10-KPeriod: FY2025

Arthur J. Gallagher & Co. Annual Report, Year Ended Dec 31, 2025

Filed February 17, 2026For Securities:AJG

Summary

Arthur J. Gallagher & Co. (AJG) reported a robust fiscal year 2025, demonstrating strong revenue growth driven by its brokerage segment, which accounted for 87% of total revenues. The company successfully navigated a dynamic market, highlighted by significant acquisitions, including AssuredPartners and Woodruff Sawyer, which are expected to contribute to future growth. AJG's global reach is evident with 33% of revenues generated internationally, primarily from Australia, Canada, New Zealand, and the UK. The company's risk management segment also showed positive growth, contributing 13% to revenues. Management emphasized continued investment in technology and talent development as key strategies for ongoing success. Financially, AJG reported adjusted diluted earnings per share of $12.10 for the brokerage segment, a 12% increase year-over-year, and adjusted EBITDAC margin of 36.5%, indicating strong operational profitability. The company managed its debt effectively, funding significant acquisitions through a combination of equity offerings and debt issuances. AJG remains committed to strategic acquisitions, talent retention, and delivering value-added services to its diverse client base across property/casualty, benefits, and risk management solutions.

Financial Highlights

43 data points
Beta

Revenue

$13.94B

Net Income

$1.50B

10.8% Net Margin

EPS (Diluted)

$5.74

Total Assets

$70.67B

Cash & Equivalents

$1.40B

Free Cash Flow

$1.93B

Financial Statements
Beta
Revenue$13.94B
Operating Expenses$12.07B
Interest Expense$639.00M
Net Income$1.50B
EPS (Basic)$5.83
EPS (Diluted)$5.74
Shares Outstanding (Basic)256.10M

Key Highlights

  • 1Brokerage segment drove 87% of revenue, with strong organic growth of 6% in commissions and fees.
  • 2Completed significant acquisitions of AssuredPartners for $13.8 billion and Woodruff Sawyer for $1.2 billion, enhancing market presence and service capabilities.
  • 3Reported robust adjusted EBITDAC margin of 36.5% in the brokerage segment, up 145 basis points year-over-year.
  • 4Generated 33% of total revenues internationally, underscoring a significant global footprint.
  • 5Maintained strong operational execution despite macroeconomic and geopolitical uncertainties.
  • 6Continued investment in technology and talent development, including a focus on AI and data analytics.
  • 7Returned $674 million in dividends to shareholders in 2025.

Frequently Asked Questions

Revenue growth in 2025 was primarily driven by a combination of strong organic growth within the brokerage segment, particularly in commissions and fees (6% organic growth), and the significant contributions from recent acquisitions, most notably AssuredPartners and Woodruff Sawyer. The company also benefited from continued renewal premium increases and client exposure growth in its property/casualty brokerage operations.

The company financed its major acquisitions, including AssuredPartners and Woodruff Sawyer, through a combination of capital-raising activities. This included an $8.5 billion follow-on common stock offering, $5.0 billion in senior notes issuance for the AssuredPartners acquisition, and funding the Woodruff Sawyer acquisition with cash on hand.

Arthur J. Gallagher & Co.'s growth strategy continues to focus on a combination of organic growth, driven by deepening client relationships and cross-selling opportunities, and strategic mergers and acquisitions. The company also emphasizes investment in talent development and leveraging technology and data analytics to enhance its service offerings and client value.

The company has implemented a comprehensive cybersecurity program aligned with frameworks like NIST CSF and ISO 27001, including a global incident response capability. Management also acknowledges the evolving regulatory landscape, including data privacy and AI regulations, and states it is actively navigating these changes. The risk factors section of the filing also details various operational, legal, and regulatory risks the company monitors.