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]

Core Insights - Investors are comparing NN Group NV Unsponsored ADR (NNGRY) and The Baldwin Insurance Group (BWIN) to determine which stock offers better value [1] Valuation Metrics - NNGRY has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to BWIN, which has a Zacks Rank of 3 (Hold) [3] - NNGRY's forward P/E ratio is 7.05, significantly lower than BWIN's forward P/E of 21.89, suggesting NNGRY may be undervalued [5] - The PEG ratio for NNGRY is 0.71, while BWIN's PEG ratio is 1.03, indicating NNGRY has a better growth-to-price ratio [5] - NNGRY's P/B ratio is 0.64, compared to BWIN's P/B of 4.66, further supporting the notion that NNGRY is undervalued relative to its book value [6] - NNGRY has a Value grade of B, while BWIN has a Value grade of D, reinforcing the conclusion that NNGRY is the more attractive option for value investors [6]

Investors interested in stocks from the Insurance - Life Insurance sector have probably already heard of NN Group NV Unsponsored ADR (NNGRY) and The Baldwin Insurance Group (BWIN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best ...

Financial Data and Key Metrics Changes - For Q4 2024, organic revenue grew 19%, with total revenue reaching $329.9 million, and adjusted EBITDA margin expanded 310 basis points to 19.1% [10][26][29] - For the full year 2024, organic revenue growth was 17%, total revenue was $1.4 billion, and adjusted EBITDA grew 25% to $312.5 million, with an adjusted EBITDA margin of 22.5% [10][27][29] - Adjusted free cash flow for Q4 was $16.9 million, a 328% increase year-over-year, while for the full year, it was $134.9 million, up 97% from the prior year [29][30] Business Line Data and Key Metrics Changes - The IAS segment saw organic revenue growth of 16% in Q4 and 10% for the full year, with core commissions and fees revenue up 16% for the quarter and 11% for the year [13][26] - The UCTS segment experienced a strong Q4 with organic revenue growth of 25%, and for the full year, it was 27% [17][26] - The MIS segment delivered total organic revenue growth of 19% during Q4 and 20% for the full year, despite facing 820 basis points of headwinds [21][26] Market Data and Key Metrics Changes - The company noted that California wildfires and recent hurricanes have impacted the insurance landscape, highlighting the critical role of insurance in recovery efforts [7][10] - The company anticipates potential impacts on reinsurance pricing due to the California wildfires, which could affect gross commission rates for certain programs [70][72] Company Strategy and Development Direction - The company aims to continue deleveraging its balance sheet, with a target net leverage range of 3 to 4 times, while also focusing on capital allocation flexibility for future M&A opportunities [12][34][86] - The launch of a Texas domiciled reciprocal insurance exchange is seen as a significant milestone for vertical integration and innovative risk capital solutions [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit organic growth and improving margins despite a dynamic insurance marketplace [24][42] - The company expects organic revenue growth in the lower half of its long-term range of 10% to 15% for 2025, with adjusted EBITDA margin expansion anticipated [39][41] Other Important Information - The company is transitioning to a fiduciary reporting model for cash and receivables, which will change the presentation of adjusted free cash flow [34][36] - The majority of earn-out obligations are expected to be satisfied by the end of March, marking a significant milestone for the business [12][31] Q&A Session Summary Question: Discussion on contingents and earn-out opportunities - Management clarified that colleague earn-out incentives will not reappear in the future, as they were specific to past acquisitions [50][56] Question: Clarification on IAS growth and expectations - Management indicated strong momentum in IAS, with expected double-digit commission and fee growth for the year, while cautioning about potential impacts from the California wildfires [64][66] Question: Inquiry about reinsurance costs and impacts - Management confirmed a fixed impact of $10 million to $15 million from QBE arrangements, with expectations for the reciprocal exchange to provide better long-term economics [68][70] Question: Future M&A considerations and leverage - Management stated that they will not consider going above 4 times leverage in the foreseeable future and do not expect M&A activity in 2025 [86] Question: Clarification on EBITDA and cash flow outlook - Management explained that a significant portion of the variance between EBITDA and cash flow is due to interest expense and working capital headwinds [90][91]

Core Insights - The Baldwin Insurance Group reported revenue of $329.89 million for Q4 2024, a year-over-year increase of 15.9% and an EPS of $0.27, up from $0.14 a year ago, exceeding both revenue and EPS estimates [1] - The company achieved an organic revenue growth of 19%, surpassing the average estimate of 15.4% [4] - The stock has returned -6% over the past month, underperforming the Zacks S&P 500 composite's -1.8% change, and currently holds a Zacks Rank 3 (Hold) [3] Revenue Breakdown - Revenue from Insurance Advisory Solutions was $502.51 million, significantly higher than the average estimate of $153.14 million, reflecting a year-over-year change of +276.5% [4] - Underwriting, Capacity & Technology Solutions generated $116.76 million, slightly below the average estimate of $123.41 million, with a year-over-year increase of +13.1% [4] - Mainstreet Insurance Solutions reported revenue of $71.86 million, exceeding the estimated $70.61 million, marking an +18.6% change from the previous year [4] - Investment income was $3.19 million, close to the average estimate of $3.24 million [4] - Commissions and fees totaled $326.71 million, surpassing the estimated $320.50 million [4]

分组1 - The Baldwin Insurance Group reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing an increase from $0.14 per share a year ago, representing an earnings surprise of 8% [1] - The company achieved revenues of $329.89 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.71% and increasing from $284.65 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has added approximately 1.4% since the beginning of the year, compared to the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $431.61 million, and for the current fiscal year, it is $1.86 on revenues of $1.56 billion [7] - The Zacks Industry Rank for Insurance - Life Insurance is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - For Q4 2024, organic revenue grew by 19%, with total revenue reaching $329.9 million [15] - For the full year, organic revenue growth was 17%, totaling $1.4 billion [15] - Adjusted EBITDA for Q4 increased by 38% to $63.2 million, with an adjusted EBITDA margin of 19.1% [16] - Adjusted free cash flow for Q4 was $16.9 million, a 328% increase year-over-year, while for the full year it grew to $134.9 million, a 97% increase [17] Business Line Data and Key Metrics Changes - The IS segment saw organic revenue growth of 16% in Q4 and 10% for the full year [7] - The UCTS segment experienced a strong Q4 with organic revenue growth of 25%, and 27% for the full year [9] - The MIS segment delivered organic revenue growth of 19% in Q4 and 20% for the full year [12] Market Data and Key Metrics Changes - The company noted a headwind in rate and exposure contributing only 40 basis points to overall organic growth for 2024, compared to 550 basis points in 2023 [8] - The California wildfires and hurricane season were highlighted as significant events impacting the insurance landscape [4][5] Company Strategy and Development Direction - The company aims to enhance its capital position and flexibility following the satisfaction of earn-out obligations by March [6] - There is a focus on vertical integration and innovative risk capital platforms to improve risk transfer outcomes for clients [11] - The company plans to continue deleveraging its balance sheet while exploring M&A opportunities in the future [19][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit organic growth despite challenges in the insurance marketplace [13] - The impact of the California wildfires on reinsurance pricing remains uncertain, with potential implications for future margins [42][44] - The company anticipates a slight increase in net leverage in Q1 2025 due to earn-out payments but expects to reduce it below four times by Q3 2025 [22] Other Important Information - The company is transitioning to a new method of reporting adjusted free cash flow, which may affect future comparisons [20] - The approval of a Texas domiciled reciprocal insurance exchange is seen as a significant milestone for the company [11] Q&A Session Summary Question: Discussion on earn-out opportunities and future incentives - Management clarified that colleague earn-out incentive payments will not reappear in the future, as they were a one-time allocation from selling shareholders [29] Question: Impact of reinsurance changes on EBITDA - Management confirmed that the expected negative EBITDA impact from QBE remains consistent, with no additional variability anticipated [41] Question: Expectations for rate and exposure headwinds in 2025 - Management does not anticipate the same headwinds in 2025, suggesting potential tailwinds depending on economic conditions [64] Question: Insights on the middle market landscape and talent acquisition - Management noted an evolution in the M&A marketplace, with opportunities arising from disruptions in legacy platforms, leading to potential talent acquisition [68]