Berkshire Hathaway reported a 16% year-on-year increase in operating earnings for the second quarter, driven by strong performances across its energy, railroad and manufacturing businesses despite weaker insurance results.
Operating earnings rose to $12.98 billion, up from $11.16 billion in the same period last year.
Manufacturing, service and retailing earnings climbed 24% to $4.47 billion, while Berkshire Hathaway Energy posted a 27% increase in profit to $891 million. The company's railroad business, BNSF, reported earnings of $1.56 billion, representing a 6% increase.
Insurance remained the weakest-performing segment during the quarter.
Insurance underwriting earnings fell 13% to $1.73 billion from $1.99 billion a year earlier, while insurance investment income declined 9% to $3.06 billion.
The results also highlighted a shift in Berkshire's capital allocation strategy under Chief Executive Officer Greg Abel, who succeeded Warren Buffett at the beginning of the year.
During the quarter, Berkshire repurchased approximately $4.5 billion of its own shares, a significant increase from the $235 million spent on buybacks in the first quarter.
The company also reversed a long-running trend of reducing its stock portfolio, becoming a net buyer of equities for the first time in 14 consecutive quarters.
Berkshire purchased nearly $20 billion worth of equities on a net basis during the second quarter.
As capital was deployed through investments and share repurchases, Berkshire's cash holdings declined to $365.5 billionat the end of June from a record $397.4 billion three months earlier.
The quarter also included the completion of Berkshire's acquisition of Taylor Morrison.
Buffett, now serving as chairman, handed Abel one of the largest corporate cash reserves in history after years of maintaining a cautious investment approach amid what he viewed as limited value in equity markets.
Berkshire shares have gained 3% so far this year, trailing the 13% advance recorded by the S&P 500. However, the stock has risen 9% over the past three months.
The company's latest filing also showed that Alphabet has become one of Berkshire Hathaway's five largest equity holdings by market value, joining American Express, Apple, Bank of America and Coca-Cola.
Earlier this year, Berkshire disclosed a $10 billion investment in Alphabet to support artificial intelligence development.
According to Buffett, the investment was initiated after consultation with Abel, highlighting the growing role of the new chief executive in shaping Berkshire Hathaway's investment strategy.
