Berkshire Hathaway reported second-quarter operating results in line with expectations, driven by strong insurance business performance. Despite underperformance in other segments, the insurance operations have historically balanced the portfolio. Adjusted operating revenue declined 1.2% to USD 92.5 billion, with adjusted operating earnings down 3.8% to USD 11.2 billion. Book value per share increased 10.9% to USD 464,454. Berkshire stock is slightly undervalued.

The insurance operations of Berkshire Hathaway normalized in the first half of 2025, with smaller price increases and higher catastrophe losses impacting underwriting results. BNSF continues to underperform Union Pacific, despite an improved operating ratio in the second quarter. Berkshire Hathaway Energy saw improved second-quarter results but may face challenges due to recent legislation. The manufacturing, service, and retailing division had weaker top-line performance but improved profitability year over year.

Read more at Morningstar: Solid Insurance Results Continue to Buoy Revenue and Profitability