01—Abstract
Summary
Summary of the 10-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Arthur J.
Gallagher & Co. (AJG) reported a robust fiscal year 2025, demonstrating strong revenue growth driven by its brokerage segment, which accounted for 87%a 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 $12.10b 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.
02—Key points
Key Highlights
- Brokerage segment drove 87% of revenue, with strong organic growth of 6% in commissions and fees.
- Completed significant acquisitions of AssuredPartners for $13.8 billion and Woodruff Sawyer for $1.2 billion, enhancing market presence and service capabilities.
- Reported robust adjusted EBITDAC margin of 36.5% in the brokerage segment, up 145 basis points year-over-year.
- Generated 33% of total revenues internationally, underscoring a significant global footprint.
- Maintained strong operational execution despite macroeconomic and geopolitical uncertainties.
- Continued investment in technology and talent development, including a focus on AI and data analytics.
- Returned $674 million in dividends to shareholders in 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 17, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $13.94B$11.55B | +20.7% |
| Operating Expenses | $12.07B$9.68B | +24.7% |
| Interest Expense | $639.00M$381.00M | +67.7% |
| Net Income | $1.50B$1.47B | +2.2% |
| EPS (Basic) | $5.83$6.63 | −12.1% |
| EPS (Diluted) | $5.74$6.50 | −11.7% |
| Shares Outstanding (Basic) | 256.10M220.50M | +16.1% |
05—Questions
Frequently Asked Questions
What were the key drivers of Arthur J. Gallagher & Co.'s revenue growth in 2025?
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.
How did the company finance its major acquisitions in 2025?
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.
What is the company's strategy for future growth?
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.
How is the company managing potential risks, such as cybersecurity and regulatory changes?
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.
06—Continue