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Arthur J. Gallagher Q4 Earnings Beat on Higher Commission and Fees
AJGArthur J. Gallagher & (AJG) ZACKS·2025-01-31 16:31

Core Viewpoint - Arthur J. Gallagher & Co. (AJG) reported strong financial performance in Q4 2024, with adjusted net earnings per share of 2.13,exceedingestimatesandshowinga172.13, exceeding estimates and showing a 17% year-over-year increase [1] Financial Performance - Total revenues reached 2.7 billion, surpassing estimates by 0.1% and reflecting a 12% year-over-year growth driven by increased commissions, fees, and supplemental revenues [2] - Total expenses decreased by 5.2% year over year to 2.4billion,attributedtoloweroperatingcostsandchangesinestimatedacquisitionearnoutpayables[2]−EBITDACgrew33.52.4 billion, attributed to lower operating costs and changes in estimated acquisition earnout payables [2] - EBITDAC grew 33.5% year over year to 686.7 million [3] Segmental Results - Brokerage segment revenues were 2.3billion,a12.52.3 billion, a 12.5% increase year over year, matching consensus estimates [4] - Brokerage expenses fell by 7.1% to 1.8 billion, leading to an 18.5% rise in adjusted EBITDAC to 760.3million,withamarginexpansionof170basispointsto33.1760.3 million, with a margin expansion of 170 basis points to 33.1% [4] - Risk Management segment revenues increased by 9% to 369.3 million, though it missed estimates by 1.8% [5] - Corporate EBITDAC was negative 31.5million,animprovementfromnegative31.5 million, an improvement from negative 49.4 million in the prior year [6] Financial Update - As of December 31, 2024, total assets were 64.2billion,up24.564.2 billion, up 24.5% from the previous year [7] - Cash and cash equivalents surged to 14.9 billion, more than 15 times the level at the end of 2023 [7] - Shareholders' equity rose by 86.6% to 20.2billioncomparedtoDecember31,2023[7]DividendUpdate−Theboarddeclaredaquarterlycashdividendof65centspershare,an8.320.2 billion compared to December 31, 2023 [7] Dividend Update - The board declared a quarterly cash dividend of 65 cents per share, an 8.3% increase from the previous dividend of 60 cents, payable on March 21, 2025 [8] Acquisition Update - In the quarter, the company closed 19 acquisitions with estimated annualized revenues of approximately 188.7 million [10] - For the full year, 46 acquisitions were completed, with estimated annualized revenues of 362.6million[11]Full−YearUpdate−Totalrevenuesfortheyearincreasedby14.8362.6 million [11] Full-Year Update - Total revenues for the year increased by 14.8% to 11.4 billion, beating consensus estimates by 0.5% [11] - Adjusted earnings for the full year were $10.09 per share, a 16% year-over-year increase, also exceeding estimates by 0.4% [11]