Brown & Brown (BRO) investor relations material

Executive summary

• Total revenues for Q2 2026 reached $1.7 billion, up 30.4% year-over-year, driven by acquisitions and higher contingent commissions, with organic revenue down 0.7% and organic revenue with contingents up 0.7%.

• Net income attributable to the company rose 24.7% to $288 million, with adjusted diluted EPS up 3.9% to $1.07.

• Adjusted EBITDAC margin was 35.7%, down 100 bps year-over-year.

• Six small agencies were acquired in Q2, with a total of 14 acquisitions in the first half of 2026; share repurchases continued as a key capital allocation priority.

• Strategic partnerships with McKinsey, Accenture, and Anthropic were formed to accelerate AI initiatives.

Financial highlights

• Core commissions and fees grew 30.3% year-over-year to $1,569 million, with profit-sharing contingent commissions up 88.9% to $85 million.

• Income before income taxes was $383 million for Q2, up 23.2% year-over-year, with a margin of 22.9%.

• Adjusted EBITDAC for Q2 was $598 million, up 27% year-over-year.

• Cash flow from operations was $610 million for the first half, up 13% year-over-year.

• Six-month net income attributable to the company was $714 million, up 26.8% year-over-year.

Outlook and guidance

• Organic growth in retail (excluding contingents) expected at 1.5%-2.5% for the second half; specialty distribution at 2%-4%.

• Margins for 2026 expected to remain flat, with synergy targets of $30-$40 million reaffirmed.

• No incremental technology spend anticipated; AI and data analytics expected to drive future organic growth and margin expansion.

• Management expects continued revenue growth from recent acquisitions and stable organic performance.

• Economic growth outlook remains positive, but business leaders are expected to maintain a cautious stance due to inflation and geopolitical risks.