BNSF, Berkshire Hathaway's railroad, accounts for more than 10% of the conglomerate's operating income, and CEO Greg Abel expects that share to grow. In his first shareholder letter, Abel said each one-percentage-point gain in operating margin generates about $230 million of incremental operating cash flow. On BNSF's 2025 revenue of $23.5 billion and 34.5% operating margin, the article estimates roughly $8.1 billion of operating cash flow. Citing rivals Union Pacific (about 40%) and CSX (about 38%), it says a three-point margin gain to CSX's level would add roughly $700 million in pretax income a year. With 3% annual revenue growth as well, BNSF's contribution could roughly double within five years to around $10 billion per year.
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