Pilot’s results in 2025 were not as strong, according to the Berkshire letter

Berkshire Hathaway Shares More on Pilot Travel Centers in Annual Report

Berkshire Hathaway provided an expanded update on Pilot Travel Centers in its most recent annual report, offering more detail than in previous quarterly disclosures.

In early 2024, Berkshire Hathaway completed its acquisition of Pilot Travel Centers, purchasing the remaining 20% stake from the Haslam family, who originally established and managed the country’s largest travel center chain.

Since the acquisition, Berkshire’s quarterly reports had offered only limited insight into Pilot’s financial performance. However, the 2025 annual report, released on Saturday, included a more comprehensive overview, particularly in the shareholder letter written by Greg Abel, who succeeded Warren Buffett as CEO. (Buffett’s final letter the previous year did not mention Pilot specifically.)

This new information revealed that 2025 was a challenging year for Pilot. The company’s pre-tax earnings dropped significantly, with revenue falling to $42.2 billion from $46.9 billion the year before—a decline partly linked to lower average diesel prices in 2025.

According to the Department of Energy/Energy Information Administration, the average weekly retail diesel price in 2025 was $3.65 per gallon, about 10 cents less than the prior year.

Profits Decline Sharply

Pilot’s pre-tax earnings plummeted to $190 million, down from $614 million the previous year—a decrease of just over 69%.

Despite this, Abel highlighted that Pilot generated $1.7 billion in net cash flow for the year, which he described as an improvement over 2024, though he did not specify by how much.

Abel expressed optimism about the future, stating, “As operations continue to strengthen and capital needs normalize, we expect more cash to be returned to Berkshire.”

Pro Preference Score and Competitive Position

The shareholder letter also emphasized Pilot’s Pro Preference score—a third-party measure of how frequently professional drivers choose Pilot over other travel center brands. This score increased to 35% in 2025, up from 27% in 2022.

This mention was seen by some as a subtle critique of the Haslam family’s previous management.

History of the Acquisition

Berkshire Hathaway’s path to full ownership began in 2017 with the purchase of a 38.6% stake in Pilot from the Haslams. The relationship between Berkshire and the Haslam family became strained as the final 20% acquisition approached in 2024. A legal dispute in Delaware Chancery Court over accounting practices was resolved in January 2024, clearing the way for the deal to close.

Further Insights from the Annual Report

Abel’s letter noted that although Berkshire first invested in Pilot in 2017, it did not gain control until 2023. He stressed that Pilot should aim to be the top choice for professional drivers, adding that Berkshire’s ability to manage the company was contractually delayed until 2023. Abel concluded, “That mistake will not happen again.”

Pilot attributed its weaker 2025 results to lower wholesale fuel and in-store margins, as well as increased selling, general, and administrative expenses—mainly due to higher employee compensation, benefits, insurance, and maintenance costs, along with adjustments to certain fuel-related accounts. These negative impacts were partially offset by reduced interest expenses, thanks to lower borrowing, and gains from asset sales.

The company also cited lower average fuel prices as a factor in the 10% revenue decline.

Operational Details

• Pilot ended the year with approximately 29,300 employees, about 100 more than the previous year.
• The company’s top 10 diesel customers accounted for just 10% of total sales volume, unchanged from the prior year—a reflection of the fragmented trucking industry.
• As of 2025, Pilot operated 675 travel centers and 82 “fuel-only” retail locations in the U.S., plus five in Canada. Of these, 663 were company-owned. An additional 94 sites were managed through unconsolidated joint ventures.
• In 2024, the company reported 677 travel centers, 77 fuel-only outlets, 658 company-owned sites, and 97 consolidated joint ventures.