Marsh McLennan (MRSH) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 grew 12% year-over-year to $7.0B, with underlying revenue up 4%, driven by business momentum and acquisitions, notably McGriff.

• Adjusted operating income increased 14% to $2.1B, and adjusted EPS rose 11% to $2.72; GAAP EPS was $2.45.

• For the first six months, revenue was $14.0B (up 11%), adjusted operating income $4.3B (up 11%), and adjusted EPS $5.78 (up 8%).

• The macro environment remains uncertain, with risks from geopolitics, litigation, and rapid AI development impacting clients and operations.

• Announced a 10% dividend increase to $0.90 per share, marking 16 consecutive years of dividend growth.

Financial highlights

• Q2 2025 consolidated revenue reached $7.0B (up 12%); adjusted operating margin was 29.5%, up 50 basis points year-over-year.

• Q2 net income attributable was $1.2B; Q2 operating income was $1.8B (up 11%).

• For the first six months, operating income was $3.8B (up 7%), and net income was $2.6B.

• Quarterly dividend increased 10% to $0.90; $600M in share repurchases completed in H1 2025.

• Operating cash flow for H1 2025 was $1.05B, up from $434M in H1 2024.

Outlook and guidance

• Expecting mid-single-digit underlying revenue growth, solid adjusted EPS growth, and 18th consecutive year of margin expansion for 2025.

• Capital deployment for 2025 projected at $4.5B across dividends, acquisitions, and share repurchases.

• McGriff acquisition expected to be modestly accretive to adjusted EPS in 2025, more so in 2026 and beyond.

• Management highlights ongoing macroeconomic and geopolitical risks as potential headwinds.

• New U.S. tax legislation and OECD global minimum tax rules are not expected to materially impact results.