10-QPeriod: Q2 FY2025

BERKSHIRE HATHAWAY INC Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 4, 2025For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) reported a solid financial performance for the quarter and six months ending June 30, 2025. The company's total revenues remained robust, driven by its diverse business segments including insurance, railroad, utilities, energy, manufacturing, and services. Net earnings attributable to Berkshire shareholders were $12.4 billion for the second quarter and $17.0 billion for the first six months of 2025. The balance sheet remains exceptionally strong, with total assets growing to $1.16 trillion and shareholders' equity increasing to $670.3 billion, underscoring the company's financial resilience and capacity for future investments and operations. Key financial highlights include a significant increase in cash and cash equivalents, which more than doubled to $96.2 billion in the Insurance and Other segment, indicating strong operational cash generation. While investment gains and losses from equity securities introduced volatility in reported earnings, the underlying operating businesses demonstrated consistent performance. The company continues to manage its debt prudently, with consolidated borrowings at $127 billion, and maintains substantial liquidity, exceeding the $30 billion threshold for share repurchases. The significant goodwill and intangible assets on the balance sheet are being closely monitored for any potential impairments, although none were identified in this period.

Financial Highlights

27 data points
Beta

Revenue

$92.52B

Net Income

$12.46B

13.5% Net Margin

Total Assets

$1.16T

Cash & Equivalents

$101.23B

Free Cash Flow

$5.23B

Financial Statements
Beta
Revenue$92.52B
Operating Expenses$79.38B
Interest Expense$1.25B
Net Income$12.46B

Key Highlights

  • 1Total revenues for the first six months of 2025 were $182.2 billion, slightly down from $183.5 billion in the prior year, reflecting diversified business segment performance.
  • 2Net earnings attributable to Berkshire shareholders were $12.4 billion for Q2 2025 and $17.0 billion for the first six months of 2025.
  • 3Shareholders' equity increased to $670.3 billion as of June 30, 2025, up from $651.7 billion at the end of 2024, demonstrating continued growth in book value.
  • 4Cash, cash equivalents, and U.S. Treasury Bills across the company totaled $339.8 billion in the insurance and other businesses as of June 30, 2025, showcasing immense liquidity.
  • 5Investment gains (losses) showed significant volatility, with a net loss of $71 million for the first six months of 2025 compared to a gain of $25.7 billion in the prior year, driven by equity security price fluctuations.
  • 6The company recorded a significant other-than-temporary impairment loss of $5.0 billion related to its investment in Kraft Heinz in the second quarter of 2025.
  • 7PacifiCorp, a subsidiary of BHE, faces substantial legal contingencies related to wildfire litigation, with estimated probable losses of $2.75 billion before taxes as of June 30, 2025.

Frequently Asked Questions

The primary reason for the substantial decrease in net earnings for the second quarter of 2025 compared to the same period in 2024 was the significant difference in investment gains (losses). In the second quarter of 2024, Berkshire reported investment gains of $23.9 billion, largely driven by unrealized gains on equity securities. In contrast, the second quarter of 2025 reported investment gains of $6.4 billion, reflecting a significant decline in this volatile component of earnings.

Berkshire recorded an other-than-temporary impairment loss of approximately $5.0 billion (pre-tax) in the second quarter of 2025 related to its investment in Kraft Heinz. This impairment significantly reduced the reported equity in earnings from this investment and impacted the overall net earnings for the period.

The most significant legal matter highlighted is the ongoing wildfire litigation involving PacifiCorp, a subsidiary of Berkshire Hathaway Energy. As of June 30, 2025, PacifiCorp had recorded cumulative estimated probable wildfire losses of approximately $2.75 billion before taxes, with $1.38 billion remaining in unpaid liabilities. While the company believes it is probable that losses will be incurred, the ultimate outcome and full range of potential additional losses are uncertain and could be material. Additionally, HomeServices of America, another BHE subsidiary, is involved in antitrust litigation related to real estate commissions, with a settlement of $250 million agreed upon, which is currently under appeal.

The company's investments in equity securities have a fair value of $267.9 billion as of June 30, 2025, down slightly from $271.6 billion at the end of 2024. The fair value of fixed maturity securities was $15.1 billion as of June 30, 2025. The market value fluctuations of these equity investments contribute significantly to the volatility of Berkshire's reported earnings, as seen in the substantial difference in investment gains between the comparable periods.