Arthur J. Gallagher & (US:AJG) ZACKS·2025-05-02 15:20Core Insights - Arthur J. Gallagher & Co. (AJG) reported first-quarter 2025 adjusted net earnings of $3.67 per share, exceeding the Zacks Consensus Estimate by 2.8% and reflecting a year-over-year increase of 6.3% [1] - Total revenues reached $3.7 billion, marking a 16% year-over-year growth, although it fell short of the Zacks Consensus Estimate by 1.7% [2] Financial Performance - Total expenses increased by 15% year over year to $2.8 billion, driven by higher compensation and operating costs [3] - Adjusted EBITDAC grew 24.3% from the prior-year quarter to $1.4 billion [3] Segment Results - Brokerage segment reported adjusted revenues of $3.3 billion, up 17.3% year over year, but missed the Zacks Consensus Estimate by 2% [4] - Adjusted EBITDAC for the brokerage segment climbed 27.8% to $1.4 billion, with a margin expansion of 360 basis points to 43.4% [4] - Risk Management segment saw adjusted revenues increase by 6.1% year over year to $373.2 million, but also missed the Zacks Consensus Estimate by 2.3% [5] - Adjusted EBITDAC for the Risk Management segment rose 5.2% year over year to $76.5 million, with a margin contraction of 20 basis points to 20.5% [5] Financial Update - As of March 31, 2025, total assets were $74.1 billion, a 15.3% increase from the end of 2024 [7] - Cash and cash equivalents increased by 11.4% to $16.7 billion from the end of 2024 [7] - Shareholders' equity rose by 10.8% to $22.3 billion as of March 31, 2025, compared to December 31, 2024 [7] Acquisition Activity - In the reported quarter, the company completed 10 acquisitions with estimated annualized revenues of $62.7 million [9]