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MARSH & MCLENNAN COMPANIES, INC. 8-K Report, Financial Results (Jan 30, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 30, 2025
Period End
January 30, 2025
Securities
MRSHMMC
In the record · 2016–202610-K1110-Q338-K115

MRSH filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 115 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Marsh & McLennan Companies (the press release lists its ticker as NYSE: MMC) reported strong fourth-quarter and full-year 2024 results on January 30, 2025, furnished under Item 2.02 rather than filed.

Q4 revenue was $6.1 billiona, up 9% GAAP and 7% on an underlying basis. GAAP operating income was $1.14 billion, and adjusted operating income rose 9% to $1.30 billion. GAAP diluted EPS was $1.59 (up 5%), and adjusted EPS rose 11% to $1.87, helped by a 5-cent discrete tax benefit and offset by a 2-cent FX headwind.

For full-year 2024, revenue reached $24.5 billionb (up 8%, or 7% underlying), GAAP EPS was $8.18 (up 9%), and adjusted EPS was $8.80 (up 10%). Adjusted operating margin expanded 80 basis points to 26.8%, the company's 17th consecutive year of reported margin expansion. Segment performance was broadly healthy.

Marsh's Q4 underlying growth was 8%c, with U.S./Canada up 8% and international up 9%. Guy Carpenter's reported Q4 revenue fell 20%, but that comparison laps a 2023 legal settlement gain. Excluding that effect, its underlying growth was 7%.

Mercer grew 5% underlying and Oliver Wyman grew 7% underlying in Q4. The largest structural event was the $7.75 billiond cash acquisition of McGriff Insurance Services, which closed on November 15, 2024 and was funded in part by $7.25 billion of senior notes. Long-term debt rose to $19.4 billion from $11.8 billion, and goodwill and intangibles rose to $28.1 billion from $19.9 billion.

Investors will want to track integration of McGriff, deleveraging, and the 2025 leverage profile. The filing also flags a methodology change beginning Q1 2025: adjusted net income and adjusted EPS will exclude intangible amortization and other net benefit credits. The company restated 2024 adjusted EPS to $8.95 under the new method (versus $8.80 as previously reported) and 2023 to $8.14 (versus $7.99).

This change will lift reported adjusted EPS going forward and makes period comparisons require the restated figures. Management stated it is well positioned for 2025.

02—Key points

Key Highlights

  1. Q4 2024 revenue of $6.1 billion rose 9% GAAP and 7% underlying; adjusted operating income rose 9% to $1.3 billion.
  2. Q4 adjusted EPS increased 11% to $1.87 (GAAP EPS $1.59, up 5%), including a 5-cent discrete tax benefit and a 2-cent FX headwind.
  3. Full-year 2024 revenue reached $24.5 billion (+8%, +7% underlying), with GAAP EPS of $8.18 (+9%) and adjusted EPS of $8.80 (+10%).
  4. Adjusted operating margin expanded 80 basis points to 26.8% for 2024, marking the 17th consecutive year of reported margin expansion.
  5. The $7.75 billion McGriff acquisition closed November 15, 2024, funded by $7.25 billion of senior notes; long-term debt rose to $19.4 billion from $11.8 billion.
  6. Beginning Q1 2025, adjusted EPS will exclude intangible amortization and other net benefit credits; restated 2024 adjusted EPS is $8.95 versus the previously reported $8.80.
  7. Segment underlying growth in Q4 was led by Marsh (+8%) and Oliver Wyman (+7%), with Guy Carpenter (+7% underlying, after a legal-settlement comparison) and Mercer (+5%) also growing.

03—Questions

Frequently Asked Questions

  1. Why did Guy Carpenter's reported Q4 revenue decline 20% if underlying growth was 7%?

    The reported decline reflects a $58 million gain from a legal settlement with a competitor recorded in Q4 2023. That one-time gain was excluded from underlying revenue, which grew 7% in Q4 2024 on a comparable basis. Underlying growth is the better measure of operating trend.

  2. What is the difference between GAAP and adjusted EPS, and why does it matter for 2025?

    Adjusted EPS excludes noteworthy items such as restructuring, McGriff transaction costs, and contingent consideration changes. Starting Q1 2025, it will also exclude intangible amortization and other net benefit credits. Because of this change, 2024 adjusted EPS is restated to $8.95 from $8.80, so year-over-year comparisons should use restated figures. The new method will generally produce a higher adjusted EPS than the prior definition.

  3. How did the McGriff acquisition affect the balance sheet and capital structure?

    The company paid $7.75 billion in cash, financed largely by $7.25 billion of senior notes issued in November 2024. Long-term debt increased to $19.4 billion from $11.8 billion, and goodwill and intangibles rose to $28.1 billion from $19.9 billion. Total equity increased to $13.5 billion. Investors should monitor debt reduction and the realization of expected McGriff synergies.

  4. How strong was cash generation and shareholder return in 2024?

    Net cash from operations was $4.3 billion, roughly flat with 2023. The company paid $1.5 billion in dividends and repurchased 4.3 million shares for $900 million, down from $1.15 billion in 2023. Capital expenditures were $316 million. Cash flow covered the dividend, but buybacks were reduced in favor of the acquisition-related balance sheet strategy.

  5. What is the outlook for 2025 according to this release?

    The release does not give specific numerical 2025 guidance. Management said it is well positioned for another strong year in 2025, citing its unique capabilities and enduring client value. Investors should look to the earnings call and the 2025 10-K for quantitative commentary, including integration progress and organic growth expectations.

04—Continue

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