10-QPeriod: Q1 FY2025

MARSH & MCLENNAN COMPANIES, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 17, 2025For Securities:MRSHMMC

Summary

Marsh & McLennan Companies, Inc. (MRSH) reported solid performance for the first quarter of 2025, with consolidated revenue increasing by 9% year-over-year to $7.1 billion. This growth was primarily driven by a 11% increase in the Risk and Insurance Services (RIS) segment and a 5% increase in the Consulting segment. Underlying revenue growth, which excludes currency impacts and acquisitions/dispositions, was 4% across both segments, indicating strong organic demand for the company's services. Despite revenue growth, diluted earnings per share saw a slight decrease to $2.79 from $2.82 in the prior year, primarily due to higher interest expenses. The company maintained its strong financial position, completing strategic acquisitions in the RIS segment and repurchasing $300 million of its stock. The company also continues to manage its capital effectively through debt repayment and dividend declarations.

Financial Highlights

49 data points
Beta

Revenue

$7.06B

Net Income

$1.38B

19.6% Net Margin

EPS (Diluted)

$2.79

Total Assets

$57.02B

Cash & Equivalents

$1.60B

Free Cash Flow

-$677.00M

Financial Statements
Beta
Revenue$7.06B
Operating Expenses$5.06B
Operating Income$2.00B
Net Income$1.38B
EPS (Basic)$2.81
EPS (Diluted)$2.79
Shares Outstanding (Basic)492.00M
Shares Outstanding (Diluted)495.00M

Key Highlights

  • 1Consolidated revenue for Q1 2025 grew 9% to $7.1 billion, with underlying revenue up 4%.
  • 2Risk and Insurance Services (RIS) revenue increased 11% (4% underlying), driven by Marsh (+15% reported, +5% underlying) and Guy Carpenter (+5% reported, +5% underlying).
  • 3Consulting revenue increased 5% (4% underlying), with Mercer up 5% (4% underlying) and Oliver Wyman Group up 4% (4% underlying).
  • 4Diluted EPS decreased slightly to $2.79 from $2.82 in Q1 2024, mainly due to higher interest expenses.
  • 5The company completed 3 acquisitions in the RIS segment for $62 million.
  • 6Share repurchases totaled $300 million in the quarter, with approximately $2.0 billion remaining under the authorization.
  • 7Operating income for RIS was stable year-over-year at $1.6 billion, while Consulting operating income increased to $456 million from $432 million.

Frequently Asked Questions

Revenue growth was primarily driven by strong performance in both the Risk and Insurance Services (RIS) segment, which saw an 11% increase, and the Consulting segment, which grew by 5%. Underlying revenue growth, excluding currency fluctuations and M&A, was a healthy 4% for both segments, indicating robust organic demand for Marsh McLennan's services.

Diluted earnings per share decreased slightly to $2.79 from $2.82 in the prior year's comparable period. This decline was primarily attributed to a significant increase in interest expense, which rose from $159 million to $245 million due to higher debt levels and interest rates.

Marsh McLennan is actively managing its capital through strategic initiatives. In Q1 2025, the company repurchased $300 million of its common stock, with approximately $2.0 billion remaining under its authorization. Additionally, the Board declared a quarterly dividend of $0.815 per share, demonstrating a commitment to returning value to shareholders.

Marsh McLennan continues to pursue strategic acquisitions to enhance its capabilities, particularly within the Risk and Insurance Services (RIS) segment. In the first quarter of 2025, the company completed three acquisitions for a total consideration of $62 million. These acquisitions are expected to contribute to revenue growth and expand service offerings.