Revenue pressure, margin compression, and higher operating costs weighed on the performance of Pilot’s Travel Centers in 2025, according to the latest annual report from Berkshire Hathaway. While the company remains the largest travel center network in North America, the most recent financial results show that 2025 was a demanding year marked by declining fuel prices and significantly lower profits.
The report, which includes commentary from Berkshire’s new CEO Greg Abel, provides more insight into Pilot’s operations than in prior quarters. The additional transparency offers a clearer picture of the company’s performance following Berkshire’s full acquisition of the business in early 2024.
From Partial Ownership to Full Control
Pilot became a wholly owned subsidiary of Berkshire Hathaway after the company completed its purchase of the remaining 20% stake from the Haslam family in early 2024. Berkshire had initially acquired a 38.6% interest in 2017, gradually increasing its position before taking full control.
The relationship between Berkshire and the Haslam family, founders of Pilot, was not without friction. A legal dispute filed in Delaware Chancery Court over accounting adjustments was resolved in January 2024, clearing the way for the final transaction to close. Since assuming full operational authority in 2023, Berkshire has begun integrating Pilot more closely into its portfolio strategy.
In his shareholder letter, Abel noted that Berkshire’s ability to fully manage the business was “contractually delayed until 2023,” signaling that the company now intends to take a more active role in driving operational performance and long term value.
Revenue Decline Linked to Lower Diesel Prices
Pilot’s total revenue fell to $42.2 billion in 2025, down from $46.9 billion the previous year, a drop of roughly 10%. A significant factor behind this decline was the reduction in average diesel prices.
According to data from the U.S. Energy Information Administration, the nationwide average retail diesel price in 2025 was approximately $3.65 per gallon, about 10 cents lower than in 2024. Because fuel sales account for the majority of Pilot’s revenue, even modest price changes can substantially impact top-line results.
However, lower fuel prices alone do not explain the company’s weaker financial performance.
Profits Fell Far More Than Revenue
While revenue declined by about 10%, pre tax earnings plunged 69%, falling from $614 million in 2024 to just $190 million in 2025. This sharp drop highlights the pressure on margins across both fuel and in store operations.
Berkshire attributed the earnings decline to several key factors:
- Lower wholesale fuel margins
- Reduced in-store gross margins
- Higher selling, general, and administrative expenses
- Increased employee compensation and benefits
- Rising insurance and maintenance costs
- Balance sheet adjustments tied to fuel-related accounts
Some of these headwinds were partially offset by lower interest expenses, thanks to reduced borrowing levels, as well as gains from asset sales.
Despite the earnings drop, Pilot generated $1.7 billion in net cash flow, which Abel described as an improvement over the prior year. As capital spending requirements normalize and operational efficiency improves, Berkshire expects greater cash returns from the business.
Understanding Pilot’s Business Model
Pilot Travel Centers operates the largest network of travel centers in North America, serving professional drivers, fleet operators, and the general motoring public. The company’s footprint includes:
- 675 full service travel centers in the United States
- 82 fuel only retail locations in the U.S.
- Five additional locations in Canada
- 94 sites operated through unconsolidated joint ventures
Of the total locations, 663 are company owned.
Pilot’s facilities offer more than diesel and gasoline. The company’s revenue mix includes:
- Diesel fuel sales to trucking fleets and independent drivers
- Gasoline sales to passenger vehicles
- Food and beverage services
- Quick service restaurants (often through national brand partnerships)
- Retail merchandise
- Parking, showers, and driver amenities
For the trucking industry, Pilot’s scale is particularly important. The company provides nationwide fueling solutions, fleet fuel card programs, and logistics support that enable carriers to manage costs and route planning efficiently. Its broad geographic coverage makes it a critical infrastructure partner for long haul freight operations.
Customer Base Reflects Industry Fragmentation
The trucking sector remains highly fragmented, with thousands of small and mid sized carriers operating nationwide. Reflecting that structure, Pilot reported that its top 10 diesel customers accounted for only 10% of total diesel volume, unchanged from the previous year. This diversification reduces reliance on any single fleet account and stabilizes volume risk.
At the end of 2025, Pilot employed approximately 29,300 workers, only slightly higher than the prior year, underscoring operational stability despite financial headwinds.
Pro Preference Score and Competitive Positioning
Abel’s letter emphasized Pilot’s improving Pro Preference Score, a third party measurement that tracks how often professional drivers choose Pilot over competing travel centers. The score rose to 35% in 2025, up from 27% in 2022.
While progress is evident, Abel made it clear that leadership expects more. He stated that Pilot “should be number one,” reinforcing Berkshire’s ambition to strengthen brand loyalty among professional drivers.
In a competitive landscape that includes major travel center operators and regional chains, driver experience remains a critical differentiator. Clean facilities, reliable fuel availability, ample parking, and consistent food service offerings directly influence where drivers choose to stop.
Although 2025 proved challenging, several structural advantages remain in place for Pilot:
- A dominant national footprint
- Strong cash generation
- Diversified customer base
- Backing from one of the world’s most financially stable conglomerates
With Berkshire Hathaway now fully in control, operational discipline and capital allocation are expected to sharpen. Margin improvement particularly in fuel wholesale spreads and in-store sales, will likely determine how quickly Pilot’s earnings recover.
For trucking fleets and owner operators, Pilot’s financial health matters. As one of the most significant fueling networks in the industry, its pricing strategy, infrastructure investments, and service quality directly affect carrier operating costs and route efficiency.
The 2025 results show that even market leaders are not immune to margin compression and cost inflation. However, with strong cash flow and strategic oversight from Berkshire, Pilot remains positioned to compete aggressively in the evolving North American travel center market.
