Key Facts
• August 2, 2025: Berkshire Hathaway announced Q2 results.
• $3.76 billion impairment loss on Kraft Heinz shares.
• Operating profit fell 4% to $11.16 billion due to lower insurance premiums.
• Net profit dropped 59% to $12.37 billion, impacted by impairments and reduced stock gains.
• $877 million foreign exchange loss due to a weaker dollar.
• Cash reserves near record high at $344.1 billion.
• 11 consecutive quarters of net stock sales; no share buybacks since May 2024.
• Berkshire owns 27.4% of Kraft Heinz, which is exploring strategic options amid poor performance.
• Kraft Heinz shares were previously valued above market price but adjusted due to economic uncertainty.
• Warren Buffett to step down as CEO by year-end 2025; Greg Abel to succeed him.
Summary
Berkshire Hathaway, led by Warren Buffett, reported a significant profit decline in Q2 2025, driven by a $3.76 billion impairment loss on its Kraft Heinz holdings. Operating profit fell 4% to $11.16 billion, while net profit plummeted 59% to $12.37 billion, impacted by reduced stock gains and foreign exchange losses. Despite these challenges, the company’s cash reserves reached $344.1 billion, nearing a record high. Berkshire has not repurchased shares since May 2024 and has been a net seller of stocks for 11 consecutive quarters. Kraft Heinz, 27.4% owned by Berkshire, is underperforming and considering strategic options, including potential business splits. Buffett plans to step down as CEO by the end of 2025, with Greg Abel set to take over, though Buffett will remain as chairman.
