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Jun 30
Arthur J. Gallagher Q2 2025 Earnings Report
Arthur J. Gallagher & Co. announced strong financial results for the second quarter of 2025, with significant revenue and earnings growth across its core segments.
Key Takeaways
Arthur J. Gallagher & Co. reported a robust second quarter in 2025, with total company revenue reaching $3.1779 billion and diluted EPS of $1.40. The core brokerage and risk management segments demonstrated strong performance, contributing to a 16% revenue growth and a 5.4% organic revenue growth. The company also saw improvements in net earnings margin and adjusted EBITDAC margin, alongside active merger and acquisition activities.
Total company revenue for Q2 2025 was $3.1779 billion, up from $2.7360 billion in Q2 2024.
Diluted net earnings per share (EPS) for Q2 2025 was $1.40, an increase from $1.27 in Q2 2024.
Organic revenue growth for the core brokerage and risk management segments combined was 5.4%.
The company completed 9 new mergers in the quarter, adding approximately $290.8 million in estimated annualized revenue.
Arthur J. Gallagher
Arthur J. Gallagher
Arthur J. Gallagher Revenue by Segment
Revenue by Segment
Brokerage Revenue
CapyFin.comRisk Management Revenue
CapyFin.com Forward Guidance
Arthur J. Gallagher & Co. is well-positioned for the remainder of 2025 and beyond, with continued focus on strategic acquisitions and client service.
Positive Outlook
- Expectation to close the AssuredPartners acquisition in the third quarter of 2025.
- Global P/C insurance market remains rational.
- Continued focus on providing best insurance and risk management advice leveraging niche experts and data-driven insights.
- Strong financial position with significant cash and cash equivalents to fund future activities.
- Anticipated benefits from higher interest income revenues due to AssuredPartners Financing proceeds.
Challenges Ahead
- Property renewal premiums are declining by 7%.
- Increased technology costs partially offsetting expense savings.
- Potential for fluctuations in interest and inflation rates.
- Risks associated with global economic and geopolitical events.
- Cybersecurity-related risks and challenges in applying new technologies effectively.