Aon Q4 EPS Tops by $0.10 with $4.30B Revenue, $0.745 Dividend
During Q4, Aon reported EPS of $4.85, beating consensus by $0.10, and revenue of $4.30 billion, while net margin stood at 15.96% and return on equity at 48.88%. Mirae Asset increased its Q3 stake by 11.1% to 31,043 shares worth $11.07M, and Aon declared a $0.745 dividend payable February 13.
1. Institutional Investor Moves
Mirae Asset Global Investments Co. Ltd. increased its stake in Aon plc by 11.1% during the third quarter, adding 3,100 shares to bring its total holding to 31,043 shares valued at approximately $11.07 million as of the latest SEC 13F filing. Other notable adjustments include Bank of New York Mellon Corp boosting its position by 5.9% to 3.72 million shares (worth about $1.32 billion), Federated Hermes Inc. growing its stake by 48.5% to 943 shares ($336,000), One Wealth Advisors LLC increasing its holding by 10.9% to 793 shares ($283,000), Phoenix Financial Ltd. nearly doubling its position with a 98.6% rise to 6,243 shares ($2.23 million), and Vanguard Personalized Indexing Management LLC adding 1,009 shares for a 3.8% increase to 27,565 shares ($9.83 million). Institutional ownership now stands at 86.14%.
2. Q4 Earnings and Financial Metrics
In the fourth quarter, Aon reported adjusted earnings per share of $4.85, surpassing the consensus estimate of $4.75 by $0.10. Revenue totaled $4.30 billion, reflecting a 3.7% year-over-year increase but falling short of analysts’ projection of $4.38 billion. The company achieved a net margin of 15.96% and a return on equity of 48.88%. Free cash flow grew by 14% year-over-year, while the balance sheet strength was further underscored by a reduction in net debt of $1.9 billion during the year.
3. Dividend Declaration and Yield
Aon declared a quarterly dividend of $0.745 per share, payable on February 13th to shareholders of record as of February 2nd, representing an annualized dividend of $2.98 and a yield of approximately 0.9%. The dividend payout ratio stands at 23.88%, reflecting the company’s focus on returning capital to shareholders while maintaining ample liquidity for strategic investments and share repurchases.
4. Analyst Ratings and Outlook
Wall Street sentiment remains constructive, with twelve analysts issuing Buy ratings and seven assigning Hold ratings, resulting in an average recommendation of Moderate Buy. Price targets range from $387 to $449, with Evercore ISI and Wells Fargo & Company among those maintaining outperform and overweight views based on Aon’s resilient new business pipeline and strong client retention. Sell-side forecasts call for full-year earnings per share of 17.21, supported by ongoing margin expansion initiatives under the 3x3 and Aon United strategic frameworks.