Berkshire Hathaway’s Q2 2025 Earnings: A 4% Drop in Operating Profit, Record Cash Pile, and Kraft Heinz Writedown

• Why Did Berkshire Hathaway’s Operating Earnings Drop 4% in Q2 2025?
• Why Is Berkshire Sitting on $344 Billion in Cash?
• How Bad Was the $3.8 Billion Kraft Heinz Writedown?
• What Role Did Currency Swings Play?
• FAQ: Berkshire Hathaway’s Q2 2025 Earnings

Berkshire Hathaway’s Q2 2025 earnings report reveals a 4% decline in operating profit, a record $344 billion cash hoard, and a $3.8 billion writedown on its Kraft Heinz stake. Despite weaker insurance underwriting results, sectors like railroads and energy showed resilience. Warren Buffett’s cautious approach continues, with no share buybacks and net stock sales for the 11th straight quarter. Here’s a DEEP dive into the numbers and what they mean for investors.

Why Did Berkshire Hathaway’s Operating Earnings Drop 4% in Q2 2025?

Berkshire Hathaway reported $11.16 billion in operating profit for Q2 2025, down from $11.6 billion a year earlier. The decline was primarily driven by weaker underwriting results in its insurance units, which couldn’t replicate last year’s record performance. While railroads, energy, and retail sectors posted gains, they weren’t enough to offset the insurance slump. Net income plummeted to $12.37 billion ($8,601 per Class A share) from $30.3 billion ($21,122 per share) in Q2 2024, largely due to unrealized investment losses under U.S. accounting rules. As Buffett often emphasizes, operating earnings—not net income—best reflect the company’s Core performance.

Why Is Berkshire Sitting on $344 Billion in Cash?

Berkshire’s cash pile grew to a staggering $344 billion by June 2025, up from $333 billion in March. Despite this war chest, Buffett’s team didn’t repurchase shares for the fourth consecutive quarter, even as Class A shares fell from May’s peak of $809,350 to $711,480. The 94-year-old CEO has been increasingly cautious, avoiding major acquisitions and net-selling equities for 11 straight quarters ($6.92 billion sold vs. $3.9 billion bought in Q2). “The great majority of your money remains in equities,” Buffett wrote in his annual letter—but his recent actions suggest he’s waiting for better opportunities amid soaring market valuations (the S&P 500 jumped 10% in Q2).

How Bad Was the $3.8 Billion Kraft Heinz Writedown?

Berkshire slashed the carrying value of its Kraft Heinz stake by $3.8 billion to $8.4 billion—less than half its 2017 value of $17+ billion. The 2015 merger, orchestrated by Buffett and 3G Capital, has been a disaster: Kraft Heinz shares plummeted 62% since the deal, while the S&P 500 gained 202%. Berkshire cited “other-than-temporary” impairment due to economic uncertainties. Edward Jones analyst Jim Sanders noted, “This is one of Warren’s largest missteps in decades. The writedown gives them flexibility to exit.” Berkshire still owns 27.4% of Kraft Heinz as of June.

What Role Did Currency Swings Play?

Currency fluctuations added to Berkshire’s headaches. With debt held in euros, pounds, and yen, a weaker dollar triggered an $877 million after-tax earnings hit—a stark reversal from Q2 2024, when currency moves added $446 million in profit. These swings highlight the challenges of Berkshire’s global footprint.

FAQ: Berkshire Hathaway’s Q2 2025 Earnings

What caused Berkshire’s operating earnings to drop?

The 4% decline was mainly due to weaker insurance underwriting results, offsetting gains in railroads and energy sectors.

Why isn’t Berkshire using its $344 billion cash pile?

Buffett appears cautious amid high market valuations, avoiding buybacks and major deals despite ample capital.

How significant is the Kraft Heinz writedown?

The $3.8 billion cut reflects a 62% stock decline since 2015—a rare misstep for Buffett that may signal an eventual exit.