Brown & Brown (BRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 total revenues reached $1.404 billion, up 11.6% year-over-year, with organic growth of 6.5% and strong segment performance.

• Adjusted diluted EPS increased 13.2% to $1.29, and net income attributable to the company rose 13% to $331 million.

• Completed 13 acquisitions, contributing $36 million in annual revenue and $67 million net cash paid, supporting robust M&A activity.

• Strong cash generation and balance sheet support continued business expansion and liquidity.

• Economic backdrop remains stable, with cautious optimism amid inflation, tariffs, and interest rate uncertainties.

Financial highlights

• Total revenues reached $1.404 billion, up 11.6% year-over-year, with core commissions and fees up 12.7%.

• Adjusted EBITDAC grew 14.8% to $535 million, with margin up 110 basis points to 38.1%.

• Income before income taxes increased 17.4% to $478 million; margin improved to 30.4%.

• Diluted net income per share rose 13.2% to $1.29; net income per diluted share was $1.15.

• Operating cash flow was $215 million, up significantly from Q1 2024, aided by deferred tax payments.

Outlook and guidance

• Management expects continued revenue growth from organic initiatives and acquisitions, with strong liquidity and $1.3 billion in incremental borrowing capacity.

• Catastrophe property rates anticipated to decrease 10%-30% in Q2 due to capital availability.

• Retail organic growth expected to be higher in later quarters, with full-year performance in line with prior guidance.

• No material change in margin outlook; Q1 margin higher as expected, with expenses more loaded in subsequent quarters.

• Board approved a quarterly dividend of $0.15 per share, payable May 2025.