Berkshire Hathaway, the multinational conglomerate led by Warren Buffett, reported a steep 64% year-on-year decline in net profit for the first quarter ended March 2025. Net earnings attributable to shareholders fell to $4.6 billion, compared to $12.7 billion in the same quarter last year, primarily due to significant investment losses.
The company recorded investment losses of $5.04 billion in Q1 2025, a sharp contrast to $1.48 billion in gains last year. Berkshire’s operating earnings, which exclude investment-related gains and losses, came in at $9.64 billion, down 14% from $11.22 billion in Q1 2024.
Key contributors to operating earnings included $1.3 billion from insurance underwriting, $2.9 billion from insurance-investment income, $1.2 billion from railroad subsidiary BNSF, $1.1 billion from Berkshire Hathaway Energy, and $3.06 billion from the group’s manufacturing, service, and retail businesses. The “Other” segment posted only $41 million this quarter, compared to $1.07 billion last year.
Earnings per share (EPS) also took a hit, with Class A share EPS falling to $3,200 from $8,825, and Class B share EPS dropping to $2.13 from $5.88 in Q1 2024.
In a statement, Berkshire stressed that changes in unrealized gains or losses on equity holdings—mandated under GAAP reporting—can cause quarterly net income to fluctuate significantly and may not reflect the actual operating performance of the business.
Berkshire Hathaway continues to operate a diverse portfolio spanning insurance, freight rail transportation, energy, utilities, manufacturing, and retail. The company’s stock is listed on the NYSE under the symbols BRK.A and BRK.B.
