23:00:06 EST Thu 29 Jan 2026
Enter Symbol
or Name
USA
CA



Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results

2026-01-29 16:15 ET - News Release

Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results

PR Newswire

ROLLING MEADOWS, Ill., Jan. 29, 2026 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended December 31, 2025. Management will host a webcast conference call to discuss these results on Thursday, January 29, 2026 at 5:15 p.m. ET/4:15 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 page 9.

                                                                 
      
          Summary of Financial Results - Fourth Quarter




                                                        Revenues Before                                                                                                                         Diluted Net
                                                                                                                                                                                                    Earnings


                                                         Reimbursements                                             Net Earnings (Loss)                        EBITDAC                    (Loss) Per Share



 
          Segment                         4th Q 25                     4th Q 24                           4th Q 25                   4th Q 24    4th Q 25           4th Q 24      4th Q 25                4th Q 24




                                                    (in millions)                                                 (in millions)                        (in millions)





 
          Brokerage, as reported            $3,169                        $2,296                                $317                        $317         $774                $661          $1.21                    $1.37


    Net losses (gains)
     on divestitures                           (20)                            1                                (15)                          1         (20)                  1         (0.06)


    Acquisition
     integration                                                                                                 79                          29          106                  39           0.30                     0.13


    Workforce and
     lease termination                                                                                           80                          23          107                  31           0.31                     0.10


    Acquisition
     related
     adjustments                                                                                                 30                          40           48                  29           0.12                     0.17


    Amortization of
     intangible assets                                                                                          223                         121                                          0.86                     0.53


    Effective income
     tax rate impact                                                                                                                         1                                                                  0.01


    Levelized foreign
     currency


       translation                                                            30                                                              5                               8                                   0.02





 
          Brokerage, as adjusted  *          3,149                         2,327                                 714                         537        1,015                 769           2.74                     2.33





 
          Risk Management, as reported         417                           369                                  49                          43           84                  72           0.19                     0.19


    Net (gains) on
     divestitures                               (1)                                                             (1)                                    (1)


    Acquisition
     integration                                                                                                  1                                       2                   2


    Workforce and
     lease termination                                                                                            1                           3            2                   2                                   0.01


    Acquisition
     related
     adjustments                                                                                                  3                                       3                              0.01


    Amortization of
     intangible assets                                                                                            4                           3                                          0.02                     0.01


    Levelized foreign
     currency


       translation                                                             3                                                              1                               1





 
          Risk Management, as adjusted  *      416                           372                                  58                          50           90                  77           0.22                     0.21





 
          Corporate, as reported                                             14                               (212)                      (102)       (148)               (46)        (0.82)                  (0.44)


    Transaction-
     related costs                                                                                               27                          14           36                  17           0.10                     0.06


    Legal, tax &
     benefit plan
     related                                                                                                     34                                      54                              0.14


    Clean energy
     related                                                                 (5)                                                           (1)                            (2)





 
          Corporate, as adjusted  *                                           9                               (151)                       (89)        (58)               (31)        (0.58)                  (0.38)





 
          Total Company, as reported        $3,586                        $2,679                                $154                        $258         $710                $687          $0.58                    $1.12





 
          Total Company, as adjusted  *     $3,565                        $2,708                                $620                        $498       $1,047                $815          $2.38                    $2.16





 
          Total Brokerage & Risk


               Management, as
                reported                     $3,586                        $2,665                                $366                        $360         $858                $733          $1.40                    $1.56





 
          Total Brokerage & Risk


               Management, as
                adjusted  *                  $3,565                        $2,699                                $772                        $587       $1,105                $846          $2.96                    $2.54



 * For fourth quarter 2025, the pretax impact of the Brokerage segment adjustments totals $533 million, mostly due to non?cash period
    expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of $136 million
    relating to these items.  For fourth quarter 2025, the pretax impact of the Risk Management segment adjustments totals $12
    million, with a corresponding adjustment to the provision for income taxes of $3 million relating to these items.  For fourth
    quarter 2025, the pretax impact of the Corporate segment adjustments totals $90 million, with a corresponding adjustment to the
    benefit for income taxes of $29 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 an excellent fourth quarter and a terrific 2025!" said J. Patrick Gallagher, Jr., Chairman and CEO.

"Our two-pronged revenue growth strategy, that's organic and M&A, drove double-digit top line growth for the 20th straight quarter. Fourth quarter revenue growth for our combined Brokerage and Risk Management segments was in excess of 30% and included organic revenue growth of 5%. Net earnings margin was 10.2%, adjusted EBITDAC margin was 30.8% and adjusted EBITDAC grew 30%.

"We finished 2025 with 21% growth in revenue, 6% organic growth, 26% growth in adjusted EBITDAC and completed 33 mergers with more than $3.5 billion in estimated annualized revenue. Another fantastic year.

"We have excellent momentum entering 2026 and our talented colleagues are executing on our value creation strategy. We are extremely excited about 2026 and believe we are just getting started!"

                                                                    
        
           Summary of Financial Results - Year Ended December 31




                                                             Revenues Before                                                                                                                              Diluted Net
                                                                                                                                                                                                              Earnings


                                                              Reimbursements                                                      Net Earnings
                                                                                                                                       (Loss)                           EBITDAC                       (Loss) Per Share



 
            Segment                           Year 25                        Year 24                               Year 25                  Year 24    Year 25               Year 24       Year 25                   Year 24




                                                        (in millions)                                                      (in millions)                     (in millions)





 
            Brokerage, as reported            $12,192                          $9,934                                 $2,052                    $1,686      $3,856                 $3,069          $7.85                      $7.46


    Net (gains) on
     divestitures                                 (24)                           (24)                                  (18)                     (18)       (24)                  (24)        (0.07)                    (0.08)


    Acquisition
     integration                                                                                                        194                       143         257                    191           0.73                       0.63


    Workforce and
     lease termination                                                                                                  136                        88         183                    118           0.53                       0.39


    Acquisition
     related
     adjustments                                                                 (26)                                   127                        63         174                    121           0.49                       0.28


    Amortization of
     intangible assets                                                                                                  668                       486                                            2.57                       2.16


    Effective income
     tax rate impact                                                                                                                             (7)                                                                   (0.03)


    Levelized foreign
     currency


       translation                                                                 57                                                               8                                13                                     0.04





 
            Brokerage, as adjusted  *          12,168                           9,941                                  3,159                     2,449       4,446                  3,488          12.10                      10.85





 
            Risk Management, as reported        1,585                           1,451                                    183                       175         313                    290           0.70                       0.78


    Net (gains) on
     divestitures                                  (2)                                                                  (1)                                 (2)


    Acquisition
     integration                                                                                                          7                         2           9                      3           0.03                       0.01


    Workforce and
     lease termination                                                                                                    9                         6          12                      7           0.03                       0.03


    Acquisition
     related
     adjustments                                                                                                          3                                    4                                 0.01


    Amortization of
     intangible assets                                                                                                   16                        10                                            0.06                       0.04


    Levelized foreign
     currency


       translation                                                                (1)





 
            Risk Management, as adjusted  *     1,583                           1,450                                    217                       193         336                    300           0.83                       0.86





 
            Corporate, as reported                  1                              16                                  (732)                    (390)      (491)                 (234)        (2.81)                    (1.74)


    Transaction-
     related costs                                                                                                      107                        26         122                     32           0.41                       0.12


    Legal, tax &
     benefit plan
     related                                                                                                             42                         3          78                                 0.16                       0.02


    Clean energy-
     related                                                                      (5)                                                            (2)                              (2)                                  (0.01)





 
            Corporate, as adjusted  *               1                              11                                  (583)                    (363)      (291)                 (204)        (2.24)                    (1.61)





 
            Total Company, as reported        $13,778                         $11,401                                 $1,503                    $1,471      $3,678                 $3,125          $5.74                      $6.50





 
            Total Company, as adjusted  *     $13,752                         $11,402                                 $2,793                    $2,279      $4,491                 $3,584         $10.69                     $10.10





 
            Total Brokerage & Risk


                 Management, as
                  reported                     $13,777                         $11,385                                 $2,235                    $1,861      $4,169                 $3,359          $8.55                      $8.24





 
            Total Brokerage & Risk


                 Management, as
                  adjusted  *                  $13,751                         $11,391                                 $3,376                    $2,642      $4,782                 $3,788         $12.93                     $11.71

(2 of 15)

 * For the year ended December 31, 2025, the pretax impact of the Brokerage segment adjustments totals $1,482 million, mostly due to
    non?cash period expenses related to intangible amortization, with a corresponding adjustment to the provision for income taxes of
    $375 million relating to these items.  For the year ended December 31, 2025, the pretax impact of the Risk Management segment
    adjustments totals $45 million, with a corresponding adjustment to the provision for income taxes of $11 million relating to
    these items.  For the year ended December 31, 2025, the pretax impact of the Corporate segment adjustments totals $200 million,
    with a corresponding adjustment to the benefit for income taxes of $51 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 in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.


   
            
              
                Organic Revenues (Non-GAAP)                                                 4th Q 2025        4th Q 2024         Year 2025             Year 2024

---




   
            
              
                Base Commissions and Fees

---


   
            Commissions and fees, as reported                                                                               $2,841             $2,024            $10,670                 $8,887



   Less commissions and fees from acquisitions, divested


                                                                             
 operations and other                                      (882)             (171)              (1,598)                (351)



   Levelized foreign currency translation                                                                                                             22                                       48





   
            Organic base commissions and fees                                                                               $1,959             $1,875             $9,072                 $8,584





   Organic change in base commissions and fees                                                                                     4 %                                 6 %





   
            
              
                Supplemental Revenues

---


   
            Supplemental revenues, as reported                                                                                $132                $98               $466                   $359



   Less supplemental revenues from acquisitions, divested


                                                                             
 operations and other                                       (21)                                   (33)



   Levelized foreign currency translation                                                                                                              1                                        3





   
            Organic supplemental revenues                                                                                     $111                $99               $433                   $362





   Organic change in supplemental revenues                                                                                        12 %                                20 %





   
            
              
                Contingent Revenues

---


   
            Contingent revenues, as reported                                                                                   $83                $52               $324                   $268



   Less contingent revenues from acquisitions, divested


                                                                             
 operations and other                                       (24)                                   (43)



   Levelized foreign currency translation                                                                                                              1                                        1





   
            Organic contingent revenues                                                                                        $59                $53               $281                   $269





   Organic change in contingent revenues                                                                                          11 %                                 5 %





   
            Total reported commissions, fees, supplemental


                                                                                            revenues and contingent revenues            $3,056             $2,174               $11,460                $9,514



   Less commissions, fees, supplemental revenues


                                                                               and contingent revenues from acquisitions,


                                                                             
 divested operations and other                             (927)             (171)              (1,674)                (351)



   Levelized foreign currency translation                                                                                                             24                                       52





   
            Total organic commissions, fees, supplemental


                                                                                            revenues and contingent revenues            $2,129             $2,027                $9,786                $9,215





   
            Total organic change                                                                                               5 %                                 6 %







   
            
              
                Acquisition Activity                                                        4th Q 2025        4th Q 2024         Year 2025             Year 2024

---




   Number of acquisitions closed  *                                                                                                  6                 19                 31                     46



   Estimated annualized revenues acquired (in millions)                                                                           $118               $189             $3,508                   $363



 * In the fourth quarter of 2025 Gallagher issued 6,000 shares of its common stock directly to sellers in connection with tax-free
    exchange acquisitions.  No shares were issued in fourth quarter 2024 in connection with tax-free exchange acquisitions.

(3 of 15)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Acquisition of AssuredPartners

As previously disclosed, on August 18, 2025, we acquired AssuredPartners for approximately $13.8 billion. We raised $8.5 billion of cash in our December 11, 2024 follow-on common stock offering and borrowed $5.0 billion of cash in our December 19, 2024 senior notes issuance (collectively, the AssuredPartners Financing) to fund the transaction. On January 7, 2025, we received an additional $1.3 billion 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                               4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Compensation expense, as reported                                                                 $1,868             $1,291             $6,660              $5,502





   Acquisition integration                                                                                          (49)              (24)             (135)              (107)



   Workforce and lease termination related charges                                                                 (103)              (27)             (171)              (108)



   Acquisition related adjustments                                                                                  (48)              (29)             (174)              (147)



   Levelized foreign currency translation                                                                                               14                                    30





   
            Compensation expense, as adjusted                                                                 $1,668             $1,225             $6,180              $5,170





   Reported compensation expense ratios using reported


                                                                                 
 revenues on pages 1 and 2 *            59.0 %             56.2 %             54.6 %              55.4 %



   Adjusted compensation expense ratios using adjusted


                                                                                 
 revenues on pages 1 and 2           ** 53.0 %             52.6 %             50.8 %              52.0 %



 *  Reported fourth quarter 2025 compensation expense ratio was 2.8 pts higher than fourth quarter 2024.  This ratio was primarily
     impacted by higher integration and workforce termination costs, as well as the impact of recent acquisitions and . lower
     interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the
     AssuredPartners Financing in December 2024.




 ** Adjusted fourth quarter 2025 compensation expense ratio was 0.4 pts higher than fourth quarter 2024.  This ratio was primarily
     impacted by recent acquisitions as well as lower interest income revenues in the quarter, as fourth quarter 2024 included
     interest income earned on proceeds associated with the AssuredPartners Financing in December 2024.


   
            
              
                Operating Expense and Ratios                               4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Operating expense, as reported                                                                   $527               $344             $1,676              $1,363





   Acquisition integration                                                                                       (57)              (15)             (122)               (84)



   Workforce and lease termination related charges                                                                (4)               (4)              (13)               (10)



   Levelized foreign currency translation                                                                                             8                                    14





   
            Operating expense, as adjusted                                                                   $466               $333             $1,541              $1,283





   Reported operating expense ratios using reported


                                                                              
 revenues on pages 1 and 2 *            16.6 %             15.0 %             13.8 %              13.7 %



   Adjusted operating expense ratios using adjusted


                                                                              
 revenues on pages 1 and 2           ** 14.8 %             14.3 %             12.7 %              12.9 %



 *  Reported fourth quarter 2025 operating expense ratio was 1.6 pts higher than fourth quarter 2024.  This ratio was primarily
     impacted by higher integration  and technology costs, partially offset by savings in professional fees.  This ratio was also
     impacted by lower interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds
     associated with the AssuredPartners Financing in December 2024.




 ** Adjusted fourth quarter 2025 operating expense ratio was 0.5 pts higher than fourth quarter 2024.  This ratio was primarily
     impacted by increased technology costs, partially offset by savings in professional fees.  This ratio was also impacted by lower
     interest income revenues in the quarter, as fourth quarter 2024 included interest income earned on proceeds associated with the
     AssuredPartners Financing in December 2024.

(4 of 15)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

                                                 Net Earnings to Adjusted EBITDAC (Non-GAAP)                               4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Net earnings, as reported                                                                                       $317               $317             $2,052              $1,686



   Provision for income taxes                                                                                                    107                108                707                 573



   Depreciation                                                                                                                   46                 34                159                 133



   Amortization                                                                                                                  298                163                894                 651



   Change in estimated acquisition earnout payables                                                                                6                 39                 44                  26





   EBITDAC                                                                                                                       774                661              3,856               3,069





   Net losses (gains) on divestitures                                                                                           (20)                 1               (24)               (24)



   Acquisition integration                                                                                                       106                 39                257                 191



   Workforce and lease termination related charges                                                                               107                 31                183                 118



   Acquisition related adjustments                                                                                                48                 29                174                 121



   Levelized foreign currency translation                                                                                                            8                                    13





   
            EBITDAC, as adjusted                                                                                          $1,015               $769             $4,446              $3,488





   Net earnings margin, as reported using reported


                                                                                             
 revenues on pages 1 and 2 *            10.0 %             13.8 %             16.8 %              17.0 %



   EBITDAC margin, as adjusted using adjusted


                                                                                             
 revenues on pages 1 and 2 *            32.2 %             33.0 %             36.5 %              35.1 %



 * Fourth quarter 2024 adjusted EBITDAC margin includes approximately $20 million of interest income revenues earned on the proceeds
    received in December 2024 related to the AssuredPartners Financing.  This interest income in the prior period, as well as the
    seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in
    fourth quarter adjusted EBITDAC margin by approximately 1.3%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.


   
            
              
                Organic Revenues (Non-GAAP) 4th Q 2025 4th Q 2024  Year 2025   Year 2024

---




   Fees                                                                           $403        $357      $1,538       $1,406



   International performance bonus fees                                              5           3          11            8





   
            Fees as reported                                                   408         360       1,549        1,414





   Less fees from acquisitions                                                    (21)                  (60)



   Less divested operations                                                                   (2)                    (9)



   Levelized foreign currency translation                                                       3                     (1)





   
            Organic fees                                                      $387        $361      $1,489       $1,404





   
            Organic change in fees                                             7 %                   6 %





   
            
              
                Acquisition Activity        4th Q 2025 4th Q 2024  Year 2025   Year 2024

---




   Number of acquisitions closed                                                     1           1           2            2



   Estimated annualized revenues acquired (in millions)                            $16         $10         $54          $24

(5 of 15)

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.


   
            
              
                Compensation Expense and Ratios                                               4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Compensation expense, as reported                                                                                   $255               $225               $974                $882





   Acquisition integration                                                                                                           (1)               (1)               (3)                (2)



   Workforce and lease termination related charges                                                                                                     (1)               (9)                (4)



   Acquisition related adjustments                                                                                                   (2)                                 (4)



   Levelized foreign currency translation                                                                                                                1                                   (2)





   
            Compensation expense, as adjusted                                                                                   $252               $224               $958                $874





   Reported compensation expense ratios using reported


                                                                                 revenues (before reimbursements) on pages 1
                                                                                  and 2                                      *            61.2 %             61.0 %             61.5 %              60.8 %





   Adjusted compensation expense ratios using adjusted


                                                                                 revenues (before reimbursements) on pages 1
                                                                                  and 2                                                 * 60.6 %             60.2 %             60.5 %              60.3 %



 * Reported fourth quarter 2025 compensation expense ratio was 0.2 pts higher than fourth quarter 2024.  Adjusted fourth quarter 2025
    compensation ratio was 0.4 pts higher than fourth quarter 2024.  Both ratios were primarily impacted by increased incentive
    compensation, partially offset by savings related to headcount controls.


   
            
              
                Operating Expense and Ratios                                               4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Operating expense, as reported                                                                                    $78                $72               $298                $279





   Acquisition integration                                                                                                        (3)               (1)               (6)                (1)



   Workforce and lease termination related charges                                                                                (1)               (1)               (3)                (3)



   Levelized foreign currency translation                                                                                                             1                                     1





   
            Operating expense, as adjusted                                                                                    $74                $71               $289                $276





   Reported operating expense ratios using reported


                                                                              revenues (before reimbursements) on pages 1
                                                                               and 2                                      *            18.7 %             19.5 %             18.8 %              19.2 %





   Adjusted operating expense ratios using reported


                                                                              revenues (before reimbursements) on pages 1
                                                                               and 2                                                ** 17.8 %             19.1 %             18.3 %              19.0 %



 *  Reported fourth quarter 2025 operating expense ratio was 0.8 pts lower than fourth quarter 2024.  This ratio was primarily
     impacted by savings in client-related expenses and lower business insurance costs, partially offset by increased integration
     costs.




 ** Adjusted fourth quarter 2025 operating expense ratio was 1.3 pts lower than fourth quarter 2024.  This ratio was primarily
     impacted by savings in client-related expenses and lower business insurance costs.


   
            
              
                Net Earnings to Adjusted EBITDAC (Non-GAAP)                                             4th Q 2025        4th Q 2024         Year 2025          Year 2024

---




   
            Net earnings, as reported                                                                                                      $49                $43               $183                $175



   Provision for income taxes                                                                                                                   18                 15                 66                  63



   Depreciation                                                                                                                                 10                 10                 40                  38



   Amortization                                                                                                                                  6                  4                 22                  14



   Change in estimated acquisition earnout payables                                                                                              1                                    2





   EBITDAC                                                                                                                                      84                 72                313                 290





   Net (gains) on divestitures                                                                                                                 (1)                                 (2)



   Acquisition integration                                                                                                                       2                  2                  9                   3



   Workforce and lease termination related charges                                                                                               2                  2                 12                   7



   Acquisition related adjustments                                                                                                               3                                    4



   Levelized foreign currency translation                                                                                                                          1





   
            EBITDAC, as adjusted                                                                                                           $90                $77               $336                $300





   Net earnings margin, as reported using reported


                                                                                             revenues (before reimbursements) on pages 1
                                                                                              and 2                                                 11.8 %             11.7 %             11.6 %              12.1 %





   EBITDAC margin, as adjusted using adjusted


                                                                                             revenues (before reimbursements) on pages 1
                                                                                              and 2                                                 21.6 %             20.7 %             21.2 %              20.6 %

(6 of 15)

Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation(dollars in millions):

See "Information Regarding Non-GAAP Measures" on page 9 of 15.



                                                                       2025                             2024


                                                                             Net Earnings                      Net Earnings


                                                                                (Loss)                            (Loss)


                                                                    Income   Attributable           Income     Attributable
                                                                                   to                                to


                                                             Pretax   Tax    Controlling   Pretax     Tax      Controlling



 
            4th Quarter                                    Loss  Benefit    Interests    Loss    Benefit      Interests



 
            Components of Corporate Segment, as reported





 Interest and banking costs                                 $(162)     $42         $(120)   $(94)       $24            $(70)



 Clean energy related                                          (2)       1            (1)



 Acquisition costs (1)                                        (41)       9           (32)    (24)         5             (19)



 Corporate (2)                                               (106)      47           (59)    (32)        19             (13)





 
            Reported 4th Quarter                           (311)      99          (212)   (150)        48            (102)





 
            Adjustments



 Clean energy related                                                                        (2)                       (2)



 Transaction-related costs (1)                                  36      (9)            27       17        (2)              15



 Legal and tax related (3)                                      10      (9)             1



 Benefit plan related (4)                                       44     (11)            33





 
            Components of Corporate Segment, as adjusted





 Interest and banking costs                                  (162)      42          (120)    (94)        24             (70)



 Clean energy related                                          (2)       1            (1)     (2)                       (2)



 Acquisition costs                                             (5)                   (5)     (7)         3              (4)



 Corporate (2)                                                (52)      27           (25)    (32)        19             (13)





 
            Adjusted 4th Quarter                          $(221)     $70         $(151)  $(135)       $46            $(89)





 
            Year Ended December 31,



 
            Components of Corporate Segment, as reported





 Interest and banking costs                                 $(642)    $167         $(475)  $(376)       $97           $(279)



 Clean energy related                                          (8)       3            (5)     (6)         1              (5)



 Acquisition costs (1)                                       (139)      17          (122)    (51)        10             (41)



 Corporate (2)                                               (348)     218          (130)   (189)       124             (65)





 
            Reported year                                (1,137)     405          (732)   (622)       232            (390)





 
            Adjustments



 Clean energy related                                                                        (2)                       (2)



 Transaction-related costs (1)                                 122     (15)           107       32        (6)              26



 Legal and tax related (3)                                      34     (25)             9                  3                3



 Benefit plan related (4)                                       44     (11)            33





 
            Components of Corporate Segment, as adjusted





 Interest and banking costs                                  (642)     167          (475)   (376)        97            (279)



 Clean energy related                                          (8)       3            (5)     (8)         1              (7)



 Acquisition costs                                            (17)       2           (15)    (19)         4             (15)



 Corporate (2)                                               (270)     182           (88)   (189)       127             (62)





 
            Adjusted Year                                 $(937)    $354         $(583)  $(592)      $229           $(363)




 (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, as well as Woodruff Sawyer and AssuredPartners, which closed in April 2025 and August 2025,
        respectively.



 (2) Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(4) million in fourth quarter 2025 and a
        net unrealized foreign exchange remeasurement gain of $16 million in fourth quarter 2024.  Corporate pretax loss includes a net
        unrealized foreign exchange remeasurement loss of $(47) million in the year ended December 31, 2025 and a net unrealized foreign
        exchange remeasurement loss of zero in the year ended December 31, 2024.

(7 of 15)


 (3) 
 Adjustments in fourth quarter 2025 and 2024 include costs associated with legal and tax matters.



 (4)   Adjustments in fourth quarter 2025 include costs associated with the termination of the Gallagher US defined pension plan
          and other benefit plan changes.

Interest and banking costs anddebt - At December 31, 2025, Gallagher had $9,550 million of borrowings from public debt, $3,323 million of borrowings from private placements and no borrowings under its line of credit facility. In addition, Gallagher had $226 million 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 fourth 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 December 31, 2025 and 2024 were 14.3% and 22.5%, respectively. Gallagher's consolidated effective tax rate for the year ended December 31, 2025 and 2024 were 19.7% and 21.5%, respectively

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, January 29, 2026 at 5:15 p.m. ET/4:15 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, 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; a U.S. government shutdown; political violence and instability, such as the armed conflicts in Ukraine the Middle East, Latin America and the Caribbean; its actual acquisition opportunities, including closing risks related to pending acquisitions, risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in our history, 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- and other sustainability- 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 or man-made 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 December 31, 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 ratio and 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 pages 14 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, all of which closed in 2023, as well as Woodruff Sawyer and AssuredPartners, which closed in April 2025 and August 2025, respectively. 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 fourth quarter 2025 and 2024 related to costs associated with legal and tax matters.
    • Benefit plan related, which represents the impact of adjustments in fourth quarter 2025 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

  • Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

Non-GAAP Earnings Measures

  • EBITDACand 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 Adjustedand 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) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding 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 period presented. Such 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 order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large, singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.

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 pages 12 and 13), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 15)

                                                                           
          
            
              Arthur J. Gallagher & Co.


                                                        
          
         
              Reported Statement of Earnings and EBITDAC - 4th Quarter December 31,


                                                                    
       (Unaudited - in millions except per share, percentage and workforce data)




                                                                                                                                        4th Q Ended                 4th Q Ended     Year Ended     Year Ended



 
            Brokerage Segment                                                                                                        Dec 31, 2025                Dec 31, 2024   Dec 31, 2025   Dec 31, 2024





 Commissions                                                                                                                               $2,059                       $1,501          $8,024          $6,694



 Fees                                                                                                                                         782                          523           2,646           2,193



 Supplemental revenues                                                                                                                        132                           98             466             359



 Contingent revenues                                                                                                                           83                           52             324             268



 Interest income, premium finance revenues and other income                                                                                   113                          122             732             420



      Total revenues                                                                                                                        3,169                        2,296          12,192           9,934





 Compensation                                                                                                                               1,868                        1,291           6,660           5,502



 Operating                                                                                                                                    527                          344           1,676           1,363



 Depreciation                                                                                                                                  46                           34             159             133



 Amortization                                                                                                                                 298                          163             894             651



 Change in estimated acquisition earnout payables                                                                                               6                           39              44              26



      Expenses                                                                                                                              2,745                        1,871           9,433           7,675





 Earnings before income taxes                                                                                                                 424                          425           2,759           2,259



 Provision for income taxes                                                                                                                   107                          108             707             573





 Net earnings                                                                                                                                 317                          317           2,052           1,686



 Net earnings attributable to noncontrolling interests                                                                                          3                                           9               8





 
            Net earnings attributable to controlling interests                                                                             $314                         $317          $2,043          $1,678





 
            EBITDAC



 Net earnings                                                                                                                                $317                         $317          $2,052          $1,686



 Provision for income taxes                                                                                                                   107                          108             707             573



 Depreciation                                                                                                                                  46                           34             159             133



 Amortization                                                                                                                                 298                          163             894             651



 Change in estimated acquisition earnout payables                                                                                               6                           39              44              26





 
            EBITDAC                                                                                                                        $774                         $661          $3,856          $3,069






                                                                                                                                        4th Q Ended                 4th Q Ended     Year Ended     Year Ended



 
            Risk Management Segment                                                                                                Dec 31, 2025                Dec 31, 2024   Dec 31, 2025   Dec 31, 2024





 Fees                                                                                                                                        $408                         $360          $1,549          $1,414



 Interest income and other income                                                                                                               9                            9              36              37



      Revenues before reimbursements                                                                                                          417                          369           1,585           1,451



 Reimbursements                                                                                                                                42                           36             164             154



      Total revenues                                                                                                                          459                          405           1,749           1,605





 Compensation                                                                                                                                 255                          225             974             882



 Operating                                                                                                                                     78                           72             298             279



 Reimbursements                                                                                                                                42                           36             164             154



 Depreciation                                                                                                                                  10                           10              40              38



 Amortization                                                                                                                                   6                            4              22              14



 Change in estimated acquisition earnout payables                                                                                               1                                           2               -



      Expenses                                                                                                                                392                          347           1,500           1,367





 Earnings before income taxes                                                                                                                  67                           58             249             238



 Provision for income taxes                                                                                                                    18                           15              66              63





 Net earnings                                                                                                                                  49                           43             183             175



 Net earnings attributable to noncontrolling interests                                                                                                                                                    -





 
            Net earnings attributable to controlling interests                                                                              $49                          $43            $183            $175





 
            EBITDAC



 Net earnings                                                                                                                                 $49                          $43            $183            $175



 Provision for income taxes                                                                                                                    18                           15              66              63



 Depreciation                                                                                                                                  10                           10              40              38



 Amortization                                                                                                                                   6                            4              22              14



 Change in estimated acquisition earnout payables                                                                                               1                                           2               -





 
            EBITDAC                                                                                                                         $84                          $72            $313            $290





 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 - 4th Quarter December 31,


                                                                           
          (Unaudited - in millions except share and per share data)




                                                                                                                                            4th Q Ended             4th Q Ended          Year Ended       Year Ended



 
            Corporate Segment                                                             Dec 31, 2025                                     Dec 31, 2024            Dec 31, 2025        Dec 31, 2024





 Other income                                                                
          $                 -                                           $14                       $1                  $16


                                                                     
      Total revenues                                                                                      14                    1               16





 Compensation                                                                                            86                                             38                      208                  138



 Operating                                                                                               62                                             22                      284                  112



 Interest                                                                                               161                                            102                      639                  381



 Depreciation                                                                                             2                                              2                        7                    7


                                                                     
      Expenses                                                                   311                      164                1,138              638





 Loss before income taxes                                                                             (311)                                         (150)                 (1,137)               (622)



 Benefit for income taxes                                                                              (99)                                          (48)                   (405)               (232)





 Net loss                                                                                             (212)                                         (102)                   (732)               (390)



 Net loss attributable to noncontrolling interests                                                                                                                                                  -





 
            Net loss attributable to controlling interests                                         $(212)                                        $(102)                  $(732)              $(390)





 
            EBITDAC



 Net loss                                                                                            $(212)                                        $(102)                  $(732)              $(390)



 Benefit for income taxes                                                                              (99)                                          (48)                   (405)               (232)



 Interest                                                                                               161                                            102                      639                  381



 Depreciation                                                                                             2                                              2                        7                    7





 
            EBITDAC                                                         
          
            $148)                   
          
            $46)                   $(491) 
 
           $234)






                                                                                                                                            4th Q Ended             4th Q Ended          Year Ended       Year Ended



 
            Total Company                                                                 Dec 31, 2025                                     Dec 31, 2024            Dec 31, 2025        Dec 31, 2024





 Commissions                                                                                         $2,059                                         $1,501                   $8,024               $6,694



 Fees                                                                                                 1,190                                            883                    4,195                3,607



 Supplemental revenues                                                                                  132                                             98                      466                  359



 Contingent revenues                                                                                     83                                             52                      324                  268



 Interest income, premium finance revenues and other income                                             122                                            145                      769                  473


                                                                     
      Revenues before reimbursements                                           3,586                    2,679               13,778           11,401



 Reimbursements                                                                                          42                                             36                      164                  154


                                                                     
      Total revenues                                                           3,628                    2,715               13,942           11,555





 Compensation                                                                                         2,209                                          1,554                    7,842                6,522



 Operating                                                                                              667                                            438                    2,258                1,754



 Reimbursements                                                                                          42                                             36                      164                  154



 Interest                                                                                               161                                            102                      639                  381



 Depreciation                                                                                            58                                             46                      206                  178



 Amortization                                                                                           304                                            167                      916                  665



 Change in estimated acquisition earnout payables                                                         7                                             39                       46                   26


                                                                     
      Expenses                                                                 3,448                    2,382               12,071            9,680





 Earnings before income taxes                                                                           180                                            333                    1,871                1,875



 Provision for income taxes                                                                              26                                             75                      368                  404





 Net earnings                                                                                           154                                            258                    1,503                1,471



 Net earnings attributable to noncontrolling interests                                                    3                                                                      9                    8





 
            Net earnings attributable to controlling interests                                       $151                                           $258                   $1,494               $1,463





 Diluted net earnings per share                                                                       $0.58                                          $1.12                    $5.74                $6.50





 Dividends declared per share                                                                         $0.65                                          $0.60                    $2.60                $2.40





 
            EBITDAC



 Net earnings                                                                                          $154                                           $258                   $1,503               $1,471



 Provision for income taxes                                                                              26                                             75                      368                  404



 Interest                                                                                               161                                            102                      639                  381



 Depreciation                                                                                            58                                             46                      206                  178



 Amortization                                                                                           304                                            167                      916                  665



 Change in estimated acquisition earnout payables                                                         7                                             39                       46                   26





 
            EBITDAC                                                                                  $710                                           $687                   $3,678               $3,125





 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)




                                                                                                                                                   Dec 31, 2025    Dec 31, 2024





 Cash and cash equivalents                                                                                                                 $1,396         $14,987



 Fiduciary assets (includes fiduciary cash of $7,142 in 2025 and $5,481 in 2024)                                                           26,899          24,712



 Accounts receivable, net                                                                                                                   5,175           3,896



 Other current assets                                                                                                                         886             518




                                                                                      
          Total current assets                                      34,356           44,113





 Fixed assets - net                                                                                                                           789             650



 Deferred income taxes (includes tax credit carryforwards of $772 in 2024)                                                                     43             959



 Other noncurrent assets                                                                                                                    1,602           1,355



 Right-of-use assets                                                                                                                          598             378



 Goodwill                                                                                                                                  22,593          12,270



 Amortizable intangible assets - net                                                                                                       10,684           4,530




                                                                                      
          Total assets                                             $70,665          $64,255





 Fiduciary liabilities                                                                                                                    $26,899         $24,712



 Accrued compensation and other current liabilities                                                                                         4,017           3,586



 Deferred revenue - current                                                                                                                   737             537



 Premium financing debt                                                                                                                       226             225



 Corporate related borrowings - current                                                                                                       640             200




                                                                                      
          Total current liabilities                                 32,519           29,260





 Corporate related borrowings - noncurrent                                                                                                 12,104          12,732



 Deferred revenue - noncurrent                                                                                                                155              67



 Lease liabilities - noncurrent                                                                                                               515             328



 Other noncurrent liabilities (includes tax credit carryforwards of $713 in 2025)                                                           2,025           1,688




                                                                                      
          Total liabilities                                         47,318           44,075





 Stockholders' equity:



 Common stock - issued and outstanding                                                                                                        257             250



 Capital in excess of par value                                                                                                            17,783          16,069



 Retained earnings                                                                                                                          5,806           4,986



 Accumulated other comprehensive loss                                                                                                       (525)        (1,151)





 Total controlling interests stockholders' equity                                                                                          23,321          20,154



 Noncontrolling interests                                                                                                                      26              26




                                                                                      
          Total stockholders' equity                                23,347           20,180




                                                                                      
          Total liabilities and stockholders' equity               $70,665          $64,255



                                                                                                  
          
            
              Arthur J. Gallagher & Co.


                                                                                                      
          
            
              Other Information


                                                                                                      
          (Unaudited - data is rounded where indicated)




                                                                                                                                                           4th Q Ended            4th Q Ended            Year Ended             Year Ended



 
            OTHER INFORMATION                                                                   Dec 31, 2025                                              Dec 31, 2024           Dec 31, 2025          Dec 31, 2024





 Basic weighted average shares outstanding (000s)                           *                                             256,901                                        226,425                256,150                220,502



 Diluted weighted average shares outstanding (000s)                         *                                             260,258                                        231,059                260,134                224,966





 Number of common shares outstanding at end of period (000s)                                                                                                                            256,976                249,999





 Workforce at end of period (includes acquisitions):


                                                                 
          Brokerage                                                                                                               **          55,561                 42,091


                                                                 
          Risk Management                                                                                                                     10,889                 10,339


                                                                 
          Total Company                                                                                                           **          71,776                 55,977





 *   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 stock



      on 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             Attributable
                                                                                                                                                                                 to                       to                    Earnings


                                                                                 Before Income                       for Income          Net Earnings                     Noncontrolling            Controlling                  (Loss)


                                                                                         Taxes                          Taxes               (Loss)                           Interests                Interests                per Share





 
            4th Q Ended December 31, 2025



 
            Brokerage, as reported             $424                                             $107                             $317                               $3                      $314                     $1.21





 Net (gains) on divestitures                     (20)                                             (5)                            (15)                                                     (15)                   (0.06)



 Acquisition integration                          106                                               27                               79                                                        79                      0.30



 Workforce and lease termination                  106                                               26                               80                                                        80                      0.31



 Acquisition related adjustments                   43                                               13                               30                                                        30                      0.12



 Amortization of intangible assets                298                                               75                              223                                                       223                      0.86





 Brokerage, as adjusted                          $957                                             $243                             $714                               $3                      $711                     $2.74





 
            Risk Management, as reported        $67                                              $18                              $49                
    
     $    -                      $49                     $0.19





 Net (gains) on divestitures                      (1)                                                                             (1)                                                      (1)



 Acquisition integration                            2                                                1                                1                                                         1



 Workforce and lease termination                    2                                                1                                1                                                         1



 Acquisition related adjustments                    3                                                                                3                                                         3                      0.01



 Amortization of intangible assets                  6                                                2                                4                                                         4                      0.02





 Risk Management, as adjusted                     $79                                              $21                              $58                       
   $    -                      $58                     $0.22





 
            Corporate, as reported           $(311)                                           $(99)                          $(212)                
   
      $   -                   $(212)                  $(0.82)





 Transaction-related costs                         36                                                9                               27                                                        27                      0.10



 Legal, tax and benefit plan related               54                                               20                               34                                                        34                      0.14





 Corporate, as adjusted                        $(221)                                           $(70)                          $(151)                      
    $   -                   $(151)                  $(0.58)





 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 Share





 
            4th Q Ended December 31, 2024



 
            Brokerage, as reported                                                                                                $425                  $108                 $317                 
    
     $    -                       $317                      $1.37





 Net losses on divestitures                                                                                                            1                                         1                                                            1



 Acquisition integration                                                                                                              39                    10                   29                                                           29                       0.13



 Workforce and lease termination                                                                                                      31                     8                   23                                                           23                       0.10



 Acquisition related adjustments                                                                                                      53                    13                   40                                                           40                       0.17



 Amortization of intangible assets                                                                                                   163                    42                  121                                                          121                       0.53



 Effective income tax rate impact                                                                                                                         (1)                   1                                                            1                       0.01



 Levelized foreign currency translation                                                                                                7                     2                    5                                                            5                       0.02





 Brokerage, as adjusted                                                                                                             $719                  $182                 $537                        
   $    -                       $537                      $2.33





 
            Risk Management, as reported                                                                                           $58                   $15                  $43                 
    
     $    -                        $43                      $0.19





 Acquisition integration                                                                                                               1                     1



 Workforce and lease termination                                                                                                       4                     1                    3                                                            3                       0.01



 Acquisition related adjustments



 Amortization of intangible assets                                                                                                     4                     1                    3                                                            3                       0.01



 Levelized foreign currency translation                                                                                                1                                         1                                                            1





 Risk Management, as adjusted                                                                                                        $68                   $18                  $50                        
   $    -                        $50                      $0.21





 
            Corporate, as reported                                                                                              $(150)                $(48)              $(102)                 
   
      $   -                     $(102)                   $(0.44)





 Transaction-related costs                                                                                                            17                     3                   14                                                           14                       0.06



 Clean energy-related                                                                                                                (2)                  (1)                 (1)                                                         (1)





 Corporate, as adjusted                                                                                                           $(135)                $(46)               $(89)                       
    $   -                      $(89)                   $(0.38)




                                                                                                                                                                                                                          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 Share





 
            Year Ended December 31, 2025



 
            Brokerage, as reported                                                                                              $2,759                  $707               $2,052                                $9                      $2,043                      $7.85





 Net (gains) on divestitures                                                                                                        (24)                  (6)                (18)                                                        (18)                    (0.07)



 Acquisition integration                                                                                                             257                    63                  194                                                          194                       0.73



 Workforce and lease termination                                                                                                     183                    47                  136                                                          136                       0.53



 Acquisition related adjustments                                                                                                     172                    45                  127                                                          127                       0.49



 Amortization of intangible assets                                                                                                   894                   226                  668                                                          668                       2.57





 Brokerage, as adjusted                                                                                                           $4,241                $1,082               $3,159                                $9                      $3,150                     $12.10





 
            Risk Management, as reported                                                                                          $249                   $66                 $183                 
    
     $    -                       $183                      $0.70





 Net (gains) on divestitures                                                                                                         (2)                  (1)                 (1)                                                         (1)



 Acquisition integration                                                                                                               9                     2                    7                                                            7                       0.03



 Workforce and lease termination                                                                                                      12                     3                    9                                                            9                       0.03



 Acquisition related adjustments                                                                                                       4                     1                    3                                                            3                       0.01



 Amortization of intangible assets                                                                                                    22                     6                   16                                                           16                       0.06





 Risk Management, as adjusted                                                                                                       $294                   $77                 $217                        
   $    -                       $217                      $0.83





 
            Corporate, as reported                                                                                            $(1,137)               $(405)              $(732)                 
   
      $   -                     $(732)                   $(2.81)





 Transaction-related costs                                                                                                           122                    15                  107                                                          107                       0.41



 Legal, tax and benefit plan related                                                                                                  78                    36                   42                                                           42                       0.16





 Corporate, as adjusted                                                                                                           $(937)               $(354)              $(583)                       
    $   -                     $(583)                   $(2.24)




                                                                                                                                                                                                                          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 Share





 
            Year Ended December 31, 2024



 
            Brokerage, as reported                                                                                              $2,259                  $573               $1,686                                $8                      $1,678                      $7.46





 Net (gains) on divestitures                                                                                                        (24)                  (6)                (18)                                                        (18)                    (0.08)



 Acquisition integration                                                                                                             191                    48                  143                                                          143                       0.63



 Workforce and lease termination                                                                                                     118                    30                   88                                                           88                       0.39



 Acquisition related adjustments                                                                                                      85                    22                   63                               (3)                         66                       0.28



 Amortization of intangible assets                                                                                                   651                   165                  486                                                          486                       2.16



 Effective income tax rate impact                                                                                                                           7                  (7)                                                         (7)                    (0.03)



 Levelized foreign currency translation                                                                                               13                     5                    8                                                            8                       0.04





 Brokerage, as adjusted                                                                                                           $3,293                  $844               $2,449                                $5                      $2,444                     $10.85





 
            Risk Management, as reported                                                                                          $238                   $63                 $175                 
    
     $    -                       $175                      $0.78





 Acquisition integration                                                                                                               3                     1                    2                                                            2                       0.01



 Workforce and lease termination                                                                                                       8                     2                    6                                                            6                       0.03



 Amortization of intangible assets                                                                                                    14                     4                   10                                                           10                       0.04





 Risk Management, as adjusted                                                                                                       $263                   $70                 $193                        
   $    -                       $193                      $0.86





 
            Corporate, as reported                                                                                              $(622)               $(232)              $(390)                 
   
      $   -                     $(390)                   $(1.74)





 Transaction-related costs                                                                                                            32                     6                   26                                                           26                       0.12



 Legal and tax related                                                                                                                                    (3)                   3                                                            3                       0.02



 Clean energy-related                                                                                                                (2)                                      (2)                                                         (2)                    (0.01)





 Corporate, as adjusted                                                                                                           $(592)               $(229)              $(363)                       
    $   -                     $(363)                   $(1.61)





 See "Information Regarding Non-GAAP Measures" on page 9 of 15.

Contact:
Ray Iardella
Vice President - Investor Relations
630-285-3661 or ray_iardella@ajg.com

(15 of 15)

See "Information Regarding Non-GAAP Measures" on page 9 of 15.

View original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-announces-fourth-quarter-and-full-year-2025-financial-results-302674461.html

SOURCE Arthur J. Gallagher & Co.

© 2026 Canjex Publishing Ltd. All rights reserved.