Berkshire Hathaway, the investment conglomerate led by Warren Buffett, announces a 4% decrease in its quarterly operating earnings for Q2.
In a mixed bag of results, Berkshire Hathaway (BRK.B) reported a decrease in operating earnings for the second quarter of 2025, while its subsidiary, BNSF Railway, saw a significant increase in earnings before taxes.
Warren Buffett, the company's long-standing CEO, announced his plans to step down at the end of the year. His successor, Greg Abel, who serves as the vice chairman of non-insurance operations, was named earlier this year.
Berkshire Hathaway's operating earnings for the second quarter decreased by 3.79% compared to the same time last year, totalling $11.16 billion, a drop from $11.6 billion a year earlier. The decline was mainly due to lower insurance underwriting profits and significant foreign currency exchange losses. Berkshire's insurance underwriting businesses earned $2.53 billion before income taxes, a nearly 11% drop from the same quarter last year.
On the other hand, BNSF Railway's earnings before taxes saw a substantial increase of 11.5% compared to the same quarter a year ago, amounting to $2.7 billion.
The second quarter net income for Berkshire Hathaway fell to roughly $12.37 billion, down 59% from the second quarter last year. This decrease is consistent with the overall operating earnings decline.
The clothing and toy brands under Berkshire Hathaway, including Fruit of the Loom, Garan, and Jazwares, have experienced year-to-date revenue declines due to delays in orders and shipments caused by international trade policies and tariffs. Specifically, Fruit of the Loom, Garan, and Jazwares have seen declines of 11.7%, 10.1%, and 38.5% respectively.
The new tariff rates on various US trading partners, announced on August 7, have contributed to an uncertain outlook according to Berkshire Hathaway. The company's financial release did not mention specific effects from tariffs on earnings or any CEO transition-related factors.
In other positive news, Berkshire Hathaway Energy's net income has climbed 18% compared to the same quarter a year ago. Furthermore, the stock of Berkshire Hathaway is up 4.82% since the start of 2025.
This article has been updated with additional content.
[1] Source: Berkshire Hathaway's 2025 Q2 financial release.
The decrease in Berkshire Hathaway's operating earnings, observed in the second quarter of 2025, is not unique to the company, as it was also seen in the finance sector, specifically affecting businesses like insurance underwriting.
The significant increase in earnings before taxes at Berkshire Hathaway's subsidiary, BNSF Railway, indicates a positive growth trend within the industry of logistics and transportation, despite the uncertainties presented by recent tariff changes.
