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BRK-B · Forward model · Pilot Travel Centers · Bull case

What has to happen in Pilot Travel Centers

Model as of

This page changes Pilot Travel Centers inside the complete BRK-B model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

BRK-B forward model
Horizon
Consolidated fair value $584.66 all other verticals held in this portfolio case
Final-quarter revenue $17.20B 15% of company revenue
Explicit segment contribution $6.07B EBITDA less segment capex, before corporate items

Two acquisitions are in the model's revenue but not yet in its earnings power, and both are disclosed. OxyChem closed on 2 January 2026 for about $9.4 billion and has been inside the manufacturing vertical for two quarters only — the industrial products group's revenue rose 27.3% 'primarily attributable to business acquisitions'. Taylor Morrison closed on 24 JULY 2026 for approximately $6.8 billion at $72.50 a share, AFTER the basis quarter, so it contributes exactly nothing to the figures this model is calibrated on and enters manufacturing in 2026 Q3 with no history at all. Add BNSF running 31.22% on higher volumes and better operating efficiency, manufacturing at a ten-quarter-high margin, and $365.5 billion of cash and Treasury Bills against a $30 billion floor — $335 billion of unconstrained buying power for a buyer who has only just started using it. WHAT THIS CASE DOES NOT REACH: it does not mark the investment portfolio up, does not assume the $335 billion is deployed at any particular return, and does not capitalise a single dollar of investment gain. Result: $584.66 a share, +16.1%, at an 8.25% cost of equity and a 14x exit P/E.

Pilot Travel Centers

Basis quarter$14.93B
Final quarter$17.20B
Implied CAGR+3%
Final revenue mix15%

Travel-centre fuel and merchandise. $14,932M of revenue and $290M of pre-tax earnings in the basis quarter. Revenue here is a diesel price rather than a volume — the line moved from $10,109M to $14,932M year on year while pre-tax earnings moved from $119M to $290M — and pre-tax earnings are the thinnest and least stable in the company: three of the five quarters before this one were loss-making or break-even.

Last four quarters
2025 Q3 $10.88B Reported
2025 Q4 $10.78B Estimated
2026 Q1 $11.24B Reported
2026 Q2 $14.93B Reported
FuelNon-fuel merchandise and services
Sequential growth 0.0%/qtr decaying toward +0.5% 0.0%. TTM revenue is +14.09% but that is the diesel price, not the business; a flat opening rate is the honest one.
Pilot Travel Centers

Latest: $17.20B (2031Q2E)

Period Value
2022Q1 $0.00
2022Q2 $0.00
2022Q3 $0.00
2022Q4 $0.00
2023Q1 $9.51B
2023Q2 $14.75B
2023Q3 $13.17B
2023Q4 $14.31B
2024Q1 $12.50B
2024Q2 $13.00B
2024Q3 $10.63B
2024Q4 $10.76B
2025Q1 $10.43B
2025Q2 $10.11B
2025Q3 $10.88B
2025Q4 $10.78B
2026Q1 $11.24B
2026Q2 $14.93B
2026Q3E $14.99B
2026Q4E $15.06B
2027Q1E $15.14B
2027Q2E $15.22B
2027Q3E $15.31B
2027Q4E $15.41B
2028Q1E $15.51B
2028Q2E $15.62B
2028Q3E $15.74B
2028Q4E $15.85B
2029Q1E $15.97B
2029Q2E $16.10B
2029Q3E $16.23B
2029Q4E $16.36B
2030Q1E $16.49B
2030Q2E $16.63B
2030Q3E $16.77B
2030Q4E $16.91B
2031Q1E $17.05B
2031Q2E $17.20B

Assumptions & reasoning

  • 1.94% is the best margin in two years and it follows three straight loss-making or break-even quarters at -0.16%, -0.74% and -0.44%. The trailing-twelve-month margin is 0.30% and the two-year mean is 0.91%. Terminal is set at 1.00%, near the two-year figure — treating the basis quarter as a run rate would be the single most aggressive assumption available anywhere in this model, and it is not made.
  • ASEASONAL, decisively. Factors [0.9861, 1.0201, 0.9859, 1.0080] on only ten windows, signal 0.0343 against a spread of 0.1139 — the spread is 3.3x the signal. Whatever pattern is in a travel-centre year is buried under the diesel price.
  • HISTORY: the 2022 quarters are explicit ZEROS flagged estimated, because Berkshire did not consolidate Pilot at all until 31 January 2023 — it held a 38.6% equity-method stake and no Pilot revenue entered consolidated revenue. They are padded rather than omitted so the consolidated history keeps its 2022 quarters. The 2023 Q1 figure of $9,508M then covers about TWO months of operations, not three, which is why the step from 2022 Q4 to 2023 Q2 in the rendered consolidated series is an accounting event and not growth.
  • Segment earnings before income taxes are struck after this segment's OWN interest expense. The seven segments' interest lines sum to $1,437M in the basis quarter against $1,335M of CONSOLIDATED interest expense, so every dollar of Berkshire's interest cost is already charged inside a vertical margin. That is why no debt is netted in spec.netCash: subtracting the $128,599M of borrowings as well would take the same cost twice.
  • Berkshire files no fourth-quarter report. Every Q4 point here is the annual figure less the nine-month figure from that year's third-quarter 10-Q and is flagged estimated for that reason; Q1, Q2 and Q3 are read directly from the filed segment notes and are not.
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