Arthur J. Gallagher (AJG) Q4 2025 earnings summary

Executive summary

• Achieved over 30% revenue growth in Q4 2025, with 5% organic growth and 30% adjusted EBITDA/EBITDAC growth, marking 23 consecutive quarters of double-digit EBITDA growth.

• Completed the $13.8 billion acquisition of AssuredPartners in August 2025, adding significant scale and expected annualized run-rate synergies of $160M by end of 2026.

• Completed 33 mergers in 2025, with $3.5 billion in estimated annualized revenue acquired.

• Clean energy investments provided significant after-tax cash flow and tax credit carryforwards.

Financial highlights

• Full-year 2025: 21% revenue growth, 6% organic growth, 26% adjusted EBITDA/EBITDAC growth, and $3.5 billion in acquired annualized revenue.

• 4Q25 total company revenue: $3.59B (up from $2.68B in 4Q24); adjusted net earnings: $620M (up from $498M).

• Brokerage segment Q4 organic growth was 5%, with full-year organic at 6%.

• Risk management segment Q4 organic growth was 7%, with adjusted EBITDA/EBITDAC margin at 21.6%.

• Brokerage segment EBITDAC margin, as adjusted, was 32.2% in Q4 2025 and 36.5% for full year 2025.

Outlook and guidance

• Brokerage segment organic growth expected at 5.5% for full-year 2026.

• Risk management segment organic growth projected at 7% for 2026, with margins in the 21%-22% range.

• Underlying margin expansion of 40-60 basis points anticipated in 2026, with additional synergy benefits from AssuredPartners.

• Clean energy investments expected to continue generating substantial after-tax cash flows, subject to tax policy and U.S. taxable income.

• M&A pipeline robust, with over 40 term sheets representing $350 million in annualized revenue.