BRK-B · 10-Q · 2026Q2 · Full report

Industrial Raw Material Costs

BERKSHIRE HATHAWAY INC · 2026-08-10 · Importance 29 · Surprise 24

Lubrizol experienced revenue growth from higher volumes and selling prices, but significant raw-material, energy and supply-chain cost increases raised production costs. Price increases partly offset those cost pressures, while unfavorable product mix and higher manufacturing costs limited earnings conversion. IMC also reported significant raw-material price increases that began in 2025 and continued through the first six months of 2026. IMC’s customer demand and product sales increased as customers accelerated purchases, but higher raw-material costs are expected to pressure earnings in the second half of 2026.

Key facts

• IMC’s revenues were approximately $1.3 billion in the second quarter and $2.5 billion in the first six months of 2026, increases of 26.5% and 23.6% respectively compared to 2025; IMC’s pre-tax earnings increased 71.0% in the second quarter and 56.6% in the first six months of 2026. source
• Lubrizol’s revenues were $1.8 billion in the second quarter and $3.4 billion in the first six months of 2026, increases of 11.1% and 7.0% respectively compared to 2025; Lubrizol’s pre-tax earnings increased 23.4% in the second quarter and 16.5% in the first six months of 2026 vs 2025. source
• OxyChem’s revenues were $1.4 billion in the second quarter and $2.6 billion in the first six months of 2026; OxyChem generated pre-tax earnings of $149 million in the second quarter and $121 million in the first six months of 2026. source
• Inventory cost and supply chain uncertainties could negatively impact TTI’s gross margins in the future. source