Berkshire Hathaway Inc.

The stable outlook on BRK reflects S&P Global Ratings' expectation that the group will continue to report solid profitability metrics, significant cash flow generation, and strong EBITDA margins--in line with its favorable view of the group's strong competitive position, supported by a strong and diversified portfolio of various business segments and management's strategic focus on operating profitability. We also expect BRK will maintain a supportive financial policy with debt-to-EBITDA below 2.0x and funds from operations (FFO)-to-debt above 45% on a sustained basis. Furthermore, we expect the insurance segment's financial risk profile will remain very strong, anchored by risk-adjusted capitalization consistent with a 'AA' confidence level (as measured by S&P Global Ratings' capital model). We could lower the ratings over the

...Recovery toward normal levels of economic and social activity from ongoing vaccination roll-out would support revenue and earnings growth. The manufacturing, services, and retail segments, which took a bigger hit from the COVID-19 pandemic-driven economic slowdown, should benefit from the recovery as it gathers pace, although to varying degrees depending on individual businesses. S&P Global Ratings also expects the railroad segment's revenue and earnings to increase, helped by volume growth and cost control measures, whereas the insurance group is well placed to benefit from favorable pricing conditions in commercial lines and reinsurance businesses. Furthermore, the acquisition of certain businesses of Dominion Energy Inc. will add to the cash flows of the utilities and energy segment. Overall, for 2021, we expect revenue to increase around high single digits and for adjusted EBITDA margin to be in the mid-to-high teens. Acquisition opportunities have been limited in view of strong market...

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