Berkshire Hathaway reported a modest decline in second-quarter operating earnings on Saturday, as Warren Buffett’s conglomerate continues to brace for potential fallout from escalating U.S. tariffs.
Operating earnings—which include results from Berkshire’s core businesses such as insurance, railroads, and utilities—fell 4% year over year to $11.16 billion. While insurance underwriting results dragged overall performance, other divisions including railroads, energy, manufacturing, services, and retail posted improved profits compared to the same quarter last year.
The Omaha-based company reiterated its concerns about the impact of President Donald Trump’s tariff policies. “The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” the firm said in its earnings release. “Considerable uncertainty remains as to the ultimate outcome of these events.”
“It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results,” Berkshire added.
Despite the economic uncertainty, the company’s cash reserves remained near record highs at $344.1 billion—slightly below the $347 billion held at the end of Q1. Berkshire was a net seller of equities for the 11th consecutive quarter, unloading $4.5 billion in stocks over the first half of the year.
Notably, Berkshire did not repurchase any of its own shares during the first six months of 2025, even as the stock declined more than 10% from its previous high.
The company also reported a $3.8 billion impairment on its long-held stake in Kraft Heinz, which continues to underperform. Kraft Heinz is reportedly considering spinning off its grocery unit, and in May, two Berkshire-appointed directors resigned from the board.
This earnings release is the first since Buffett, 94, announced he will step down as CEO at the end of 2025. Greg Abel, vice chairman of non-insurance operations, will take over as CEO, while Buffett will stay on as chairman of the board.
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