Marsh & McLennan Companies(MMC) - 2025 Q1 - Quarterly Results

Financial Performance - Consolidated revenue for Q1 2025 was $7.1 billion, a 9% increase compared to Q1 2024, with 4% underlying revenue growth[2] - Adjusted operating income rose 8% to $2.2 billion, while net income attributable to the company was $1.4 billion[2] - Adjusted EPS increased 5% to $3.06, benefiting from favorable discrete tax items by $0.10 per share, offset by a foreign exchange headwind of $0.05 per share[2] - Risk & Insurance Services revenue was $4.8 billion, an 11% increase, with adjusted operating income up 8% to $1.8 billion[4] - Marsh's revenue grew 15% to $3.5 billion, with underlying revenue growth of 5%[5] - Consulting revenue reached $2.3 billion, a 5% increase, with adjusted operating income rising 8% to $491 million[6] - For the three months ended March 31, 2025, adjusted operating income was $2,235 million, with an adjusted operating margin of 31.8%[27] - The company reported an operating income of $2,005 million for Q1 2025, with an overall operating margin of 28.4%[27] - Total revenue for the three months ended March 31, 2025, was $7,061 million, representing an increase from $6,473 million in 2024, with a non-GAAP revenue of $6,704 million after adjustments[44] - The Risk and Insurance Services segment generated $4,762 million in revenue, up from $4,265 million in the previous year, with Marsh contributing $3,453 million[44] - The Consulting segment reported revenue of $2,314 million, an increase from $2,188 million in 2024, with Mercer contributing $1,496 million[45] Cash Flow and Capital Management - The company repurchased 1.3 million shares for $300 million in Q1 2025[8] - The company repaid $500 million of senior notes that matured in March 2025[8] - Cash and cash equivalents decreased to $1,604 million as of March 31, 2025, down from $2,398 million at the end of 2024[38] - Cash and cash equivalents at the end of the period totaled $13,183 million, compared to $12,910 million at the end of March 2024[41] - Operating cash flows showed a net cash used by operations of $622 million, an improvement from $781 million in the prior year[41] - The company reported a net cash provided by investing activities of $26 million, a significant improvement from a net cash used of $368 million in the previous year[41] - Capital expenditures for the quarter were $55 million, down from $87 million in the same period last year[41] - The company paid dividends totaling $405 million, an increase from $354 million in the prior year[41] Balance Sheet and Equity - Total assets increased to $57,015 million as of March 31, 2025, compared to $56,481 million at the end of 2024[38] - Total equity rose to $14,268 million as of March 31, 2025, compared to $13,535 million at the end of 2024[38] - Short-term debt increased significantly to $1,667 million as of March 31, 2025, from $519 million at the end of 2024[38] Expenses and Noteworthy Items - The company's total expenses for the same period were $5,056 million, an increase from $4,548 million in the prior year[35] - Identified intangible amortization expense for Q1 2025 was $139 million, up from $90 million in Q1 2024[35] - The company incurred total noteworthy items of $91 million in Q1 2025, compared to $49 million in Q1 2024[27] International Operations - International operations contributed to underlying revenue growth of 6%, with Latin America showing 8% growth[5] - The company operates in 130 countries, indicating a broad market presence and potential for future growth[10] Net Income - For the three months ended March 31, 2025, the net income before non-controlling interests was $1,412 million, a slight decrease from $1,424 million in the same period of 2024[41] - Adjusted income, net of tax for Q1 2025 was $1,516 million, resulting in an adjusted EPS of $3.06, compared to $1,453 million and $2.92 in Q1 2024[32] Exchange Rate Impact - The effect of exchange rate changes on cash resulted in a positive impact of $243 million during the quarter[41]