Baldwin Insurance Group (BWIN) Q4 2024 earnings summary

Executive summary

• Achieved 19% organic revenue growth in Q4 and 17% for the year, with double-digit growth across all segments and record new business productivity in IAS.

• Adjusted EBITDA margin expanded 310 basis points in Q4 to 19.1% and 200 basis points for the year to 22.5%, with Adjusted Free Cash Flow nearly doubling to $134.9 million.

• Net loss narrowed to $34.8 million in Q4 and $41.1 million for the year, reflecting non-cash and one-time items.

• Adjusted diluted EPS rose 93% in Q4 to $0.27 and 34% for the year to $1.50.

• Industry-leading sales velocity of 21.5% in 2024, nearly double the industry median, drove new client relationships and revenue.

Financial highlights

• Q4 total revenue was $329.9 million, up 16% year-over-year; full-year total revenue reached $1.4 billion, up 14%.

• Adjusted EBITDA for Q4 rose 38% to $63.2 million; full-year Adjusted EBITDA was $312.5 million, up 25%.

• Adjusted net income for Q4 was $32.1 million; full-year adjusted net income was $176.9 million.

• Adjusted Free Cash Flow for Q4 was $102.2 million (up 129% YoY); full-year Adjusted Free Cash Flow was $134.9 million, up 97%.

• Excluding $14 million in one-time refinancing costs, adjusted free cash flow would have increased to $148.9 million.

Outlook and guidance

• Q1 2025 revenue expected at $410–$420 million, with organic revenue growth at the low end of the 10–15% long-term range.

• Q1 2025 Adjusted EBITDA expected between $110–$115 million; Adjusted Diluted EPS of $0.62–$0.66.

• Full-year 2025 guidance: organic revenue growth in the lower half of the 10–15% range, total revenue $1.52–$1.56 billion, Adjusted EBITDA $345–$360 million, Adjusted Free Cash Flow $150–$175 million, and Adjusted Diluted EPS $1.70–$1.80.

• Net leverage expected to temporarily rise in Q1 due to earnout payments, then fall below 4x by Q3.

• Management is unable to reconcile forward-looking non-GAAP guidance to GAAP due to unpredictability of certain items.