Baldwin Insurance Group (BWIN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 14% year-over-year to $339.8M, with organic revenue up 19% driven by strong core commissions, fees growth, and net new client wins.

• Adjusted EBITDA increased 22% year-over-year to $74.9M, with margin expanding 130 basis points to 22%.

• Adjusted diluted EPS rose 26% year-over-year to $0.34; free cash flow increased 38% to $71.4M, or 64% excluding $13.6M in one-time refinancing costs.

• Net loss improved to $30.9M from $43.7M in Q2 2023; operating income for Q2 2024 was $16.5M, compared to a loss of $16.5M in Q2 2023.

• Integration work and technology investments enabled further operating leverage and margin expansion.

Financial highlights

• Q2 2024: Revenue $339.8M (+14% YoY), organic revenue growth 19%, adjusted net income $40.3M, adjusted EBITDA $74.9M (22% margin).

• Free cash flow for Q2 was $18.1M, up 10% year-over-year; for six months, $71.4M (+38% YoY), or $85.0M (+64% YoY) excluding one-time refinancing costs.

• Adjusted net income was $40.3M ($0.34 per diluted share); GAAP net loss was $30.9M (diluted loss per share of $0.28).

• Year-to-date 2024 revenue reached $720.2M, up 15% year-over-year; adjusted EBITDA was $176.6M, up 26%, with a 25% margin.

• Cash and cash equivalents at June 30, 2024 were $208.3M, with $600M available on the revolving credit facility.

Outlook and guidance

• Full-year 2024 revenue expected at $1.375–$1.4B, with organic revenue growth at the upper end of the 10%-15% range.

• Adjusted EBITDA guidance tightened to $315–$325M; free cash flow expected at $165–$195M.

• Q3 2024 revenue expected at $340–$350M, with organic growth at the high end of the long-term range.

• Management expects continued sustainable outsized organic revenue growth and margin expansion in the second half of 2024.

• Liquidity position is sufficient to fund operations and commitments for the next twelve months and beyond.