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, with integration ahead of plan and significant expected synergies.

• Clean energy investments provided substantial after-tax cash flow, with a $713 million tax credit carryforward at year-end 2025.

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

Financial highlights

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

• Brokerage segment EBITDAC margin, as adjusted, was 36.5% for full-year 2025, with quarterly margins ranging from 32.2% to 43.4%.

• Risk management segment EBITDAC margin, as adjusted, was approximately 21% for 2025.

• 4Q25 total company revenue: $3.59B (up from $2.68B in 4Q24); adjusted revenue: $3.57B (up from $2.71B).

• FY25 net earnings: $1.50B (up from $1.47B); adjusted net earnings: $2.79B (up from $2.28B).

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 projected to generate annual after-tax cash flows greater than $150 million in 2026 and over $200 million in subsequent years.

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