Marsh McLennan (MRSH) Q4 2024 earnings summary

Executive summary

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

• Adjusted operating income rose 11% to $6.2B, and adjusted EPS increased 10% to $8.80, the 4th consecutive year of 10%+ adjusted EPS growth.

• 2024 was the largest acquisition year, 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.

• Capital-light model generated nearly $4B in free cash flow, supporting disciplined capital management.

Financial highlights

• Q4 consolidated revenue was $6.1B, up 9% (7% underlying); full-year revenue grew at an 8% CAGR from 2019–2024.

• Adjusted operating margin reached 26.8% in 2024, up 80 bps from 2023 and 1,330 bps since 2010.

• Free cash flow reached $4B in 2024, with a 17% CAGR since 2010 and FCF margin of 16%.

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

• Q4 adjusted EPS was $1.87, up 11% year-over-year.

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 discrete tax items, 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.

• Focus remains on investing in talent, technology, and innovation to sustain competitive advantage.