Aon Reports Third Quarter 2025 Results

Core Insights - Aon plc reported a total revenue of $3.997 billion for Q3 2025, reflecting a 7% increase compared to Q3 2024, driven by 7% organic revenue growth and a favorable 1% impact from foreign currency translation [2][3][10] - The company achieved a diluted EPS of $2.11, a 34% increase from $1.57 in the prior year period, with adjusted EPS rising 12% to $3.05 [2][23][10] - Aon's strong capital position and cash generation support its capital allocation model, balancing high-return investments for future growth and capital returns to shareholders [2][10] Financial Performance - Total revenue for the nine months ended September 30, 2025, was $12.881 billion, up 12% from $11.551 billion in the same period of 2024 [2][10] - Operating income increased by 31% to $816 million in Q3 2025, with an operating margin of 20.4%, up from 16.7% in Q3 2024 [2][20] - Adjusted operating income rose 15% to $1.051 billion, with an adjusted operating margin of 26.3%, compared to 24.6% in the prior year [2][20] Segment Performance - Risk Capital revenue increased by 7% to $2.525 billion, with strong growth in North America and EMEA, particularly in core P&C and M&A services [3][12] - Human Capital revenue grew by 8% to $1.475 billion, driven by health and wealth solutions [3][14] - The company reported a 7% organic revenue growth across its segments, with notable contributions from both Risk Capital and Human Capital [3][10] Cash Flow and Expenses - Cash provided by operations for the first nine months of 2025 was $2.084 billion, a 14% increase from $1.835 billion in the prior year [8][39] - Free cash flow for the same period increased by 13% to $1.895 billion, reflecting strong operational cash flows despite a rise in capital expenditures [9][39] - Total operating expenses for Q3 2025 rose by 3% to $3.181 billion, primarily due to increased compensation and benefits expenses associated with organic revenue growth [4][15]