Core Insights - Marsh & McLennan Companies, Inc. (MMC) reported third-quarter 2025 adjusted earnings per share of $1.85, exceeding the Zacks Consensus Estimate by 3.4% and reflecting an 11% year-over-year increase [1][11] - Consolidated revenues reached $6.35 billion, marking an 11% year-over-year growth and a 4% increase on an underlying basis, also surpassing the consensus estimate by 0.5% [1][11] Financial Performance - Total operating expenses rose 12.9% year over year to $5.2 billion, driven by increased compensation and benefits costs, exceeding the model estimate of $5 billion [3] - Adjusted operating income improved 13% year over year to $1.44 billion, with an adjusted operating margin of 22.7%, up 30 basis points year over year [4][11] Segment Performance Risk and Insurance Services - Revenues for this segment were $3.91 billion, up 13% year over year but missed the Zacks Consensus Estimate of $4.05 billion [5] - Adjusted operating income for the segment increased 13.3% year over year to $965 million, falling short of the consensus mark by 4.4% [5] - Marsh's revenues within this segment rose 16% year over year to $3.4 billion, with U.S./Canada operations growing 3% on an underlying basis [6] Consulting - The Consulting unit's revenues grew 9% year over year to $2.47 billion, beating the Zacks Consensus Estimate by 3.9% [8] - Adjusted operating income for the Consulting segment climbed 11% year over year to $545 million, exceeding the consensus mark by 9.4% [8] Financial Position - As of September 30, 2025, cash and cash equivalents stood at $2.5 billion, up from $2.4 billion at the end of 2024 [12] - Total assets increased to $58.8 billion from $56.5 billion at the end of 2024, while long-term debt decreased to $18.3 billion from $19.4 billion [12] - Operating cash flow for the first nine months of 2025 was $3.1 billion, up from $2.3 billion a year ago [13] Capital Deployment - The company repurchased 1.9 million shares for $400 million during the third quarter [14]

Core Insights - Marsh & McLennan Companies, Inc. (MMC) is expected to report third-quarter 2025 results on October 16, with earnings estimated at $1.80 per share and revenues at $6.3 billion [1] - The earnings estimate has slightly decreased by one cent over the past 60 days, indicating a year-over-year increase of 10.4%, while revenues are projected to grow by 11.1% year-over-year [2] Financial Performance - For the current year, the revenue estimate for MMC stands at $27 billion, reflecting a year-over-year rise of 10.4%, and the EPS consensus is $9.57, suggesting an 8.8% increase year-over-year [3] - MMC has consistently beaten earnings estimates in the last four quarters, with an average surprise of 2.9% [3] Earnings Prediction - The current model does not predict an earnings beat for MMC, as it has an Earnings ESP of -0.74% and a Zacks Rank of 4 (Sell) [4] - The combination of a positive Earnings ESP and a higher Zacks Rank typically increases the likelihood of an earnings beat, which is not applicable in this case [4] Revenue Growth Drivers - Revenue growth in Q3 is anticipated to be driven by strong performances in the Risk and Insurance services and Consulting segments, with significant contributions from Marsh and Guy Carpenter subdivisions [5] - The Risk and Insurance Services segment is expected to see a revenue increase of 14.9% year-over-year, while Marsh's revenues are projected to grow by 17.8% from $2.9 billion a year ago [6] Segment Performance - The Consulting segment's revenues are estimated to grow by 4.9% year-over-year, with adjusted operating income expected to reach $498.2 million, indicating a 4.2% increase from the previous year [8] - Organic revenue growth for the Risk and Insurance Services unit is projected at 5%, while Guy Carpenter's revenues are expected to grow by 5.2% [7] Expense Considerations - Increased operating expenses are anticipated, with a projected rise of 9.5% due to higher compensation, benefits, and other operating costs, alongside a significant increase in interest expenses by 55.9% year-over-year [9]

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) shares are trading at a discount compared to the Zacks Insurance - Brokerage industry, with a forward price-to-earnings value of 19.49X, lower than its five-year median of 23.09X and the industry average of 19.79X [1] Group 1: Price Performance and Market Position - MMC shares have lost 6.8% year-to-date, while the industry has declined by 16.8%, and the Finance sector and Zacks S&P 500 Composite have gained 13.6% and 13.2%, respectively [4] - The market capitalization of MMC is $97.3 billion, with an average trading volume of 2.4 million shares over the last three months [4] - The average price target for MMC, based on short-term estimates from 19 analysts, is $234.58 per share, indicating a potential upside of 18.5% from the last closing price [11] Group 2: Revenue and Earnings Projections - The Zacks Consensus Estimate for MMC's 2025 revenues is $27 billion, reflecting a year-over-year improvement of 10.4% [9] - The consensus estimate for current-year earnings is $9.57 per share, up 8.8% from the previous year [9] - Projections for 2026 earnings per share and revenues indicate increases of 8.3% and 5.4%, respectively, from 2025 estimates [9] Group 3: Operational Strengths and Growth Drivers - MMC targets mid-single-digit underlying revenue growth in 2025, with strong results from the Risk and Insurance Services segment being the largest revenue contributor [8][16] - The company has consistently delivered favorable operating results, supported by product innovations and entry into new markets [14][15] - Return on equity for the trailing 12 months is 31.9%, outperforming the industry average of 25.5% [13] Group 4: Challenges and Financial Management - Rising compensation costs are impacting margins, with operating expenses increasing by 11.8% in the first half of 2025 [18] - As of June 2025, MMC carries $19 billion in debt, with a debt-to-capital ratio of 55.3%, above the industry average of 50.1% [19] - The company has raised dividends five times over the past five years, achieving an annualized growth rate of 14.5% with a current payout ratio of 35% [17]

Core Insights - Marsh & McLennan Companies, Inc. (MMC) reported second-quarter 2025 adjusted earnings per share of $2.72, exceeding the Zacks Consensus Estimate by 2.3% and reflecting an 11% year-over-year increase [1][9] - Consolidated revenues reached $6.97 billion, marking a 12% year-over-year improvement and a 4% increase on an underlying basis, also surpassing the consensus mark by 0.8% [1][9] Financial Performance - Total operating expenses rose 12.4% year over year to $5.1 billion, driven by increased compensation and benefits costs [3] - Adjusted operating income improved 14% year over year to $2.06 billion, beating the estimate of $2.05 billion, with an adjusted operating margin of 29.5%, up 50 basis points year over year [4] Segment Performance Risk and Insurance Services - Revenues for this segment were $4.63 billion, a 15% year-over-year increase and 4% on an underlying basis, beating the Zacks Consensus Estimate by 0.4% [4] - Adjusted operating income for Risk and Insurance Services advanced 15.7% year over year to $1.6 billion, exceeding the consensus mark by 2.5% [4] - Marsh's revenues within this segment rose 18% year over year to $3.8 billion, while Guy Carpenter's revenues increased 5% year over year to $677 million [5][6] Consulting - The Consulting unit's revenues grew 7% year over year to $2.37 billion, surpassing the Zacks Consensus Estimate by 1.3% [7] - Adjusted operating income for Consulting climbed 9.4% year over year to $479 million, although it missed the consensus mark by 2.6% [7] - Mercer, a unit within Consulting, reported a 9% year-over-year revenue increase to $1.5 billion, beating the consensus estimate by 2.8% [8] Financial Position - As of June 30, 2025, Marsh & McLennan had cash and cash equivalents of $1.7 billion, down from $2.4 billion at the end of 2024, while total assets increased to $58.6 billion [11] - Long-term debt decreased to $19 billion from $19.4 billion, and total equity rose to $16 billion from $13.5 billion at the end of 2024 [11] Capital Deployment - In the second quarter, Marsh & McLennan repurchased 1.4 million shares for $300 million [13]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 12% to $7 billion, with underlying revenue growth of 4% [16][20] - Adjusted operating income rose by 14% year-over-year, with adjusted EPS growing by 11% to $2.72 [7][21] - Adjusted operating margin improved by 50 basis points to 29.5% [20] Business Line Data and Key Metrics Changes - Risk and Insurance Services (RIS) revenue was $4.6 billion, up 15% year-over-year, with 4% underlying growth [21][16] - Marsh's revenue increased by 18% to $3.8 billion, with 5% underlying growth [22][16] - Guy Carpenter's revenue grew by 7% to $677 million, maintaining 5% underlying growth [23][16] - Consulting segment revenue was $2.4 billion, up 7% or 3% on an underlying basis [24][16] - Mercer's revenue was $1.5 billion, up 9% or 3% on an underlying basis [25][16] - Oliver Wyman's revenue increased by 5% to $873 million, with 3% underlying growth [27][16] Market Data and Key Metrics Changes - Commercial insurance rates decreased by 4% in Q2, following a 3% decline in Q1 [12][16] - Global casualty rates increased by 4%, with US excess casualty up 18% [13][16] - Workers' compensation rates decreased by 4%, while global property rates decreased by 7% year-over-year [14][16] Company Strategy and Development Direction - The company aims for mid-single-digit underlying revenue growth and continued margin expansion [17][32] - Focus on advising clients on strategies to navigate geopolitical instability and supply chain risks [8][18] - Commitment to addressing the challenges posed by the US litigation environment and rising liability insurance costs [10][11] Management's Comments on Operating Environment and Future Outlook - The global economic outlook remains uncertain, with various geopolitical and economic challenges impacting clients [7][8] - Management expressed confidence in the company's resilience and ability to deliver value despite economic uncertainties [18][32] - The company anticipates continued growth in adjusted EPS and margin expansion for the remainder of 2025 [17][32] Other Important Information - The company announced a 10% increase in its quarterly dividend to $0.90 and completed $300 million in share repurchases [16][32] - Total debt at the end of the quarter was $19.7 billion, with a cash position of $1.7 billion [31][32] Q&A Session Questions and Answers Question: Are you seeing upward pressure on pricing in the insurance market? - Management noted that insurance and reinsurance markets continue to soften, particularly in property, but excess casualty rates are under pressure due to the US litigation environment [38][39] Question: Can you provide more detail on the wealth and career components of organic growth? - Management explained that the wealth business is driven by AUM, but the defined benefits pension consulting work is in structural decline, impacting organic revenue growth [43][48] Question: How does the macroeconomic environment affect the RIS segment? - Management agreed that nominal GDP is a significant factor, and noted that project work is being deferred in the US due to economic uncertainty [57][58] Question: What is the outlook for Marsh International growth? - Management expressed confidence in the strong growth in international markets, despite pricing headwinds, and highlighted the company's capabilities in various regions [76][78] Question: How are rising medical costs impacting your business? - Management indicated that rising healthcare costs are a stress point for clients, but the majority of their business operates on a fixed fee basis, limiting direct impacts from medical inflation [96][99] Question: What are the implications of AI technology on your business? - Management is optimistic about the potential of AI to create efficiencies and improve insights, and is actively investing in technology to support these initiatives [100][102]

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) is expected to report second-quarter 2025 results on July 17, 2025, with earnings estimated at $2.67 per share and revenues at $6.91 billion, reflecting nearly 11% year-over-year growth in both metrics [1][6]. Financial Performance Estimates - Second-quarter earnings estimates have been revised upward, indicating a 10.8% increase from the previous year, while revenue estimates suggest an 11.1% year-over-year growth [2]. - For the full year 2025, the revenue estimate stands at $26.95 billion, representing a 10.2% year-over-year increase, and the earnings per share estimate is $9.58, indicating an 8.9% growth [3]. Historical Performance - MMC has a strong track record of exceeding earnings estimates, having beaten the consensus in each of the last four quarters with an average surprise of 2.6% [3]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for MMC, as it has an Earnings ESP of -0.86% and a Zacks Rank of 3 (Hold) [4]. Revenue Drivers - The projected revenue growth in Q2 is attributed to strong performances in the Risk and Insurance Services and Consulting segments, with significant contributions from Marsh and Guy Carpenter subdivisions [7]. - The Risk and Insurance Services segment is expected to see a revenue increase of 14.7% year-over-year, while the Consulting segment's revenues are projected to grow by 5.6% [8][9]. Expense Considerations - Total operating expenses are anticipated to rise by 7% year-over-year, primarily due to increased compensation and benefits, which may pressure the net margin [10]. - The adjusted net margin is expected to be 18.6%, down from 19.2% in the previous year [10].

Core Viewpoint - Marsh & McLennan Companies, Inc. (MMC) reported strong first-quarter 2025 results with adjusted earnings per share of $3.06, exceeding estimates, while revenues of $7.1 billion showed a year-over-year increase but slightly missed consensus expectations [1][2]. Financial Performance - Adjusted earnings per share of $3.06 surpassed the Zacks Consensus Estimate by 1.3% and increased by 5% year over year [1] - Consolidated revenues reached $7.1 billion, reflecting a 9% year-over-year growth, although it missed the consensus mark by 0.1% [1] - Total operating expenses rose 11.2% year over year to $5.1 billion, exceeding model estimates due to increased compensation and benefits [3] - Adjusted operating income improved 8% year over year to $2.2 billion but fell short of the estimate of $2.3 billion [4] Segment Performance Risk and Insurance Services - Revenues in this segment were $4.76 billion, up 11% year over year, but missed the Zacks Consensus Estimate of $4.78 billion [5] - Marsh's revenues increased 15% year over year to $3.5 billion, slightly beating estimates [6] - Guy Carpenter's revenues rose 5% year over year to $1.21 billion, missing the consensus mark [7] Consulting - Consulting segment revenues advanced 5% year over year to $2.31 billion, lagging behind the Zacks Consensus Estimate [8] - Mercer, a unit within Consulting, saw revenues grow 5% year over year to $1.5 billion, marginally beating estimates [9] - Oliver Wyman recorded revenues of $818 million, improving 4% year over year but falling short of consensus [10] Financial Update - As of March 31, 2025, cash and cash equivalents were $1.6 billion, down 33.1% from the end of 2024 [11] - Total assets increased by 0.9% to $57 billion, while long-term debt decreased by 2.9% to $18.9 billion [11] - Total equity rose 5.4% to $14.3 billion [11] Capital Deployment - The company repurchased 1.3 million shares for $300 million during the first quarter [13]