Arthur J. Gallagher (AJG) Q4 2025 earnings summary

Executive summary

• Achieved over 30% Q4 revenue growth and 21% full-year 2025 revenue growth, with organic growth of 5-6% and adjusted EBITDA/EBITDAC up 26-30%, marking 20+ consecutive quarters of double-digit top-line and EBITDA growth.

• Completed the $13.8B acquisition of AssuredPartners in August 2025, with integration ahead of plan and expected annualized run-rate synergies of $160M by end of 2026 and $260–$280M by early 2028.

• Clean energy investments provided substantial after-tax cash flow, with a $713M tax credit carryforward at year-end 2025 and projected annual after-tax cash flows over $150M in 2026.

Financial highlights

• Brokerage segment Q4 revenue up 38% with 5-6% organic growth, adjusted EBITDA/EBITDAC margin at 32.2%, and full-year margin at 32.2-36.5%.

• Risk management segment Q4 revenue up 13%, organic growth 6-7%, and adjusted EBITDA/EBITDAC margin at 21-21.6%.

• 4Q25 total company revenue: $3.59B; FY25: $13.78B; 4Q25 adjusted net earnings: $620M; FY25 adjusted net earnings: $2.79B.

• EPS for Brokerage was $2.74 in Q4, Risk Management $0.22, both above consensus; FY25 adjusted EPS: $10.69.

Outlook and guidance

• 2026 organic revenue growth estimated at 5.5% for Brokerage and 7% for Risk Management, with underlying margin expansion of 40-60 bps and additional AssuredPartners synergies expected.

• Clean energy investments projected to generate over $150M in annual after-tax cash flow in 2026 and over $200M in subsequent years.

• M&A pipeline robust, with over 40 term sheets representing $350M in annualized revenue.