Marsh (MRSH) Q4 2024 earnings summary

Executive summary

• Achieved $24.5B in revenue for 2024, with 8% total and 7% underlying growth, extending the best growth stretch in over two decades and 17 consecutive years of margin expansion.

• Adjusted operating income rose 11% to $6.2B, adjusted EPS increased 10% to $8.80, and free cash flow reached $4B, supporting disciplined capital management.

• Completed the largest year of acquisitions, investing $9.4B, including the $7.75B McGriff acquisition, expanding middle market presence.

• Raised dividend by 15% to $3.05 per share and repurchased $900M in shares.

• Successfully completed a restructuring program, boosting efficiency and collaboration.

Financial highlights

• Q4 consolidated revenue was $6.1B, up 9% year-over-year, or 7% underlying.

• Adjusted operating margin reached 26.8% in 2024, up 80 bps from 2023, and adjusted EPS was $8.80, up 10% year-over-year.

• Free cash flow margin was 16% in 2024, with a 17% CAGR since 2010.

• Total shareholder return since 2010 was 925%, compared to 510% for the S&P 500.

• Q4 net income attributable to the company was $788M; full-year net income was $4.1B.

Outlook and guidance

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

• Anticipate headwinds from fiduciary income, FX, and lower discrete tax benefits, especially in Q1 2025.

• Plan to deploy ~$4.5B in capital in 2025 across dividends, acquisitions, and share repurchases.

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

• Management expects another strong year in 2025, citing unique capabilities and enduring client value.