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AON(AON) - 2024 Q4 - Annual Results
AONAON(AON)2025-01-31 11:01

Revenue Growth - Total revenue for Q4 2024 increased by 23% to 4.1billion,withorganicrevenuegrowthof64.1 billion, with organic revenue growth of 6% and a 1% unfavorable impact from foreign currency translation[7]. - Full year 2024 total revenue reached 15.7 billion, a 17% increase compared to 2023[3]. - Total revenue for 2024 increased 17% to 15.7billion,drivenbyacquiredrevenuesfromNFPand615.7 billion, driven by acquired revenues from NFP and 6% organic revenue growth[30]. - Total revenue for Q4 2024 was 4.147 billion, a 23% increase from 3.375billioninQ42023[42].−TotalrevenueforQ42024reached3.375 billion in Q4 2023[42]. - Total revenue for Q4 2024 reached 4,147 million, a 23% increase from 3,375millioninQ42023[44].−OrganicrevenuegrowthforQ42024was63,375 million in Q4 2023[44]. - Organic revenue growth for Q4 2024 was 6%, with a notable 10% growth in Commercial Risk Solutions[47]. - Health Solutions revenue increased by 40% year-over-year in Q4 2024, reaching 1,070 million[47]. Earnings and Income - Adjusted EPS for Q4 2024 rose by 14% to 4.42,whiledilutedEPSincreasedby334.42, while diluted EPS increased by 33% to 3.28[4]. - Net income attributable to Aon shareholders in Q4 2024 increased 44% to 716millioncomparedto716 million compared to 498 million in Q4 2023[29]. - Adjusted net income per share increased 10% to 15.60onadilutedbasis,despitea15.60 on a diluted basis, despite a 0.12 unfavorable impact from foreign currency translation[31]. - Adjusted net income attributable to Aon shareholders for Q4 2024 was 965million,a23965 million, a 23% increase from 785 million in Q4 2023; for the full year, it was 3,316million,up143,316 million, up 14% from 2,899 million[56]. - Aon reported a net income of 2,720millionfor2024,comparedto2,720 million for 2024, compared to 2,628 million in 2023[62]. Operating Performance - Operating income for Q4 2024 increased by 40% to 1.1billion,withanoperatingmarginof26.31.1 billion, with an operating margin of 26.3%[26]. - Operating income for Q4 2024 rose 40% to 1.091 billion compared to 779millioninQ42023[42].−Theoperatingmarginimprovedto26.3779 million in Q4 2023[42]. - The operating margin improved to 26.3% in Q4 2024, up from 23.1% in Q4 2023[44]. - Adjusted operating income for Q4 2024 was 1,380 million, a 21% increase from 1,141millioninQ42023;forthefullyear,itwas1,141 million in Q4 2023; for the full year, it was 4,939 million, up 17% from 4,223million[56].−Adjustedoperatingincomeforthefullyear2024was4,223 million[56]. - Adjusted operating income for the full year 2024 was 4,939 million, compared to 4,223millionin2023[51].CashFlowandCapitalManagement−Freecashflowfor2024was4,223 million in 2023[51]. Cash Flow and Capital Management - Free cash flow for 2024 was 2.8 billion, reflecting an 11% decrease compared to the prior year[14]. - The company expects to achieve mid-single-digit organic revenue growth and double-digit free cash flow growth in 2025[5]. - Cash provided by operating activities for 2024 was 3,035million,downfrom3,035 million, down from 3,435 million in 2023[62]. - The company reported a 12% increase in cash provided by operating activities for the twelve months ended December 31, 2024, totaling 3,035million[50].−Thecompanyrepurchased0.6millionsharesforapproximately3,035 million[50]. - The company repurchased 0.6 million shares for approximately 200 million in Q4 2024, with 2.3billionremainingunderitssharerepurchaseprogram[11].−Thecompanyrepurchasedapproximately3.1millionclassAordinarysharesforabout2.3 billion remaining under its share repurchase program[11]. - The company repurchased approximately 3.1 million class A ordinary shares for about 1.0 billion at an average price of 325.56pershareduring2024[32].−Aonhadapproximately325.56 per share during 2024[32]. - Aon had approximately 2.3 billion of remaining authorization under its share repurchase program as of December 31, 2024[32]. Expenses and Costs - Total operating expenses for Q4 2024 rose by 18% to 3.1billion,primarilyduetotheinclusionofNFP′soperatingexpenses[8].−Compensationandbenefitsexpensesincreasedby273.1 billion, primarily due to the inclusion of NFP's operating expenses[8]. - Compensation and benefits expenses increased by 27% to 2.120 billion in Q4 2024, up from 1.671billioninQ42023[42].−TheeffectivetaxrateforQ42024was17.61.671 billion in Q4 2023[42]. - The effective tax rate for Q4 2024 was 17.6%, up from 16.7% in the prior year period[10]. - The effective tax rate for the twelve months ended December 31, 2024, was 21.4%, compared to 17.1% for the prior year[42]. Acquisitions and Investments - Aon completed the acquisition of NFP on April 25, 2024, incurring 40 million in transaction costs for Q4 2024 and 191millionforthefullyear[54].−Thecompanyplanstocontinueinvestingintechnology−relatedcoststostreamlineoperationsandreduceheadcount[52].−Thecompanyincurred191 million for the full year[54]. - The company plans to continue investing in technology-related costs to streamline operations and reduce headcount[52]. - The company incurred 6 million in debt extinguishment charges related to the repayment of NFP debt, classified as transaction-related costs[58]. Balance Sheet and Debt - Total assets increased to 48,965millionasofDecember31,2024,comparedto48,965 million as of December 31, 2024, compared to 33,959 million in 2023[61]. - Long-term debt rose to 16,265millionin2024from16,265 million in 2024 from 9,995 million in 2023, reflecting a significant increase in leverage[61].