Can Berkshire Hathaway's Energy Subsidiary Power its Growth?

Berkshire Hathaway Inc.’s (BRK.B) subsidiary Berkshire Hathaway Energy Company (“BHE’’) is a diversified energy company with a heightened focus on renewable energy. As BHE has exposure to essential infrastructure, it offers stability to Berkshire Hathaway, a diversified conglomerate that is one of the largest property and casualty insurers globally. Net earnings from BHE attributable to Berkshire shareholders increased 53% year over year in the first quarter of 2025.

BHE has emerged as a leader in the clean energy space, with major investments in wind, solar, and geothermal power. Its utility subsidiaries—such as MidAmerican Energy and PacifiCorp—are channeling capital into renewable generation and grid modernization. Berkshire’s readiness to invest heavily in transmission infrastructure and green energy initiatives reflects its commitment to long-term sustainability and environmental leadership.

Berkshire Hathaway Energy operates on a reinvestment-based model, retaining earnings to finance infrastructure projects instead of issuing dividends. This approach aligns with Warren Buffett’s philosophy of disciplined capital deployment and intrinsic value creation. By reinvesting internally, BHE can pursue large-scale energy projects without the financial constraints faced by many public utilities.

As a regulated utility, BHE generates steady, predictable cash flows that are relatively immune to economic cycles. Its strong financial position and long-term focus make it a resilient and increasingly vital engine of growth for Berkshire Hathaway amid the ongoing global shift toward clean, electrified energy systems.

What About Competitors?

NextEra Energy NEE and Dominion Energy D are two other renewable-focused companies that give competition to Berkshire Hathaway Energy.

NextEra Energy is well-positioned in the renewable energy business, owing to early and aggressive investments in wind, solar and battery storage technologies. NextEra’s established renewable infrastructure places it ahead of competitors. This allows the company to tap into the rising demand for low-carbon energy.

Dominion plans to invest $50 billion in 2025-2029, with a long-term objective to add clean energy projects by 2036. The company aims 15% annual increase in the renewable energy capacity. Dominion also operates four nuclear power stations, which generate nearly 40% of its total production.

BRK.B’s Price Performance

Shares of BRK.B have gained 6.7% year to date, underperforming the industry.

BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.59, above the industry average of 1.56. But it carries a Value Score of D.

Estimates Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s second-quarter and third-quarter 2025 EPS has moved down 3% and 0.3%, respectively, over the past 30 days. The consensus estimate for full-year 2025 has increased 0.2% and the same for 2026 has moved 2.7% higher.
 

The consensus estimates for BRK.B’s 2025 and 2026 revenues indicate year-over-year increases. While consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.  

BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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