Berkshire Hathaway Q2 Earnings: Mixed Results, $344B Cash Hoard, and No Buybacks Amid Market Uncertainty

Berkshire Hathaway's Q2 operating earnings fell 3.8% due to weak insurance underwriting and a $3.8 bln impairment from its Kraft Heinz stake. BNSF Railway saw 19.5% growth, while Berkshire Hathaway Energy delivered 7.2% growth. The firm did not repurchase shares and may do so if the price is below its intrinsic value. Berkshire's cash reserves reached $344.1 bln, fueling speculation on potential acquisitions.

Berkshire Hathaway reported a 3.8% decline in its second-quarter operating earnings, primarily due to weak insurance underwriting and a significant impairment charge from its Kraft Heinz stake. The Omaha-based conglomerate's operating profit from wholly owned businesses, including insurance and railroads, dipped to $11.16 billion [1].

Insurance underwriting profit declined 12%, largely due to weaker results from reinsurance operations, while Geico posted a modest 2% profit rise. BNSF Railway, however, saw a 19% profit increase, buoyed by lower fuel costs, and Berkshire Hathaway Energy delivered a 7% gain [2]. Despite these mixed results, Berkshire Hathaway's cash reserves reached $344.1 billion, fueling speculation about potential acquisitions.

The company wrote down a $3.8 billion loss from its Kraft Heinz stake, marking the second major writedown on the struggling food giant. Kraft Heinz's recent announcement of possible strategic changes, including a breakup, prompted Berkshire to revalue its 27.4% stake, deeming the gap between book value and market price "other-than-temporary" [2].

Berkshire Hathaway did not repurchase shares in the first half of 2025, even as its stock declined more than 10% from a record high. The conglomerate continues to amass cash and has recorded its 11th straight quarter of selling more stocks than it bought [1]. Despite the decline, Berkshire's stock has dropped over 12% since Warren Buffett announced his plans to step down as CEO at the end of 2025 [2].

Berkshire Hathaway's insurance and reinsurance operations saw net underwriting earnings of $2 billion and $3.3 billion for the second quarter and first half of 2025, respectively, both down on the comparable prior year periods. The firm's primary insurance arm felt the impacts from catastrophe events and increased loss estimates for prior accident years' claims [3].

References:
[1] https://www.cnbc.com/2025/08/02/berkshire-hathaway-brk-earnings-q2-2025.html
[2] https://von.gov.ng/berkshire-hathaway-takes-3-76b-hit-on-kraft-heinz/
[3] https://www.reinsurancene.ws/berkshire-hathaways-re-insurance-underwriting-earnings-strong-despite-higher-losses-in-h125/