Part I – Financial Information Item 1. Financial Statements Presents Berkshire Hathaway Inc.'s unaudited consolidated financial statements as of June 30, 2025, with notes on accounting policies and key financial data Consolidated Balance Sheet Summary (As of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | Total Assets | $1,163,968 | | Cash, cash equivalents, and U.S. Treasury Bills | $339,798 | | Investments in equity securities | $267,923 | | Total Liabilities | $493,692 | | Insurance unpaid losses & loss adjustment expenses | $150,521 | | Notes payable and other borrowings | $127,020 | | Total Shareholders' Equity | $670,276 | Consolidated Earnings Summary (First Six Months 2025 vs 2024) | Metric | First Six Months 2025 (in millions) | First Six Months 2024 (in millions) | | :--- | :--- | :--- | | Total Revenues | $182,240 | $183,522 | | Investment Gains (Losses) | ($71) | $25,733 | | Net Earnings Attributable to Berkshire Shareholders | $16,973 | $43,050 | | Net Earnings per Average Equivalent Class A Share | $11,801 | $29,936 | - Net cash flows from operating activities were $21.0 billion for the first six months of 2025, a decrease from $24.2 billion in the same period of 2024, while investing activities shifted to a positive $33.0 billion from a negative $10.7 billion20 Notes to Consolidated Financial Statements Notes detail financial statement preparation, accounting policies, and key financial items, including a $5.0 billion Kraft Heinz impairment and major legal updates - In Q2 2025, the company recorded a pre-tax impairment loss of approximately $5.0 billion on its investment in The Kraft Heinz Company, reducing its carrying value to fair value47 - As of June 30, 2025, the five largest equity holdings represented 67% of the total equity portfolio fair value36 - PacifiCorp has recorded cumulative estimated probable losses of approximately $2.75 billion related to the 2020 and 2022 Wildfires, with $1.37 billion paid in settlements through June 30, 2025140141 - HomeServices reached a nationwide class settlement agreement in April 2024 regarding antitrust litigation, agreeing to payments aggregating $250 million over four years144 - There were no share repurchases during the first six months of 2025, but the repurchase program remains active, contingent on consolidated cash holdings remaining above $30 billion113 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q2 and first six months 2025 results, highlighting mixed operating earnings, a strong financial condition with $668 billion equity, and investment volatility Net Earnings Attributable to Berkshire Shareholders (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 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 | | Investment gains (losses) | $4,970 | $18,750 | ($68) | $20,230 | | Other-than-temporary impairment (Kraft Heinz) | ($3,760) | $— | ($3,760) | $— | | Total Net Earnings | $12,370 | $30,348 | $16,973 | $43,050 | - Management emphasizes that investment gains and losses are generally meaningless in understanding periodic results or evaluating economic performance and will continue to cause significant volatility in periodic earnings169262 - The company's financial condition remains robust, with shareholders' equity at $668 billion as of June 30, 2025, an increase of $18.6 billion since year-end 2024, and $339.8 billion in cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses270272 Insurance Operations Underwriting earnings decreased by $1.5 billion due to wildfire losses, while GEICO performed strongly and insurance float increased to $174 billion - Net underwriting earnings for the first six months of 2025 were $3.3 billion, down from $4.9 billion in 2024, largely due to approximately $850 million in after-tax losses from Southern California wildfires166174 - GEICO's pre-tax underwriting earnings for the first six months of 2025 were $4.0 billion, up from $3.7 billion in 2024, benefiting from higher average premiums and a 2.9 percentage point decrease in the loss ratio176177 - BH Primary experienced a pre-tax underwriting loss of $81 million in the first six months of 2025, a sharp reversal from a $765 million gain in 2024, driven by approximately $300 million in wildfire losses and a $401 million increase in estimated ultimate losses for prior years' claims181183 - Insurance float was approximately $174 billion at June 30, 2025, an increase of $3 billion since December 31, 2024202 BNSF BNSF's net earnings increased 13.1% to $2.7 billion in H1 2025, driven by lower operating expenses and a lower tax rate, despite declining average revenue per unit BNSF Earnings Summary (First Six Months) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Railroad operating revenues | $11,402 | $11,361 | | Railroad operating expenses | $7,568 | $7,818 | | Net earnings | $2,680 | $2,370 | - Total freight volumes for the first six months of 2025 increased by 2.7% compared to 2024, with Consumer Products up 4.5% and Coal up 7.3%, while Industrial Products declined 4.7%207 - Railroad operating expenses declined 3.2% in the first six months of 2025, primarily due to a 12.4% decrease in fuel expenses and lower costs from litigation accruals and cost management efforts212 Berkshire Hathaway Energy (BHE) BHE's net earnings increased 31.1% to $1.8 billion in H1 2025, driven by higher U.S. utilities earnings and reduced real estate brokerage losses BHE Net Earnings Attributable to BHE (After-Tax, in millions) | Segment | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. utilities | $862 | $643 | 34.1% | | Natural gas pipelines | $671 | $733 | (8.5)% | | Other energy businesses | $650 | $661 | (1.7)% | | Real estate brokerage | $30 | ($116) | N/A | | Total | $1,802 | $1,510 | 19.3% | - The increase in U.S. utilities earnings was supported by a 3.3% rise in retail customer volumes and higher rates, despite ongoing wildfire-related costs from prior periods220221 - Real estate brokerage earnings improved by $146 million year-to-date, primarily due to charges in 2024 related to litigation settlements224 Manufacturing, Service and Retailing Manufacturing, Service, and Retailing segments reported a 3.0% increase in after-tax earnings for H1 2025, with mixed performance across sub-segments Manufacturing, Service and Retailing Pre-Tax Earnings (First Six Months, in millions) | Category | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Manufacturing | $5,963 | $6,043 | (1.3)% | | Service and retailing | $2,690 | $2,453 | 9.7% | | Total | $8,653 | $8,496 | 1.8% | - Within Industrial Products, PCC's pre-tax earnings grew 38.7% year-to-date on strong aerospace demand, while Lubrizol's earnings fell 18.7% due to lower volumes and higher costs233234 - Building Products earnings declined 7.6% pre-tax year-to-date due to slowing customer demand and pricing pressures, with Clayton Homes' earnings falling 3.7% from higher interest expense and credit loss provisions239241 - Service group pre-tax earnings rose 12.5% year-to-date, led by aviation services and TTI, while Pilot's revenues declined 19.5% but pre-tax earnings increased 6.7%250257258 Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes in market risks as of June 30, 2025, compared to the prior year's annual report - As of June 30, 2025, there were no material changes in the market risks described in Berkshire's Annual Report for the year ended December 31, 2024288 Item 4. Controls and Procedures Management concluded disclosure controls are effective, with no significant changes to internal control over financial reporting during the quarter - Based on an evaluation 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 the company's internal control over financial reporting during the second quarter289 Part II – Other Information Item 1. Legal Proceedings The company is involved in routine legal actions, with significant litigation details in Note 22, expecting no material financial effect - The company is involved in routine legal actions arising from the normal course of business and does not believe they will have a material effect on its financial condition290 - For information on significant litigation involving Berkshire subsidiaries, the report refers to Note 22 of the Consolidated Financial Statements291 Item 1A. Risk Factors Refers to significant business risks detailed in the company's Form 10-K for 2024, with no material updates - The report references Item 1A of the Form 10-K for the year ended December 31, 2024, for a description of significant business risks292 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities No share repurchases in Q2 2025, but the program remains active, contingent on cash holdings staying above $30 billion - No Class A or Class B shares were repurchased during the second quarter of 2025293 - The stock repurchase program remains active, allowing for repurchases when the price is below intrinsic value, provided that cash and U.S. Treasury Bill holdings do not fall below $30 billion294 News Release Summarizes Berkshire Hathaway's Q2 and H1 2025 results, emphasizing operating earnings over GAAP net earnings due to investment volatility, with insurance float at $174 billion Operating Earnings Summary (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 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 | | Operating earnings | $11,160 | $11,598 | $20,801 | $22,820 | - Management emphasizes that investment gains/losses included in GAAP net earnings are often meaningless for analysis and can be misleading, and therefore presents operating earnings as a more useful measure of business performance319323 - Insurance float was approximately $174 billion at June 30, 2025, an increase of $3 billion since the end of 2024321
Berkshire Hathaway(BRK_B) - 2025 Q2 - Quarterly Results