Berkshire Hathaway BRK earnings Q2 2025
Warren Buffett’s Berkshire Hathaway reported a slight decline in second-quarter operating earnings as the conglomerate warned of negative impacts from steep U.S. tariffs. The operating profit, which includes earnings from wholly owned businesses like insurance and railroads, dropped by 4% year over year to $11.16 billion in the second quarter. While insurance underwriting saw a decline, other sectors such as railroad, energy, manufacturing, service, and retailing reported higher profits compared to the previous year.
In its earnings report, Berkshire highlighted the potential adverse effects of President Donald Trump’s tariffs on its various businesses. The company expressed concerns about the uncertainty surrounding international trade policies and tariffs, stating that these events could significantly impact its operating businesses and investments in equity securities.
Despite maintaining a cash hoard of $344.1 billion, Berkshire was a net seller of stocks for the 11th consecutive quarter, selling off $4.5 billion in equities during the first half of 2025. The conglomerate also refrained from repurchasing any stock in the first six months of the year, even as share prices declined by over 10% from their peak.
Berkshire incurred a loss of $3.8 billion from its investment in Kraft Heinz, a struggling asset for the conglomerate. Kraft Heinz has been considering a spinoff of its grocery business, and two Berkshire executives resigned from the company’s board in May. This earnings report comes in the wake of Buffett’s announcement that he will step down as CEO at the end of 2025. Greg Abel, Berkshire’s vice-chairman of non-insurance operations, is slated to take over as CEO, with Buffett remaining as chairman of the board.
The latest financial results from Berkshire Hathaway underscore the ongoing challenges posed by global trade tensions and the need for strategic decision-making in navigating a volatile market environment. Buffett’s leadership transition and the company’s shifting investment strategies will be closely watched as Berkshire continues to adapt to changing economic conditions.
