Warren Buffett’s Berkshire Hathaway reported a pointy 14% drop in working revenue for the primary quarter, underscoring the challenges going through the conglomerate’s sprawling portfolio of companies. The outcomes, launched Saturday, additionally got here with a warning: rising geopolitical tensions and commerce tariffs might additional weigh on the agency’s profitability.
Working revenue for the primary quarter fell to $9.64 billion, down from $11.22 billion a 12 months earlier. These earnings embrace outcomes from Berkshire’s fully-owned insurance coverage and railroad operations, amongst others.
Foreign money actions additionally harm the underside line. The agency posted a overseas alternate lack of roughly $713 million, reversing a $597 million achieve recorded throughout the identical interval final 12 months.
Berkshire stated it earned $4.6 billion, or $3,200 per Class A share, within the first quarter. That is down from $12.7 billion, or $8,825 per Class A share, final 12 months.
Berkshire’s money hoard ballooned to a recent document through the first quarter, climbing to greater than $347 billion from round $334 billion on the finish of 2024.
In its submitting, Berkshire cited a “difficult atmosphere” influenced by tariffs launched underneath President Donald Trump, together with different international uncertainties. “We’re presently unable to reliably predict the potential impression on our companies, whether or not via adjustments in product prices, provide chain prices and effectivity, and buyer demand for our services and products,” the corporate stated.
Berkshire’s fairness holdings additionally remained extremely concentrated. As of March 31, 69% of the honest worth of its portfolio was tied to 5 corporations: American Categorical, Apple, Financial institution of America, Chevron, and Coca-Cola. The agency held 151.6 million shares of American Categorical, representing a 21.6% stake within the monetary providers large.
Moreover, Berkshire reported $1.1 billion in insurance coverage losses from the Southern California wildfires, reflecting the continued pressures inside the trade.
