Arthur J. Gallagher & Co.

News & Events

2025-01-30 22:24:05 ET

Arthur J. Gallagher & Co. (AJG)

Q4 2024 Earnings Conference Call

January 30, 2024 17:15 ET

Corporate Participants

J. Patrick Gallagher Jr., - Chairman and Chief Executive Officer

Doug Howell - Chief Financial Officer

Conference Call Participants

Mike Zaremski - BMO Capital Markets

Gregory Peters - Raymond James

Andrew Kligerman - TD Securities

Elyse Greenspan - Wells Fargo

Mark Hughes - Truist Securities

David Motemaden - Evercore ISI

Katie Sakys - Autonomous Research

Meyer Shields - KBW

Rob Cox - Goldman Sachs

Alex Scott - Barclays

Presentation

Operator

Good afternoon and welcome to Arthur J. Gallagher and Company's Fourth Quarter 2024 Earnings Conference Call. Participants have been placed on listen-only mode. Your lines will be open for questions following the presentation. Today's call is being recorded. If you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions, may constitute follow-looking statements within the meaning of the security laws. The Company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Please refer to the information concerning forward-looking statements and Risk Factors sections contained in the Company's most recent 10-K, 10-Q, and 8-K filings for more details on such risks and uncertainties. In addition, for reconciliations to the non-GAAP measures discussed on this call, as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the Company's website.

It is now my pleasure to introduce J. Patrick Gallagher Jr., Chairman and CEO of Arthur J. Gallagher & Company. Mr. Gallagher, you may begin.

J. Patrick Gallagher Jr.

Thank you very much. Good afternoon and thank you for joining us for our fourth quarter 2024 earnings call. On the call with me today is Doug Howell, our CFO, other members of the management team, and the heads of our operating divisions.

Before I get to my comments about our financial results, I'd like to acknowledge the tragic wildfires in California. Our heartfelt thoughts are with all those impacted, including our own Gallagher colleagues. Our Company and industry have such an important role and responsibility, helping families, businesses, and communities rebuild and restore their lives. And like many times before, Gallagher and the industry will rise to the occasion.

Okay, on to my comments regarding our financial performance. We had an excellent fourth quarter. For our combined brokerage and risk management segments, we posted 12% growth in revenue, our 16th consecutive quarter of double-digit revenue growth, 7% organic growth, reported net earnings margin of 13.5%, adjusted EBITDA growth of 17%, and adjusted EBITDAC margin of 31.4%, up 145 basis points year-over-year. GAAP earnings per share of $1.56, and adjusted earnings per share of $2.51, up 15% year-over-year.

The December capital raise for the acquisition of AssuredPartners creates some noise in these headline numbers, so I will peel back the impact in his comments. Regardless, another fantastic quarter to close out another terrific year by our team....

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