Part I – Financial Information Financial Statements The company's first-half 2025 results show total assets of $1.164 trillion, revenues of $182.2 billion, and net earnings of $17.0 billion Consolidated Balance Sheet Summary (As of June 30, 2025) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,163,968 million | $1,153,881 million | | Cash and cash equivalents (Insurance and Other) | $96,193 million | $44,333 million | | Short-term investments in U.S. Treasury Bills | $243,605 million | $286,472 million | | Investments in equity securities | $267,923 million | $271,588 million | | Total Liabilities | $493,692 million | $502,226 million | | Total Shareholders' Equity | $670,276 million | $651,655 million | Consolidated Earnings Summary (First Six Months) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $182,240 million | $183,522 million | | Investment Gains (Losses) | $(71) million | $25,733 million | | Earnings Before Income Taxes | $19,898 million | $53,843 million | | Net Earnings Attributable to Berkshire Shareholders | $16,973 million | $43,050 million | | Net Earnings per Average Equivalent Class A Share | $11,801 | $29,936 | Consolidated Cash Flow Summary (First Six Months) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | $20,988 million | $24,168 million | | Net Cash Flows from Investing Activities | $32,957 million | $(10,651) million | | Net Cash Flows from Financing Activities | $(1,113) million | $(8,948) million | | Increase in Cash and Cash Equivalents | $52,852 million | $4,428 million | Notes to Consolidated Financial Statements The notes detail significant accounting policies, including a $5.0 billion impairment on Kraft Heinz and $2.75 billion in accrued wildfire losses - The fair value of the five largest equity holdings (American Express, Apple, Bank of America, Coca-Cola, Chevron) represented 67% of the total equity portfolio fair value as of June 30, 202536 - A pre-tax impairment loss of approximately $5.0 billion was recorded in Q2 2025 on the investment in Kraft Heinz, reducing its carrying value to fair value47 - PacifiCorp, a BHE subsidiary, has recorded cumulative estimated probable losses of approximately $2.75 billion related to wildfires, with outstanding demands seeking damages of approximately $54 billion125140 - HomeServices of America reached a nationwide class settlement in an antitrust case, agreeing to payments aggregating $250 million over four years144 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses a decrease in net earnings to $17.0 billion, driven by investment losses and a significant impairment charge - The company emphasizes that investment gains and losses, driven by market fluctuations and accounting rules, are generally meaningless for understanding periodic results and can cause significant volatility in reported earnings169262 - The company's financial condition remains strong, with shareholders' equity increasing by $18.6 billion to $668 billion and liquidity of $339.8 billion in cash and U.S. Treasury Bills270272 - No shares were repurchased under the company's common stock repurchase program during the first six months of 2025271 Net Earnings Attributable to Berkshire Shareholders (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | First Six Months 2025 | First Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance – underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance – investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy (BHE) | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Investment gains (losses) | $4,970 | $18,750 | $(68) | $20,230 | | Impairment of Kraft Heinz | $(3,760) | $— | $(3,760) | $— | | Other | $32 | $753 | $73 | $1,831 | | Total Net Earnings | $12,370 | $30,348 | $16,973 | $43,050 | Results of Operations Operating results for the first half of 2025 were mixed, with lower insurance underwriting earnings offset by growth at BNSF and BHE - Insurance underwriting after-tax earnings decreased by $1.5 billion in the first six months of 2025, primarily due to approximately $850 million in after-tax losses from the Southern California wildfires166 - BNSF's after-tax earnings increased by 13.1% in the first six months, driven by improved operating efficiencies, productivity, and lower effective income tax rates167 - BHE's after-tax earnings increased by 31.1% in the first six months, reflecting higher earnings from U.S. utilities and reduced losses from real estate brokerage businesses167 - Other earnings declined by $1.76 billion in the first six months, mainly due to after-tax foreign currency exchange rate losses of $1.6 billion in 2025 compared to gains of $1.0 billion in 2024170 Financial Condition The company maintained a robust financial position, with shareholders' equity growing to $668 billion and total borrowings at $127 billion - Shareholders' equity stood at $668 billion at June 30, 2025, up $18.6 billion since December 31, 2024270 - Consolidated borrowings were $127 billion at June 30, 2025, with debt primarily issued by Berkshire, BHFC, BNSF, and BHE273 - Capital expenditures for property, plant, and equipment were $9.1 billion in the first half of 2025, with BNSF and BHE forecasting an additional $8.8 billion for the remainder of the year276 Critical Accounting Estimates Management highlights significant judgment required for insurance loss liabilities and goodwill impairment assessments - Estimated liabilities for unpaid property and casualty insurance losses were $150.5 billion at June 30, 2025, where small percentage changes can materially affect earnings281 - Goodwill of acquired businesses was $84.3 billion, with seven reporting units holding $18.6 billion in goodwill considered more susceptible to future impairment282 Quantitative and Qualitative Disclosures About Market Risk The company reports no material changes in its market risk exposures since its 2024 year-end filing - There were no material changes in market risks as of June 30, 2025, compared to the disclosures in the 2024 Form 10-K288 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of the end of Q2 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective289 - No significant changes were made to internal controls over financial reporting during the quarter289 Part II – Other Information Legal Proceedings The company is involved in various legal actions, primarily related to wildfire and antitrust claims at its subsidiaries - The company references Note 22 for details on significant litigation but believes pending legal actions will not have a material effect on its consolidated financial condition or results of operations290291 Risk Factors The company's significant business risks remain consistent with those disclosed in its 2024 annual report - The company's significant business risks are described in its 2024 Form 10-K, and no updates are provided in this report292 Issuer Repurchases of Equity Securities No shares were repurchased during the second quarter of 2025, though the repurchase program remains active - No Class A or Class B shares were repurchased during the second quarter of 2025293 - The repurchase program has no expiration date but is contingent on price relative to intrinsic value and maintaining a minimum liquidity level of $30 billion293294 Earnings Release The company reported Q2 2025 net earnings of $12.4 billion, highlighting the difference between GAAP results and operating earnings - Management states that the amount of investment gains or losses in any given quarter is "usually meaningless" and can be "extremely misleading" to investors, advocating for the use of operating earnings319324 - Insurance float, the net liabilities assumed under insurance contracts, was approximately $174 billion at June 30, 2025, an increase of $3 billion since the end of 2024321 GAAP Net Earnings vs. Operating Earnings (in millions) | Metric | Q2 2025 | Q2 2024 | First Six Months 2025 | First Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Earnings (GAAP) | $12,370 | $30,348 | $16,973 | $43,050 | | Less: Investment gains (losses) | $4,970 | $18,750 | $(68) | $20,230 | | Less: Impairment of Kraft Heinz | $(3,760) | $— | $(3,760) | $— | | Operating Earnings (Non-GAAP) | $11,160 | $11,598 | $20,801 | $22,820 | Operating Earnings by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | First Six Months 2025 | First Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance-underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance-investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Other | $32 | $753 | $73 | $1,831 | | Total Operating Earnings | $11,160 | $11,598 | $20,801 | $22,820 |
Berkshire Hathaway(BRK_A) - 2025 Q2 - Quarterly Results