CEO Greg Abel accelerates share buybacks and investments, reducing Berkshire’s cash reserves by $31.9 billion in the quarter.
Berkshire Hathaway reported a 16% increase in second-quarter operating earnings to $12.98 billion, driven by gains in energy, rail, and manufacturing sectors. The results surpassed the $11.16 billion recorded a year earlier, though insurance underwriting and investment income declined.
Manufacturing, service, and retailing earnings jumped 24% to $4.47 billion, while Berkshire Hathaway Energy’s profit surged 27% to $891 million. BNSF railroad earnings rose 6% to $1.56 billion. Insurance underwriting earnings fell 13% to $1.73 billion, and investment income dropped 9% to $3.06 billion.
The conglomerate repurchased $4.5 billion of its shares during the quarter, a significant increase from $235 million in Q1. Berkshire’s cash reserves declined to $365.5 billion from a record $397.4 billion, reflecting capital deployment under CEO Greg Abel, who took over from Warren Buffett earlier this year.