Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results

Rhea-AI Summary

Arthur J. Gallagher & Co. (NYSE: AJG) reported fourth-quarter 2025 results: Q4 revenues $3,586M (reported) and adjusted diluted EPS $2.38. For full-year 2025, reported revenues were $13,778M and adjusted diluted EPS $10.69. The company completed the $13.8B AssuredPartners acquisition and 33 mergers adding about $3.5B of estimated annualized revenue. Management cited 21% revenue growth for 2025 and 6% organic growth, with adjusted EBITDAC expansion in 2025.

Positive

• Full-year revenue growth of 21% in 2025
• Adjusted diluted EPS improved to $10.69 for 2025
• Adjusted EBITDAC growth of 26% for 2025
• Completed 33 mergers adding ~$3.5B estimated annualized revenue
• Acquisition of AssuredPartners for $13.8B, expanding scale

Negative

• GAAP Q4 net earnings declined to $154M from $258M in Q4 2024
• Significant corporate-level charges: $732M reported corporate loss for year 2025
• Higher integration and workforce charges increased compensation expense ratios by 2.8 pts
• Increased amortization of intangibles: $668M pre-tax charge for full-year 2025

Market Reaction

+6.12% $260.89

15m delay 3 alerts

+6.12% Since News

$260.89 Last Price

$241.71 $262.88 Day Range

+$3.64B Valuation Impact

$63.13B Market Cap

1.2x Rel. Volume

Following this news, AJG has gained 6.12%, reflecting a notable positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $260.89. This price movement has added approximately $3.64B to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 revenue: $3,586M Q4 2025 diluted EPS: $0.58 Q4 2025 adj. EPS: $2.38 +5 more

8 metrics

Q4 2025 revenue $3,586M Total company revenues before reimbursements vs $2,679M in Q4 2024

Q4 2025 diluted EPS $0.58 Reported diluted net earnings per share vs $1.12 in Q4 2024

Q4 2025 adj. EPS $2.38 Total company adjusted diluted EPS vs $2.16 in Q4 2024

2025 revenue $13,778M Full-year total company revenues vs $11,401M in 2024

2025 adj. EPS $10.69 Full-year adjusted diluted EPS vs $10.10 in 2024

2025 revenue growth 21% CEO-stated full-year revenue growth for 2025

2025 adj. EBITDAC growth 26% CEO-stated full-year adjusted EBITDAC growth

AssuredPartners price $13.8B Acquisition of AssuredPartners completed August 18, 2025

Market Reality Check

Price: $245.84 Vol: Volume 1,717,925 vs 20-da...

normal vol

$245.84 Last Close

Volume Volume 1,717,925 vs 20-day average 1,915,463 (relative volume 0.9x) shows no outsized positioning into this earnings release. normal

Technical Shares at $242.37 sit 30.99% below the 52-week high of $351.23 and 2.55% above the 52-week low of $236.34, trading below the 200-day MA of $293.31 despite strong 2025 growth metrics.

Peers on Argus

AJG’s flat move of 0.02% contrasts with mixed peers: AON +1.09%, WTW +0.51%, ERI...

AJG’s flat move of 0.02% contrasts with mixed peers: AON +1.09%, WTW +0.51%, ERIE +0.38% versus MMC -1.36% and BRO -1.72%, pointing to stock-specific rather than sector-driven trading.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 earnings	Positive	+0.0%	Strong Q3 revenue and adjusted EPS growth plus AssuredPartners closing.
Jul 31	Q2 2025 earnings	Positive	-1.1%	Double‑digit revenue and EBITDAC growth with pending AssuredPartners deal.
May 01	Q1 2025 earnings	Positive	+4.2%	Strong organic growth and margin expansion with multiple mergers closed.
Jan 30	Q4 2024 earnings	Positive	+0.9%	Robust Q4 rebound, EPS inflection, and announcement of AssuredPartners deal.
Oct 24	Q3 2024 earnings	Positive	-1.6%	Solid revenue and EPS growth amid stable renewal pricing environment.

Pattern Detected

Earnings releases have generally been positive fundamentally, with three instances of aligned positive price reactions and two cases where shares traded down on strong reports.

Recent Company History

Over the last five earnings cycles (Oct 2024–Oct 2025), Arthur J. Gallagher & Co. consistently reported double‑digit revenue growth and expanding adjusted EBITDAC, often highlighting solid organic growth alongside active M&A, including the large AssuredPartners acquisition for $13.8B. Price reactions skewed modestly positive, though some strong reports saw next‑day declines, indicating that sentiment and expectations sometimes outweighed headline fundamentals.

Historical Comparison

earnings

+1.6 %

Average Historical Move

Historical Analysis

Recent earnings releases averaged a 1.56% next‑day move, with mostly positive fundamentals. This report continues the pattern of strong revenue and adjusted EBITDAC growth alongside active M&A.

Typical Pattern

Earnings updates over 2024–2025 show steady core growth plus escalating deal activity, culminating in announcement, funding, and completion of the <b>$13.8B</b> AssuredPartners acquisition and integration into quarterly results.

Market Pulse Summary

The stock is up +6.1% following this news. A strong positive reaction aligns with the upbeat fundame...

Analysis

The stock is up +6.1% following this news. A strong positive reaction aligns with the upbeat fundamentals in this release: Q4 revenues rose to $3.586B, full‑year revenues reached $13.778B, and adjusted EPS improved to $10.69. History shows mainly constructive but moderate moves around earnings, with an average 1.56% shift. Investors should weigh integration costs from the $13.8B AssuredPartners deal, rising compensation and operating expense ratios, and past instances where strong reports were followed by next‑day pullbacks.

Key Terms

non-gaap, organic revenues, follow-on common stock offering, senior notes

4 terms

non-gaap financial

"These documents contain both GAAP and non-GAAP measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

organic revenues financial

"Organic Revenues (Non-GAAP) | | 4th Q 2025"

Organic revenues are the sales a company generates from its existing business activities, excluding gains from buying or selling other companies and shifts caused by currency changes. Think of it like a store’s sales from regular customers and new foot traffic, not from adding a new branch; investors use it to judge whether demand and core operations are truly growing and to compare performance across periods without one‑off boosts.

follow-on common stock offering financial

"We raised $8.5 billion of cash in our December 11, 2024 follow-on common stock offering"

A follow-on common stock offering is when a publicly traded company issues and sells additional shares after its initial public listing to raise more money. For investors it matters because selling more shares increases the total number of shares outstanding, which reduces each existing shareholder’s slice of ownership and can put downward pressure on the stock price, while providing the company cash to pay debt, invest in growth, or fund operations — like a bakery slicing and selling more pieces from the same cake to raise funds.

senior notes financial

"and borrowed $5.0 billion of cash in our December 19, 2024 senior notes issuance"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

AI-generated analysis. Not financial advice.

ROLLING MEADOWS, Ill., Jan. 29, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended December 31, 2025.  Management will host a webcast conference call to discuss these results on Thursday, January 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT.  To listen to the call, and for printer-friendly formats of this release and the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR.  These documents contain both GAAP and non-GAAP measures.  Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9. 

Summary of Financial Results - Fourth Quarter
				Revenues Before									Diluted Net Earnings
				Reimbursements			Net Earnings (Loss)			EBITDAC			(Loss) Per Share
Segment				4th Q 25	4th Q 24		4th Q 25	4th Q 24		4th Q 25	4th Q 24		4th Q 25	4th Q 24
				(in millions)			(in millions)			(in millions)
Brokerage, as reported				$     3,169	$     2,296		$        317	$        317		$        774	$        661		$       1.21	$       1.37
	Net losses (gains) on divestitures			(20)	1		(15)	1		(20)	1		(0.06)	-
	Acquisition integration			-	-		79	29		106	39		0.30	0.13
	Workforce and lease termination			-	-		80	23		107	31		0.31	0.10
	Acquisition related adjustments			-	-		30	40		48	29		0.12	0.17
	Amortization of intangible assets			-	-		223	121		-	-		0.86	0.53
	Effective income tax rate impact			-	-		-	1		-	-		-	0.01
	Levelized foreign currency
	translation			-	30		-	5		-	8		-	0.02
Brokerage, as adjusted  *				3,149	2,327		714	537		1,015	769		2.74	2.33
Risk Management, as reported				417	369		49	43		84	72		0.19	0.19
	Net (gains) on divestitures			(1)	-		(1)	-		(1)	-		-	-
	Acquisition integration			-	-		1	-		2	2		-	-
	Workforce and lease termination			-	-		1	3		2	2		-	0.01
	Acquisition related adjustments			-	-		3	-		3	-		0.01	-
	Amortization of intangible assets			-	-		4	3		-	-		0.02	0.01
	Levelized foreign currency
	translation			-	3		-	1		-	1		-	-
Risk Management, as adjusted  *				416	372		58	50		90	77		0.22	0.21
Corporate, as reported				-	14		(212)	(102)		(148)	(46)		(0.82)	(0.44)
	Transaction-related costs			-	-		27	14		36	17		0.10	0.06
	Legal, tax & benefit plan related			-	-		34	-		54	-		0.14	-
	Clean energy related			-	(5)		-	(1)		-	(2)		-	-
Corporate, as adjusted  *				-	9		(151)	(89)		(58)	(31)		(0.58)	(0.38)
Total Company, as reported				$     3,586	$     2,679		$        154	$        258		$        710	$        687		$       0.58	$       1.12
Total Company, as adjusted  *				$     3,565	$     2,708		$        620	$        498		$    1,047	$        815		$       2.38	$       2.16
Total Brokerage & Risk
	Management, as reported			$     3,586	$     2,665		$        366	$        360		$        858	$        733		$       1.40	$       1.56
Total Brokerage & Risk
	Management, as adjusted  *			$     3,565	$     2,699		$        772	$        587		$    1,105	$        846		$       2.96	$       2.54

*

For fourth quarter 2025, the pretax impact of the Brokerage segment adjustments totals $533 million, mostly due to non‑cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $136 million relating to these items.  For fourth quarter 2025, the pretax impact of the Risk Management segment adjustments totals $12 million, with a corresponding adjustment to the provision for income taxes of $3 million relating to these items.  For fourth quarter 2025, the pretax impact of the Corporate segment adjustments totals $90 million, with a corresponding adjustment to the benefit for income taxes of $29 million relating to these items.  A detailed reconciliation of the 2025 and 2024 provision (benefit) for income taxes is shown on pages 14 and 15.

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"We had an excellent fourth quarter and a terrific 2025!" said J. Patrick Gallagher, Jr., Chairman and CEO.

"Our two-pronged revenue growth strategy, that's organic and M&A, drove double-digit top line growth for the 20th straight quarter.  Fourth quarter revenue growth for our combined Brokerage and Risk Management segments was in excess of 30% and included organic revenue growth of 5%.  Net earnings margin was 10.2%, adjusted EBITDAC margin was 30.8% and adjusted EBITDAC grew 30%.

"We finished 2025 with 21% growth in revenue, 6% organic growth, 26% growth in adjusted EBITDAC and completed 33 mergers with more than $3.5 billion in estimated annualized revenue.  Another fantastic year.

"We have excellent momentum entering 2026 and our talented colleagues are executing on our value creation strategy.  We are extremely excited about 2026 and believe we are just getting started!"

Summary of Financial Results - Year Ended December 31
				Revenues Before									Diluted Net Earnings
				Reimbursements			Net Earnings (Loss)			EBITDAC			(Loss) Per Share
Segment				Year 25	Year 24		Year 25	Year 24		Year 25	Year 24		Year 25	Year 24
				(in millions)			(in millions)			(in millions)
Brokerage, as reported				$    12,192	$       9,934		$    2,052	$    1,686		$    3,856	$    3,069		$       7.85	$       7.46
	Net (gains) on divestitures			(24)	(24)		(18)	(18)		(24)	(24)		(0.07)	(0.08)
	Acquisition integration			-	-		194	143		257	191		0.73	0.63
	Workforce and lease termination			-	-		136	88		183	118		0.53	0.39
	Acquisition related adjustments			-	(26)		127	63		174	121		0.49	0.28
	Amortization of intangible assets			-	-		668	486		-	-		2.57	2.16
	Effective income tax rate impact			-	-		-	(7)		-	-		-	(0.03)
	Levelized foreign currency
	translation			-	57		-	8		-	13		-	0.04
Brokerage, as adjusted  *				12,168	9,941		3,159	2,449		4,446	3,488		12.10	10.85
Risk Management, as reported				1,585	1,451		183	175		313	290		0.70	0.78
	Net (gains) on divestitures			(2)	-		(1)	-		(2)	-		-	-
	Acquisition integration			-	-		7	2		9	3		0.03	0.01
	Workforce and lease termination			-	-		9	6		12	7		0.03	0.03
	Acquisition related adjustments			-	-		3	-		4	-		0.01	-
	Amortization of intangible assets			-	-		16	10		-	-		0.06	0.04
	Levelized foreign currency
	translation			-	(1)		-	-		-	-		-	-
Risk Management, as adjusted  *				1,583	1,450		217	193		336	300		0.83	0.86
Corporate, as reported				1	16		(732)	(390)		(491)	(234)		(2.81)	(1.74)
	Transaction-related costs			-	-		107	26		122	32		0.41	0.12
	Legal, tax & benefit plan related			-	-		42	3		78	-		0.16	0.02
	Clean energy-related			-	(5)		-	(2)		-	(2)		-	(0.01)
Corporate, as adjusted  *				1	11		(583)	(363)		(291)	(204)		(2.24)	(1.61)
Total Company, as reported				$    13,778	$    11,401		$    1,503	$    1,471		$    3,678	$    3,125		$       5.74	$       6.50
Total Company, as adjusted  *				$    13,752	$    11,402		$    2,793	$    2,279		$    4,491	$    3,584		$     10.69	$     10.10
Total Brokerage & Risk
	Management, as reported			$    13,777	$    11,385		$    2,235	$    1,861		$    4,169	$    3,359		$       8.55	$       8.24
Total Brokerage & Risk
	Management, as adjusted  *			$    13,751	$    11,391		$    3,376	$    2,642		$    4,782	$    3,788		$     12.93	$     11.71

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*

For the year ended December 31, 2025, the pretax impact of the Brokerage segment adjustments totals $1,482 million, mostly due to non‑cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $375 million relating to these items.  For the year ended December 31, 2025, the pretax impact of the Risk Management segment adjustments totals $45 million, with a corresponding adjustment to the provision for income taxes of $11 million relating to these items.  For the year ended December 31, 2025, the pretax impact of the Corporate segment adjustments totals $200 million, with a corresponding adjustment to the benefit for income taxes of $51 million relating to these items.  A detailed reconciliation of the 2025 and 2024 provision (benefit) for income taxes is shown on pages 14 and 15.

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Organic Revenues (Non-GAAP)				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Base Commissions and Fees
Commissions and fees, as reported				$           2,841		$           2,024		$        10,670		$           8,887
Less commissions and fees from acquisitions, divested
	operations and other			(882)		(171)		(1,598)		(351)
Levelized foreign currency translation				-		22		-		48
Organic base commissions and fees				$           1,959		$           1,875		$           9,072		$           8,584
Organic change in base commissions and fees				4 %				6 %
Supplemental Revenues
Supplemental revenues, as reported				$              132		$                98		$              466		$              359
Less supplemental revenues from acquisitions, divested
	operations and other			(21)		-		(33)		-
Levelized foreign currency translation				-		1		-		3
Organic supplemental revenues				$              111		$                99		$              433		$              362
Organic change in supplemental revenues				12 %				20 %
Contingent Revenues
Contingent revenues, as reported				$                83		$                52		$              324		$              268
Less contingent revenues from acquisitions, divested
	operations and other			(24)		-		(43)		-
Levelized foreign currency translation				-		1		-		1
Organic contingent revenues				$                59		$                53		$              281		$              269
Organic change in contingent revenues				11 %				5 %
Total reported commissions, fees, supplemental
	revenues and contingent revenues			$           3,056		$           2,174		$        11,460		$           9,514
Less commissions, fees, supplemental revenues
	and contingent revenues from acquisitions,
	divested operations and other			(927)		(171)		(1,674)		(351)
Levelized foreign currency translation				-		24		-		52
Total organic commissions, fees, supplemental
	revenues and contingent revenues			$           2,129		$           2,027		$           9,786		$           9,215
Total organic change				5 %				6 %
Acquisition Activity				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Number of acquisitions closed  *				6		19		31		46
Estimated annualized revenues acquired (in millions)				$          118		$          189		$       3,508		$          363

*	In the fourth quarter of 2025 Gallagher issued 6,000 shares of its common stock directly to sellers in connection with tax-free exchange acquisitions.  No shares were issued in fourth quarter 2024 in connection with tax-free exchange acquisitions.

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Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Acquisition of AssuredPartners

As previously disclosed, on August 18, 2025, we acquired AssuredPartners for approximately $13.8 billion.  We raised $8.5 billion of cash in our December 11, 2024 follow-on common stock offering and borrowed $5.0 billion of cash in our December 19, 2024 senior notes issuance (collectively, the AssuredPartners Financing) to fund the transaction.  On January 7, 2025, we received an additional $1.3 billion of cash due to the exercise by the underwriters of the overallotment provision related to the follow-on common stock offering. 

Compensation Expense and Ratios				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Compensation expense, as reported				$           1,868		$           1,291		$           6,660		$           5,502
Acquisition integration				(49)		(24)		(135)		(107)
Workforce and lease termination related charges				(103)		(27)		(171)		(108)
Acquisition related adjustments				(48)		(29)		(174)		(147)
Levelized foreign currency translation				-		14		-		30
Compensation expense, as adjusted				$           1,668		$           1,225		$           6,180		$           5,170
Reported compensation expense ratios using reported
	revenues on pages 1 and 2		*	59.0 %		56.2 %		54.6 %		55.4 %
Adjusted compensation expense ratios using adjusted
	revenues on pages 1 and 2		**	53.0 %		52.6 %		50.8 %		52.0 %

*	Reported fourth quarter 2025 compensation expense ratio was 2.8 pts higher than fourth quarter 2024.  This ratio was primarily impacted by higher integration and workforce termination costs, as well as the impact of recent acquisitions and . lower interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.
**	Adjusted fourth quarter 2025 compensation expense ratio was 0.4 pts higher than fourth quarter 2024.  This ratio was primarily impacted by recent acquisitions as well as lower interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

 

Operating Expense and Ratios				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Operating expense, as reported				$              527		$              344		$           1,676		$           1,363
Acquisition integration				(57)		(15)		(122)		(84)
Workforce and lease termination related charges				(4)		(4)		(13)		(10)
Levelized foreign currency translation				-		8		-		14
Operating expense, as adjusted				$              466		$              333		$           1,541		$           1,283
Reported operating expense ratios using reported
	revenues on pages 1 and 2		*	16.6 %		15.0 %		13.8 %		13.7 %
Adjusted operating expense ratios using adjusted
	revenues on pages 1 and 2		**	14.8 %		14.3 %		12.7 %		12.9 %

*	Reported fourth quarter 2025 operating expense ratio was 1.6 pts higher than fourth quarter 2024.  This ratio was primarily impacted by higher integration  and technology costs, partially offset by savings in professional fees.  This ratio was also impacted by lower interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.
**	Adjusted fourth quarter 2025 operating expense ratio was 0.5 pts higher than fourth quarter 2024.  This ratio was primarily impacted by increased technology costs, partially offset by savings in professional fees.  This ratio was also impacted by lower interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.

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Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Net Earnings to Adjusted EBITDAC (Non-GAAP)				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Net earnings, as reported				$              317		$              317		$           2,052		$           1,686
Provision for income taxes				107		108		707		573
Depreciation				46		34		159		133
Amortization				298		163		894		651
Change in estimated acquisition earnout payables				6		39		44		26
EBITDAC				774		661		3,856		3,069
Net losses (gains) on divestitures				(20)		1		(24)		(24)
Acquisition integration				106		39		257		191
Workforce and lease termination related charges				107		31		183		118
Acquisition related adjustments				48		29		174		121
Levelized foreign currency translation				-		8		-		13
EBITDAC, as adjusted				$           1,015		$              769		$           4,446		$           3,488
Net earnings margin, as reported using reported
	revenues on pages 1 and 2		*	10.0 %		13.8 %		16.8 %		17.0 %
EBITDAC margin, as adjusted using adjusted
	revenues on pages 1 and 2		*	32.2 %		33.0 %		36.5 %		35.1 %

*

Fourth quarter 2024 adjusted EBITDAC margin includes approximately $20 million of interest income revenues earned on the proceeds received in December 2024 related to the AssuredPartners Financing.  This interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in fourth quarter adjusted EBITDAC margin by approximately 1.3%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Organic Revenues (Non-GAAP)				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Fees				$              403		$              357		$           1,538		$           1,406
International performance bonus fees				5		3		11		8
Fees as reported				408		360		1,549		1,414
Less fees from acquisitions				(21)		-		(60)		-
Less divested operations				-		(2)		-		(9)
Levelized foreign currency translation				-		3		-		(1)
Organic fees				$              387		$              361		$           1,489		$           1,404
Organic change in fees				7 %				6 %
Acquisition Activity				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Number of acquisitions closed				1		1		2		2
Estimated annualized revenues acquired (in millions)				$            16		$            10		$            54		$            24

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Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Compensation Expense and Ratios				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Compensation expense, as reported				$              255		$              225		$              974		$              882
Acquisition integration				(1)		(1)		(3)		(2)
Workforce and lease termination related charges				-		(1)		(9)		(4)
Acquisition related adjustments				(2)		-		(4)		-
Levelized foreign currency translation				-		1		-		(2)
Compensation expense, as adjusted				$              252		$              224		$              958		$              874
Reported compensation expense ratios using reported
	revenues (before reimbursements) on pages 1 and 2		*	61.2 %		61.0 %		61.5 %		60.8 %
Adjusted compensation expense ratios using adjusted
	revenues (before reimbursements) on pages 1 and 2		*	60.6 %		60.2 %		60.5 %		60.3 %

*	Reported fourth quarter 2025 compensation expense ratio was 0.2 pts higher than fourth quarter 2024.  Adjusted fourth quarter 2025 compensation ratio was 0.4 pts higher than fourth quarter 2024.  Both ratios were primarily impacted by increased incentive compensation, partially offset by savings related to headcount controls.

 

Operating Expense and Ratios				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Operating expense, as reported				$                78		$                72		$              298		$              279
Acquisition integration				(3)		(1)		(6)		(1)
Workforce and lease termination related charges				(1)		(1)		(3)		(3)
Levelized foreign currency translation				-		1		-		1
Operating expense, as adjusted				$                74		$                71		$              289		$              276
Reported operating expense ratios using reported
	revenues (before reimbursements) on pages 1 and 2		*	18.7 %		19.5 %		18.8 %		19.2 %
Adjusted operating expense ratios using reported
	revenues (before reimbursements) on pages 1 and 2		**	17.8 %		19.1 %		18.3 %		19.0 %

*	Reported fourth quarter 2025 operating expense ratio was 0.8 pts lower than fourth quarter 2024.  This ratio was primarily impacted by savings in client-related expenses and lower business insurance costs, partially offset by increased integration costs.
**	Adjusted fourth quarter 2025 operating expense ratio was 1.3 pts lower than fourth quarter 2024.  This ratio was primarily impacted by savings in client-related expenses and lower business insurance costs.

 

Net Earnings to Adjusted EBITDAC (Non-GAAP)				4th Q 2025		4th Q 2024		Year 2025		Year 2024
Net earnings, as reported				$                49		$                43		$              183		$              175
Provision for income taxes				18		15		66		63
Depreciation				10		10		40		38
Amortization				6		4		22		14
Change in estimated acquisition earnout payables				1		-		2		-
EBITDAC				84		72		313		290
Net (gains) on divestitures				(1)		-		(2)		-
Acquisition integration				2		2		9		3
Workforce and lease termination related charges				2		2		12		7
Acquisition related adjustments				3		-		4		-
Levelized foreign currency translation				-		1		-		-
EBITDAC, as adjusted				$                90		$                77		$              336		$              300
Net earnings margin, as reported using reported
	revenues (before reimbursements) on pages 1 and 2			11.8 %		11.7 %		11.6 %		12.1 %
EBITDAC margin, as adjusted using adjusted
	revenues (before reimbursements) on pages 1 and 2			21.6 %		20.7 %		21.2 %		20.6 %

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Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

					2025						2024
							Net Earnings						Net Earnings
							(Loss)						(Loss)
					Income		Attributable to				Income		Attributable to
			Pretax		Tax		Controlling		Pretax		Tax		Controlling
4th Quarter			Loss		Benefit		Interests		Loss		Benefit		Interests
Components of Corporate Segment, as reported
Interest and banking costs			$      (162)		$         42		$              (120)		$        (94)		$         24		$                (70)
Clean energy related			(2)		1		(1)		-		-		-
Acquisition costs (1)			(41)		9		(32)		(24)		5		(19)
Corporate (2)			(106)		47		(59)		(32)		19		(13)
Reported 4th Quarter			(311)		99		(212)		(150)		48		(102)
Adjustments
Clean energy related			-		-		-		(2)		-		(2)
Transaction-related costs (1)			36		(9)		27		17		(2)		15
Legal and tax related (3)			10		(9)		1		-		-		-
Benefit plan related (4)			44		(11)		33		-		-		-
Components of Corporate Segment, as adjusted
Interest and banking costs			(162)		42		(120)		(94)		24		(70)
Clean energy related			(2)		1		(1)		(2)		-		(2)
Acquisition costs			(5)		-		(5)		(7)		3		(4)
Corporate (2)			(52)		27		(25)		(32)		19		(13)
Adjusted 4th Quarter			$      (221)		$         70		$              (151)		$      (135)		$         46		$                (89)
Year Ended December 31,
Components of Corporate Segment, as reported
Interest and banking costs			$      (642)		$       167		$              (475)		$      (376)		$         97		$              (279)
Clean energy related			(8)		3		(5)		(6)		1		(5)
Acquisition costs (1)			(139)		17		(122)		(51)		10		(41)
Corporate (2)			(348)		218		(130)		(189)		124		(65)
Reported year			(1,137)		405		(732)		(622)		232		(390)
Adjustments
Clean energy related			-		-		-		(2)		-		(2)
Transaction-related costs (1)			122		(15)		107		32		(6)		26
Legal and tax related (3)			34		(25)		9		-		3		3
Benefit plan related (4)			44		(11)		33		-		-		-
Components of Corporate Segment, as adjusted
Interest and banking costs			(642)		167		(475)		(376)		97		(279)
Clean energy related			(8)		3		(5)		(8)		1		(7)
Acquisition costs			(17)		2		(15)		(19)		4		(15)
Corporate (2)			(270)		182		(88)		(189)		127		(62)
Adjusted Year			$      (937)		$       354		$              (583)		$      (592)		$       229		$              (363)

(1)	Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions.  Adjustments primarily relate to the acquisition of the Willis Towers Watson treaty reinsurance brokerage operations, the acquisitions of Buck, Cadence Insurance, Eastern Insurance Group, all of which closed in 2023, as well as Woodruff Sawyer and AssuredPartners, which closed in April 2025 and August 2025, respectively.
(2)	Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(4) million in fourth quarter 2025 and a net unrealized foreign exchange remeasurement gain of $16 million in fourth quarter 2024.  Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(47) million in the year ended December 31, 2025 and a net unrealized foreign exchange remeasurement loss of zero in the year ended December 31, 2024.

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(3)	Adjustments in fourth quarter 2025 and 2024 include costs associated with legal and tax matters.
(4)	Adjustments in fourth quarter 2025 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

Interest and banking costs and debt - At December 31, 2025, Gallagher had $9,550 million of borrowings from public debt, $3,323 million of borrowings from private placements and no borrowings under its line of credit facility.  In addition, Gallagher had $226 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.  Interest and banking costs in fourth quarter 2025 are higher than the same period in 2024 primarily due to the debt issuances that occurred in December 2024.

Clean energy related - For 2025, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.

Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions.  On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar.  The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement.  In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments. 

Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates.  Gallagher's consolidated effective tax rate for the quarters ended December 31, 2025 and 2024 were 14.3% and 22.5%, respectively.  Gallagher's consolidated effective tax rate for the year ended December 31, 2025 and 2024 were 19.7% and 21.5%, respectively 

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, January 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT.  To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com).  The call will be available for replay at such website for at least 90 days. 

About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois.  Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants. 

Information Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements.  Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues, statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements.  Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. 

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Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency; a U.S. government shutdown; political violence and instability, such as the armed conflicts in Ukraine the Middle East, Latin America and the Caribbean; its actual acquisition opportunities, including closing risks related to pending acquisitions,  risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in our history, including risks related to its ability to successfully integrate operations, the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize the expected benefits of these acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability- related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large or man-made natural events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements.  Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made.  Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue.  These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release.  Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance.  See further below for definitions and additional reasons each of these measures is useful to investors.  Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments.  The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided.  As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC. 

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher.  The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period.  See pages 14 and 15 for a reconciliation of the adjustments made to income taxes.

• Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:
  • Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.

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• • Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems.
  • Transaction-related costs, which are associated with completed, future and terminated acquisitions.  Costs primarily relate to the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, all of which closed in 2023, as well as Woodruff Sawyer and AssuredPartners, which closed in April 2025 and August 2025, respectively.  These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.
  • Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.
  • Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.
  • Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date; the net impact of these on first quarter 2024 results was approximately $26 million of revenues and approximately $28 million of compensation expense.
  • Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.
  • The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.
  • Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates.
  • Legal and tax related, which represents the impact of adjustments in fourth quarter 2025 and 2024 related to costs associated with legal and tax matters.
  • Benefit plan related, which represents the impact of adjustments in fourth quarter 2025 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
    
    
• Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

Non-GAAP Earnings Measures

• EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.
• EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
• EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.

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Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue.  For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each period presented.  Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period.  In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large, singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period.  For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented.  In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation. 

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability.  Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments.  Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 12 and 13), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments). 

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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 4th Quarter December 31,
(Unaudited - in millions except per share, percentage and workforce data)
			4th Q Ended		4th Q Ended		Year Ended		Year Ended
Brokerage Segment			Dec 31, 2025		Dec 31, 2024		Dec 31, 2025		Dec 31, 2024
Commissions			$           2,059		$           1,501		$           8,024		$           6,694
Fees			782		523		2,646		2,193
Supplemental revenues			132		98		466		359
Contingent revenues			83		52		324		268
Interest income, premium finance revenues and other income			113		122		732		420
Total revenues			3,169		2,296		12,192		9,934
Compensation			1,868		1,291		6,660		5,502
Operating			527		344		1,676		1,363
Depreciation			46		34		159		133
Amortization			298		163		894		651
Change in estimated acquisition earnout payables			6		39		44		26
Expenses			2,745		1,871		9,433		7,675
Earnings before income taxes			424		425		2,759		2,259
Provision for income taxes			107		108		707		573
Net earnings			317		317		2,052		1,686
Net earnings attributable to noncontrolling interests			3		-		9		8
Net earnings attributable to controlling interests			$              314		$              317		$           2,043		$           1,678
EBITDAC
Net earnings			$              317		$              317		$           2,052		$           1,686
Provision for income taxes			107		108		707		573
Depreciation			46		34		159		133
Amortization			298		163		894		651
Change in estimated acquisition earnout payables			6		39		44		26
EBITDAC			$              774		$              661		$           3,856		$           3,069
			4th Q Ended		4th Q Ended		Year Ended		Year Ended
Risk Management Segment			Dec 31, 2025		Dec 31, 2024		Dec 31, 2025		Dec 31, 2024
Fees			$              408		$              360		$           1,549		$           1,414
Interest income and other income			9		9		36		37
Revenues before reimbursements			417		369		1,585		1,451
Reimbursements			42		36		164		154
Total revenues			459		405		1,749		1,605
Compensation			255		225		974		882
Operating			78		72		298		279
Reimbursements			42		36		164		154
Depreciation			10		10		40		38
Amortization			6		4		22		14
Change in estimated acquisition earnout payables			1		-		2		-
Expenses			392		347		1,500		1,367
Earnings before income taxes			67		58		249		238
Provision for income taxes			18		15		66		63
Net earnings			49		43		183		175
Net earnings attributable to noncontrolling interests			-		-		-		-
Net earnings attributable to controlling interests			$                49		$                43		$              183		$              175
EBITDAC
Net earnings			$                49		$                43		$              183		$              175
Provision for income taxes			18		15		66		63
Depreciation			10		10		40		38
Amortization			6		4		22		14
Change in estimated acquisition earnout payables			1		-		2		-
EBITDAC			$                84		$                72		$              313		$              290
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 15.
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Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 4th Quarter December 31,
(Unaudited - in millions except share and per share data)
			4th Q Ended		4th Q Ended		Year Ended		Year Ended
Corporate Segment			Dec 31, 2025		Dec 31, 2024		Dec 31, 2025		Dec 31, 2024
Other income			$                 -		$               14		$                 1		$               16
	Total revenues		-		14		1		16
Compensation			86		38		208		138
Operating			62		22		284		112
Interest			161		102		639		381
Depreciation			2		2		7		7
	Expenses		311		164		1,138		638
Loss before income taxes			(311)		(150)		(1,137)		(622)
Benefit for income taxes			(99)		(48)		(405)		(232)
Net loss			(212)		(102)		(732)		(390)
Net loss attributable to noncontrolling interests			-		-		-		-
Net loss attributable to controlling interests			$             (212)		$             (102)		$             (732)		$             (390)
EBITDAC
Net loss			$             (212)		$             (102)		$             (732)		$             (390)
Benefit for income taxes			(99)		(48)		(405)		(232)
Interest			161		102		639		381
Depreciation			2		2		7		7
EBITDAC			$              148)		$                46)		$             (491)		$              234)
			4th Q Ended		4th Q Ended		Year Ended		Year Ended
Total Company			Dec 31, 2025		Dec 31, 2024		Dec 31, 2025		Dec 31, 2024
Commissions			$           2,059		$            1,501		$           8,024		$           6,694
Fees			1,190		883		4,195		3,607
Supplemental revenues			132		98		466		359
Contingent revenues			83		52		324		268
Interest income, premium finance revenues and other income			122		145		769		473
	Revenues before reimbursements		3,586		2,679		13,778		11,401
Reimbursements			42		36		164		154
	Total revenues		3,628		2,715		13,942		11,555
Compensation			2,209		1,554		7,842		6,522
Operating			667		438		2,258		1,754
Reimbursements			42		36		164		154
Interest			161		102		639		381
Depreciation			58		46		206		178
Amortization			304		167		916		665
Change in estimated acquisition earnout payables			7		39		46		26
	Expenses		3,448		2,382		12,071		9,680
Earnings before income taxes			180		333		1,871		1,875
Provision for income taxes			26		75		368		404
Net earnings			154		258		1,503		1,471
Net earnings attributable to noncontrolling interests			3		-		9		8
Net earnings attributable to controlling interests			$              151		$              258		$            1,494		$            1,463
Diluted net earnings per share			$              0.58		$              1.12		$              5.74		$              6.50
Dividends declared per share			$              0.65		$              0.60		$              2.60		$              2.40
EBITDAC
Net earnings			$               154		$               258		$            1,503		$            1,471
Provision for income taxes			26		75		368		404
Interest			161		102		639		381
Depreciation			58		46		206		178
Amortization			304		167		916		665
Change in estimated acquisition earnout payables			7		39		46		26
EBITDAC			$               710		$               687		$            3,678		$            3,125
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 15.

 

(13 of 15)

 

Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)
			Dec 31, 2025		Dec 31, 2024
Cash and cash equivalents			$            1,396		$           14,987
Fiduciary assets (includes fiduciary cash of $7,142 in 2025 and $5,481 in 2024)			26,899		24,712
Accounts receivable, net			5,175		3,896
Other current assets			886		518
	Total current assets		34,356		44,113
Fixed assets - net			789		650
Deferred income taxes (includes tax credit carryforwards of $772 in 2024)			43		959
Other noncurrent assets			1,602		1,355
Right-of-use assets			598		378
Goodwill			22,593		12,270
Amortizable intangible assets - net			10,684		4,530
	Total assets		$           70,665		$           64,255
Fiduciary liabilities			$           26,899		$           24,712
Accrued compensation and other current liabilities			4,017		3,586
Deferred revenue - current			737		537
Premium financing debt			226		225
Corporate related borrowings - current			640		200
	Total current liabilities		32,519		29,260
Corporate related borrowings - noncurrent			12,104		12,732
Deferred revenue - noncurrent			155		67
Lease liabilities - noncurrent			515		328
Other noncurrent liabilities (includes tax credit carryforwards of $713 in 2025)			2,025		1,688
	Total liabilities		47,318		44,075
Stockholders' equity:
Common stock - issued and outstanding			257		250
Capital in excess of par value			17,783		16,069
Retained earnings			5,806		4,986
Accumulated other comprehensive loss			(525)		(1,151)
Total controlling interests stockholders' equity			23,321		20,154
Noncontrolling interests			26		26
	Total stockholders' equity		23,347		20,180
	Total liabilities and stockholders' equity		$           70,665		$           64,255

 

Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)
			4th Q Ended		4th Q Ended		Year Ended		Year Ended
OTHER INFORMATION			Dec 31, 2025		Dec 31, 2024		Dec 31, 2025		Dec 31, 2024
Basic weighted average shares outstanding (000s)		*	256,901		226,425		256,150		220,502
Diluted weighted average shares outstanding (000s)		*	260,258		231,059		260,134		224,966
Number of common shares outstanding at end of period (000s)							256,976		249,999
Workforce at end of period (includes acquisitions):
	Brokerage					**	55,561		42,091
	Risk Management						10,889		10,339
	Total Company					**	71,776		55,977
*   Gallagher completed a follow on public offering of 30,357,143 shares of its common stock on December 11, 2024 and 4,553,571 shares of its common stock
on January 7, 2025, to fund a portion of the acquisition of AssuredPartners.
**  The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.

 

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)
(Unaudited - in millions except share and per share data)
									Net Earnings		Net Earnings
			Earnings		Provision				(Loss)		(Loss)		Diluted Net
			(Loss)		(Benefit)				Attributable to		Attributable to		Earnings
			Before Income		for Income		Net Earnings		Noncontrolling		Controlling		(Loss)
			Taxes		Taxes		(Loss)		Interests		Interests		per Share
4th Q Ended December 31, 2025
Brokerage, as reported			$               424		$               107		$               317		$                   3		$               314		$              1.21
Net (gains) on divestitures			(20)		(5)		(15)		-		(15)		(0.06)
Acquisition integration			106		27		79		-		79		0.30
Workforce and lease termination			106		26		80		-		80		0.31
Acquisition related adjustments			43		13		30		-		30		0.12
Amortization of intangible assets			298		75		223		-		223		0.86
Brokerage, as adjusted			$               957		$               243		$               714		$                   3		$               711		$              2.74
Risk Management, as reported			$                 67		$                 18		$                 49		$                   -		$                 49		$              0.19
Net (gains) on divestitures			(1)		-		(1)		-		(1)		-
Acquisition integration			2		1		1		-		1		-
Workforce and lease termination			2		1		1		-		1		-
Acquisition related adjustments			3		-		3		-		3		0.01
Amortization of intangible assets			6		2		4		-		4		0.02
Risk Management, as adjusted			$                 79		$                 21		$                 58		$                   -		$                 58		$              0.22
Corporate, as reported			$              (311)		$                (99)		$              (212)		$                   -		$              (212)		$             (0.82)
Transaction-related costs			36		9		27		-		27		0.10
Legal, tax and benefit plan related			54		20		34		-		34		0.14
Corporate, as adjusted			$              (221)		$                (70)		$              (151)		$                   -		$              (151)		$             (0.58)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 15.

 

(14 of 15)

 

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
(Unaudited - in millions except share and per share data)
									Net Earnings		Net Earnings
			Earnings		Provision				(Loss)		(Loss)		Diluted Net
			(Loss)		(Benefit)				Attributable to		Attributable to		Earnings
			Before Income		for Income		Net Earnings		Noncontrolling		Controlling		(Loss)
			Taxes		Taxes		(Loss)		Interests		Interests		per Share
4th Q Ended December 31, 2024
Brokerage, as reported			$               425		$               108		$               317		$                   -		$               317		$              1.37
Net losses on divestitures			1		-		1		-		1		-
Acquisition integration			39		10		29		-		29		0.13
Workforce and lease termination			31		8		23		-		23		0.10
Acquisition related adjustments			53		13		40		-		40		0.17
Amortization of intangible assets			163		42		121		-		121		0.53
Effective income tax rate impact			-		(1)		1		-		1		0.01
Levelized foreign currency translation			7		2		5		-		5		0.02
Brokerage, as adjusted			$               719		$               182		$               537		$                   -		$               537		$              2.33
Risk Management, as reported			$                 58		$                 15		$                 43		$                   -		$                 43		$              0.19
Acquisition integration			1		1		-		-		-		-
Workforce and lease termination			4		1		3		-		3		0.01
Acquisition related adjustments			-		-		-		-		-		-
Amortization of intangible assets			4		1		3		-		3		0.01
Levelized foreign currency translation			1		-		1		-		1		-
Risk Management, as adjusted			$                 68		$                 18		$                 50		$                   -		$                 50		$              0.21
Corporate, as reported			$              (150)		$                (48)		$              (102)		$                   -		$              (102)		$             (0.44)
Transaction-related costs			17		3		14		-		14		0.06
Clean energy-related			(2)		(1)		(1)		-		(1)		-
Corporate, as adjusted			$              (135)		$                (46)		$                (89)		$                   -		$                (89)		$             (0.38)
									Net Earnings		Net Earnings
			Earnings						(Loss)		(Loss)		Diluted Net
			(Loss)		(Benefit)				Attributable to		Attributable to		Earnings
			Before Income		for Income		Net Earnings		Noncontrolling		Controlling		(Loss)
			Taxes		Taxes		(Loss)		Interests		Interests		per Share
Year Ended December 31, 2025
Brokerage, as reported			$            2,759		$               707		$            2,052		$                   9		$            2,043		$              7.85
Net (gains) on divestitures			(24)		(6)		(18)		-		(18)		(0.07)
Acquisition integration			257		63		194		-		194		0.73
Workforce and lease termination			183		47		136		-		136		0.53
Acquisition related adjustments			172		45		127		-		127		0.49
Amortization of intangible assets			894		226		668		-		668		2.57
Brokerage, as adjusted			$            4,241		$            1,082		$            3,159		$                   9		$            3,150		$            12.10
Risk Management, as reported			$               249		$                 66		$               183		$                   -		$               183		$              0.70
Net (gains) on divestitures			(2)		(1)		(1)		-		(1)		-
Acquisition integration			9		2		7		-		7		0.03
Workforce and lease termination			12		3		9		-		9		0.03
Acquisition related adjustments			4		1		3		-		3		0.01
Amortization of intangible assets			22		6		16		-		16		0.06
Risk Management, as adjusted			$               294		$                 77		$               217		$                   -		$               217		$              0.83
Corporate, as reported			$           (1,137)		$              (405)		$              (732)		$                   -		$              (732)		$             (2.81)
Transaction-related costs			122		15		107		-		107		0.41
Legal, tax and benefit plan related			78		36		42		-		42		0.16
Corporate, as adjusted			$              (937)		$              (354)		$              (583)		$                   -		$              (583)		$             (2.24)
									Net Earnings		Net Earnings
			Earnings		Provision				(Loss)		(Loss)		Diluted Net
			(Loss)		(Benefit)				Attributable to		Attributable to		Earnings
			Before Income		for Income		Net Earnings		Noncontrolling		Controlling		(Loss)
			Taxes		Taxes		(Loss)		Interests		Interests		per Share
Year Ended December 31, 2024
Brokerage, as reported			$            2,259		$               573		$            1,686		$                   8		$            1,678		$              7.46
Net (gains) on divestitures			(24)		(6)		(18)		-		(18)		(0.08)
Acquisition integration			191		48		143		-		143		0.63
Workforce and lease termination			118		30		88		-		88		0.39
Acquisition related adjustments			85		22		63		(3)		66		0.28
Amortization of intangible assets			651		165		486		-		486		2.16
Effective income tax rate impact			-		7		(7)		-		(7)		(0.03)
Levelized foreign currency translation			13		5		8		-		8		0.04
Brokerage, as adjusted			$            3,293		$               844		$            2,449		$                   5		$            2,444		$            10.85
Risk Management, as reported			$               238		$                 63		$               175		$                   -		$               175		$              0.78
Acquisition integration			3		1		2		-		2		0.01
Workforce and lease termination			8		2		6		-		6		0.03
Amortization of intangible assets			14		4		10		-		10		0.04
Risk Management, as adjusted			$               263		$                 70		$               193		$                   -		$               193		$              0.86
Corporate, as reported			$              (622)		$              (232)		$              (390)		$                   -		$              (390)		$             (1.74)
Transaction-related costs			32		6		26		-		26		0.12
Legal and tax related			-		(3)		3		-		3		0.02
Clean energy-related			(2)		-		(2)		-		(2)		(0.01)
Corporate, as adjusted			$              (592)		$              (229)		$              (363)		$                   -		$              (363)		$             (1.61)
See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Contact:
Ray Iardella
Vice President - Investor Relations
630-285-3661 or ray_iardella@ajg.com

(15 of 15)

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

View original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-announces-fourth-quarter-and-full-year-2025-financial-results-302674461.html

SOURCE Arthur J. Gallagher & Co.

FAQ

What were AJG (NYSE: AJG) Q4 2025 revenues and adjusted EPS?

AJG reported Q4 2025 revenues of $3.586 billion and adjusted diluted EPS of $2.38. According to the company, adjusted net earnings were $620 million and adjusted EBITDAC margin was 30.8% for the quarter.

How did Arthur J. Gallagher perform for the full year 2025 (AJG)?

For full-year 2025 AJG reported $13.778 billion in revenues and adjusted diluted EPS of $10.69. According to the company, revenue grew 21% with 6% organic growth and adjusted EBITDAC rose about 26% year-over-year.

What impact did the AssuredPartners acquisition have on AJG in 2025?

AJG completed the AssuredPartners acquisition for approximately $13.8 billion in 2025. According to the company, the deal materially increased scale and contributed to the $3.5 billion of annualized revenue from completed mergers.

Why did AJG's GAAP net earnings fall in Q4 2025 compared to Q4 2024?

GAAP Q4 net earnings fell to $154 million from $258 million a year earlier, largely due to acquisition-related charges and higher amortization. According to the company, non-cash intangible amortization and integration costs materially affected GAAP results.

How many acquisitions did AJG close in 2025 and what revenue was acquired?

AJG closed 31 acquisitions in 2025, with estimated annualized revenues acquired of about $3.508 billion. According to the company, acquisition activity included issuing shares in certain tax-free exchange transactions during the fourth quarter.