AON(US:AON)2026-01-30 11:35Revenue Growth - Total revenue for Q4 2025 increased by 4% to $4.3 billion, with 5% organic revenue growth and a 2% favorable impact from foreign currency translation [5]. - Full-year 2025 total revenue rose by 9% to $17.2 billion, driven by 6% organic revenue growth and a 2% contribution from acquisitions [29]. - Total revenue for the year ended December 31, 2025, was $17.18 billion, a 9% increase from $15.70 billion in 2024 [41]. - Total revenue for Q4 2025 reached $4,300 million, a 4% increase from $4,147 million in Q4 2024 [44]. - Total revenue for the twelve months ended December 31, 2025, was $17,181 million, a 9% increase from $15,698 million in 2024 [46]. Earnings and Profitability - Diluted EPS for Q4 2025 increased by 138% to $7.82, compared to $3.28 in the prior-year period [3]. - Net income attributable to Aon shareholders increased to $3.7 billion, or $17.02 per share on a diluted basis, compared to $2.7 billion, or $12.49 per share in the prior year, representing a 37% increase in net income [30]. - Adjusted net income per share increased 9% to $17.07 on a diluted basis, including an unfavorable impact of $0.01 per share from foreign currency translation [30]. - Operating income for Q4 2025 rose by 11% to $1.2 billion, with an operating margin of 28.1% [25]. - Operating income for the twelve months ended December 31, 2025, was $4.34 billion, reflecting a 13% increase from $3.84 billion in 2024 [41]. - Adjusted operating income for Q4 2025 was $1,525 million, an 11% increase from $1,380 million in Q4 2024 [55]. Cash Flow and Capital Management - Free cash flow for full-year 2025 increased by 14% to $3.2 billion, reflecting strong cash flows from operations [12]. - Free cash flow for Q4 2025 was $1,323 million, a 16% increase from $1,145 million in Q4 2024 [49]. - The company paid down $1.9 billion in debt during 2025, achieving its leverage objective in Q4 [4]. - The company had approximately $1.3 billion of remaining authorization under its share repurchase program as of December 31, 2025 [31]. - The company repurchased approximately 2.7 million class A ordinary shares for approximately $1.0 billion at an average price of $365.91 per share during 2025 [31]. Operating Expenses and Margins - Total operating expenses for the year increased by 8% to $12.84 billion, compared to $11.86 billion in 2024 [41]. - Adjusted operating margin for Q4 2025 improved to 35.5%, up 220 basis points from 33.3% in Q4 2024 [25]. - The adjusted operating margin for the twelve months ended December 31, 2025, was 32.4%, compared to 31.5% in 2024 [50]. - The operating margin for Q4 2025 was 28.1%, up from 26.3% in Q4 2024 [50]. Tax and Other Financial Metrics - The effective tax rate for Q4 2025 was 22.9%, compared to 17.6% in the prior-year period [8]. - The effective tax rate for the twelve months ended December 31, 2025, was 21.2%, compared to 21.4% in 2024 [41]. - Other income for Q4 2025 was $1.2 billion, significantly higher than $2 million in Q4 2024 [56]. - Aon incurred $1,201 million in gains from sales of businesses for the year ended December 31, 2025 [60]. Future Outlook - For 2026, the company expects mid-single-digit or greater organic revenue growth and 70 to 80 basis points of adjusted operating margin expansion [4]. - Aon plans to continue its Accelerating Aon United Program, which aims to yield cost savings and improve operational efficiency [39]. - Aon is focused on integrating the NFP acquisition and expects to realize anticipated revenue and growth synergies [35]. Assets and Liabilities - Total assets increased to $50,784 million as of December 31, 2025, compared to $48,965 million in 2024 [59]. - Cash and cash equivalents at the end of 2025 were $1,195 million, up from $1,085 million in 2024 [59]. - Long-term debt decreased to $14,660 million in 2025 from $16,265 million in 2024 [59]. - Integration costs related to the NFP Transaction were $77 million for the twelve months ended December 31, 2025, down from $95 million in 2024 [53].