Arthur J. Gallagher & Co. reported third‑quarter 2025 earnings with adjusted earnings per share of $2.32, falling short of the consensus estimate of $2.54, and total revenue of $3.33 billion, below the consensus of $3.454 billion. The company posted 20% total revenue growth, marking its 19th consecutive quarter of double‑digit top‑line expansion.
Brokerage revenue reached $2.92 billion and risk‑management revenue was $402 million. Organic revenue grew 4.8% overall; within brokerage, organic growth was 4.5%, with U.S. retail property‑and‑casualty lines expanding over 7% and employee‑benefits revenue rising about 1%.
Net earnings margin stood at 13.8%, and adjusted EBITDAC margin was 32.1%, with adjusted EBITDAC increasing 22% year‑over‑year.
The acquisition of AssuredPartners, closed in August 2025 for approximately $13.8 billion, contributed more than $450 million in incremental revenue and added significant annualized revenue to the company’s top line. Integration of the new business remains a key focus for management.
Property insurance rates declined 5% while casualty lines grew 6%, and renewal premiums remained in positive territory. These pricing dynamics helped explain the revenue miss relative to analyst expectations.
CEO Mark J. Gallagher noted that the company’s culture continues to thrive and that renewal premiums are positive, while acknowledging the earnings miss and emphasizing ongoing focus on growth and integration.
Year‑over‑year, Q3 2024 revenue was $2.77 billion and net earnings were $314.1 million, underscoring the company’s continued growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.