Warren Buffett Announces Successor as Berkshire Hathaway Reports Q2 Earnings Drop Amid Trade Tensions and Kraft Heinz Losses

Berkshire Hathaway, headed by CEO Warren Buffett until year-end, reported a 3.77% decline in second-quarter operating earnings compared to the same period last year. The conglomerate’s earnings for the first half of 2025 totaled $20.8 billion, representing an 8.8% decrease from the corresponding period in 2024.

The second-quarter net income fell by approximately 59%, reaching roughly $12.37 billion. Berkshire’s insurance underwriting businesses generated a pre-tax earnings of $2.53 billion, with Geico, one of the largest US insurance companies, leading the way.

From May to July, the company’s cash reserves decreased to $344 billion from $347 billion reported at the annual meeting on May 3. The company also disclosed a $3.8 billion loss on its stake in Kraft Heinz Co., with Buffett admitting in 2019 that he made mistakes in the Kraft Heinz deal.

The ongoing trade disputes and tariff policies have created an uncertain outlook, according to Berkshire’s report. The escalating trade war was further aggravated by new tariff rates announced on various trading partners, effective August 7. The company highlighted that it is currently unable to predict the potential economic implications of these changes.

Berkshire’s clothing and toy brands, including Fruit of the Loom, Garan, and Jazwares, experienced a decline in year-to-date revenue due to delays caused by international trade policies and tariffs.

On a positive note, Berkshire’s energy and railroad companies reported earnings increases from the same quarter last year, with BNSF Railway’s pre-tax earnings up 11.5% and BHE net income climbing 18%.

Berkshire Hathaway’s Class B shares closed at $472.84 on Friday, marking a 4.82% growth since the beginning of 2025.