分组1 - The Baldwin Insurance Group reported quarterly earnings of $0.65 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.56 per share a year ago [1] - The company posted revenues of $413.41 million for the quarter, which was 1.03% below the Zacks Consensus Estimate, but an increase from $380.37 million year-over-year [2] - The stock has gained approximately 5% since the beginning of the year, contrasting with a -3.9% decline in the S&P 500 [3] 分组2 - The earnings outlook for The Baldwin Insurance Group is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The estimate revisions trend for the company is currently favorable, resulting in a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the next quarter is $0.42 on revenues of $381.64 million, and for the current fiscal year, it is $1.82 on revenues of $1.54 billion [7] 分组3 - The Insurance - Life Insurance industry, to which The Baldwin Insurance Group belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [11] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [11] - Adjusted diluted earnings per share grew by 16% [4] - Adjusted free cash flow was $26 million, up 6% from the prior year period [5][13] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [11] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [11] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [7] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [9] Market Data and Key Metrics Changes - The company faced a negative 3.5% impact from rate and exposure changes on renewals, compared to a positive 4.5% benefit in the prior year [6][7] - Client retention improved year over year to approximately 92% [6] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [8] - The introduction of the Builder Reciprocal Insurance Exchange (BRI) is a significant milestone for growth in the builder channel [8] - The company remains confident in maintaining double-digit organic growth despite macroeconomic uncertainties [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [9] - The company expects organic revenue growth in the IAS business to be in the mid to high single-digit range for the year, with overall double-digit growth anticipated [15][16] - Management noted that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to grow over time [45][46] Other Important Information - The company was recently upgraded by S&P to a B rating, with a stable outlook from Moody's [15] - The transition to a fiduciary reporting model for cash and receivables aims to reduce volatility in cash flow from operations [12] Q&A Session Summary Question: Organic revenue outlook for the second quarter - Management acknowledged that the IAS business is running below expectations due to project-based headwinds but remains confident in the underlying fundamentals [19][20] Question: Cash flow conversion rate - Management targets a free cash flow conversion rate of 50% against adjusted EBITDA for the year, with potential to reach 65% to 70% over time [25][26] Question: Project-based work in the second quarter - Management noted an increase in new project starts in May and a strong pipeline for the balance of the month [34] Question: Strong growth in UCTS segment - The growth was driven by strong performance in homeowners programs and the introduction of a multifamily captive [36] Question: Timing of headwinds from renewal - Management indicated that timing-related headwinds from project-based work are expected to improve in the second quarter [41] Question: Market conditions in Florida - Management stated that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to increase over time [45][46] Question: Employee benefits business - Management noted that the cautious business outlook among clients has impacted the employee benefits segment, but they expect visibility to improve as the year progresses [65][66]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [11] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [11] - Adjusted diluted earnings per share grew by 16% [4] - Adjusted free cash flow was $26 million, up 6% from the prior year period [5][13] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [11] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [11] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [6][11] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [9][11] Market Data and Key Metrics Changes - The IAS business faced a negative impact of 3.5% from rate and exposure changes, compared to a positive 4.5% in the prior year [6] - Client retention improved year over year to approximately 92% [6] - The company noted a more competitive insurance rate environment affecting renewals, particularly in large coastal property [6] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [8] - The introduction of the Builder Reciprocal Insurance Exchange is expected to support growth in the builder channel [8] - The company remains confident in its ability to maintain double-digit organic revenue growth despite macroeconomic uncertainties [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [9] - The company anticipates organic revenue growth in the IAS business in the mid to high single-digit range for the year [15] - Management expects adjusted EBITDA between $83 million and $88 million for the second quarter [15] Other Important Information - The company paid $123 million in earn-outs in cash during the first quarter and expects to pay an additional $22 million in the second quarter [5][13] - Net leverage increased slightly to 4.2 times due to significant earn-out payments, but the company aims to bring it below four times by the third quarter [14] Q&A Session Summary Question: Concerns about IAS business performance - Management acknowledged the IAS business was below expectations due to project-based headwinds and a negative impact on renewal premiums, but remains confident in the underlying fundamentals [20][21] Question: Cash flow conversion rate targets - The target for free cash flow conversion rate remains between 50% and 70% over time, with expectations for normalization in subsequent quarters [25][26] Question: Expectations for organic growth acceleration - Management indicated that organic growth is expected to build through the year, particularly in the IAS business, as project-based revenues normalize [53] Question: Market conditions in Florida - Management noted that the Florida insurance market is healthier due to tort reforms, but the cost of risk is expected to grow over time due to increasing building costs and climate event volatility [45] Question: Performance of Juniper Re - Juniper Re is performing well, contributing high single-digit millions in revenue on an LTM basis, with significant strategic value for accessing capacity [57] Question: Impact of wildfires on contingent commissions - There was no significant negative impact from wildfires on contingent commissions, as contracts are tied to non-catastrophe losses [78]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [12] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [12] - Adjusted diluted earnings per share increased by 16% [5] - Adjusted free cash flow was $26 million, up 6% from the prior year period [6][14] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [12] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [6][12] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [8][12] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [10][12] Market Data and Key Metrics Changes - The company noted a negative 3.5% impact from rate and exposure changes on renewals, compared to a positive 4.5% in the prior year [8] - Client retention improved year over year to approximately 92% [7] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [9] - The introduction of the Builder Reciprocal Insurance Exchange (BRI) is a significant milestone for growth in the builder channel [9] - The company remains confident in maintaining double-digit organic revenue growth despite macroeconomic uncertainties [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [10] - The company expects organic revenue growth in the IAS business to build through the year, with a target of mid to high single-digit growth [17] - Full-year consolidated guidance remains unchanged, with expectations for revenue in the second quarter between $370 million and $380 million [17] Other Important Information - The company was recently upgraded by S&P to a B rating, with a stable outlook from Moody's [16] - The transition to a fiduciary reporting model for cash and receivables is aimed at reducing volatility in cash flow from operations [13] Q&A Session Summary Question: Organic revenue outlook for the second quarter - Management acknowledged that the IAS business is running below expectations due to project-based headwinds but remains confident in the underlying fundamentals [20][21] Question: Cash flow conversion rate on an adjusted basis - The target for free cash flow conversion remains between $150 million and $175 million for the year, with expectations to progress towards a 65% to 70% conversion rate over time [26][27] Question: Debt leverage expectations - Management confirmed expectations to bring net leverage below four times by the third quarter [30] Question: Project-based work in the second quarter - Management noted an increase in new project starts and a strong pipeline of projects anticipated to go live [36] Question: Strong organic revenue growth in UCTS - The growth was driven by strong performance in homeowners programs and the introduction of a multifamily captive [38] Question: Headwinds in IAS - Management highlighted that Q2 would be the heaviest volume quarter for cat property renewals, expecting incremental improvement in organic growth [65] Question: Employee benefits market conditions - Management indicated that the cautious business outlook among clients has impacted the employee benefits segment, but they expect visibility to improve as the year progresses [66][68]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $413.4 million, an increase of 8.6% compared to $380.4 million for the same period in 2024[17] - Net income attributable to Baldwin for the three months ended March 31, 2025, was $13.9 million, a decrease of 35.4% from $21.6 million in the same period of 2024[17] - Basic earnings per share for the three months ended March 31, 2025, were $0.21, down from $0.35 in the same period of 2024[17] - Operating income for the three months ended March 31, 2025, was $56.0 million, up from $34.3 million in the same period of 2024, representing a growth of 63.5%[17] - Net income for the three months ended March 31, 2025, was $24,898,000, a decrease of 36.3% compared to $39,100,000 for the same period in 2024[23] - Total revenues for the three months ended March 31, 2025, were $413.4 million, an increase from $380.4 million in the same period of 2024, representing a growth of 8.7%[116] - Commission revenue for the three months ended March 31, 2025, was $338.9 million, compared to $322.4 million in the same period of 2024, reflecting an increase of 5.1%[116] - Net income for the three months ended March 31, 2025, was $24.9 million, a decrease from $39.1 million in the same period of 2024, indicating a decline of 36.4%[116] Assets and Liabilities - Total current assets increased to $1,055.8 million as of March 31, 2025, compared to $1,026.5 million at December 31, 2024[15] - Total liabilities decreased to $2,500.3 million as of March 31, 2025, from $2,525.9 million at December 31, 2024[15] - Total stockholders' equity attributable to Baldwin increased to $619.6 million as of March 31, 2025, from $583.2 million at December 31, 2024[15] - The company’s long-term debt, less current portion, increased to $1,495.9 million as of March 31, 2025, compared to $1,398.1 million at December 31, 2024[15] - Cash and cash equivalents decreased to $90.0 million as of December 31, 2024, from $148.1 million previously reported[43] - As of March 31, 2025, total assets amounted to $3.55 billion, up from $3.53 billion as of December 31, 2024[116] Cash Flow and Expenditures - Cash flows from operating activities resulted in a net cash used of $63,983,000 for the three months ended March 31, 2025, compared to a net cash provided of $3,007,000 in 2024[23] - Capital expenditures for the three months ended March 31, 2025, were $8,933,000, compared to $8,146,000 in the same period of 2024[23] - Capital expenditures for the three months ended March 31, 2025, totaled $8.9 million, compared to $8.1 million in the same period of 2024[116] Revenue and Income Sources - Commission revenue for the three months ended March 31, 2025, was $338.9 million, up from $322.4 million in 2024, reflecting a growth of 5.1%[67] - Profit-sharing revenue increased to $24.3 million in Q1 2025 from $20.7 million in Q1 2024, representing a growth of 17.9%[67] - Assumed premium earned was $4.3 million in Q1 2025, with no revenue recorded in Q1 2024[67] - The Company recognized revenue of $24.9 million related to contract liabilities during the three months ended March 31, 2025[68] - Investment income for Q1 2025 was $2.9 million, compared to $2.3 million in Q1 2024, marking a growth of 26.6%[67] Shareholder and Equity Information - The weighted-average shares of Class A common stock outstanding increased to 66,067,143 for the three months ended March 31, 2025, from 61,856,147 in the same period of 2024[17] - The total fair value of shares that vested and settled under the share-based compensation plans was $36.7 million for the three months ended March 31, 2025, compared to $16.9 million for the same period in 2024, an increase of 117.7%[84] - The Company recognized share-based compensation expense of $12.8 million for the three months ended March 31, 2025, down from $14.1 million in 2024, a decrease of 9.2%[85] Debt and Financing - The Company’s long-term debt included $933.5 million under the 2025 Term Loans with an interest rate of 7.32% as of March 31, 2025, compared to $835.8 million under the 2024 Term Loans at 7.61% as of December 31, 2024[75] - The carrying amount of long-term debt reflects outstanding borrowings net of unamortized debt issuance costs of $28.2 million as of March 31, 2025[99] - An increase of 100 basis points on the term SOFR rate at March 31, 2025 would increase the annual interest expense under the 2024 Credit Facility by $9.3 million[225] Legal and Contingent Liabilities - The company is involved in various legal claims, with potential losses estimated between $0 and $2.4 million depending on the outcome of an appeal[103] - The company recorded a net increase in the estimated fair value of contingent earnout liabilities of $8.1 million for the three months ended March 31, 2025, compared to $12.7 million for the same period in 2024[94] - The maximum estimated exposure to contingent earnout liabilities is assessed to be $102.9 million as of March 31, 2025[94] Future Outlook and Changes - The company expects to adopt new accounting standards that will enhance expense disclosures starting January 1, 2024, which may impact future financial reporting[38] - The company has not yet completed its evaluation of the consideration paid and assets and liabilities acquired for the business combination with MultiStrat Group[124]

Financial Performance Highlights - Total revenue increased by 9% from $380367000 in Q1 2024 to $413405000 in Q1 2025[6] - Retained commissions and fees grew by 9% from $319330000 in Q1 2024 to $347582000 in Q1 2025[6] - Adjusted EBITDA increased by 12% from $101686000 in Q1 2024 to $113795000 in Q1 2025[6] - Adjusted net income increased by 17% from $65315000 in Q1 2024 to $76558000 in Q1 2025[6] - Adjusted diluted EPS increased by 16% from $056 in Q1 2024 to $065 in Q1 2025[6] Organic Revenue Growth - Consolidated organic revenue growth was 10% in Q1 2025[6] - Underwriting, Capacity & Technology Solutions (UCTS) experienced the highest organic revenue growth at 32% in Q1 2025[10] - Mainstreet Insurance Solutions (MIS) organic revenue growth was 10% in Q1 2025[12] - Insurance Advisory Solutions organic revenue growth was 3% in Q1 2025[10] Profitability Metrics - Adjusted EBITDA margin was 28% in Q1 2025, compared to 27% in Q1 2024[6] - Adjusted EBITDA margin on retained commissions and fees was 33% in Q1 2025, compared to 32% in Q1 2024[6] - Net income margin decreased from 10% in Q1 2024 to 6% in Q1 2025[6]

Financial Performance - Total revenue increased by 9% year-over-year to $413.4 million, with organic revenue growth of 10%[1] - Net income for the quarter was $24.9 million, with diluted earnings per share of $0.20; adjusted diluted EPS grew by 16% to $0.65[1][4] - Adjusted EBITDA rose by 12% year-over-year to $113.8 million, resulting in an adjusted EBITDA margin of 27.5%, an expansion of 80 basis points compared to the prior-year period[1][4] - Adjusted free cash flow increased by 6% year-over-year to $25.8 million[4] - Operating income for the quarter was $56.0 million, compared to $34.3 million in the prior-year period[4] - Adjusted net income for Q1 2025 was $76,558,000, an increase of 17.2% from $65,315,000 in Q1 2024[33] - Adjusted diluted EPS for Q1 2025 was $0.65, up 16.1% from $0.56 in Q1 2024[33] - Adjusted pre-tax income for Q1 2025 was $84,970,000, compared to $72,492,000 in Q1 2024, reflecting a growth of 17.2%[33] Cash Flow and Liquidity - As of March 31, 2025, cash and cash equivalents were $81.8 million, with a borrowing capacity of $586 million under the revolving credit facility[5] - Net cash used in operating activities was $(63,983,000) for Q1 2025, a significant decline from $3,007,000 in Q1 2024[18] - Cash and cash equivalents at the end of the period were $299,061,000, down from $234,317,000 at the end of Q1 2024[18] - Adjusted free cash flow for Q1 2025 was $25,809,000, a slight increase from $24,299,000 in Q1 2024[37] Strategic Outlook - The company has reached a significant inflection point with the majority of earnout obligations behind, allowing for increased financial flexibility[3] - The company plans to accelerate momentum across its strategic priorities moving forward[3] - The company expects continued focus on organic revenue growth and strategic partnerships moving forward[28] Client and Market Presence - Baldwin represents over three million clients across the United States and internationally, indicating strong market presence[8] Other Financial Metrics - The company reported adjusted net income of $76.6 million for the quarter[4] - Net income for the three months ended March 31, 2025, was $24,898,000, a decrease of 36.3% compared to $39,100,000 in 2024[18] - Adjusted EBITDA for the same period was $113,795,000, representing an increase of 11.9% from $101,686,000 in 2024[29] - Revenues increased to $413,405,000 in Q1 2025, up 8.7% from $380,367,000 in Q1 2024[29] - Organic revenue growth for the three months ended March 31, 2025, was $38,219,000, with a growth rate of 10% compared to $51,051,000 and 16% in 2024[31] - Adjusted EBITDA margin improved to 27.5% in Q1 2025, compared to 26.7% in Q1 2024[29] - The company incurred $78,193,000 in contingent earnout consideration payments in Q1 2025, significantly higher than $16,318,000 in Q1 2024[37] - The company reported a loss on divestitures of $(1,401,000) in Q1 2025, compared to $(36,516,000) in Q1 2024[29] - Capital expenditures for Q1 2025 were $(8,933,000), slightly higher than $(8,146,000) in Q1 2024[18] - The company reported a loss on extinguishment and modification of debt amounting to $2,394,000 in Q1 2025[33] - Amortization expense for Q1 2025 was $25,882,000, compared to $24,041,000 in Q1 2024[33] - The effective tax rate applied to adjusted pre-tax income was assumed to be 9.9%[34] - Weighted-average shares of Class A common stock outstanding - diluted increased to 69,328,000 in Q1 2025 from 65,314,000 in Q1 2024[33]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Baldwin Insurance Group identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Baldwin Insurance Group has a historical EPS growth rate of 16.4%, with projected EPS growth of 21.3% for the current year, significantly outperforming the industry average of 5% [5]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets) of 0.39, indicating it generates $0.39 in sales for every dollar in assets, compared to the industry average of 0.13, showcasing superior efficiency [7]. Sales Growth - Sales for Baldwin Insurance Group are expected to grow by 11.2% this year, which is notably higher than the industry average growth of 3.2% [8]. Earnings Estimate Revisions - The current-year earnings estimates for Baldwin Insurance Group have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month, indicating positive momentum [9]. Overall Positioning - Baldwin Insurance Group has achieved a Growth Score of A and holds a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [10][11].

Core Viewpoint - The Baldwin Insurance Group is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on May 6, 2025, with a consensus estimate of $0.65 per share, reflecting a year-over-year increase of 16.1%. Revenues are projected to be $417.7 million, up 9.8% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.79% higher in the last 30 days, indicating a positive reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for the Baldwin Insurance Group is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.62%. The company currently holds a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, the company exceeded the expected earnings of $0.25 per share by delivering $0.27, resulting in a surprise of +8%. Over the past four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - The Baldwin Insurance Group is positioned as a compelling candidate for an earnings beat, although investors should consider other factors that may influence stock performance beyond just earnings results [16].

Core Viewpoint - Investors in the Life Insurance sector should consider NN Group NV Unsponsored ADR (NNGRY) and The Baldwin Insurance Group (BWIN) for potential value opportunities [1] Valuation Metrics - NNGRY has a forward P/E ratio of 7.19, while BWIN has a forward P/E of 22.21 [5] - NNGRY's PEG ratio is 0.72, indicating a more favorable valuation compared to BWIN's PEG ratio of 1.04 [5] - NNGRY's P/B ratio is 0.66, significantly lower than BWIN's P/B of 4.73, suggesting NNGRY is undervalued relative to its book value [6] Analyst Outlook - NNGRY has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while BWIN has a Zacks Rank of 3 (Hold) [3] - The stronger estimate revision activity for NNGRY suggests a more favorable analyst outlook compared to BWIN [7] Value Grades - NNGRY has a Value grade of B, while BWIN has a Value grade of D, reflecting NNGRY's more attractive valuation metrics [6]