AJG Arthur J. Gallagher & Co.

Overview and Growth

In fiscal 2025, Arthur J. Gallagher & Co. recorded $13.94B of revenue, net income of $1.49B, and an operating cash inflow of $1.93B. At $13.94B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 20.7% from $11.55B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $5.74, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $6.50 in fiscal 2024, the current result was 11.7% lower. The company employed $70.67B of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.2x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The bottom-line result was net income of $1.49B, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 10.7% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $1.87B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 13.4%, relating income before taxes directly to revenue. The company recognized $368.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 19.7% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 6.4% of period-end equity, showing the earnings generated on shareholders’ book capital. Return on period-end assets was 2.1%, connecting net income with the company’s total asset base. The company moved from fiscal 2024 net income of $1.46B to $1.49B, with the current outcome ending above that comparison.

Liquidity and Capital Structure

The company held $70.67B of assets against $47.32B of liabilities and $23.35B of equity, revealing how the asset base was financed. The near-term balance sheet paired $34.36B of current assets with $32.52B of current liabilities at the reporting date. Current assets covered current liabilities by 1.06x, leaving a positive buffer for near-term obligations. The company held $1.40B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 4.3%, excluding receivables and other current assets. The company carried $12.74B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.55x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 18.0%, comparing borrowing with the total asset balance. Equity equaled 33.0% of assets, showing the shareholder-capital layer within the company’s balance sheet. Liabilities represented 67.0% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 2.0% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 10.0% from $64.25B in fiscal 2024, leaving current total assets higher year over year. Book equity was 15.7% higher than fiscal 2024 equity of $20.18B, showing how shareholder capital changed year over year. Cash and equivalents were 90.7% lower than fiscal 2024 cash of $14.99B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $1.93B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.29x of net income, showing how strongly accounting earnings converted into cash from operations. Compared with $2.58B in fiscal 2024, current operating cash flow of $1.93B was below the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.