Brown & Brown Q4 Earnings Top Estimates on Strong Investment Income

Core Insights - Brown & Brown, Inc. (BRO) reported fourth-quarter 2025 adjusted earnings of 93 cents per share, exceeding the Zacks Consensus Estimate by 2.1%, with an 8.1% year-over-year increase in earnings [1] - Total revenues for the quarter were $1.6 billion, missing the Zacks Consensus Estimate by 2.1%, but reflecting a 35.7% year-over-year improvement [2] - The growth in revenues was primarily driven by a 36% increase in commission and fees, which reached $1.6 billion, alongside a 17.3% rise in investment and other income [2][3] - Organic revenues, however, declined by 2.8% to $1 billion during the quarter [2] Financial Performance - Adjusted EBITDAC for the quarter was $529 million, marking a 35.6% year-over-year increase, with the EBITDAC margin remaining stable at 32.9% [3] - Total expenses rose by 41.4% to $1.29 billion, attributed to increased employee compensation, operating expenses, and other costs [3] - For the full year, adjusted earnings were $4.26 per share, slightly missing the Zacks Consensus Estimate by 0.2%, but showing a 10.9% year-over-year increase [4] - Total revenues for the year reached $5.9 billion, also missing estimates by 0.6%, but reflecting a 22.8% year-over-year growth [4] - Organic revenues increased by 2.8% for the full year [4] Cash and Debt Position - At the end of 2025, Brown & Brown had cash and cash equivalents of $1 billion, a 60% increase from the end of 2024 [5] - Long-term debt stood at $6.8 billion, up 91.5% from the previous year [5] - Net cash provided by operating activities in 2025 was $1.4 billion, representing a 23.5% year-over-year increase [5] Capital Deployment - The board of directors declared a quarterly cash dividend of 16.5 cents per share, scheduled for payment on February 11, 2026 [6]