01—Abstract
Summary
Summary of the 10-Q filed November 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Arthur J.
Gallagher & Co. (AJG) reported strong performance for the nine months ending September 30, 2025. Total revenues grew to $10.31 billiona, up 16.7% year-over-year, driven by significant contributions from both the brokerage and risk management segments. The brokerage segment, in particular, saw robust revenue growth, fueled by organic increases and strategic acquisitions, including the major acquisition of AssuredPartners.
Net earnings attributable to controlling interests reached $1.34 billionb for the nine-month period, a 10.7% increase compared to the prior year, reflecting effective cost management and the benefits of scale. Diluted EPS for the nine months was $5.16, slightly down from $5.40 in the prior year, impacted by share dilution from recent equity issuances for acquisitions, but adjusted EPS showed an increase. The company's financial health remains strong, with substantial growth in goodwill and amortizable intangible assets reflecting aggressive M&A activity.
Total assets grew significantly to $79.07 billionc. While debt levels increased to fund these acquisitions, the company's credit facilities and liquidity position appear stable.
Dividends paid increased, demonstrating a commitment to returning value to shareholders. Investors should monitor the integration progress of AssuredPartners and Woodruff Sawyer, as well as the ongoing impact of market conditions and interest rate environments on future performance.
02—Key points
Key Highlights
- Total revenues increased by 16.7% to $10.31 billion for the nine months ended September 30, 2025, compared to $8.84 billion in the prior year.
- Net earnings attributable to controlling interests grew by 10.7% to $1.34 billion for the nine months ended September 30, 2025, compared to $1.20 billion in the prior year.
- Diluted EPS was $5.16 for the nine months, a decrease from $5.40 in the prior year, primarily due to increased share count from acquisitions.
- The company completed significant acquisitions, including AssuredPartners for $13.8 billion and Woodruff Sawyer for $1.2 billion, significantly expanding its market presence and asset base.
- Total assets increased from $64.26 billion at December 31, 2024, to $79.07 billion at September 30, 2025.
- The company's goodwill and amortizable intangible assets increased substantially due to acquisitions, reflecting a strategy of inorganic growth.
- Dividends paid increased by 8% to $0.65 per common share per quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 10, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.37B$2.81B | +19.9% |
| Operating Expenses | $3.02B$2.40B | +25.6% |
| Interest Expense | $160.80M$92.90M | +73.1% |
| Net Income | $273.60M$314.10M | −12.9% |
| EPS (Basic) | $1.06$1.43 | −25.9% |
| EPS (Diluted) | $1.04$1.39 | −25.2% |
| Shares Outstanding (Basic) | 256.60M219.30M | +17.0% |
05—Questions
Frequently Asked Questions
What is the impact of the AssuredPartners acquisition on AJG's financial performance?
The acquisition of AssuredPartners, completed on August 18, 2025, for $13.8 billion, significantly boosted AJG's total revenues and total assets. The brokerage segment, in particular, saw substantial revenue growth attributed to this acquisition. While the integration of AssuredPartners is expected to incur significant integration costs, the company anticipates these will contribute to long-term growth and synergy.
How has AJG's debt and cash position changed?
AJG's total debt has increased due to financing the AssuredPartners and Woodruff Sawyer acquisitions. However, the company's overall liquidity remains strong, with a substantial balance of cash and cash equivalents. The company has access to significant credit facilities to manage its liquidity needs and has demonstrated a commitment to returning capital to shareholders through increased dividends.
What is the outlook for AJG's organic revenue growth?
AJG anticipates continued organic growth driven by strong customer retention, new business generation, and increasing renewal premiums (rate and exposure increases) in its property/casualty brokerage operations. While economic conditions and potential slowdowns in premium rate increases could impact growth, the company's diversified business model and global presence provide resilience.
What are the key non-GAAP measures AJG uses, and why?
AJG uses several non-GAAP measures such as EBITDAC, Adjusted EBITDAC, Adjusted EPS, and Organic Revenue to provide a more comprehensive view of its operational performance and comparability across periods. These measures exclude items like acquisition integration costs, transaction-related costs, and foreign currency translation impacts, which management believes can obscure underlying business trends.
06—Continue