BNSF’s third-quarter and first nine months of 2025 financials saw the Berkshire Hathaway-owned Class I railroad post total revenue and volume gains, as well as operating ratio (OR) declines. The OR for third-quarter 2025 came in at 64.1%, down from 65.1% in third-quarter 2024; it dropped to 65.6% for this year’s first nine months, from 67.5% in the prior-year period. Total revenue saw respective gains of 2% and 1% in third-quarter and first nine months of 2025, respectively, compared with 2024. Volumes increased 1% and 2%, respectively, compared with last year.
Volumes and Revenues
Average revenue per car/unit increased 1% in the third quarter due to “core pricing gains,” according to BNSF. Average revenue per car/unit dipped 1% in the first nine months of 2025, “resulting from lower fuel surcharge revenue and unfavorable business mix, partially offset by core pricing gains,” the railroad reported.
BNSF said that revenue changes also resulted from the following:
- Consumer Products volumes increased 2% and 4%, respectively, in the third quarter and first nine months of 2025 compared with the same periods in 2024, “primarily due to higher intermodal shipments resulting from increased west coast imports and increased automotive volume from higher vehicle production.”
- Agricultural and Energy Products volumes increased slightly in both the third quarter and first nine months of 2025 compared with the same periods in 2024, “primarily due to slightly higher grain exports, partially offset by lower domestic grain and feed shipments.”
- Industrial Products volumes decreased 2% and 4%, respectively, in the third quarter and first nine months of 2025 compared with the same periods in 2024, “primarily due to lower demand for construction products and lower petroleum products shipments.”
- Coal volumes decreased 2% and increased 4%, respectively, in the third quarter and first nine months of 2025 compared with the same periods in 2024. Volumes increased in the first nine months of 2025 “primarily due to the competitive effects of higher natural gas prices,” while volumes in the third quarter decreased “due to mine production challenges.”
Expenses
BNSF reported that operating expenses for the third quarter increased slightly while decreasing 2% in the first nine months of 2025 compared with the same periods in 2024, predominantly due to the following factors:
- Fuel expense decreased 3% and 9% in the third quarter and first nine months of 2025, respectively, compared with the same periods in 2024, “primarily due to lower average fuel prices and improved fuel efficiency.” Locomotive fuel price per gallon decreased slightly in the third quarter while decreasing 9% in first nine months of 2025 compared with the same periods in 2024.
- Materials and other expense decreased 8% and 16% in the third quarter and first nine months of 2025, respectively, compared with the same periods in 2024. The declines. BNSF noted, “were primarily due to ongoing cost management efforts and litigation accruals.”
- Purchased services expense increased 7% and 5% in the third quarter and first nine months of 2025, respectively, compared with the same periods in 2024, “primarily due to higher volume related costs, continued cargo security investments, and general inflation.”
- Depreciation and amortization expense increased 6% and 4% in the third quarter and first nine months of 2025, respectively, compared with the same periods in 2024, “:primarily due to a larger asset base.”
- Compensation and benefits expense decreased slightly in third-quarter 2025 while increasing slightly in the first nine months of this year compared with the same periods in 2024. The increase in the first nine months was “primarily due to wage inflation, which was almost fully offset by employee productivity.”
- Income tax expense remained unchanged and decreased 3% in the third quarter and first nine months of 2025, respectively, compared with the same periods in 2024. The decline, BNSF said, was “primarily due to lower deferred state income tax expenses arising from reductions in enacted rates during the second quarter of 2025.”
- There were no significant changes in equipment rents or interest expense.
