Berkshire Hathaway Q2 Earnings Decline Amid $3.8B Kraft Heinz Impairment

Berkshire Hathaway reported a decline in its second-quarter 2025 financial results, with operating earnings falling 3.8% to approximately $11.16 billion and revenue decreasing by 1.2% to $92.52 billion. The company took a significant $5 billion pre-tax impairment loss on its investment in Kraft Heinz following the stepping down of Berkshire representatives from Kraft Heinz's board and the company's announcement of potential strategic transactions. Despite these setbacks, Berkshire posted net earnings of $12.37 billion, with strong performance from its insurance operations, including growth in the insurance float to $174 billion. However, other segments like BNSF Railway and Berkshire Hathaway Energy faced challenges due to softer freight volumes and regulatory pressures. Berkshire continues to hold a substantial cash and securities reserve of $344.09 billion, underscoring its capacity to manage economic uncertainties and invest strategically. Overall, Berkshire’s diversified business model and focus on long-term value helped mitigate the impact of the Kraft Heinz write-down and other headwinds.