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Mar 31

Arthur J. Gallagher Q1 2025 Earnings Report

Arthur J. Gallagher reported strong Q1 2025 results with double-digit growth in adjusted EBITDAC and solid organic revenue expansion.

Key Takeaways

Arthur J. Gallagher & Co. delivered a robust first quarter, achieving 14% revenue growth and a 9% organic increase across its core brokerage and risk management operations. The company reported significant improvement in margins and completed strategic acquisitions to support long-term growth.

Revenue reached $3,688,400,000, up from $3,218,100,000 in Q1 2024

Net income was $708,900,000 with adjusted EPS of $3.67

Achieved 9% organic revenue growth in core segments

Completed 11 new mergers with $100 million in estimated annualized revenue

Total Revenue
$3.69B
Previous year: $3.26B
+13.2%
EPS
$3.67
Previous year: $3.49
+5.2%
Organic revenue growth
9.5%
Adjusted EBITDAC margin
41.1%
Net earnings margin
23%
Cash and Equivalents
$16.7B
Free Cash Flow
$844M
Total Assets
$74.1B

Arthur J. Gallagher

Arthur J. Gallagher

Arthur J. Gallagher Revenue by Segment

Forward Guidance

Management is optimistic about 2025, citing stable market conditions, continued demand for risk services, and growth opportunities from recent acquisitions.

Positive Outlook

  • Strong P/C insurance market stability
  • Positive exposure changes and mid-term endorsements
  • Successful integration of recent acquisitions
  • Talent and technology positioned to support growth
  • Adjusted EBITDAC growth expected to remain strong

Challenges Ahead

  • Ongoing geopolitical uncertainties
  • Interest rate volatility remains a macroeconomic risk
  • Pending regulatory approvals for AssuredPartners deal
  • Foreign currency fluctuations may impact comparisons
  • Higher compensation and integration costs in some segments