How much of the 12% revenue growth was organic?

Only about 4 percentage points were underlying growth. Currency added roughly 1 point, and acquisitions, dispositions and other items (mainly the McGriff acquisition at Marsh) added about 8 points. Underlying growth of 4% is the better measure of organic momentum.

Why did adjusted EPS grow faster than GAAP EPS?

Adjusted EPS excludes identified intangible amortization and noteworthy items such as McGriff integration costs, restructuring and contingent consideration changes. Intangible amortization rose to $140 million in Q2 from $89 million, largely due to acquisitions, so the adjusted measure shows faster growth than GAAP. Investors should weigh both measures, since the adjustments are management-defined.

What is driving the sharp increase in interest expense?

Interest expense rose to $243 million in Q2 from $156 million, and to $488 million for the six months from $315 million. The increase is consistent with higher debt levels following acquisition financing, with long-term debt at $18.96 billion at June 30, 2025. This is a meaningful headwind to net income growth, and investors may want to monitor leverage and future interest costs.

How are the businesses performing relative to each other?

Risk & Insurance Services is the stronger segment, with adjusted operating margin of 35.6% in Q2 and revenue growth of 15% reported (4% underlying). Consulting's adjusted operating margin was 20.2%, and its underlying growth of 3% was steady, though Mercer's Career business declined 5% underlying. Marsh's U.S./Canada underlying growth of 4% and international growth of 7% both contributed to the segment's performance.

What returns are shareholders receiving?

The board increased the quarterly dividend 10% to $0.90 per share, with the third-quarter payment due August 15, 2025. The company repurchased 1.4 million shares for $300 million in Q2 and 2.7 million shares for $600 million year to date. Dividends paid in the first six months totaled $810 million, so total cash returned to shareholders in the period was about $1.4 billion.

MRSH/MMC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 17, 2025. Cited figures are marked; the original filing is the authoritative source.

Marsh McLennan reported second-quarter 2025 results with revenue of $7.0 billion^a, up 12% on a GAAP basis but only 4% on an underlying basis, as the McGriff acquisition contributed most of the reported growth.

GAAP operating income rose 11% to $1.8 billion^b, and adjusted operating income rose 14% to $2.1 billion. GAAP diluted EPS was $2.45, up 8%, and adjusted EPS was $2.72, up 11%. Adjusted figures exclude noteworthy items and identified intangible amortization, and the company changed its adjusted methodology in Q1 2025, so prior-year figures have been restated for comparison.

Growth was uneven across segments. Risk & Insurance Services revenue rose 15%^c (4% underlying), with Marsh up 18% (5% underlying) and Guy Carpenter up 7% (5% underlying). Consulting revenue rose 7% (3% underlying), with Mercer up 3% underlying and Oliver Wyman up 3% underlying.

Mercer's Career business declined 5% on an underlying basis. Interest expense rose sharply to $243 million^d from $156 million, a 56% increase, reflecting higher debt tied to acquisition financing, which is a key headwind to bottom-line conversion. Capital returns remain a focus.

The board raised the quarterly dividend 10% to $0.90 per share, and the company repurchased $300 million of stock in Q2 and $600 million year to date. Total equity increased to $15.98 billion from $13.54 billion at year-end 2024, and six-month operating cash flow improved to $1.05 billion from $434 million. The 8-K furnishes the press release under Item 2.02 and does not constitute a filing under Section 18 of the Exchange Act.

02—Key points

Key Highlights

Q2 2025 revenue was $6.97 billion, up 12% GAAP and 4% underlying; acquisitions (primarily McGriff) contributed roughly 8 points of growth.
GAAP operating income rose 11% to $1.83 billion; adjusted operating income rose 14% to $2.06 billion, with adjusted operating margin of 29.5% versus 29.0% a year earlier.
GAAP diluted EPS was $2.45 (up 8% from $2.27); adjusted EPS was $2.72 (up 11% from $2.44 restated).
Risk & Insurance Services revenue grew 15% to $4.6 billion (4% underlying), while Consulting grew 7% to $2.4 billion (3% underlying).
Interest expense jumped 56% to $243 million in Q2 from $156 million, a notable drag on GAAP earnings growth.
The board raised the quarterly dividend 10% to $0.90 per share, and the company repurchased $300 million of stock in Q2 and $600 million year to date.
Six-month operating cash flow was $1.05 billion versus $434 million a year earlier, and total equity rose to $15.98 billion from $13.54 billion at year-end 2024.

03—Questions

Frequently Asked Questions

How much of the 12% revenue growth was organic?
Only about 4 percentage points were underlying growth. Currency added roughly 1 point, and acquisitions, dispositions and other items (mainly the McGriff acquisition at Marsh) added about 8 points. Underlying growth of 4% is the better measure of organic momentum.
Why did adjusted EPS grow faster than GAAP EPS?
Adjusted EPS excludes identified intangible amortization and noteworthy items such as McGriff integration costs, restructuring and contingent consideration changes. Intangible amortization rose to $140 million in Q2 from $89 million, largely due to acquisitions, so the adjusted measure shows faster growth than GAAP. Investors should weigh both measures, since the adjustments are management-defined.
What is driving the sharp increase in interest expense?
Interest expense rose to $243 million in Q2 from $156 million, and to $488 million for the six months from $315 million. The increase is consistent with higher debt levels following acquisition financing, with long-term debt at $18.96 billion at June 30, 2025. This is a meaningful headwind to net income growth, and investors may want to monitor leverage and future interest costs.
How are the businesses performing relative to each other?
Risk & Insurance Services is the stronger segment, with adjusted operating margin of 35.6% in Q2 and revenue growth of 15% reported (4% underlying). Consulting's adjusted operating margin was 20.2%, and its underlying growth of 3% was steady, though Mercer's Career business declined 5% underlying. Marsh's U.S./Canada underlying growth of 4% and international growth of 7% both contributed to the segment's performance.
What returns are shareholders receiving?
The board increased the quarterly dividend 10% to $0.90 per share, with the third-quarter payment due August 15, 2025. The company repurchased 1.4 million shares for $300 million in Q2 and 2.7 million shares for $600 million year to date. Dividends paid in the first six months totaled $810 million, so total cash returned to shareholders in the period was about $1.4 billion.

04—Continue

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