# Arthur J. Gallagher & Co. (AJG) Q2 2025 Financial Results Summary
On July 31, 2025, Arthur J. Gallagher & Co. (NYSE: AJG) announced its financial results for the second quarter ended June 30, 2025. Here’s a summary of the key highlights from the report.
## Financial Highlights
– **Total Revenues**: Increased to **$3.220 billion**, up **16.0%** from **$2.775 billion** in Q2 2024.
– **Net Earnings**: Rose to **$366.2 million**, a **28.3%** increase compared to **$285.4 million** in Q2 2024.
– **Diluted Net Earnings Per Share**: Improved to **$1.40**, compared to **$1.27** in the same quarter last year (up **10.2%**).
– **Adjusted EBITDAC**: Reached **$855.2 million**, reflecting an increase of **23.9%** from **$690.3 million** in Q2 2024.
– **Net Earnings Margin**: Increased to **11.4%**, a rise of **1.1 percentage points** from **10.3%** in Q2 2024.
– **EBITDAC Margin**: Adjusted EBITDAC margin rose to **26.5%**, up from **24.9%** in the prior year.
## Segment Performance
### Brokerage Segment
– **Total Brokerage Revenues**: Grew to **$2.785 billion**, up **17.2%** from **$2.376 billion** in Q2 2024.
– **Net Earnings from Brokerage**: Increased to **$508.4 million**, compared to **$332.8 million** in the prior year’s second quarter (up **52.8%**).
– **EBITDAC from Brokerage**: Registered at **$890.5 million**, an increase of **33.1%** from **$668.1 million** in Q2 2024.
### Risk Management Segment
– **Total Risk Management Revenues**: Were **$434.8 million**, a **9.2%** rise from **$398.0 million** in Q2 2024.
– **Net Earnings**: Decreased slightly to **$42.6 million**, down **10.9%** from **$47.8 million** in the previous year.
– **EBITDAC**: Improved modestly to **$75.4 million**, up **3.4%** from **$72.3 million** last year.
### Corporate Segment
– **Net Loss**: Reported as **$184.8 million**, compared to a loss of **$95.2 million** in Q2 2024.
## Dividend and Share Repurchase
– **Dividends Declared**: During Q2 2025, the company declared dividends of **$0.65** per share, up from **$0.60** per share in Q2 2024.
## Notable Events
– **Acquisitions**: Gallagher completed **9 new mergers** in the quarter with approximately **$290 million** of estimated annualized revenue, while also advancing on the acquisition of AssuredPartners, expected to close in Q3 2025.
## Operational Insights
– The effective tax rate for the quarter increased to **22.3%** from **21.9%** year-over-year.
– Daily revenue indications and claim counts indicate stability in customer activity for the Gallagher Bassett segment.
– The company anticipates continued growth, attributing confidence to the stability of the global P/C insurance market amidst mixed conditions in property and casualty lines.
This financial report highlights Gallagher’s strong performance and growth trajectory in a competitive environment, published as it navigates ongoing strategic acquisitions and operational efficiencies.
For further details, Gallagher will host a conference call for investors, which will be available for replay on their Investor Relations website at ajg.com/IR.
| 2nd Q 25 | 2nd Q 24 | 6 Mths 25 | 6 Mths 24 | |
|---|---|---|---|---|
| Commissions | 1,807.5 | 1,661.8 | 4,056.7 | 3,655.4 |
| Fees | 579.1 | 477.6 | 1,199.3 | 1,084.3 |
| Supplemental revenues | 102.8 | 88.7 | 216.7 | 182.6 |
| Contingent revenues | 72.7 | 59.8 | 165.6 | 145.8 |
| Interest income, premium finance | 223.5 | 88.4 | 461.9 | 173.1 |
| Total revenues | 2,785.6 | 2,376.3 | 6,100.2 | 5,241.2 |
| Compensation | 1,526.2 | 1,370.3 | 3,143.4 | 2,847.1 |
| Operating | 368.9 | 337.9 | 715.3 | 677.3 |
| Depreciation | 38.1 | 32.3 | 71.0 | 65.1 |
| Amortization | 174.3 | 170.8 | 377.9 | 326.8 |
| Change in estimated acquisition | (6.3) | 18.7 | 9.1 | 2.5 |
| earnout | ||||
| Expenses | 2,101.2 | 1,930.0 | 4,316.7 | 3,918.8 |
| Earnings before income taxes | 684.4 | 446.3 | 1,783.5 | 1,322.4 |
| Provision for income taxes | 176.0 | 113.5 | 459.0 | 337.0 |
| Net earnings | 508.4 | 332.8 | 1,324.5 | 985.4 |
| Net earnings attributable to | 0.4 | 2.0 | 4.9 | 6.3 |
| noncontrolling interests | ||||
| Net earnings attributable to | 508.0 | 330.8 | 1,319.6 | 979.1 |
| controlling interests | ||||
| EBITDAC | ||||
| Net earnings | 508.4 | 332.8 | 1,324.5 | 985.4 |
| Provision for income taxes | 176.0 | 113.5 | 459.0 | 337.0 |
| Depreciation | 38.1 | 32.3 | 71.0 | 65.1 |
| Amortization | 174.3 | 170.8 | 377.9 | 326.8 |
| Change in estimated acquisition | (6.3) | 18.7 | 9.1 | 2.5 |
| earnout | ||||
| EBITDAC | 890.5 | 668.1 | 2,241.5 | 1,716.8 |
| June 30, 2025 | Dec 31, 2024 | |
|---|---|---|
| Cash and cash equivalents | 14,299.5 | 14,987.3 |
| Fiduciary assets | 38,294.3 | 24,712.1 |
| Accounts receivable, net | 4,739.2 | 3,895.9 |
| Other current assets | 505.1 | 518.0 |
| Total current assets | 57,838.1 | 44,113.3 |
| Fixed assets – net | 690.8 | 650.3 |
| Deferred income taxes | 691.6 | 959.1 |
| Other noncurrent assets | 1,573.6 | 1,354.4 |
| Right-of-use assets | 456.6 | 377.8 |
| Goodwill | 13,740.3 | 12,270.2 |
| Amortizable intangible assets – net | 5,131.6 | 4,530.1 |
| Total assets | 80,122.6 | 64,255.2 |
| Fiduciary liabilities | 38,294.3 | 24,712.1 |
| Accrued compensation and other | 2,820.4 | 3,586.3 |
| liabilities | ||
| Deferred revenue – current | 627.7 | 537.2 |
| Premium financing debt | 157.2 | 225.2 |
| Corporate related borrowings – current | 640.0 | 200.0 |
| Total current liabilities | 42,539.6 | 29,260.8 |
| Corporate related borrowings – noncurrent | 12,097.9 | 12,731.9 |
| Deferred revenue – noncurrent | 66.8 | 67.1 |
| Lease liabilities – noncurrent | 402.0 | 328.1 |
| Other noncurrent liabilities | 1,960.0 | 1,687.7 |
| Total liabilities | 57,066.3 | 44,075.6 |
| Stockholders’ equity: | ||
| Common stock – issued and outstanding | 256.4 | 250.0 |
| Capital in excess of par value | 17,546.3 | 16,068.9 |
| Retained earnings | 5,720.7 | 4,985.7 |
| Accumulated other comprehensive loss | (500.3) | (1,151.1) |
| Total controlling interests | 23,023.1 | 20,153.5 |
| stockholders’ equity | ||
| Noncontrolling interests | 33.2 | 26.1 |
| Total stockholders’ equity | 23,056.3 | 20,179.6 |
| Total liabilities and stockholders’ | 80,122.6 | 64,255.2 |
| equity |
