BRK-B · 10-Q · 2026Q2 · Full report

Supply Chain And Pricing

BERKSHIRE HATHAWAY INC · 2026-08-10 · Importance 68 · Surprise 58 · In source text

Lubrizol raised selling prices in response to significant increases in raw-material, energy, and supply-chain costs that began in late March 2026 and continued through the second quarter. Its revenues increased 11.1% in the second quarter and 7.0% in the first six months, driven by higher volumes, prices, and favorable foreign-currency translation, partially offset by unfavorable mix. IMC experienced significant raw-material price increases that began in 2025 and continued through the first six months of 2026. IMC’s second-half earnings are expected to be negatively affected by those higher raw-material costs.

Key facts

• IMC expects earnings in the second half of 2026 to be negatively impacted by the rise in raw materials costs source
• Inventory cost and supply chain uncertainties could negatively impact TTI’s gross margins in the future. source
• The increase in demand at TTI was in part attributable to customers responding to potential further price increases and supply chain concerns, including extended inventory order lead times. source
• The earnings increases at Brooks Sports and Jazwares were primarily attributable to the increases in sales and gross margin rates, as well as the impact of trade tariff refunds received in the second quarter of 2026. source
• Gross margins in 2026 at Pilot were negatively affected by net losses on derivative contracts included in earnings from increases in fuel and commodity prices. source
• The revenue increase at TTI reflected accelerating customer demand, favorable foreign currency translation effects and inventory cost-based price increases. source

Impact estimates