about $17.5 billion before tax, 8.2%; after tax it contributed $13,647 million.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. Moat Explorer calcNearly three-quarters of the pre-tax profit comes from manufacturing, 37% of the revenue.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  4. ReportedPilot's truck stops brought in $42,198 million and earned $190 million.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  5. Moat Explorer calcPilot's truck stops brought in $42,198 million and earned $190 million.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  6. ReportedThe group's revenue was about $140.8 billion in 2018, $134.1 billion in 2020 and $167.3 billion in 2022, then jumped to $219.7 billion in 2023 when Pilot was consolidated.
    Berkshire Hathaway Form 10-K, FY2020 - after-tax earnings by line 2018-2020 (railroad $5,481M/$5,161M, manufacturing, service and retailing $9,372M/$8,300M, insurance investment income $5,530M/$5,039M in 2019/2020); float $138 billion; Reinsurance Group underwriting -$1,109M/-$1,472M/-$2,700M; impairments $3.0 billion (2018) and $11.0 billion (2020); $24.7 billion of share repurchases in 2020; insurance and other cash $135.0 billion; about 360,000 employees; acquisitions of businesses net of cash $3,279M/$1,683M/$2,532M — FY2018-FY2020 · publ. February 2021 · source ↗
  7. ReportedThe group's revenue was about $140.8 billion in 2018, $134.1 billion in 2020 and $167.3 billion in 2022, then jumped to $219.7 billion in 2023 when Pilot was consolidated.
    Berkshire Hathaway Form 10-K, FY2022 - float $164 billion (2022) and $147 billion (2021); after-tax earnings by line 2020-2022 (insurance investment income $6,484M in 2022); pre-tax underwriting -$98M in 2022; Reinsurance Group -$930M (2021) and +$1,389M (2022); $7.9 billion of share repurchases in 2022; insurance and other cash $125.0 billion; about 383,000 employees; Alleghany acquired for about $11.5 billion; acquisitions of businesses net of cash $456M (2021) and $10,594M (2022) — FY2020-FY2022 · publ. February 2023 · source ↗
  8. ReportedThe group's revenue was about $140.8 billion in 2018, $134.1 billion in 2020 and $167.3 billion in 2022, then jumped to $219.7 billion in 2023 when Pilot was consolidated.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  9. Moat Explorer calcThe group's revenue was about $140.8 billion in 2018, $134.1 billion in 2020 and $167.3 billion in 2022, then jumped to $219.7 billion in 2023 when Pilot was consolidated.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  10. ReportedIn 2026 OxyChem, a basic-chemicals maker bought for about $9.4 billion on 2 January, joined the manufacturing businesses.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
  11. ReportedManufacturing earned $9,366 million pre-tax in 2018 and $8,010 million in 2020, a recession year, then $11,177 million in 2022 and $12,571 million in 2025.
    Berkshire Hathaway Form 10-K, FY2020 - after-tax earnings by line 2018-2020 (railroad $5,481M/$5,161M, manufacturing, service and retailing $9,372M/$8,300M, insurance investment income $5,530M/$5,039M in 2019/2020); float $138 billion; Reinsurance Group underwriting -$1,109M/-$1,472M/-$2,700M; impairments $3.0 billion (2018) and $11.0 billion (2020); $24.7 billion of share repurchases in 2020; insurance and other cash $135.0 billion; about 360,000 employees; acquisitions of businesses net of cash $3,279M/$1,683M/$2,532M — FY2018-FY2020 · publ. February 2021 · source ↗
  12. ReportedManufacturing earned $9,366 million pre-tax in 2018 and $8,010 million in 2020, a recession year, then $11,177 million in 2022 and $12,571 million in 2025.
    Berkshire Hathaway Form 10-K, FY2022 - float $164 billion (2022) and $147 billion (2021); after-tax earnings by line 2020-2022 (insurance investment income $6,484M in 2022); pre-tax underwriting -$98M in 2022; Reinsurance Group -$930M (2021) and +$1,389M (2022); $7.9 billion of share repurchases in 2022; insurance and other cash $125.0 billion; about 383,000 employees; Alleghany acquired for about $11.5 billion; acquisitions of businesses net of cash $456M (2021) and $10,594M (2022) — FY2020-FY2022 · publ. February 2023 · source ↗
  13. ReportedManufacturing earned $9,366 million pre-tax in 2018 and $8,010 million in 2020, a recession year, then $11,177 million in 2022 and $12,571 million in 2025.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  14. ReportedPilot's pre-tax earnings fell from $968 million in 2023 to $190 million in 2025 as its revenue fell from $51.7 billion to $42.2 billion.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
  15. Moat Explorer calcPilot's pre-tax earnings fell from $968 million in 2023 to $190 million in 2025 as its revenue fell from $51.7 billion to $42.2 billion.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  16. Moat Explorer calcManufacturing earns about 16 cents and is where the group's value lies.
    Moat Explorer calculation from Berkshire's Forms 10-K FY2016-FY2025 and 10-Qs for Q1 and Q2 2026: operating earnings = net earnings less after-tax investment gains and the 2025 impairments (FY2023 $37,350M, FY2024 $47,437M, FY2025 $44,486M; Q2 2026 $12,983M vs $11,160M; H1 2026 $24,329M vs $20,801M); consolidated cash and Treasury Bills $397.4B (31 March 2026) and $365.5B (30 June 2026); underwriting as a share of float; OxyChem at 2.6% of the cash pile; five-line after-tax earnings sums — 2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  17. ReportedThe group's revenue rose 10.9% in the first half to $116.3 billion, and its pre-tax earnings rose 16.5% to $10.1 billion; in the second quarter manufacturing's pre-tax earnings rose 26.8%.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
  18. ReportedAfter-tax earnings were $4,470 million in the second quarter, up 24%.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
  19. ReportedThe 10-Q puts the group's pre-tax margin at 8.7% for the half, against 8.3%.
    Berkshire Hathaway Form 10-Q, quarter ended 30 June 2026 - after-tax earnings (underwriting $1,731M vs $1,992M, insurance investment income $3,059M vs $3,367M, BNSF $1,558M vs $1,466M, BHE $891M vs $702M, manufacturing, service and retailing $4,470M vs $3,601M, investment gains $12,684M, net earnings $25,667M); GEICO pre-tax underwriting $994M vs $1,821M, combined ratio 91.2% vs 83.5%; Reinsurance $913M vs $650M; float $177.5B; insurance and other cash and Treasury Bills net $359.2B; consolidated cash $35,096M + $324,905M + $5,513M; equity securities $323.8B; H1 purchases of equities $39.4B and sales $27.8B; acquisitions of businesses net of cash $9.7B; $4.8B of treasury stock acquired in H1, most in Q2; OxyChem about $9.4B on 2 January; Taylor Morrison agreed 31 May at $72.50 a share, about $6.8B, closed 24 July; notes payable of insurance and other $43.3B; shareholders' equity $747.9B; BNSF revenue $6,601M vs $5,769M, fuel $1,173M vs $698M; BHE revenue $6,735M vs $6,418M; investment income down 9.1% on lower interest rates — Q2 2026 · publ. August 2026 · source ↗
  20. ReportedManufacturing's capital spending in 2025, $2.7 billion, roughly matched its $2.5 billion of depreciation; service and retailing spent $2.6 billion against $1.6 billion.
    Berkshire Hathaway Form 10-K, FY2025 - float $176 billion; after-tax earnings 2023-2025 (underwriting $7,258M, insurance investment income $12,513M, BNSF $5,476M, BHE $3,979M, manufacturing, service and retailing $13,647M in 2025; net earnings $66,968M incl. $30,737M investment gains and an $8,255M Kraft Heinz/Occidental impairment); revenues $371,444M; segment revenues (insurance $104,212M incl. premiums earned $88,902M and investment income $15,310M, BNSF $23,533M, BHE $26,297M, manufacturing $78,487M, service and retailing $42,647M, McLane $50,998M, Pilot $42,198M); pre-tax underwriting GEICO $6,824M, Primary $785M, Reinsurance $1,851M; GEICO combined ratio 84.7% (81.5%, 90.7%) and loss ratio 72.3%; capex $20,927M and D&A by segment; identifiable assets and goodwill by segment; 65% of equity fair value in five companies; equity securities $297.8B ($271.6B); BNSF volumes by business group; no share repurchases in 2025; no cash dividend since 1967; about 387,800 employees — FY2023-FY2025 · publ. March 2026 · source ↗
Sources
Generated September 23, 2026