Berkshire Hathaway Inc: 2Q26 Preview: Solid results and share buyback expected

Research evidence excerpt

Berkshire Hathaway Inc: 2Q26 Preview: Solid results and share buyback expected

BH Energy: Constructive Outlook for BHE into the print and

long term

We remain constructive on BH Energy’s (BHE) long-term outlook, supported by its mix of

regulated utility operations and clean-energy assets, which we estimate can drive an

avg. ~7.5% y/y net-income growth over the next five years. The business benefits from a

predominantly regulated rate base, deep experience in renewables and the energy

transition, and meaningful exposure to accelerating data-center demand. Notably, BHE

also controls all levels of the supply chain, which shields their customers from power and

capacity volatility the market is experiencing. We currently model revenues growing

+5% y/y in 2026E for BHE (+0.4% in 2025E vs +1% in 2024). We model operating

margin of 10.6% (from 8.8% in 2025).

Going into 2Q Earnings, our Utilities analyst Gregg Orrill provides some commentary

on BH Energy's peers, which we take into consideration for our estimates on BH Energy.

At a high level, his Utilities 2Q preview (Link) notes that growth and affordability

remain a key debate. Mgmt teams across electric utilities are increasingly focused on

meeting accelerating demand growth while minimizing customer bill impacts. Broadly,

he expects earnings growth to appear relatively modest this quarter, driven in part by

weather normalization, storm costs, and regulatory lag, while most meaningful changes

to capital plans and long-term growth outlooks are likely deferred until 3Q and 4Q

updates. Across his coverage, estimate revisions were generally incremental, with upside

driven by rate-base growth, rate case outcomes, transmission investment, and data-

center-related load opportunities. Investor focus remains squarely on data-center