Gallagher Delivers 30% Q4 Revenue and EBITDA Growth, Targets 5.5% and 7% Growth
Arthur J. Gallagher reported 30% fourth-quarter revenue growth, including 5% organic gains, and 30% adjusted EBITDA growth—its 23rd straight quarter of double-digit EBITDA expansion. Brokerage revenue rose 38% (5% organic) and risk management revenue grew 13% (7% organic), with 2026 organic growth targets set at 5.5% and 7% respectively.
1. Strong Q4 and Full-Year 2025 Performance
Arthur J. Gallagher & Co. delivered more than 30% revenue growth in Q4 2025, driven by a two-pronged strategy of 5% organic growth and an active M&A engine. Adjusted EBITDA also rose 30%, marking the firm’s 23rd consecutive quarter of double-digit adjusted EBITDA growth. For the full year, the company reported over $3.5 billion of annualized acquired revenue and sustained mid-single-digit organic growth across its core businesses.
2. Segment Highlights and Margin Expansion
In the brokerage segment, Q4 revenues jumped 38% with 5% organic growth, and adjusted EBITDA margin expanded by approximately 50 basis points to 32.2%. Organic growth by region included Americas retail P&C up 5%, UK/EMEA up 7%, APAC up 3%, U.S. wholesale up 7%, reinsurance up 8% and benefits up 1%. Gallagher Bassett (risk management) posted 13% revenue growth, including 7% organic growth, and achieved a 21.6% adjusted EBITDA margin, slightly above prior guidance.
3. 2026 Outlook and Pricing Environment
Management reaffirmed expectations for mid-single-digit organic growth in brokerage (around 5.5%) and higher organic growth in risk management (around 7%) in 2026, with brokerage margins projected to expand by 40–60 basis points and risk management margins in the 21%–22% range. Renewal premiums rose in low single digits in Q4, with casualty rates up about 7% in the U.S. and property down roughly 5%. The firm anticipates casualty pricing increases of 7%–8% next year and expects a sustained buyer’s market in reinsurance given ample capacity.
4. Integration of AssuredPartners and M&A Capacity
Progress on the AssuredPartners deal remains ahead of plan, with all U.S. retail operations rebranded and back-office integration substantially complete. The company maintains targets of $160 million in annualized synergies by end-2026, rising to $260–$280 million by early 2028. Gallagher closed seven acquisitions in Q4 representing $145 million of annualized revenue and has a pipeline of over 40 signed or in-process term sheets totaling approximately $350 million. With near $10 billion of potential M&A capacity over two years and $713 million of tax credit carryforwards, the firm is well-positioned to fund future growth.