# Aon plc (AON) Q2 2025 Financial Results Summary
Aon plc (NYSE: AON) released its financial results for the second quarter of 2025 on July 25, 2025. The report highlighted a strong performance across various financial metrics, including significant growth in both total revenue and organic revenue.
## Key Financial Metrics
– **Total Revenue**:
– Q2 2025: $4,155 million
– Q2 2024: $3,760 million
– **Change**: +11%
– **Organic Revenue Growth**:
– Q2 2025: +6%
– Q2 2024: +5%
– **Operating Income**:
– Q2 2025: $859 million
– Q2 2024: $656 million
– **Change**: +31%
– **Adjusted Operating Income (Non-GAAP)**:
– Q2 2025: $1,171 million
– Q2 2024: $1,029 million
– **Change**: +14%
– **Operating Margin**:
– Q2 2025: 20.7%
– Q2 2024: 17.4%
– **Diluted EPS**:
– Q2 2025: $2.66
– Q2 2024: $2.46
– **Change**: +8%
– **Adjusted EPS (Non-GAAP)**:
– Q2 2025: $3.49
– Q2 2024: $2.93
– **Change**: +19%
– **Cash Provided by Operations**:
– Q2 2025: $796 million
– Q2 2024: $513 million
– **Change**: +55%
– **Free Cash Flow (Non-GAAP)**:
– Q2 2025: $732 million
– Q2 2024: $460 million
– **Change**: +59%
## Revenue Breakdown
– **Risk Capital Revenue**:
– Q2 2025: $2,866 million
– Q2 2024: $2,650 million
– **Change**: +8%
– **Human Capital Revenue**:
– Q2 2025: $1,291 million
– Q2 2024: $1,125 million
– **Change**: +15%
– **Total Operating Expenses**:
– Q2 2025: $3,296 million
– Q2 2024: $3,104 million
– **Change**: +6%
## Additional Highlights
– **Effective Tax Rate**:
– Q2 2025: 15.5%
– Q2 2024: 22.9%
– **Weighted Average Diluted Shares Outstanding**:
– Q2 2025: 217.3 million
– Q2 2024: 213.3 million
– **Share Repurchase**:
– Aon repurchased 0.7 million class A ordinary shares for approximately $250 million during Q2 2025.
– **Dividend**:
– Aon declared cash dividends amounting to $308 million during the first half of 2025.
## Performance Commentary
Greg Case, Aon’s CEO, stated, “We delivered strong second quarter results, including 6% organic revenue growth, 19% growth in adjusted EPS, and 59% free cash flow growth. This performance reflects the growing demand for our advice and solutions, driven by an increasingly complex environment.”
## Conclusion
In summary, Aon’s Q2 2025 financial results reported robust growth in revenue and earnings, driven by both organic and overall growth strategies. The company’s proactive capital allocation strategies, including share repurchases, reflect a commitment to returning value to shareholders while maintaining strong operational performance. With this quarter’s results, Aon reaffirms its confidence in reaching full-year financial guidance for 2025.
| (millions, except per share data) | Three Months Ended June 30, | 2025 | 2024 | % Change | Six Months Ended June 30, | 2025 | 2024 | % Change |
|---|---|---|---|---|---|---|---|---|
| Revenue | Total revenue | $4,155 | $3,760 | 11% | $8,884 | $7,830 | 13% | |
| Expenses | Compensation and benefits | 2,360 | 2,130 | 11% | 4,609 | 4,013 | 15% | |
| Information technology | 136 | 132 | 3% | 272 | 256 | 6% | ||
| Premises | 85 | 82 | 4% | 167 | 153 | 9% | ||
| Depreciation of fixed assets | 47 | 45 | 4% | 93 | 89 | 4% | ||
| Amortization and impairment of intangible assets | 201 | 128 | 57% | 400 | 144 | 178% | ||
| Other general expense | 373 | 455 | -18% | 819 | 803 | 2% | ||
| Accelerating Aon United Program expenses | 94 | 132 | -29% | 204 | 251 | -19% | ||
| Total operating expenses | 3,296 | 3,104 | 6% | 6,564 | 5,709 | 15% | ||
| Operating income | 859 | 656 | 31% | 2,320 | 2,121 | 9% | ||
| Interest income | — | 31 | -100% | 5 | 59 | -92% | ||
| Interest expense | -212 | -225 | -6% | -418 | -369 | 13% | ||
| Other income (expense) | 56 | 236 | -76% | 46 | 311 | 85% | ||
| Income before income taxes | 703 | 698 | 1% | 1,953 | 2,122 | -8% | ||
| Income tax expense(1) | 109 | 160 | -32% | 377 | 491 | -23% | ||
| Net income | 594 | 538 | 10% | 1,576 | 1,631 | -3% | ||
| Less: Net income attributable to redeemable and nonredeemable noncontrolling interests | 15 | 14 | 7% | 32 | 36 | -11% | ||
| Net income attributable to Aon shareholders | $579 | $524 | 10% | $1,544 | $1,595 | -3% | ||
| Basic net income per share attributable to Aon shareholders | $2.68 | $2.47 | 9% | $7.14 | $7.75 | -8% | ||
| Diluted net income per share attributable to Aon shareholders | $2.66 | $2.46 | 8% | $7.10 | $7.72 | -8% | ||
| Weighted average ordinary shares outstanding – basic | 216.2 | 212.5 | 2% | 216.3 | 205.8 | 5% | ||
| Weighted average ordinary shares outstanding – diluted | 217.3 | 213.3 | 2% | 217.6 | 206.7 | 5% |
(1) The effective tax rate was 15.5% and 22.9% for the three months ended June 30, 2025 and 2024, respectively, and 19.3% and 23.1% for the six months ended June 30, 2025 and 2024, respectively.
| As of (Unaudited) | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $1,008 | $1,085 |
| Short-term investments | 379 | 219 |
| Receivables, net | 4,905 | 3,803 |
| Fiduciary assets(1) | 20,677 | 17,566 |
| Other current assets | 854 | 759 |
| Total current assets | 27,823 | 23,432 |
| Goodwill | 16,024 | 15,234 |
| Intangible assets, net | 6,733 | 6,743 |
| Fixed assets, net | 664 | 637 |
| Operating lease right-of-use assets | 735 | 711 |
| Deferred tax assets | 861 | 654 |
| Prepaid pension | 598 | 556 |
| Other non-current assets | 572 | 998 |
| Total assets | $54,010 | $48,965 |
| Liabilities, redeemable noncontrolling interests, and equity | ||
| Liabilities | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | $2,294 | $2,905 |
| Short-term debt and current portion of long-term debt | 1,837 | 751 |
| Fiduciary liabilities | 20,677 | 17,566 |
| Other current liabilities | 2,267 | 1,773 |
| Total current liabilities | 27,075 | 22,995 |
| Long-term debt | 15,451 | 16,265 |
| Non-current operating lease liabilities | 705 | 685 |
| Deferred tax liabilities | 363 | 319 |
| Pension, other postretirement, and postemployment liabilities | 1,078 | 1,127 |
| Other non-current liabilities | 1,249 | 1,144 |
| Total liabilities | 45,921 | 42,535 |
| Redeemable noncontrolling interests | 81 | 125 |
| Equity | ||
| Ordinary shares – $0.01 nominal value | 2 | 2 |
| Authorized: 500 shares (issued: 2025 – 215.7; 2024 – 216.0) | ||
| Additional paid-in capital | 13,258 | 13,173 |
| Accumulated deficit | -1,574 | -2,309 |
| Accumulated other comprehensive loss | -3,843 | -4,745 |
| Total Aon shareholders’ equity | 7,843 | 6,121 |
| Nonredeemable noncontrolling interests | 165 | 184 |
| Total equity | 8,008 | 6,305 |
| Total liabilities, redeemable noncontrolling interests and equity | $54,010 | $48,965 |
(1) Includes cash and short-term investments of $8.3 billion and $7.2 billion as of June 30, 2025 and December 31, 2024, respectively.
