OMAHA: Berkshire Hathaway reported a slight decline in second-quarter operating earnings Saturday, as Warren Buffett’s conglomerate flagged growing risks from escalating U.S. tariffs.
Operating profit from the company’s core businesses — including insurance, railroads, energy and retail — fell 4% year-over-year to $11.16 billion. The dip was largely driven by weaker insurance underwriting, though other segments posted gains.
In its earnings report, the Omaha-based firm issued a stark warning about the potential fallout from international trade tensions and tariffs, which it said have intensified in the first half of 2025.
“The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” Berkshire said. “Considerable uncertainty remains as to the ultimate outcome of these events.”
The company added that adverse consequences could affect “most, if not all” of its operating businesses and equity investments, potentially impacting future results.
Berkshire’s cash reserves stood at $344.1 billion, slightly below the record $347 billion reported at the end of March. The company continued its streak as a net seller of stocks for an 11th consecutive quarter, unloading $4.5 billion in equities during the first half of the year.
Despite a more than 10% drop in its share price from record highs, Berkshire did not repurchase any stock in the first six months of 2025.
The conglomerate also recorded a $3.8 billion impairment on its stake in Kraft Heinz, a long-struggling investment. Kraft Heinz is reportedly considering a spinoff of its grocery division. Two Berkshire executives resigned from the company’s board in May.
This marks the first earnings release since Buffett, 94, announced plans to step down as CEO at the end of the year. Vice Chairman Greg Abel, who oversees non-insurance operations, will succeed Buffett as chief executive. Buffett will remain chairman of the board.