Arthur J. Gallagher (AJG) Q3 2025 earnings summary

Executive summary

• Achieved 20% total revenue growth in Q3 2025, with 4.8% organic growth and 22% adjusted EBITDA/EBITDAC growth year-over-year, marking the 19th consecutive quarter of double-digit top-line growth, driven by organic initiatives and major acquisitions, notably AssuredPartners.

• Total revenues for the nine months ended September 30, 2025, rose 17% to $10.3 billion, with net earnings attributable to controlling interests up 12% to $1.34 billion.

• The acquisition of AssuredPartners for $13.8 billion closed in August 2025, significantly expanding scale and workforce, with integration underway and synergy targets set for early 2028.

• Net earnings margin was 13.8%, adjusted EBITDAC margin was 32.1%, and adjusted EBITDAC grew 22% year-over-year.

• The brokerage segment contributed 87% of revenues, while risk management accounted for 13%.

Financial highlights

• Q3 2025 revenues before reimbursements: $2,922.9 million, up from $2,396.4 million in Q3 2024; nine months ended September 30, 2025 revenues before reimbursements: $9,023.1 million, up from $7,637.6 million in 2024.

• Brokerage segment revenues grew 18% year-over-year to $9.02 billion for the nine months, with organic revenue growth of 6.6%.

• Brokerage segment Q3 2025 adjusted EBITDAC margin: 33.5%; Risk Management segment: 21.8%.

• Adjusted EBITDAC for the brokerage segment rose 26% to $3.43 billion, with an adjusted margin of 38%.

• Interest income surged due to proceeds from the AssuredPartners financing, contributing $363 million in the nine-month period.

Outlook and guidance

• Brokerage segment Q4 organic growth expected around 5%, with full-year organic growth above 6%; risk management segment expected to deliver about 7% organic growth in Q4 and maintain margins near 21% for the year.

• Early 2026 outlook suggests similar performance to 2025, with stable organic growth and margin expansion.

• AssuredPartners expected to deliver $1,055 million adjusted EBITDAC in FY 2026, with annual run-rate synergies of $260–$280 million targeted by early 2028.

• Integration expenses for AssuredPartners and Woodruff Sawyer are projected at $575 million and $150 million, respectively, over three years.

• Effective tax rates are anticipated at 24.5–26.5% for brokerage and 25–27% for risk management.