Baldwin Insurance Group (BWIN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 11% year-over-year to $338.9 million, with organic revenue growth of 14% and adjusted EBITDA up 14% to $72.8 million, despite significant hurricane impacts in Florida.

• Adjusted diluted EPS increased 14% to $0.33, while GAAP net loss narrowed 55% year-over-year to $14.5 million.

• Year-to-date, revenue rose 13% to $1.1 billion, organic revenue grew 16%, and adjusted EBITDA increased 22% to $249.3 million.

• Adjusted free cash flow for the nine months ended September 30, 2024, increased 31% to $99.2 million.

• The company completed the sale of its Wholesale/Connected Risk business in early 2024, resulting in a $35.1 million pre-tax gain.

Financial highlights

• Q3 2024 total revenue was $338.9 million, with organic revenue growth of 14% and commissions/fees of $335.2 million.

• Adjusted EBITDA for Q3 was $72.8 million, with a margin of 21.5%, and adjusted net income was $38.5 million.

• Adjusted free cash flow for Q3 was $27.8 million, up 15% year-over-year.

• Net cash from operating activities for the nine months was $85.7 million; cash paid for interest YTD was $73.4 million.

• Net leverage reduced to 4.2x, with a target of 3–4x by year-end.

Outlook and guidance

• Q4 2024 revenue expected at $325–$335 million, with organic growth at the high end of the 10–15% range.

• Q4 adjusted EBITDA expected at $61–$66 million; adjusted EPS at $0.25–$0.29.

• Full-year 2024 adjusted EBITDA expected at $310–$315 million, margin accretion of ~200 bps, and adjusted free cash flow of $140–$150 million.

• 2025 outlook: organic growth at midpoint of 10–15% range, margin accretion of 25–100 bps, and improved free cash flow conversion.

• Management highlights strong execution, operational effectiveness, and a focus on long-term growth and margin expansion.