Marsh (MRSH) Q1 2025 earnings summary

Executive summary

• Revenue grew 9% year-over-year in Q1 2025 to $7.1 billion, with 4% underlying growth and significant contributions from acquisitions, despite a 2% currency headwind.

• Adjusted operating income rose 8% to $2.2 billion, and adjusted EPS increased 5% to $3.06, aided by favorable tax items and partially offset by FX headwinds.

• Net income attributable to the company was $1.4 billion; GAAP EPS decreased 1% to $2.79 due to higher interest expense.

• The integration of McGriff, acquired in late 2024, is progressing well and contributing to results.

• 2024 was the largest acquisition year, highlighted by the McGriff acquisition, expanding the middle market segment.

Financial highlights

• Consolidated Q1 2025 revenue was $7.1 billion, up 9% year-over-year, with underlying growth of 4%.

• Operating income reached $2.0 billion (up 4%); adjusted operating income was $2.2 billion (up 8%).

• Adjusted operating margin was 31.8% in Q1 2025; GAAP EPS was $2.79, adjusted EPS was $3.06, up 5% year-over-year.

• $300 million of stock was repurchased in Q1 2025.

• Cash and cash equivalents at quarter-end were $1.6 billion, with total assets of $57.0 billion.

Outlook and guidance

• Expect mid-single digit underlying revenue growth, margin expansion, and solid adjusted EPS growth for 2025.

• Management highlights resilience and continued demand for advisory services amid uncertain macroeconomic, geopolitical, regulatory, and technological risks.

• Adjusted effective tax rate expected between 25%-26% for 2025.

• Interest expense forecasted at ~$250 million for Q2.

• No specific quantitative forward guidance provided.