Arthur J. Gallagher (AJG) Q2 2025 Earnings
How Did AJG Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +3.54%.
Did AJG Beat Earnings? Q2 2025 Results
No. Arthur J. Gallagher reported Q2 2025 earnings of $2.33 a share on Jul 31, 2025, missing the $2.36 consensus estimate by 1.2%. Revenue was $3.2B against a $3.2B estimate.
Arthur J. Gallagher came up just short of Wall Street expectations in the second quarter of 2025, with adjusted EPS of $2.33 missing the $2.36 consensus by 1.21% and revenue of $3.18 billion falling 0.71% below the $3.20 billion estimate, though the insurer's top line still grew a robust 14.5% year over year. The shortfall was largely absorbed by a sharp widening in profitability metrics, as net earnings margin expanded 343 basis points to 17.3% and adjusted EBITDAC margin reached 34.5%, marking the company's 21st consecutive quarter of double-digit adjusted EBITDAC growth at 26% year over year. The brokerage segment was the primary engine, generating $2.79 billion in revenue before reimbursements on 5.3% organic growth, with supplemental revenues up 10.5% and contingent revenues rising 16.5%. Shares fell roughly 8% on the headline misses, though analysts see the story improving materially once the pending $13.45 billion AssuredPartners acquisition, expected to close in the third quarter of 2025, begins contributing to results and driving the roughly 21% revenue growth projected for the full year.
- 5.4% organic revenue growth in combined brokerage and risk management segments
- Brokerage organic base commissions and fees grew 4.7%
- Brokerage supplemental revenues grew 10.5% organically
- Brokerage contingent revenues grew 16.5% organically
- Risk Management organic fee growth of 6.2%
- Adjusted EBITDAC margin expanded 307 basis points to 34.5%
- Interest income revenues from AssuredPartners Financing proceeds (approximately $144 million in Q2 Brokerage)
- Headcount controls and savings in real estate expenses from office consolidations
- Lower integration costs year over year
- 21st consecutive quarter of double-digit adjusted EBITDAC growth
“We had a great second quarter. Our core brokerage and risk management segments combined to deliver 16% revenue growth, including organic revenue growth of 5.4%. Our second quarter net earnings margin increased 343 basis points to 17.3%, our adjusted EBITDAC margin increased 307 basis points to 34.5%, and adjusted EBITDAC grew year over year by 26%, the 21st consecutive quarter of double-digit growth.”
Arthur J. Gallagher CEO, on the earnings call
What Was Arthur J. Gallagher's Outlook in Q2 2025?
Management stated it remains well positioned for the remainder of 2025 and beyond. The pending AssuredPartners acquisition for approximately $13.45 billion is expected to close in Q3 2025. The company noted the global P/C insurance market remains rational with property renewal premiums declining 7% and casualty increasing 8%. Gallagher Bassett daily revenue indications and claim counts are not indicating a meaningful change in customers' business activity.
AJG YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $3.2B | $2.8B | +14.5% |
| Net Income | $366.2M | $283.4M | +29.2% |
| Operating Income | $471.4M | $478.7M | −1.5% |
AJG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.