Marsh McLennan (MRSH) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 grew 9% to $7.1 billion, with 4% underlying growth and strong contributions from acquisitions, despite a 2% currency headwind.

• Adjusted operating income increased 8% to $2.2 billion; adjusted EPS rose 5% to $3.06, while GAAP EPS decreased 1% to $2.79 due to higher interest expense.

• Net income attributable to the company was $1.4 billion.

• All business segments posted growth; integration of McGriff is on track and contributing.

• Macroeconomic and geopolitical risks, including global trade negotiations and inflation, are impacting business confidence and market volatility.

Financial highlights

• Q1 2025 consolidated revenue: $7.1B (up 9%); operating income: $2.0B (up 4%); adjusted operating income: $2.2B (up 8%).

• Adjusted operating margin: 31.8%; GAAP EPS: $2.79; adjusted EPS: $3.06 (up 5%).

• Net income: $1.4B; net income margin: ~19.7%.

• $300M in share repurchases and $405M in dividends paid in Q1.

• Cash and cash equivalents at quarter-end: $1.6B; total assets: $57.0B.

Outlook and guidance

• Expect mid-single digit underlying revenue growth, margin expansion, and solid adjusted EPS growth for 2025, supported by operating efficiencies and investments.

• Guidance is based on current conditions; ongoing trade and macroeconomic uncertainty could materially impact results.

• Management highlights resilience and continued demand for advisory services amid uncertain market conditions.

• Anticipate $4.5B capital deployment in 2025 across dividends, acquisitions, and share repurchases.

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