Arthur J. Gallagher Q2 Earnings Miss Estimates, Revenues Up Y/Y

Core Insights - Arthur J. Gallagher & Co. (AJG) reported second-quarter 2025 adjusted net earnings of $2.33 per share, missing the Zacks Consensus Estimate by 1.3%, but showing a year-over-year increase of 3.1% [1][8] - Total revenues reached $3.2 billion, up 16% year over year, driven by higher commissions, fees, and interest income, beating the Zacks Consensus Estimate by 0.3% [2][8] - Total expenses increased by 14.1% year over year to $2.7 billion, attributed to higher compensation and reimbursements [2][8] - Adjusted EBITDAC grew 26% year over year to $1 billion, with a margin expansion of 307 basis points to 34.5% [3][8] Operational Update - Brokerage segment revenues were $2.7 billion, a 15.6% increase year over year, although it missed the Zacks Consensus Estimate by 0.7% [3][4] - Risk Management segment revenues rose 9.5% year over year to $391.8 million, beating the Zacks Consensus Estimate by 0.5% [5] - Corporate segment EBITDAC was negative $81.7 million, compared to a negative $47.3 million in the prior year [6] Financial Update - As of June 30, 2025, total assets were $80.1 billion, a 24.7% increase from the end of 2024 [7] - Cash and cash equivalents decreased by 4.6% to $14.3 billion from the end of 2024 [7] - Shareholders' equity increased by 14.2% to $23 billion from December 31, 2024 [7] Acquisition Update - In the reported quarter, Arthur J. Gallagher closed nine acquisitions with estimated annualized revenues of approximately $290.8 million [9]