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Mar 31, 2024
Aon Q1 2024 Earnings Report
Aon reported strong operating results in the first quarter of 2024, with increases in total revenue, EPS, and adjusted EPS, alongside a decrease in operating margin.
Key Takeaways
Aon plc announced its first quarter 2024 results, reporting a 5% increase in total revenue to $4.1 billion, with organic revenue growth also at 5%. Diluted EPS rose by 6% to $5.35, and adjusted diluted EPS increased by 9% to $5.66. Operating margin decreased by 210 basis points to 36.0%, while adjusted operating margin increased by 100 basis points to 39.7%. Cash flows from operations were $309 million, and free cash flow decreased by 29% to $261 million.
Total revenue increased 5% to $4.1 billion, driven by strong retention and new business generation.
Adjusted diluted EPS grew 9% to $5.66, reflecting strong operating results.
The acquisition of NFP was completed on April 25, 2024, with accretion and free cash flow benefit realization expected a year earlier.
The company repurchased 0.8 million class A ordinary shares for approximately $250 million.
Revenue by Segment
Forward Guidance
Aon expects the acquisition of NFP to accelerate accretion and free cash flow benefit realization by a year. The company anticipates an unfavorable impact on adjusted operating income and EPS from foreign currency translation in the second quarter and full year 2024.
Positive Outlook
- Accretion and free cash flow benefit realization from NFP acquisition now expected a year earlier than modeled.
- Moving faster to address client demand and create more opportunities for colleagues.
- Strengthening the long-term free cash flow profile of the firm.
- Enhancing long-term shareholder value creation.
- Anticipated continued strong operating results.
Challenges Ahead
- Expected unfavorable impact of approximately $0.05 per share from foreign currency translation in Q2 2024.
- Expected approximately $15 million decrease in adjusted operating income from foreign currency translation in Q2 2024.
- Expected unfavorable impact of approximately $0.03 per share from foreign currency translation for full year 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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