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Berkshire Hathaway Q2 2025 Performance and Market Capitalisation
Berkshire Hathaway, the multinational conglomerate known for its diverse business operations, has released its Q2 2025 earnings report. The company, which operates in insurance, railroads, energy, and manufacturing, among other sectors, has shown resilience despite some underwriting and investment income pressures.
In the insurance sector, overall underwriting profit fell about 9 to 12 percent. Commercial primary insurance underwriting profits dropped sharply by 77%, but GEICO stood out, improving personal auto underwriting profit and posting an impressive combined ratio of 83.5%. Catastrophe losses, notably from Southern California wildfires, impacted results, but investment income on the insurance float grew slightly due to higher interest rates.
BNSF Railroad, a significant contributor to Berkshire's earnings, saw a 19% year-over-year growth in operating earnings, driven by increased freight volumes and operational efficiencies. Berkshire Hathaway Energy also reported a 7% increase in earnings, reflecting improved utility performance and strong energy demand. The regulated nature of this business provides stability despite tariff uncertainty.
The manufacturing, service, and retailing segment grew its earnings by 6.5%, supported by strength in consumer and industrial products, partly offsetting insurance weakness.
Financially, Berkshire reported operating earnings of about $11.16 billion for the quarter, a 3.8% decline year-over-year but ahead of expectations. Net income attributable to shareholders, however, saw a large decrease compared to the prior year, mostly due to reduced investment gains and a Kraft Heinz write-down.
Despite these results, Berkshire Hathaway remains one of the few publicly traded companies valued at over $1 trillion, a testament to its diversified business model. Its valuation is supported by a massive stock portfolio worth around $292 billion, cash holdings of approximately $344 billion, and over 60 operating businesses valued around $364 billion based on trailing earnings.
Notable businesses within Berkshire's portfolio include GEICO, Duracell, Fruit of the Loom, and Dairy Queen. Greg Abel, future CEO of Berkshire Hathaway, is already in charge of all non-insurance operations, while Ajit Jain runs the insurance business with little oversight.
Warren Buffett, the company's current CEO, announced his intention to step aside at the end of 2025, a move that has seen the company's stock drop by 14%. Despite this, all of Berkshire Hathaway's 10 largest stock positions have outperformed the conglomerate's stock in the months since the announcement.
In its recent quarterly report, Berkshire Hathaway's operating earnings declined by about 4% year-over-year due to unfavourable foreign exchange fluctuations. However, the collection of Berkshire Hathaway's 60+ operating businesses is currently valued at about 11.6 times its trailing 12-month earnings.
As of the current writing, Berkshire Hathaway is valued at just over $1 trillion, a significant achievement for a non-technology company. The company reached this milestone in 2025, becoming the first non-technology company to join the trillion-dollar market cap club. Berkshire Hathaway's stock portfolio gained significant value during the second quarter, and its cash stockpile remains at $344 billion.
In summary, Berkshire Hathaway's Q2 2025 earnings report shows a company that continues to rely heavily on its core operations in insurance, railroads, and energy for cash flow and earnings. Despite some underwriting and investment income pressures, the company's diverse industrial operations and substantial cash and stock holdings support its position as a prestigious non-tech trillion-dollar company.
*Note: This article is based on the provided bullet points and does not include any opinions or unrelated information.
References: [1] [3] [4] [5] (Multiple sources)
- In the face of some underwriting and investment income pressures, Berkshire Hathaway remained resilient, with its stock portfolio worth around $292 billion, a significant portion of its financial resources for potential investing opportunities in the business and technology sectors.
- As Berkshire Hathaway approaches the end of 2025, Warren Buffett, the company's current CEO, plans to step down, making way for Greg Abel, who now oversees all non-insurance operations, to lead the company into a future that may include strategic investments in technology and other promising businesses.
- Despite being a non-technology company, Berkshire Hathaway's Q2 2025 earnings report indicates a positive outlook for potential investments in the technology sector, as its substantial cash stockpile and diverse business operations position it well to capitalize on opportunities in this rapidly evolving field.
