Brown & Brown (BRO) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue reached $1.4 billion, up 15.4% year-over-year, with organic growth of 14%.

• Full-year 2024 revenue was $4.8 billion, up 12.9% in total and over 10% organically, with adjusted EPS up 18.2% to $3.84.

• Adjusted diluted EPS rose 24.6% in Q4; reported Q4 EPS declined 22.3% due to prior-year gains.

• Completed 32 acquisitions in 2024, including Quintes in the Netherlands, adding $174 million in annual revenue.

• Maintained a highly diversified business model, driving best-in-class financial results.

Financial highlights

• Q4 adjusted EBITDAC margin expanded by 190 bps to 32.9%; full-year margin up 130 bps to 35.2%.

• Q4 adjusted net income attributable to the company was $248 million, up 25.3% year-over-year.

• Cash from operations for the year was nearly $1.2 billion, up 16.2% year-over-year.

• Dividends declared per share increased 15.4% in Q4 and 13.7% for the year.

• Q4 commissions and fees increased 15.4% to $1.16 billion; full-year commissions and fees rose 12.1% to $4.71 billion.

Outlook and guidance

• Expect stable economic conditions and moderate growth in 2025, with flat adjusted EBITDA margins.

• Admitted rates expected to remain stable in 1H25; CAT property rates anticipated to decrease, with close monitoring of California wildfire impacts.

• Q1 2025 organic revenue growth in retail expected to be about 100 basis points lower than other quarters due to timing.

• Effective tax rate projected at 24%-25%; interest expense expected at $170-$180 million, interest income at $65-$70 million.

• Strong balance sheet and cash generation position the company for further acquisitions.