Q3 2024 Arthur J. Gallagher & Co. Earnings Call Transcript
Key Points
- Arthur J. Gallagher & Co (AJG) reported a strong third quarter with 13% growth in revenue and 6% organic growth.
- The company achieved a reported net earnings margin of 15.5% and an adjusted EBITDAC margin of 31.9%, up 123 basis points year over year.
- GAAP earnings per share increased to $1.90, and adjusted earnings per share rose to $2.72, marking a 16% year-over-year increase.
- The brokerage segment saw a 13% revenue growth with an organic growth of 6%, and an adjusted EBITDAC margin expansion of 137 basis points to 33.6%.
- The risk management segment, Gallagher Bassett, posted a 12% revenue growth with 6% organic growth and an adjusted EBITDAC margin of 20.8%, up 35 basis points from the previous year.
- The company faced a timing headwind in the brokerage segment due to large life cases, impacting organic growth.
- Canada's performance was relatively flat, indicating potential challenges in that market.
- The corporate segment experienced a $9 million unrealized noncash foreign exchange remeasurement expense, causing some noise in financial results.
- The company anticipates a potential impact on contingent commissions from recent storms, though expected to be minimal.
- The M&A activity was slower in the third quarter compared to previous years, potentially due to market conditions and the upcoming presidential election.
Good afternoon. Welcome to Arthur J. Gallagher & Company's third-quarter 2024 earnings conference call. (Operator Instructions) Today's call is being recorded. (Operator Instructions)
Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call.
These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the information concerning forward-looking statements in Risk Factors sections contained in the company's most recent 10-K, 10-Q, and 8-K filings for more details on such risks and uncertainties.
In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
