Arthur J. Gallagher (AJG) investor relations material

Executive summary

• Total revenues for the first half of 2026 rose 26% year-over-year to $8.76 billion, driven by acquisitions and 5–6% organic growth in Brokerage and Risk Management segments.

• Completed the acquisition of AssuredPartners, the largest in company history, with integration underway and expected annualized synergies of $160 million by end of 2026 and $325 million by early 2028.

• Brokerage and Risk Management segments delivered 24% revenue growth in Q2 2026, with strong client retention and new business generation.

• Net earnings attributable to controlling interests for the first half were $1.15 billion, with diluted EPS of $4.41, up 7% year-over-year.

• Major acquisitions expanded geographic reach and service offerings, with 16 acquisitions completed in the first half of 2026.

Financial highlights

• Adjusted EBITDAC for the first half of 2026 was $2.88 billion, up 17% year-over-year, with a 37.0% margin.

• Brokerage segment Q2 2026 net earnings were $450 million, with adjusted EBITDAC of $1,163 million and a 33.3% margin.

• Risk Management segment Q2 2026 net earnings were $57 million, with adjusted EBITDAC of $101 million and a 22.3% margin.

• Cash provided by operating activities was $967 million for the first half, more than doubling from the prior year.

• Repurchased 2.3 million shares for $480 million in the first half of 2026.

Outlook and guidance

• Full-year 2026 organic growth outlook reaffirmed at 6% total, 5.5% Brokerage, and 8–9% Risk Management.

• Brokerage segment adjusted EBITDAC margin guidance for 2026 is 33.6% to 34.2%.

• Effective tax rates expected to remain in the 24.5%–27% range for both segments.

• Estimated $10 billion capital deployment capacity over next two years, favoring M&A.

• Annualized run-rate synergies from AssuredPartners expected at $160 million by end of 2026, up to $325 million by early 2028.