Key Facts
• August 2, 2025: Berkshire Hathaway reported a 3.79% drop in Q2 operating profit.
• Q2 operating profit: $11.16 billion, down from $11.6 billion year-over-year.
• H1 2025 operating profit: $20.8 billion, an 8.8% decline from the previous year.
• Q2 net profit: $12.37 billion, a 59% year-over-year decrease.
• Insurance underwriting pre-tax profit: $2.53 billion, down nearly 11% from $2.84 billion.
• Cash reserves fell to $344 billion by July, down from $347 billion in May.
• $3.8 billion loss recorded on Kraft Heinz stock holdings.
• Warren Buffett, 94, announced plans to retire as CEO by year-end 2025.
• Greg Abel, Vice Chairman of Non-Insurance Operations, named as Buffett’s successor.
• Buffett previously admitted mistakes in Kraft Heinz investments in 2019.
• U.S. trade tensions escalate with new tariffs effective August 7, 2025.
Summary
Berkshire Hathaway, led by Warren Buffett, reported a 3.79% decline in Q2 2025 operating profit, marking the first earnings release since Buffett announced his retirement plans. Operating profit for the first half of 2025 dropped 8.8% year-over-year to $20.8 billion, while Q2 net profit plummeted 59% to $12.37 billion. The company’s insurance underwriting pre-tax profit fell nearly 11%, and cash reserves decreased to $344 billion by July. Additionally, Berkshire disclosed a $3.8 billion loss on Kraft Heinz stock, a past investment Buffett acknowledged as flawed. Greg Abel has been named as Buffett’s successor. Meanwhile, U.S. trade tensions intensified with new tariffs set to take effect on August 7, 2025.
