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.

• Completed the $13.8 billion acquisition of AssuredPartners in August 2025, significantly expanding scale and workforce, with integration progressing well and synergy targets set for the next three years.

• Provided both actual and estimated financials for Q3 2025, including and excluding AssuredPartners, with early cross-selling and cultural alignment yielding positive results.

• Net earnings attributable to controlling interests increased 12% to $1.34 billion for the nine-month period, with diluted EPS at $5.16, down 4% year-over-year due to acquisition-related costs.

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

Financial highlights

• Q3 2025 GAAP EPS was $1.76; adjusted EPS was $2.87, with a $0.22 impact from AssuredPartners seasonality.

• Brokerage segment Q3 2025 adjusted EBITDAC/EBITDA margin was 33.5%, with risk management at 21.8%.

• Brokerage segment Q3 2025 net earnings were $410.4 million, with adjusted EBITDAC of $981.6 million.

• Combined brokerage and risk management segments posted 17% revenue growth, 27% net earnings growth, and 25% EBITDA growth for the nine-month period.

• Interest income from AssuredPartners financing contributed significantly to quarterly results, totaling $363 million for the nine months.

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.

• Annualized run-rate synergies from AssuredPartners projected at $160 million by end of 2026 and $260–$280 million by early 2028.

• Clean energy investments projected to generate annual net after-tax cash flows greater than $180 million in 2025 and over $200 million in 2026 and beyond.