Berkshire Hathaway reported a 4% year-over-year drop in second-quarter operating earnings on Saturday, as Warren Buffett’s conglomerate signaled growing pressure from escalating U.S. tariffs.
The company’s operating profit — derived from wholly owned businesses such as insurance, railroads, energy, manufacturing, and retail — fell to $11.16 billion. While most segments posted profit gains, a decline in insurance underwriting weighed on overall results.
In its earnings report, the Omaha-based giant highlighted the mounting risks posed by U.S. trade tensions and tariffs under President Donald Trump’s administration.
“The pace of developments, particularly in international trade policies and tariffs, accelerated through the first half of 2025,” the report said. “There remains considerable uncertainty about how these events will ultimately unfold.”
Berkshire cautioned that adverse effects could hit many of its businesses and equity investments, potentially disrupting future performance.
The firm’s cash reserves stood at $344.1 billion — slightly below the record $347 billion in March. Berkshire continued to reduce its stock holdings, selling $4.5 billion worth of equities in the first half of the year, marking its 11th straight quarter as a net seller.
Notably, the conglomerate refrained from repurchasing any of its own shares during the period, despite a more than 10% decline in its stock price from all-time highs.
Berkshire also recorded a $3.8 billion write-down on its long-struggling Kraft Heinz investment. The consumer products company is reportedly exploring a spinoff of its grocery division. In May, two Berkshire representatives stepped down from Kraft Heinz’s board.
This marks Berkshire’s first earnings release since 94-year-old Buffett confirmed he will step down as CEO at the end of 2025. Vice-chairman Greg Abel, who oversees non-insurance operations, is set to take the helm, while Buffett will remain chairman of the board.
