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Aon Reports First Quarter 2025 Results
AONAON(AON) Prnewswire·2025-04-25 10:01

Core Insights - Aon plc reported a total revenue increase of 16% to 4.7billionforQ12025comparedtoQ12024,drivenbyorganicrevenuegrowthof54.7 billion for Q1 2025 compared to Q1 2024, driven by organic revenue growth of 5% and contributions from the acquisition of NFP [2][3][9] - Adjusted operating income grew by 12% to 1.8 billion, while diluted EPS decreased by 17% to 4.43,reflectingtheimpactofforeigncurrencytranslationandincreasedoperatingexpenses[2][9][26]Thecompanyreaffirmedits2025guidance,expectingcontinuedorganicrevenuegrowth,adjustedoperatingmarginexpansion,andstrongadjustedEPSgrowth[9][26]RevenueSummaryTotalrevenueforQ12025was4.43, reflecting the impact of foreign currency translation and increased operating expenses [2][9][26] - The company reaffirmed its 2025 guidance, expecting continued organic revenue growth, adjusted operating margin expansion, and strong adjusted EPS growth [9][26] Revenue Summary - Total revenue for Q1 2025 was 4.7 billion, up from 4.1billioninQ12024,withRiskCapitalrevenueincreasingby74.1 billion in Q1 2024, with Risk Capital revenue increasing by 7% to 3.2 billion and Human Capital revenue rising by 40% to 1.5billion[3][9][11]Organicrevenuegrowthwas51.5 billion [3][9][11] - Organic revenue growth was 5%, with contributions from both Risk Capital and Human Capital segments [3][14][16] Expense Overview - Total operating expenses increased by 25% to 3.3 billion, primarily due to the inclusion of NFP's operating expenses and investments in long-term growth [4][18][21] - Compensation and benefits expenses rose by 19% to 2.2billion,reflectingtheintegrationofNFPandorganicrevenuegrowth[18][21]CashFlowAnalysisCashprovidedbyoperationsdecreasedby552.2 billion, reflecting the integration of NFP and organic revenue growth [18][21] Cash Flow Analysis - Cash provided by operations decreased by 55% to 140 million, attributed to higher payments related to incentive compensation and restructuring [8][10] - Free cash flow fell by 68% to 84million,reflectingadecreaseincashflowsfromoperationsandanincreaseincapitalexpenditures[10][40]ShareholderReturnsAonrepurchased0.6millionclassAordinarysharesforapproximately84 million, reflecting a decrease in cash flows from operations and an increase in capital expenditures [10][40] Shareholder Returns - Aon repurchased 0.6 million class A ordinary shares for approximately 250 million in Q1 2025, with $2.1 billion remaining under its share repurchase program [7][9] - The company announced a 10% increase in its quarterly dividend, marking the 15th consecutive year of dividend growth [9][26] Tax and Shareholder Metrics - The effective tax rate for Q1 2025 was 21.4%, down from 23.2% in the prior year, with an adjusted effective tax rate of 20.9% [6][41] - Weighted average diluted shares outstanding increased to 217.9 million from 200.1 million in the prior year [7][41]