Warren Buffett’s company, Berkshire Hathaway, reported a 59% drop in profit for the second quarter of 2025. The profit fell to $12.37 billion, down from $30.25 billion in the same quarter last year.
This big fall happened mainly because of a $3.76 billion loss on its investment in Kraft Heinz. Kraft Heinz is currently thinking about undoing its 2015 merger, which has led to a drop in its value.
In terms of individual shares, Berkshire made $8,601 per Class A share, compared to $21,122 per share last year.
However, Warren Buffett often says these investment gains or losses should not be used to judge the company’s true performance. He encourages people to focus on operating profit, which shows how the company’s businesses are doing.
Operating Profit Holds Steady
Berkshire’s operating profit — which doesn’t include stock market changes — was $11.16 billion, only slightly lower than $11.60 billion a year ago. This figure includes earnings from insurance, railroad (BNSF), utilities, and many other businesses.
Interestingly, Berkshire’s operating profit beat Wall Street’s expectations, which shows the strength of its core businesses.
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Kraft Heinz Struggles
Berkshire owns over 27% of Kraft Heinz and helped bring the two companies together in 2015. But Kraft Heinz has been struggling due to changing food trends, as more people now prefer healthier and private-label products.
Buffett has admitted he overpaid for the investment and misjudged the food industry’s future. Earlier this year, Berkshire’s board members stepped down from Kraft Heinz just before the company announced it may sell off some of its brands.
Company Cash and Buybacks
Berkshire’s cash reserves remain high at $344.1 billion, though slightly down from $347.7 billion in March. Buffett recently said he isn’t finding any good companies at the right price to invest in.
Also, shareholders were disappointed that Berkshire did not buy back any of its own shares this quarter, even though the stock fell more than 12% after Buffett announced his retirement as CEO. He will hand over the CEO role to Greg Abel, but will stay on as Chairman.
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Railroad Business Update
Another area of focus is Berkshire’s railway business – BNSF. After Union Pacific announced it would merge with Norfolk Southern, there were rumors that BNSF might consider merging with CSX to remain competitive.
But analysts say Buffett doesn’t chase deals just to keep up with others — he looks for real value. Still, BNSF is doing well on its own, with operating profits up 19% to $1.47 billion, helped by cost control and a small increase in shipping volumes.
