#United States #financial results #Arthur J. Gallagher #Rolling Meadows #Q4 2025

Arthur J. Gallagher & Co. Reports Q4 and Full Year 2025 Financial Results

Arthur J. Gallagher & Co. (NYSE: AJG) recently shared its financial results for the quarter that concluded on December 31, 2025. The company set a positive tone with a substantial year-over-year revenue growth driven by a dual approach combining organic growth and strategic mergers and acquisitions.

Strong Revenue Growth

In Q4 2025, Gallagher's total revenues surged to $3.586 billion, marking a notable increase from $2.679 billion in Q4 2024. Over the entire year, the company reported revenues of $13.778 billion compared to $11.401 billion in the previous year. This impressive growth trajectory reflects the firm's commitment to enhancing its operational capabilities, expanding its market reach, and providing exceptional services to clients.

Chairman and CEO J. Patrick Gallagher, Jr., emphasized the milestone achieved, stating, "Our two-pronged revenue growth strategy driven by organic growth and mergers and acquisitions has powered double-digit growth on the top line for 20 consecutive quarters. The results underscore our team's dedication and the strong demand for our services across the globe."

The growth is attributed to a remarkable performance in Gallagher's Brokerage and Risk Management segments, which exhibited an aggregate revenue increase of over 30%. Organic revenue growth was approximately 5% for the quarter, which showcases the firm's resilience and capability to attract and retain clients in a competitive market.

Financial Metrics and Insights

For the fourth quarter, Gallagher recorded dilutive net earnings of $154 million, a decrease from the $258 million reported in the same quarter the previous year. However, on an adjusted basis, the diluted net earnings per share rose to $2.38 from $2.16. This adjustment highlights Gallagher's underlying strength, accounting for non-cash and one-time expenses.

Moreover, adjusted EBITDAC saw a 30% growth, reaching $1.047 billion in Q4, reflecting the company's efficient operational management and cost control measures. The net earnings margin stood at 10.2%, while the adjusted EBITDAC margin was 30.8%, both metrics indicating robust operational health.

Across the full year period, Gallagher reported a 21% increase in revenue and a 26% rise in adjusted EBITDAC. The firm's rigor in executing its strategies paid off, completing 33 mergers with an estimated additional $3.5 billion in annualized revenue.

Looking Ahead

Gallagher wrapped up 2025 with confidence and momentum heading into the coming year. The company outlined its strategic roadmap for 2026, anticipating continued growth through innovative service delivery, strategic acquisitions, and enhanced client relationships. The leadership team expressed excitement about leveraging the skills of their talented workforce to further drive value creation.

J. Patrick Gallagher, Jr. added, "As we step into 2026, the enthusiasm within our team is palpable. We believe we are merely at the start of unlocking our potential, and our strategic approach positions us favorably in the evolving market landscape."

Overall, the fiscal results from Arthur J. Gallagher & Co. not only showcase a successful year but also set the stage for continued advancement in the insurance brokerage and risk management sector. With a strong financial foundation and clear strategic intent, Gallagher is poised for further expansion and innovation in the years to come.