Arthur J. Gallagher (AJG) investor relations material

Executive summary

• Combined brokerage and risk management segments delivered 28% revenue growth in Q1 2026, with 5% organic growth and strong client retention, supported by both organic initiatives and M&A, notably AssuredPartners.

• Net earnings grew 12% year-over-year, and adjusted EBITA/EBITDAC rose 18%, marking 24 consecutive quarters of double-digit adjusted EBITA/EBITDAC growth.

• Strategic focus remains on organic growth, acquisitions, productivity investments, and leveraging AI and automation.

• Strong new business wins, high client retention, and margin expansion were highlighted.

Financial highlights

• Adjusted revenues, EBITAC, and EPS all increased 30% year-over-year, excluding prior year interest income on AP funds.

• Total company revenues before reimbursements rose to $4,716 million from $3,688 million year-over-year.

• Net earnings increased to $823 million from $709 million year-over-year; diluted net earnings per share rose to $3.16 from $2.72; adjusted EPS was $4.47 versus $3.72.

• Adjusted EBITDAC reached $1,752 million, up from $1,435 million year-over-year.

• Repurchased 1.4 million shares for $310 million in Q1.

Outlook and guidance

• Full-year 2026 organic growth outlook reaffirmed at 6%.

• Q2 organic growth expected to be similar to Q1 across all businesses; full-year guidance unchanged from March.

• Management expects continued strong growth and long-term value creation, supported by organic initiatives and strategic acquisitions.

• Forecasts assume one 25 bps rate cut in September and continued solid economic activity.

• Annualized run-rate synergies from AssuredPartners expected to reach $160 million by end of 2026 and up to $300 million by early 2028.