Brown & Brown (BRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached $1.404 billion, up 11.6% year-over-year, with organic growth of 6.5% and strong segment performance.

• Adjusted diluted EPS increased 13.2% to $1.29; net income attributable to the company rose 13% to $331 million.

• Completed 13 acquisitions, contributing $36 million in annual revenue and $67 million net cash paid.

• Strong cash generation and balance sheet support continued M&A activity and business expansion.

• Board declared a quarterly dividend of $0.15 per share, payable in May 2025.

Financial highlights

• Adjusted EBITDAC grew 14.8% to $535 million, with margin up 110 basis points to 38.1%.

• Income before income taxes increased 17.4% to $478 million; margin improved to 30.4% from 28.9%.

• Dividends paid per share increased by 15.4% to $0.15.

• Operating cash flow was $215 million, up significantly year-over-year.

• Total debt at March 31, 2025 was $3,806 million, down $18 million from year-end 2024.

Outlook and guidance

• Management expects continued revenue growth from organic initiatives and acquisitions, supported by strong liquidity and $1.3 billion in incremental borrowing capacity.

• Catastrophe property rates anticipated to decrease 10%-30% in Q2; admitted market rates expected to remain stable.

• Retail organic growth expected to be higher in later quarters; full-year guidance remains low to mid-single digits.

• No material change in margin outlook; Q1 margin higher as expected, with expenses more loaded in later quarters.

• Board approved a quarterly dividend of $0.15 per share for Q2 2025.