Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended September30, 2025. Management will host a webcast conference call to discuss these results on Thursday, October 30, 2025 at 5:30 p.m. ET/4:30 p.m. CT. To listen to the call, and for printer-friendly formats of this release and the “CFO Commentary” and “Supplemental Quarterly Data,” which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled “Information Regarding Non-GAAP Measures” beginning on page9.
Summary of Financial Results – Third Quarter Revenues Before Diluted Net Earnings Reimbursements Net Earnings (Loss) EBITDAC (Loss) Per ShareSegment 3rd Q 25 3rd Q 24 3rd Q 25 3rd Q 24 3rd Q 25 3rd Q 24 3rd Q 25 3rd Q 24 (in millions) (in millions) (in millions)Brokerage, as reported $ 2,922.9 $ 2,396.4 $ 410.4 $ 383.0 $ 840.3 $ 691.5 $ 1.57 $ 1.70 Net losses (gains) on divestitures 8.1 (22.5) 6.0 (16.8) 8.1 (22.5) 0.02 (0.07) Acquisition integration – – 49.1 36.3 66.0 48.7 0.19 0.16 Workforce and lease termination – – 15.9 36.2 21.3 48.5 0.06 0.16 Acquisition related adjustments – – 46.9 1.8 45.9 31.5 0.18 0.01 Amortization of intangible assets – – 162.8 120.0 – – 0.63 0.54 Effective income tax rate impact – – – (2.9) – – – (0.01) Levelized foreign currency translation – 14.1 – 1.6 – 2.5 – 0.01Brokerage, as adjusted * 2,931.0 2,388.0 691.1 559.2 981.6 800.2 2.65 2.50Risk Management, as reported 402.1 369.7 49.5 44.6 82.0 74.1 0.19 0.20 Net (gains) on divestitures (0.2) (0.1) (0.1) (0.1) (0.2) (0.1) – – Acquisition integration – – 1.7 0.6 2.4 0.9 0.01 – Workforce and lease termination – – 2.4 1.4 3.4 2.0 0.01 0.01 Amortization of intangible assets – – 2.7 2.7 – – 0.01 0.01 Levelized foreign currency translation – (1.5) – (0.1) – (0.2) – -Risk Management, as adjusted * 401.9 368.1 56.2 49.1 87.6 76.7 0.22 0.22Corporate, as reported 0.4 0.4 (186.3) (113.5) (109.4) (74.7) (0.72) (0.51) Transaction-related costs – – 35.7 6.6 34.2 8.9 0.14 0.03 Legal & tax related – – 8.2 3.5 23.6 – 0.03 0.02Corporate, as adjusted * 0.4 0.4 (142.4) (103.4) (51.6) (65.8) (0.55) (0.46)Total Company, as reported $ 3,325.4 $ 2,766.5 $ 273.6 $ 314.1 $ 812.9 $ 690.9 $ 1.04 $ 1.39Total Company, as adjusted * $ 3,333.3 $ 2,756.5 $ 604.9 $ 504.9 $ 1,017.6 $ 811.1 $ 2.32 $ 2.26Total Brokerage & Risk Management, as reported $ 3,325.0 $ 2,766.1 $ 459.9 $ 427.6 $ 922.3 $ 765.6 $ 1.76 $ 1.90Total Brokerage & Risk Management, as adjusted * $ 3,332.9 $ 2,756.1 $ 747.3 $ 608.3 $ 1,069.2 $ 876.9 $ 2.87 $ 2.72
* For third quarter 2025, the pretax impact of the Brokerage segment adjustments totals $376.8 million, mostly due to non‑cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $96.1 million relating to these items. For third quarter 2025, the pretax impact of the Risk Management segment adjustments totals $9.3 million, with a corresponding adjustment to the provision for income taxes of $2.6 million relating to these items. For third quarter 2025, the pretax impact of the Corporate segment adjustments totals $57.8 million, with a corresponding adjustment to the benefit for income taxes of $13.9 million relating to these items. A detailed reconciliation of the 2025 and 2024 provision (benefit) for income taxes is shown on pages 14 and 15.
(1 of 15)
“We had a terrific and very active third quarter!” said J. Patrick Gallagher, Jr., Chairman and CEO. “For our combined brokerage and risk management segments, we delivered 20% total revenue growth; our 19th straight quarter of double-digit top-line growth. Organic revenue growth was 4.8%, and incremental revenue from acquisitions was more than $450 million.Net earnings margin was 13.8%, adjusted EBITDAC margin was 32.1%, and adjusted EBITDAC grew 22%. Our client-centric, team-driven, and welcoming culture is thriving!
“Global insurance renewal premium changes remain in positive territory and we are not seeing indications of economic slowdown. Our two-pronged growth strategy – organic and M&A – continues to benefit from our leading niche experts, vast data and analytics offerings, extensive product expertise, outstanding service, and global reach which puts us in an enviable spot competitively for new customers and production talent.
“Overall, our businesses continue to shine and the early days of AssuredPartners professionals joining the Gallagher team is off to a terrific start!”
Summary of Financial Results – Nine-Months ended September 30 Revenues Before Diluted Net Earnings Reimbursements Net Earnings (Loss) EBITDAC (Loss) Per ShareSegment 9 Mths 25 9 Mths 24 9 Mths 25 9 Mths 24 9 Mths 25 9 Mths 24 9 Mths 25 9 Mths 24 (in millions) (in millions) (in millions)Brokerage, as reported $ 9,023.1 $ 7,637.6 $ 1,734.9 $ 1,368.4 $ 3,081.8 $ 2,408.3 $ 6.65 $ 6.10 Net (gains) on divestitures (4.4) (25.0) (3.3) (18.6) (4.4) (25.0) (0.01) (0.08) Acquisition integration – – 112.4 112.7 150.7 151.0 0.43 0.51 Workforce and lease termination – – 57.5 65.6 77.0 88.0 0.22 0.29 Acquisition related adjustments – (26.0) 96.2 24.3 126.0 92.5 0.37 0.11 Amortization of intangible assets – – 444.9 364.2 – – 1.71 1.63 Effective income tax rate impact – – – (8.0) – – – (0.04) Levelized foreign currency translation – 26.7 – 3.1 – 5.1 – 0.01Brokerage, as adjusted * 9,018.7 7,613.3 2,442.6 1,911.7 3,431.1 2,719.9 9.37 8.53Risk Management, as reported 1,167.4 1,081.1 133.2 131.7 228.9 216.9 0.51 0.59 Net (gains) on divestitures (0.5) – (0.4) – (0.5) – – – Acquisition integration – – 4.0 1.3 5.5 1.8 0.02 – Workforce and lease termination – – 7.7 3.4 10.6 4.6 0.03 0.02 Acquisition related adjustments – – 1.3 0.2 1.7 0.2 0.01 – Amortization of intangible assets – – 11.8 7.2 – – 0.04 0.03 Levelized foreign currency translation – (3.6) – (0.6) – (1.0) – -Risk Management, as adjusted * 1,166.9 1,077.5 157.6 143.2 246.2 222.5 0.61 0.64Corporate, as reported 1.2 1.9 (519.4) (287.9) (342.3) (187.5) (2.00) (1.29) Transaction-related costs – – 80.0 11.6 86.3 14.9 0.31 0.05 Legal & tax related – – 8.2 3.5 23.6 – 0.03 0.02Corporate, as adjusted * 1.2 1.9 (431.2) (272.8) (232.4) (172.6) (1.66) (1.22)Total Company, as reported $ 10,191.7 $ 8,720.6 $ 1,348.7 $ 1,212.2 $ 2,968.4 $ 2,437.7 $ 5.16 $ 5.40Total Company, as adjusted * $ 10,186.8 $ 8,692.7 $ 2,169.0 $ 1,782.1 $ 3,444.9 $ 2,769.8 $ 8.32 $ 7.95Total Brokerage & Risk Management, as reported $ 10,190.5 $ 8,718.7 $ 1,868.1 $ 1,500.1 $ 3,310.7 $ 2,625.2 $ 7.16 $ 6.69Total Brokerage & Risk Management, as adjusted * $ 10,185.6 $ 8,690.8 $ 2,600.2 $ 2,054.9 $ 3,677.3 $ 2,942.4 $ 9.98 $ 9.17
(2 of 15)
* For the nine-month period ended September 30, 2025, the pretax impact of the Brokerage segment adjustments totals $948.7 million, mostly due to non‑cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $241.0 million relating to these items. For the nine-month period ended September 30, 2025, the pretax impact of the Risk Management segment adjustments totals $33.6 million, with a corresponding adjustment to the provision for income taxes of $9.2 million relating to these items. For the nine-month period ended September 30, 2025, the pretax impact of the Corporate segment adjustments totals $109.9 million, with a corresponding adjustment to the benefit for income taxes of $21.7 million relating to these items. A detailed reconciliation of the 2025 and 2024 provision (benefit) for income taxes is shown on pages 14 and 15.
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars inmillions):
Organic Revenues (Non-GAAP) 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Base Commissions and FeesCommissions and fees, as reported $ 2,572.8 $ 2,123.0 $ 7,828.8 $ 6,862.7Less commissions and fees from acquisitions (417.2) – (634.9) (26.0)Less divested operations – (61.9) – (83.0)Levelized foreign currency translation – 14.0 – 25.3Organic base commissions and fees $ 2,155.6 $ 2,075.1 $ 7,193.9 $ 6,779.0Organic change in base commissions and fees 3.9% 6.1%Supplemental RevenuesSupplemental revenues, as reported $ 117.6 $ 79.1 $ 334.3 $ 261.7Less supplemental revenues from acquisitions (9.0) – (12.3) -Levelized foreign currency translation – 0.5 – 1.6Organic supplemental revenues $ 108.6 $ 79.6 $ 322.0 $ 263.3Organic change in supplemental revenues 36.4% 22.3%Contingent RevenuesContingent revenues, as reported $ 75.4 $ 69.3 $ 241.0 $ 215.1Less contingent revenues from acquisitions (15.2) – (19.1) -Levelized foreign currency translation – 0.1 – 0.1Organic contingent revenues $ 60.2 $ 69.4 $ 221.9 $ 215.2Organic change in contingent revenues -13.3% 3.1%Total reported commissions, fees, supplemental revenues and contingent revenues $ 2,765.8 $ 2,271.4 $ 8,404.1 $ 7,339.5Less commissions, fees, supplemental revenues and contingent revenues from acquisitions (441.4) – (666.3) (26.0)Less divested operations – (61.9) – (83.0)Levelized foreign currency translation – 14.6 – 27.0Total organic commissions, fees, supplemental revenues and contingent revenues $ 2,324.4 $ 2,224.1 $ 7,737.8 $ 7,257.5Total organic change 4.5% 6.6%Acquisition Activity 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Number of acquisitions closed * 6 3 25 27Estimated annualized revenues acquired (in millions) $ 3,036.0 $ 32.7 $ 3,389.5 $ 173.9
* In the third quarter of 2025 and 2024, Gallagher issued 9,000 shares and no shares, respectively, of its common stock directly to sellers in connection with tax-free exchange acquisitions.
(3 of 15)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars inmillions):
Acquisition of AssuredPartners
As previously disclosed, on August 18, 2025, we acquired AssuredPartners for approximately $13.8billion. We raised $8.5billion of cash in our December11, 2024 follow-on common stock offering and borrowed $5.0billion of cash in our December19, 2024 senior notes issuance (collectively, the AssuredPartners Financing) to fund the transaction. On January7, 2025, we received an additional $1.3billion of cash due to the exercise by the underwriters of the overallotment provision related to the follow-on common stock offering.
Compensation Expense and Ratios 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Compensation expense, as reported $ 1,649.0 $ 1,362.9 $ 4,792.4 $ 4,210.0Acquisition integration (38.2) (26.5) (85.8) (81.9)Workforce and lease termination related charges (15.4) (46.2) (68.3) (81.5)Acquisition related adjustments (45.9) (31.5) (126.0) (118.5)Levelized foreign currency translation – 8.7 – 15.8Compensation expense, as adjusted $ 1,549.5 $ 1,267.4 $ 4,512.3 $ 3,943.9Reported compensation expense ratios using reported revenues on pages 1 and 2 * 56.4% 56.9% 53.1% 55.1%Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2 ** 52.9% 53.1% 50.0% 51.8%
* Reported third quarter 2025 compensation expense ratio was 0.5pts lower than third quarter 2024. This ratio was primarily benefited by higher interest income revenues earned on proceeds associated with the AssuredPartners Financing. This ratio also benefited from savings relatedto workforceand lease termination costs, partially offset by the impact of recent acquisitions and increased benefit costs.** Adjusted third quarter 2025 compensation expense ratio was 0.2 pts lower than third quarter 2024. This ratio was primarily impacted by recent acquisitions and increased benefit costs, partially offset by the benefit of higher interest income revenues earned on proceeds associated with the AssuredPartners Financing.
Operating Expense and Ratios 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Operating expense, as reported $ 433.6 $ 342.0 $ 1,148.9 $ 1,019.3Acquisition integration (27.8) (22.2) (64.9) (69.1)Workforce and lease termination related charges (5.9) (2.3) (8.7) (6.5)Levelized foreign currency translation – 2.9 – 5.8Operating expense, as adjusted $ 399.9 $ 320.4 $ 1,075.3 $ 949.5Reported operating expense ratios using reported revenues on pages 1 and 2 * 14.8% 14.3% 12.7% 13.4%Adjusted operating expense ratios using adjusted revenues on pages 1 and 2 ** 13.6% 13.4% 11.9% 12.5%
* Reported third quarter 2025 operating expense ratio was 0.5pts higher than third quarter 2024. This ratio was primarily impacted by higher integration costs and professional fees, partially offset by the benefit of higher interest income revenues earned on proceeds associated with the AssuredPartners Financing.** Adjusted third quarter 2025 operating expense ratio was 0.2 pts higher than third quarter 2024. This ratio was primarily benefited byhigher interest income revenues earned on proceeds associated with the AssuredPartners Financing, partially offset by higher professional fees.
(4 of 15)
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
Net Earnings to Adjusted EBITDAC (Non-GAAP) 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Net earnings, as reported $ 410.4 $ 383.0 $ 1,734.9 $ 1,368.4Provision for income taxes 141.3 128.9 600.3 465.9Depreciation 41.6 34.0 112.6 99.1Amortization 218.5 161.0 596.4 487.8Change in estimated acquisition earnout payables 28.5 (15.4) 37.6 (12.9)EBITDAC 840.3 691.5 3,081.8 2,408.3Net losses (gains) on divestitures 8.1 (22.5) (4.4) (25.0)Acquisition integration 66.0 48.7 150.7 151.0Workforce and lease termination related charges 21.3 48.5 77.0 88.0Acquisition related adjustments 45.9 31.5 126.0 92.5Levelized foreign currency translation – 2.5 – 5.1EBITDAC, as adjusted $ 981.6 $ 800.2 $ 3,431.1 $ 2,719.9Net earnings margin, as reported using reported revenues on pages 1 and 2 * 14.0% 16.0% 19.2% 17.9%EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2 * 33.5% 33.5% 38.0% 35.7%
* Third quarter 2025 adjustedEBITDAC margin includes approximately $76million of interest income revenues earned on the proceeds received in December 2024 related to the AssuredPartners Financing. The roll-in of M&A, including the AssuredPartners acquisition, which was completed during the quarter, unfavorably impacted the year over year change in third quarter adjusted EBITDAC margin by approximately 2%.
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations(dollars inmillions):
Organic Revenues (Non-GAAP) 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Fees $ 389.4 $ 359.1 $ 1,134.7 $ 1,048.0International performance bonus fees 3.1 0.7 5.7 5.8Fees as reported 392.5 359.8 1,140.4 1,053.8Less fees from acquisitions (13.3) – (38.8) -Less divested operations – (2.8) – (7.1)Levelized foreign currency translation – (1.5) – (3.6)Organic fees $ 379.2 $ 355.5 $ 1,101.6 $ 1,043.1Organic change in fees 6.7% 5.6%Acquisition Activity 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Number of acquisitions closed – 1 1 1Estimated annualized revenues acquired (in millions) $ – $ 14.0 $ 38.2 $ 14.0
(5 of 15)
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
Compensation Expense and Ratios 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Compensation expense, as reported $ 243.8 $ 224.6 $ 718.5 $ 657.7Acquisition integration (0.9) (0.4) (2.0) (1.0)Workforce and lease termination related charges (3.0) (1.1) (9.1) (2.8)Acquisition related adjustments – – (1.7) (0.2)Levelized foreign currency translation – (1.0) – (2.6)Compensation expense, as adjusted $ 239.9 $ 222.1 $ 705.7 $ 651.1Reported compensation expense ratios using reported revenues (before reimbursements) on pages 1 and 2 * 60.6% 60.7% 61.6% 60.8%Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on pages 1 and 2 ** 59.7% 60.3% 60.5% 60.4%
* Reported third quarter 2025 compensation expense ratio was 0.1pts lower than third quarter 2024. This ratio was primarily impacted by savings related to headcount controls, partially offset by increased incentive compensation and workforce and lease termination costs.** Adjusted third quarter 2025 compensation expense ratio was 0.6 pts lower compared to third quarter 2024. This ratio was primarily impacted by savings related to headcount controls and temporary help, partially offset by increased incentive compensation.
Operating Expense and Ratios 3rd Q 2025 3rd Q 2024 9 Mths 2025 9 Mths 2024Operating expense, as reported $ 76.3 $ 71.0 $ 220.0 $ 206.5Acquisition integration (1.5) (0.5) (3.5) (0.8)Workforce and lease termination related charges (0.4) (0.9) (1.5) (1.8)Levelized foreign currency translation – (0.3) – -Operating expense, as adjusted $ 74.4 $ 69.3 $ 215.0 $ 203.9Reported operating expense ratios using reported revenues (before reimbursements) on pages 1 and 2 * 19.0% 19.2% 18.9% 19.1%Adjusted operating expense ratios using reported revenues (before reimbursements) on pages 1 and 2 ** 18.5% 18.9% 18.4% 18.9%
* Reported third quarter 2025 operating expense ratio was 0.2pts lower than third quarter 2024. This ratio primarily benefited from savings in client-related expenses, partially offset by increased integration costs and business insurance expense.** Adjusted third quarter 2025 operating expense ratio was 0.4 pts lower than third quarter 2024. This ratio primarily benefited from savings in client-related expenses, partially offset by increased business insurance expense.
Net Earnings to Adjusted EBITDAC (Non-GAAP) 3rd Q 2025 3rd Q 2024 9Mths 2025 9 Mths 2024Net earnings, as reported $ 49.5 $ 44.6 $ 133.2 $ 131.7Provision for income taxes 17.9 16.1 48.1 47.6Depreciation 10.5 9.6 29.9 27.3Amortization 3.7 3.7 16.2 10.0Change in estimated acquisition earnout payables 0.4 0.1 1.5 0.3EBITDAC 82.0 74.1 228.9 216.9Net (gains) on divestitures (0.2) (0.1) (0.5) -Acquisition integration 2.4 0.9 5.5 1.8Workforce and lease termination related charges 3.4 2.0 10.6 4.6Acquisition related adjustments – – 1.7 0.2Levelized foreign currency translation – (0.2) – (1.0)EBITDAC, as adjusted $ 87.6 $ 76.7 $ 246.2 $ 222.5Net earnings margin, as reported using reported revenues (before reimbursements) on pages 1 and 2 12.3% 12.1% 11.4% 12.2%EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on pages 1 and 2 21.8% 20.8% 21.1% 20.6%
(6 of 15)
Corporate Segment Reported GAAP Information(dollars inmillions):
2025 2024 Net Earnings Net Earnings (Loss) (Loss) Income Attributable to Income Attributable to Pretax Tax Controlling Pretax Tax Controlling3rd Quarter Loss Benefit Interests Loss Benefit InterestsComponents of Corporate Segment, as reportedInterest and banking costs $ (161.9) $ 42.1 $ (119.8) $ (93.7) $ 24.4 $ (69.3)Clean energy related (1.8) 0.5 (1.3) (1.9) 0.5 (1.4)Acquisition costs (1) (38.5) (0.7) (39.2) (15.2) 2.6 (12.6)Corporate (2) (70.0) 44.0 (26.0) (58.5) 28.3 (30.2)Reported 3rd quarter (272.2) 85.9 (186.3) (169.3) 55.8 (113.5)AdjustmentsTransaction-related costs (1) 34.2 1.5 35.7 8.9 (2.3) 6.6Legal and tax related (3) 23.6 (15.4) 8.2 – 3.5 3.5Components of Corporate Segment, as adjustedInterest and banking costs (161.9) 42.1 (119.8) (93.7) 24.4 (69.3)Clean energy related (1.8) 0.5 (1.3) (1.9) 0.5 (1.4)Acquisition costs (4.3) 0.8 (3.5) (6.3) 0.3 (6.0)Corporate (2) (46.4) 28.6 (17.8) (58.5) 31.8 (26.7)Adjusted 3rd quarter $ (214.4) $ 72.0 $ (142.4) $ (160.4) $ 57.0 $ (103.4)Nine MonthsComponents of Corporate Segment, as reportedInterest and banking costs $ (480.9) $ 125.1 $ (355.8) $ (281.8) $ 73.3 $ (208.5)Clean energy related (5.4) 1.5 (3.9) (6.0) 1.4 (4.6)Acquisition costs (1) (99.0) 8.2 (90.8) (27.2) 4.6 (22.6)Corporate (2) (240.2) 171.3 (68.9) (157.0) 104.8 (52.2)Reported nine months (825.5) 306.1 (519.4) (472.0) 184.1 (287.9)AdjustmentsTransaction-related costs (1) 86.3 (6.3) 80.0 14.9 (3.3) 11.6Legal and tax related (3) 23.6 (15.4) 8.2 – 3.5 3.5Components of Corporate Segment, as adjustedInterest and banking costs (480.9) 125.1 (355.8) (281.8) 73.3 (208.5)Clean energy related (5.4) 1.5 (3.9) (6.0) 1.4 (4.6)Acquisition costs (12.7) 1.9 (10.8) (12.3) 1.3 (11.0)Corporate (2) (216.6) 155.9 (60.7) (157.0) 108.3 (48.7)Adjusted nine months $ (715.6) $ 284.4 $ (431.2) $ (457.1) $ 184.3 $ (272.8)
(1) Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisition of the Willis Towers Watson treaty reinsurance brokerage operations, the acquisitions of Buck, Cadence Insurance, Eastern Insurance Group, all of which closed in 2023, Woodruff Sawyer, which closed on April 10, 2025, and AssuredPartners, which closed on August 18, 2025.(2) Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $5.4 million in third quarter 2025 and a net unrealized foreign exchange remeasurement loss of $(14.9) million in third quarter 2024. Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(42.8) million in the nine month period ended September 30, 2025 and a net unrealized foreign exchange remeasurement loss of $(16.5) million in the nine-month period ended September 30, 2024.(3) Adjustments in third quarter 2025 and 2024 include costs associated with legal and tax matters.
(7 of 15)
Interest and banking costs and debt – At September30, 2025, Gallagher had $9,550.0million of borrowings from public debt, $3,323.0million of borrowings from private placements and $130.0million of borrowings under its line of credit facility. In addition, Gallagher had $237.4million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable. Interest and banking costs in third quarter 2025 are higher than the same period in 2024 primarily due to the debt issuances that occurred in December 2024.
Clean energy related -For 2025, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.
Acquisition costs -Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.
Corporate – Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
Income Taxes- Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rate for the quarters ended September30, 2025 and 2024 were 21.1% and 22.1%, respectively.
Webcast Conference Call- Gallagher will host a webcast conference call on Thursday, October30, 2025 at 5:30 p.m. ET/4:30 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. – Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.
About Arthur J. Gallagher & Co. Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
Information Concerning Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipates,” “believes,” “contemplates,” “see,” “should,” “could,” “will,” “estimates,” “expects,” “intends,” “plans” and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues, including estimated rollover revenues particularly of acquisitions larger than usual tuck-in acquisitions, such as Woodruff Sawyer and AssuredPartners; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.
Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
(8 of 15)
Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency; the U.S. government shutdown; political violence and instability, such as the armed conflicts in Ukraine and the Middle East; its actual acquisition opportunities, including closing risks related to pending acquisitions, risks with respect to acquisitions larger than its usual tuck-in acquisitions, such as the acquisition of Buck, Cadence Insurance, Eastern Insurance Group, Woodruff Sawyer and AssuredPartners, including risks related to its ability to successfully integrate operations, the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize the expected benefits of these acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate-related regulations, such as risks related to “greenwashing” and “greenhushing”; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.
Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, “Risk Factors,” of its Annual Report on Form 10-K for the fiscal year ended December31, 2024 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.
Information Regarding Non-GAAP Measures In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratioand organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.
Adjusted Non-GAAP presentation- Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages14 and 15 for a reconciliation of the adjustments made to income taxes.
— Adjusted measures-Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:
— Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.
(9 of 15)
—
— Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems.
— Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group and Woodruff Sawyer, which closed on April 10, 2025 and AssuredPartners, which closed on August 18, 2025. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.
— Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.
— Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.
— Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date; the net impact of these on first quarter 2024 results was approximately $26 million of revenues and approximately $28 million of compensation expense.
— Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.
— The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.
— Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates.
— Legal and tax related, which represents the impact of adjustments in third quarter 2025 and 2024 related to costs associated with legal and tax matters.
— Adjusted ratios- Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.
Non-GAAP Earnings Measures
— EBITDAC and EBITDAC margin – EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.
— EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted – Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
— EPS, as Adjusted and Net Earnings, as Adjusted – Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
(10 of 15)
Organic Revenues (a non-GAAP measure)- For the Brokerage segment, organic change in base commission and fee revenues, supplemental revenues and contingent revenues exclude the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. These revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In addition, organic change in base commission and fee revenues, supplemental revenues and contingent revenues excludes the period-over-period impact of foreign currency translation to improve the comparability of its results between periods. For the Risk Management segment, organic change in fee revenues excludes the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each year presented. In addition, change in organic growth in fee revenues excludes the period-over-period impact of foreign currency translation to improve the comparability of its results between periods.
These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.
Reconciliation of Non-GAAP Information Presented to GAAP Measures- This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages12 and 13), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages1 and 2), for organic revenue measures (on pages3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages4, 5 and 6 respectively, for the Brokerage and Risk Management segments).
(11 of 15)
Arthur J. Gallagher & Co.Reported Statement of Earnings and EBITDAC – 3rd Quarter September 30,(Unaudited – in millions except per share, percentage and workforce data) 3rd Q Ended 3rd Q Ended 9 Mths Ended 9 Mths EndedBrokerage Segment Sept 30, 2025 Sept 30, 2024 Sept 30, 2025 Sept 30, 2024Commissions $ 1,908.3 $ 1,537.8 $ 5,965.0 $ 5,193.2Fees 664.5 585.2 1,863.8 1,669.5Supplemental revenues 117.6 79.1 334.3 261.7Contingent revenues 75.4 69.3 241.0 215.1Interest income, premium finance revenues and other income 157.1 125.0 619.0 298.1 Total revenues 2,922.9 2,396.4 9,023.1 7,637.6Compensation 1,649.0 1,362.9 4,792.4 4,210.0Operating 433.6 342.0 1,148.9 1,019.3Depreciation 41.6 34.0 112.6 99.1Amortization 218.5 161.0 596.4 487.8Change in estimated acquisition earnout payables 28.5 (15.4) 37.6 (12.9) Expenses 2,371.2 1,884.5 6,687.9 5,803.3Earnings before income taxes 551.7 511.9 2,335.2 1,834.3Provision for income taxes 141.3 128.9 600.3 465.9Net earnings 410.4 383.0 1,734.9 1,368.4Net earnings attributable to noncontrolling interests 0.9 1.5 5.8 7.8Net earnings attributable to controlling interests $ 409.5 $ 381.5 $ 1,729.1 $ 1,360.6EBITDACNet earnings $ 410.4 $ 383.0 $ 1,734.9 $ 1,368.4Provision for income taxes 141.3 128.9 600.3 465.9Depreciation 41.6 34.0 112.6 99.1Amortization 218.5 161.0 596.4 487.8Change in estimated acquisition earnout payables 28.5 (15.4) 37.6 (12.9)EBITDAC $ 840.3 $ 691.5 $ 3,081.8 $ 2,408.3
3rd Q Ended 3rd Q Ended 9 Mths Ended 9 Mths EndedRisk Management Segment Sept 30, 2025 Sept 30, 2024 Sept 30, 2025 Sept 30, 2024Fees $ 392.5 $ 359.8 $ 1,140.4 $ 1,053.8Interest income and other income 9.6 9.9 27.0 27.3 Revenues before reimbursements 402.1 369.7 1,167.4 1,081.1Reimbursements 40.2 40.3 122.1 118.3 Total revenues 442.3 410.0 1,289.5 1,199.4Compensation 243.8 224.6 718.5 657.7Operating 76.3 71.0 220.0 206.5Reimbursements 40.2 40.3 122.1 118.3Depreciation 10.5 9.6 29.9 27.3Amortization 3.7 3.7 16.2 10.0Change in estimated acquisition earnout payables 0.4 0.1 1.5 0.3 Expenses 374.9 349.3 1,108.2 1,020.1Earnings before income taxes 67.4 60.7 181.3 179.3Provision for income taxes 17.9 16.1 48.1 47.6Net earnings 49.5 44.6 133.2 131.7Net earnings attributable to noncontrolling interests – – – -Net earnings attributable to controlling interests $ 49.5 $ 44.6 $ 133.2 $ 131.7EBITDACNet earnings $ 49.5 $ 44.6 $ 133.2 $ 131.7Provision for income taxes 17.9 16.1 48.1 47.6Depreciation 10.5 9.6 29.9 27.3Amortization 3.7 3.7 16.2 10.0Change in estimated acquisition earnout payables 0.4 0.1 1.5 0.3EBITDAC $ 82.0 $ 74.1 $ 228.9 $ 216.9
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 15.
(12 of 15)
Arthur J. Gallagher & Co.Reported Statement of Earnings and EBITDAC – 3rd Quarter September 30,(Unaudited – in millions except share and per share data) 3rd Q Ended 3rd Q Ended 9 Mths Ended 9 Mths EndedCorporate Segment Sept 30, 2025 Sept 30, 2024 Sept 30, 2025 Sept 30, 2024Other income $ 0.4 $ 0.4 $ 1.2 $ 1.9 Total revenues 0.4 0.4 1.2 1.9Compensation 38.9 34.4 121.9 100.2Operating 70.9 40.7 221.6 89.2Interest 160.8 92.9 477.8 279.4Depreciation 2.0 1.7 5.4 5.1 Expenses 272.6 169.7 826.7 473.9Loss before income taxes (272.2) (169.3) (825.5) (472.0)Benefit for income taxes (85.9) (55.8) (306.1) (184.1)Net loss (186.3) (113.5) (519.4) (287.9)Net loss attributable to noncontrolling interests – – – -Net loss attributable to controlling interests $ (186.3) $ (113.5) $ (519.4) $ (287.9)EBITDACNet loss $ (186.3) $ (113.5) $ (519.4) $ (287.9)Benefit for income taxes (85.9) (55.8) (306.1) (184.1)Interest 160.8 92.9 477.8 279.4Depreciation 2.0 1.7 5.4 5.1EBITDAC $ (109.4) $ (74.7) $ (342.3) $ (187.5)
3rd Q Ended 3rd Q Ended 9 Mths Ended 9 Mths EndedTotal Company Sept 30, 2025 Sept 30, 2024 Sept 30, 2025 Sept 30, 2024Commissions $ 1,908.3 $ 1,537.8 $ 5,965.0 $ 5,193.2Fees 1,057.0 945.0 3,004.2 2,723.3Supplemental revenues 117.6 79.1 334.3 261.7Contingent revenues 75.4 69.3 241.0 215.1Interest income, premium finance revenues and other income 167.1 135.3 647.2 327.3 Revenues before reimbursements 3,325.4 2,766.5 10,191.7 8,720.6Reimbursements 40.2 40.3 122.1 118.3 Total revenues 3,365.6 2,806.8 10,313.8 8,838.9Compensation 1,931.7 1,621.9 5,632.8 4,967.9Operating 580.8 453.7 1,590.5 1,315.0Reimbursements 40.2 40.3 122.1 118.3Interest 160.8 92.9 477.8 279.4Depreciation 54.1 45.3 147.9 131.5Amortization 222.2 164.7 612.6 497.8Change in estimated acquisition earnout payables 28.9 (15.3) 39.1 (12.6) Expenses 3,018.7 2,403.5 8,622.8 7,297.3Earnings before income taxes 346.9 403.3 1,691.0 1,541.6Provision for income taxes 73.3 89.2 342.3 329.4Net earnings 273.6 314.1 1,348.7 1,212.2Net earnings attributable to noncontrolling interests 0.9 1.5 5.8 7.8Net earnings attributable to controlling interests $ 272.7 $ 312.6 $ 1,342.9 $ 1,204.4Diluted net earnings per share $ 1.04 $ 1.39 $ 5.16 $ 5.40Dividends declared per share $ 0.65 $ 0.60 $ 1.95 $ 1.80EBITDACNet earnings $ 273.6 $ 314.1 $ 1,348.7 $ 1,212.2Provision for income taxes 73.3 89.2 342.3 329.4Interest 160.8 92.9 477.8 279.4Depreciation 54.1 45.3 147.9 131.5Amortization 222.2 164.7 612.6 497.8Change in estimated acquisition earnout payables 28.9 (15.3) 39.1 (12.6)EBITDAC $ 812.9 $ 690.9 $ 2,968.4 $ 2,437.7
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 15.
(13 of 15)
Arthur J. Gallagher & Co.Consolidated Balance Sheet(Unaudited – in millions except per share data) Sept 30, 2025 Dec 31, 2024Cash and cash equivalents $ 1,399.3 $ 14,987.3Fiduciary assets (includes fiduciary cash of $6,941.0 in 2025 and $5,481.3 in 2024) 35,471.2 24,712.1Accounts receivable, net 5,426.3 3,895.9Other current assets 711.0 518.0 Total current assets 43,007.8 44,113.3Fixed assets – net 803.1 650.3Deferred income taxes (includes tax credit carryforwards of $706.3 in 2025 and $771.8 in 2024) 29.4 959.1Other noncurrent assets 1,629.7 1,354.4Right-of-use assets 630.2 377.8Goodwill 22,213.3 12,270.2Amortizable intangible assets – net 10,754.4 4,530.1 Total assets $ 79,067.9 $ 64,255.2Fiduciary liabilities $ 35,471.2 $ 24,712.1Accrued compensation and other current liabilities 3,514.2 3,586.3Deferred revenue – current 767.3 537.2Premium financing debt 237.4 225.2Corporate related borrowings – current 770.0 200.0 Total current liabilities 40,760.1 29,260.8Corporate related borrowings – noncurrent 12,100.9 12,731.9Deferred revenue – noncurrent 123.8 67.1Lease liabilities – noncurrent 577.1 328.1Other noncurrent liabilities 2,269.1 1,687.7 Total liabilities 55,831.0 44,075.6Stockholders' equity:Common stock – issued and outstanding 256.8 250.0Capital in excess of par value 17,705.6 16,068.9Retained earnings 5,824.7 4,985.7Accumulated other comprehensive loss (581.3) (1,151.1)Total controlling interests stockholders' equity 23,205.8 20,153.5Noncontrolling interests 31.1 26.1 Total stockholders' equity 23,236.9 20,179.6 Total liabilities and stockholders' equity $ 79,067.9 $ 64,255.2
Arthur J. Gallagher & Co.Other Information(Unaudited – data is rounded where indicated) 3rd Q Ended 3rd Q Ended 9 Mths Ended 9 Mths EndedOTHER INFORMATION Sept 30, 2025 Sept 30, 2024 Sept 30, 2025 Sept 30, 2024Basic weighted average shares outstanding (000s) 256,618 219,331 255,899 218,528Diluted weighted average shares outstanding (000s) * 260,408 223,886 260,090 222,919Number of common shares outstanding at end of period (000s) 256,805 219,446Workforce at end of period (includes acquisitions): Brokerage 55,722 40,997 Risk Management 10,669 10,264 Total Company ** 71,059 54,691
* Gallagher completed a follow on public offering of 30,357,143 shares of its common stock on December 11, 2024 and 4,553,571 shares of its common stockon January 7, 2025, to fund a portion of the acquisition of AssuredPartners.** The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.
Reconciliation of Non-GAAP Measures – Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)(Unaudited – in millions except share and per share data) Net Earnings Net Earnings Earnings Provision (Loss) (Loss) Diluted Net (Loss) (Benefit) Attributable to Attributable to Earnings Before Income for Income Net Earnings Noncontrolling Controlling (Loss) Taxes Taxes (Loss) Interests Interests per Share3rd Q Ended September 30, 2025Brokerage, as reported $ 551.7 $ 141.3 $ 410.4 $ 0.9 $ 409.5 $ 1.57Net losses on divestitures 8.1 2.1 6.0 – 6.0 0.02Acquisition integration 66.0 16.9 49.1 – 49.1 0.19Workforce and lease termination 21.3 5.4 15.9 – 15.9 0.06Acquisition related adjustments 62.9 16.0 46.9 – 46.9 0.18Amortization of intangible assets 218.5 55.7 162.8 – 162.8 0.63Brokerage, as adjusted $ 928.5 $ 237.4 $ 691.1 $ 0.9 $ 690.2 $ 2.65Risk Management, as reported $ 67.4 $ 17.9 $ 49.5 $ – $ 49.5 $ 0.19Net (gains) on divestitures (0.2) (0.1) (0.1) – (0.1) -Acquisition integration 2.4 0.7 1.7 – 1.7 0.01Workforce and lease termination 3.4 1.0 2.4 – 2.4 0.01Amortization of intangible assets 3.7 1.0 2.7 – 2.7 0.01Risk Management, as adjusted $ 76.7 $ 20.5 $ 56.2 $ – $ 56.2 $ 0.22Corporate, as reported $ (272.2) $ (85.9) $ (186.3) $ – $ (186.3) $ (0.72)Transaction-related costs 34.2 (1.5) 35.7 – 35.7 0.14Legal and tax related 23.6 15.4 8.2 – 8.2 0.03Corporate, as adjusted $ (214.4) $ (72.0) $ (142.4) $ – $ (142.4) $ (0.55)
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 15.
(14 of 15)
Reconciliation of Non-GAAP Measures – Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) – Continued(Unaudited – in millions except share and per share data) Net Earnings Net Earnings Earnings Provision (Loss) (Loss) Diluted Net (Loss) (Benefit) Attributable to Attributable to Earnings Before Income for Income Net Earnings Noncontrolling Controlling (Loss) Taxes Taxes (Loss) Interests Interests per Share3rd Q Ended September 30, 2024Brokerage, as reported $ 511.9 $ 128.9 $ 383.0 $ 1.5 $ 381.5 $ 1.70Net (gains) on divestitures (22.5) (5.7) (16.8) – (16.8) (0.07)Acquisition integration 48.7 12.4 36.3 – 36.3 0.16Workforce and lease termination 48.5 12.3 36.2 – 36.2 0.16Acquisition related adjustments 2.4 0.6 1.8 – 1.8 0.01Amortization of intangible assets 161.0 41.0 120.0 – 120.0 0.54Effective income tax rate impact – 2.9 (2.9) – (2.9) (0.01)Levelized foreign currency translation 2.2 0.6 1.6 – 1.6 0.01Brokerage, as adjusted $ 752.2 $ 193.0 $ 559.2 $ 1.5 $ 557.7 $ 2.50Risk Management, as reported $ 60.7 $ 16.1 $ 44.6 $ – $ 44.6 $ 0.20Net (gains) on divestitures (0.1) – (0.1) – (0.1) -Acquisition integration 0.9 0.3 0.6 – 0.6 -Workforce and lease termination 2.0 0.6 1.4 – 1.4 0.01Amortization of intangible assets 3.7 1.0 2.7 – 2.7 0.01Levelized foreign currency translation (0.2) (0.1) (0.1) – (0.1) -Risk Management, as adjusted $ 67.0 $ 17.9 $ 49.1 $ – $ 49.1 $ 0.22Corporate, as reported $ (169.3) $ (55.8) $ (113.5) $ – $ (113.5) $ (0.51)Transaction-related costs 8.9 2.3 6.6 – 6.6 0.03Legal and tax related – (3.5) 3.5 – 3.5 0.02Corporate, as adjusted $ (160.4) $ (57.0) $ (103.4) $ – $ (103.4) $ (0.46) Net Earnings Net Earnings Earnings (Loss) (Loss) Diluted Net (Loss) (Benefit) Attributable to Attributable to Earnings Before Income for Income Net Earnings Noncontrolling Controlling (Loss) Taxes Taxes (Loss) Interests Interests per Share9 Mths Ended September 30, 2025Brokerage, as reported $ 2,335.2 $ 600.3 $ 1,734.9 $ 5.8 $ 1,729.1 $ 6.65Net (gains) on divestitures (4.4) (1.1) (3.3) – (3.3) (0.01)Acquisition integration 150.7 38.3 112.4 – 112.4 0.43Workforce and lease termination 77.0 19.5 57.5 – 57.5 0.22Acquisition related adjustments 129.0 32.8 96.2 – 96.2 0.37Amortization of intangible assets 596.4 151.5 444.9 – 444.9 1.71Brokerage, as adjusted $ 3,283.9 $ 841.3 $ 2,442.6 $ 5.8 $ 2,436.8 $ 9.37Risk Management, as reported $ 181.3 $ 48.1 $ 133.2 $ – $ 133.2 $ 0.51Net (gains) on divestitures (0.5) (0.1) (0.4) – (0.4) -Acquisition integration 5.5 1.5 4.0 – 4.0 0.02Workforce and lease termination 10.6 2.9 7.7 – 7.7 0.03Acquisition related adjustments 1.8 0.5 1.3 – 1.3 0.01Amortization of intangible assets 16.2 4.4 11.8 – 11.8 0.04Risk Management, as adjusted $ 214.9 $ 57.3 $ 157.6 $ – $ 157.6 $ 0.61Corporate, as reported $ (825.5) $ (306.1) $ (519.4) $ – $ (519.4) $ (2.00)Transaction-related costs 86.3 6.3 80.0 – 80.0 0.31Legal and tax related 23.6 15.4 8.2 – 8.2 0.03Corporate, as adjusted $ (715.6) $ (284.4) $ (431.2) $ – $ (431.2) $ (1.66) Net Earnings Net Earnings Earnings Provision (Loss) (Loss) Diluted Net (Loss) (Benefit) Attributable to Attributable to Earnings Before Income for Income Net Earnings Noncontrolling Controlling (Loss) Taxes Taxes (Loss) Interests Interests per Share9 Mths Ended September 30, 2024Brokerage, as reported $ 1,834.3 $ 465.9 $ 1,368.4 $ 7.8 $ 1,360.6 $ 6.10Net (gains) on divestitures (25.0) (6.4) (18.6) – (18.6) (0.08)Acquisition integration 151.0 38.3 112.7 – 112.7 0.51Workforce and lease termination 88.0 22.4 65.6 – 65.6 0.29Acquisition related adjustments 32.3 8.0 24.3 (3.0) 27.3 0.11Amortization of intangible assets 487.8 123.6 364.2 – 364.2 1.63Effective income tax rate impact – 8.0 (8.0) – (8.0) (0.04)Levelized foreign currency translation 4.3 1.2 3.1 – 3.1 0.01Brokerage, as adjusted $ 2,572.7 $ 661.0 $ 1,911.7 $ 4.8 $ 1,906.9 $ 8.53Risk Management, as reported $ 179.3 $ 47.6 $ 131.7 $ – $ 131.7 $ 0.59Acquisition integration 1.8 0.5 1.3 – 1.3 -Workforce and lease termination 4.6 1.2 3.4 – 3.4 0.02Acquisition related adjustments 0.2 – 0.2 – 0.2 -Amortization of intangible assets 10.0 2.8 7.2 – 7.2 0.03Levelized foreign currency translation (0.8) (0.2) (0.6) – (0.6) -Risk Management, as adjusted $ 195.1 $ 51.9 $ 143.2 $ – $ 143.2 $ 0.64Corporate, as reported $ (472.0) $ (184.1) $ (287.9) $ – $ (287.9) $ (1.29)Transaction-related costs 14.9 3.3 11.6 – 11.6 0.05Legal and tax related – (3.5) 3.5 – 3.5 0.02Corporate, as adjusted $ (457.1) $ (184.3) $ (272.8) $ – $ (272.8) $ (1.22)
See “Information Regarding Non-GAAP Measures” on page 9 of 15.
Contact:Ray IardellaVice President – Investor Relations630-285-3661 or ray_iardella@ajg.com
(15 of 15)
https://edge.prnewswire.com/c/img/favicon.png?sn=CG11087&sd=2025-10-30
View original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher–co-announces-third-quarter-2025-financial-results-302600340.html
SOURCE Arthur J. Gallagher & Co.
https://rt.newswire.ca/rt.gif?NewsItemId=CG11087&Transmission_Id=202510301615PR_NEWS_USPR_____CG11087&DateId=20251030