AON(US:AON)2025-10-31 10:32Financial Performance - Total revenue for Q3 2025 increased by 7% to $3.997 billion compared to $3.721 billion in Q3 2024, with organic revenue growth also at 7%[6] - Operating income rose by 31% to $816 million, and adjusted operating income increased by 15% to $1.051 billion compared to the prior year period[25] - Diluted EPS increased by 34% to $2.11, while adjusted EPS rose by 12% to $3.05 compared to the prior year period[5] - Aon reported a 12% increase in total revenue for the nine months ended September 30, 2025, reaching $12,881 million compared to $11,551 million for the same period in 2024[38] - Net income attributable to Aon shareholders for Q3 2025 was $458 million, up 34% from $343 million in Q3 2024[38] - Operating income for the nine months ended September 30, 2025, was $3,136 million, up from $2,744 million in 2024, reflecting an operating margin of 24.3%[39] - Free cash flow for the three months ended September 30, 2025, was $1,079 million, a 13% increase from $951 million in 2024[47] - For the nine months ended September 30, 2025, total consolidated revenue was $12,881 million, up 11.5% from $11,551 million in 2024[48] - Net income for the nine months ended September 30, 2025, was $2.046 billion, compared to $1.986 billion for the same period in 2024, reflecting an increase of 3.0%[56] Cash Flow and Assets - Cash provided by operations for the first nine months of 2025 increased by 14% to $2.1 billion, and free cash flow also increased by 13% to $1.9 billion[11][12] - Cash provided by operating activities rose to $2.084 billion for the nine months ended September 30, 2025, compared to $1.835 billion in 2024, marking a growth of 13.6%[56] - Cash and cash equivalents at the end of the period were $1.095 billion, slightly down from $1.103 billion at the end of the previous year[56] - Total current assets increased to $26.569 billion as of September 30, 2025, from $23.432 billion at December 31, 2024, an increase of 13.1%[55] - Funds held on behalf of clients increased to $8.391 billion as of September 30, 2025, from $7.940 billion at December 31, 2024, a growth of 5.7%[56] Expenses and Liabilities - Total operating expenses increased by 3% to $3.181 billion, primarily due to expenses associated with organic revenue growth[7] - Total operating expenses for the nine months ended September 30, 2025, were $9,745 million, an increase from $8,807 million in 2024[39] - Compensation and benefits expenses for the three months ended September 30, 2025, were $2,259 million, compared to $2,150 million in 2024[39] - Total liabilities rose to $43.438 billion as of September 30, 2025, compared to $42.535 billion at December 31, 2024, an increase of 2.1%[55] Shareholder Returns and Repurchases - The company repurchased 0.7 million class A ordinary shares for approximately $250 million in Q3 2025, with $1.6 billion remaining under its share repurchase program[10] - The company executed share repurchases totaling $750 million during the nine months ended September 30, 2025, compared to $800 million in the same period of 2024[56] Strategic Initiatives - Aon remains confident in achieving its full-year 2025 financial targets and is well positioned for sustainable growth in 2026 and beyond[4] - The company is executing its Aon United strategy through the 3x3 Plan, focusing on high-growth areas and scaling data analytics[4] - Aon is focused on integrating the NFP acquisition and expects to realize anticipated revenue and growth synergies over time[33] Tax and Integration Costs - The effective tax rate for Q3 2025 was 21.3%, compared to 20.9% in the prior year period[9] - The effective tax rate for adjusted items was 19.2% for the three months ended September 30, 2025, compared to 18.0% in 2024[51] - The company incurred $10 million in integration costs related to the NFP transaction for the three months ended September 30, 2025[50] Other Financial Metrics - The Accelerating Aon United Program expenses decreased by 54% to $32 million in Q3 2025 from $69 million in Q3 2024[38] - Interest expense for the three months ended September 30, 2025, was $206 million, a slight decrease of 3% from $213 million in 2024[51] - The company reported a decrease in accumulated deficit to $(1.527) billion as of September 30, 2025, from $(2.309) billion at December 31, 2024, indicating an improvement in financial health[55] - Total assets increased to $51.637 billion as of September 30, 2025, up from $48.965 billion at December 31, 2024, representing a growth of 3.4%[55]