Berkshire Hathaway’s Q2 Results meet Expectations, Insurance Operations Continue to Anchor Performance
Omaha, NE – [Current Date] – Berkshire Hathaway (NYSE: BRK.A, BRK.B) has reported its second-quarter operating results, which largely aligned with analyst expectations. The conglomerate’s insurance businesses once again provided a strong performance, offsetting weaker results in other segments of the company.Context: Berkshire Hathaway has a long-standing strategy of leveraging the strength of its diverse portfolio to compensate for underperformance in individual areas. In recent years, its insurance operations have been instrumental in driving overall company results.
Key Financial Highlights and Segment Performance:
Revenue and Earnings: Excluding investment gains/losses and other adjustments, Berkshire Hathaway’s adjusted operating revenue for the second quarter saw a year-over-year decline of 1.2%, reaching $92.5 billion.Adjusted operating earnings also decreased by 3.8% compared to the same period last year, totaling $11.2 billion. Insurance Operations: While the insurance segment experienced a normalization of its outstanding results from previous periods, it continues to be a significant contributor. The first half of 2025 saw a moderation in underwriting results due to smaller price increases and higher catastrophe losses,notably in the first quarter.
BNSF Railway: The company’s railroad subsidiary, BNSF, continues to lag behind Union Pacific in performance, despite an improvement in its operating ratio during the second quarter.
Berkshire Hathaway Energy: This utility arm reported improved second-quarter results. However, the company has indicated that future performance may be affected by recent legislation designed to limit investments in renewable energy projects.
Manufacturing, service, and Retailing: This division experienced a weaker top-line performance in the quarter.Nevertheless, profitability within this segment improved on a year-over-year basis.
Book Value: Book value per Class A share, a key metric for assessing Berkshire’s intrinsic value, increased by 10.9% year over year.It stood at $464,454 at the end of June 2025, up from $418,806 at the end of June 2024.
Outlook:
Based on the second-quarter results, which were in line with projections, Morningstar Equity Research anticipates maintaining its fair value estimates for Berkshire Hathaway’s Class A shares at $730,500 and Class B shares at $487. The firm views Berkshire Hathaway stock as slightly undervalued at current levels.
Additional details not in Original Article:
The article does not specify the exact nature of the “other adjustments” excluded from operating revenue and earnings.
The specific legislation impacting Berkshire Hathaway Energy’s renewable energy investments is not detailed.
The article does not provide a breakdown of the specific insurance businesses within Berkshire Hathaway or their individual contributions to the overall results.
The “faltering” segments mentioned in the initial paragraph are not explicitly named beyond BNSF and the potential impact on Berkshire Hathaway Energy.
Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research. The author or authors do not own shares in any securities mentioned in this article.
