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Arthur J. Gallagher (AJG) FY2025 results: revenue $13.9 billion, up 20.7% on the year

Arthur J. Gallagher & Co. (AJG) reported revenue of $13.9 billion for fiscal 2025, the year ended 31 December 2025, up 20.7% on the year before. Net income was $1.5 billion, up 2.1%, and diluted earnings per share $5.74. The figures are the company's own, from the 10-K it filed with the SEC on 17 February 2026.

Revenue
$13.9 billion
+20.7% on the year
FY2018FY2025
Operating margin
13.4%
16.2% a year earlier
FY2018FY2025
Net income
$1.5 billion
+2.1% on the year
FY2018FY2025
Diluted EPS
$5.74
-11.7% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Revenue growth above 30% in quarter: Combined Brokerage and Risk Management revenue growth exceeded 30% in the fourth quarter, including 5% organic growth, according to the CEO.
  • Adjusted EBITDAC grew 30%: Management reported adjusted EBITDAC growth of 30%, a net earnings margin of 10.2%, and an adjusted EBITDAC margin of 30.8% for the quarter.
  • Reported diluted EPS lower year on year: Reported diluted EPS was $0.58 against $1.12 a year earlier. Adjusted diluted EPS was $2.38 against $2.16 in the prior-year quarter.
  • Full-year revenue up 21%: For 2025, revenue grew 21%, organic growth was 6%, adjusted EBITDAC grew 26%, and 33 mergers were completed with over $3.5 billion of estimated annualized revenue.
  • AssuredPartners closed in August: The company acquired AssuredPartners on August 18, 2025 for approximately $13.8 billion, as previously disclosed.
Read the Q4 FY2025 earnings call summary

From this 10-K

Gallagher sells insurance brokerage, reinsurance brokerage, consulting, and third-party property and casualty claims settlement and administration, around the world. It was founded in 1927 as a one-person insurance agency and reincorporated in Delaware in 1972; its executive offices are in Rolling Meadows, Illinois. According to Business Insurance magazine's June/July 2025 edition, ranked on revenues, it is the world's third largest insurance broker and risk manager; according to the same magazine's April/May 2025 edition it is one of the world's largest third party claims administrators for property and casualty.

Arthur J. Gallagher & Co., the 10-K for 2025

Gallagher sells insurance brokerage, reinsurance brokerage, consulting, and third-party property and casualty claims settlement and administration, around the world. It was founded in 1927 as a one-person insurance agency and reincorporated in Delaware in 1972; its executive offices are in Rolling Meadows, Illinois. According to Business Insurance magazine's June/July 2025 edition, ranked on revenues, it is the world's third largest insurance broker and risk manager; according to the same magazine's April/May 2025 edition it is one of the world's largest third party claims administrators for property and casualty.

The line it does not cross

The most important sentence in the filing is about what Gallagher does not do. It does not assume underwriting risk on a net basis, beyond the minimal amounts needed to provide minimum or regulatory capital when organising captives, pools, specialised underwriters or risk-retention groups. The capital that actually covers a loss comes from what the company calls underwriting enterprises: insurance companies, reinsurance companies and other risk-taking entities, including intermediaries, which Gallagher neither owns nor controls. So the business earns fees and commissions for placing and administering risk rather than profits or losses from carrying it.

Three segments

Brokerage provides broking and consulting to organisations of every type, including commercial and nonprofit bodies, public sector entities, insurance companies and insurance capital providers, and to a lesser degree individuals. The work covers insurance and reinsurance placement, managing risk of loss, and managing employer-sponsored benefit programmes.

Risk management provides contract claim settlement, claim administration, loss control and risk management consulting, for commercial, nonprofit, captive and public sector bodies and other organisations that either self-insure their property and casualty cover or prefer a third-party claims manager to the claims service an insurer would provide.

Corporate is the third segment, and the filing states it did not generate any significant revenues in 2025.

Where the business sits

The brokerage segment is much the larger of the two operating segments, with risk management the smaller. Most of the business is in the United States, and the international side is mostly Australia, Canada, New Zealand and the United Kingdom.

The company states that it believes its major strength is its ability to deliver comprehensively structured insurance, reinsurance and risk management solutions, claim outcomes and consulting services to its clients.

From Gallagher's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 17 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue13,94211,55510,072+20.7%
Operating income1,8711,8751,185-0.2%
Operating margin13.4%16.2%11.8%
Interest expense639381297+67.6%
Pre-tax income1,8711,8751,185-0.2%
Income tax368404219-9.0%
Effective tax rate19.7%21.6%18.5%
Net income1,4941,463970+2.1%
Net margin10.7%12.7%9.6%
Diluted EPS$5.74$6.50$4.42-11.7%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,9302,5832,032-25.3%
Capital expenditure145142194+2.2%
Free cash flow1,7852,4411,838-26.9%
Free cash flow margin12.8%21.1%18.2%
Cash from investing-15,876-1,587-3,293
Cash from financing1,71313,0532,874-86.9%
Depreciation and amortisation1,122842696+33.2%
Share-based compensation49.042.031.0+16.7%
Dividends paid667525474+27.0%
Dividend per share$2.60$2.40$2.20+8.3%
Diluted shares, weighted256m220m215m+16.1%
Shares outstanding at period end257m250m217m+2.8%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity23,32120,15410,775+15.7%
Non-controlling interest26.026.040.00.0%
Debt12,97013,1577,965-1.4%
Operating lease liabilities515328352+57.0%
Other liabilities33,83330,59032,483+10.6%
Total liabilities and equity70,66564,25551,616+10.0%
Fixed assets789650726+21.3%
Goodwill22,59312,27011,476+84.1%
Intangible assets10,6844,5304,633+135.8%
Cash and equivalents1,39614,987972-90.7%
Receivables5,1753,8963,787+32.8%
Other assets30,02827,92130,022+7.5%
Total assets70,66564,25551,616+10.0%

10-K for the year ended 31 December 2025, filed 17 February 2026: the filing.