Berkshire Hathaway reported a decline in net earnings for the second quarter and first half of 2025, largely driven by a reduction in investment gains and a write-down on its stake in Kraft Heinz.
According to its latest earnings release, net income attributable to Berkshire shareholders totalled US$12.37 billion for the second quarter, down from US$30.35 billion in the same period last year. For the first six months of 2025, net income was US$16.97 billion, compared to US$43.05 billion a year earlier.
The insurance segment was something of a mixed bag. US insurance brand GEICO saw its second-quarter pre-tax underwriting earnings rise to US$1.82 billion – however, that contrasted with drops for the company’s primary and reinsurance units. Berkshire Hathaway primary group saw its pretax results slip to US$63 million, down from US$279 million a year earlier, while the reinsurance group's pretax earnings tumbled to US$650 million from US$782 million.
The overall 2025 results included a US$3.76 billion after-tax impairment on Berkshire’s investment in Kraft Heinz. The company noted that such charges can materially affect quarterly earnings, even though they may not reflect ongoing operating performance.
Operating earnings, which exclude changes in the value of investment holdings, were US$11.16 billion for the second quarter, slightly lower than the US$11.60 billion reported for Q2 2024. For the first half of 2025, operating earnings fell to US$20.80 billion from US$22.82 billion a year earlier.
Changes in the value of Berkshire’s equity portfolio also affected reported earnings. In accordance with GAAP requirements, unrealised gains and losses from equity investments are included in net earnings. The company recorded US$1.5 billion in unrealised investment gains in Q2 2025, but a US$5.9 billion loss for the first six months. In comparison, 2024 included unrealised losses of US$28.2 billion in the second quarter and US$37.9 billion for the first half.
Berkshire also reported realised after-tax investment gains of US$4.2 billion in the second quarter and US$6.6 billion for the half-year, compared to US$47.0 billion and US$58.2 billion in the same periods of 2024.
Earnings per Class A share declined to US$8,601 for Q2 2025, down from US$21,122 a year earlier. For the first half, Class A share earnings were US$11,801, compared to US$29,936 in 2024. Earnings per Class B share, which represent 1/1,500th of a Class A share, were US$5.73 for the quarter and US$7.87 for the half-year, down from US$14.08 and US$19.96, respectively.
As of June 30, 2025, Berkshire had 1,438,223 Class A equivalent shares outstanding. Insurance float, or the net liabilities the company assumes under its insurance contracts, stood at approximately US$174 billion, up US$3 billion since the end of 2024.
