Aon (AON) Q2 2025 earnings summary

Executive summary

• Achieved 11% total revenue growth and 6% organic revenue growth in Q2 2025, driven by strong client demand, execution of strategic initiatives, and the NFP acquisition.

• Adjusted EPS increased 19% to $3.49, and free cash flow rose 59% to $732 million, supporting capital allocation for M&A, debt reduction, and shareholder returns.

• Continued investment in client-facing talent and innovation, with revenue-generating hires up 6% through June 30.

• Integration of NFP progressing, contributing to revenue synergies and margin normalization, with related costs impacting results.

• Reaffirmed 2025 full-year guidance and commitment to double-digit free cash flow growth through 2026.

Financial highlights

• Q2 2025 total revenue was $4.2 billion, up 11% year-over-year; first half revenue reached $8.9 billion, up 13%.

• Adjusted operating margin expanded by 80 basis points to 28.2%; Q2 operating margin increased to 20.7% from 17.4%.

• Adjusted EPS reached $3.49, up 19% year-over-year; diluted EPS was $2.66, up 8%.

• Free cash flow for Q2 was $732 million, up 59%; first half free cash flow was $816 million, up 13%.

• Net income attributable to shareholders grew 10% to $594 million in Q2.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: mid-single-digit or greater organic revenue growth, 80-90 basis points of margin expansion, and double-digit free cash flow growth.

• Targeting $260 million in cumulative annual savings from restructuring by year-end; Accelerating Aon United Program projected to generate $350 million in annualized expense savings by end of 2026.

• On track to achieve leverage ratio target of 2.8-3.0x by Q4 2025.

• Currency headwinds expected to have a minor negative impact on adjusted EPS for the full year if rates remain stable.

• NFP expected to contribute $300 million to results; restructuring and fiduciary income expected to have minor negative impacts.