Berkshire Hathaway experiences drop in earnings for Q2 2025

Berkshire's operating profit dipped 4% in the second quarter due to trade issues.

Berkshire Hathaway sees decline in Q2 earnings amid trade tensions

Berkshire Hathaway reported a 4% decline in operating earnings for the second quarter of 2025, bringing profits down to $11.16 billion. This downturn stems largely from challenges in insurance underwriting amidst rising tariffs imposed by the U.S. The company acknowledged the adverse effects of these tariffs on its business operations, citing significant uncertainty over future trade policies. Despite the reduced profits, sectors such as energy and manufacturing reported higher overall earnings. Notably, the company has refrained from stock repurchase activities and remains cautious about its cash reserves. Warren Buffett, who is stepping down as CEO by the end of the year, continues to oversee operations as chairman.

The pressures on Berkshire Hathaway reflect broader economic factors affecting many U.S. corporations. The company's cautious stance on stock repurchases, even as share prices drop, highlights its strategy in uncertain times. Investors may be concerned about the potential long-term impacts of tariffs on Berkshire's diverse portfolio. As Buffett prepares to pass leadership to Greg Abel, the conglomerate's focus on adaptability in a shifting economic landscape will be essential for maintaining investor confidence moving forward.

Highlights

The coming months will be crucial as Berkshire navigates ongoing trade tensions under new leadership.