Berkshire Hathaway Inc. reported a decline in financial performance for the first quarter of 2025, with net earnings attributable to shareholders falling to $4.6 billion, down from $12.7 billion in the same period last year. This decrease was primarily driven by significant investment losses, which amounted to $6.4 billion, compared to gains of $1.9 billion in the first quarter of 2024. The company's total revenues for the quarter were $89.7 billion, slightly down from $89.9 billion in the previous year, reflecting a decrease in sales and service revenues, which fell to $47.8 billion from $49.9 billion.
The company's insurance segment saw a notable decline in underwriting earnings, which dropped to $1.3 billion from $2.6 billion year-over-year. This decline was attributed to approximately $860 million in losses from the Southern California wildfires. In contrast, investment income from insurance operations increased to $2.9 billion, up from $2.6 billion, largely due to higher interest income from U.S. Treasury Bills. The overall performance of Berkshire's subsidiaries varied, with BNSF reporting a 6.2% increase in after-tax earnings, while Berkshire Hathaway Energy (BHE) saw a 53% increase in earnings, reflecting improved operational efficiencies and higher utility margins.
Operationally, Berkshire Hathaway's insurance and other businesses held cash, cash equivalents, and U.S. Treasury Bills totaling $328 billion as of March 31, 2025. The company maintained a strong capital base, with shareholders' equity increasing to $654.5 billion. The total borrowings stood at $125.9 billion, with a significant portion attributed to its subsidiaries, including BNSF and BHE. Notably, Berkshire did not repurchase any shares during the quarter, adhering to its policy of maintaining a minimum cash reserve of $30 billion.
Looking ahead, Berkshire Hathaway acknowledged the potential impact of ongoing macroeconomic and geopolitical events on its operations. The company expressed uncertainty regarding future earnings due to fluctuating market conditions and the inherent volatility of its investment portfolio. Despite the challenges, Berkshire remains committed to its long-term strategies and maintaining financial strength, with a focus on liquidity and prudent investment practices.
About BERKSHIRE HATHAWAY INC
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