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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.
Aon
Aon
Aon Revenue by Segment
Revenue by Segment
Commercial Risk Revenue
CapyFin.comReinsurance Revenue
CapyFin.comHealth Solutions Revenue
CapyFin.comWealth Solutions Revenue
CapyFin.com 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.
- Expected approximately $9 million decrease in adjusted operating income from foreign currency translation for full year 2024.
- Potential for volatility in tax rate due to various factors including global tax proposals.