AJGMEDIUM SIGNALFINANCIAL10-K

AJG's post-AssuredPartners integration period shows meaningful revenue growth offset by substantially higher interest expense and a notable decline in operating cash flow, signaling a transitional leverage-heavy phase following major M&A activity.

The completion of the AssuredPartners and Woodruff Sawyer acquisitions materially expanded AJG's scale, as reflected in the 10.1% revenue increase and the growth in accounts receivable, but the accompanying debt load has driven interest expense substantially higher year-over-year — a burden that will weigh on net earnings until organic growth and integration synergies take hold. The decline in operating cash flow of approximately 25% warrants monitoring, as it may reflect acquisition-related working capital absorption or one-time integration costs rather than underlying business deterioration, but investors should watch whether this normalizes in coming quarters. Stockholders' equity grew 15.7%, suggesting the balance sheet remains solvent and book value is expanding, but the widening gap between current liabilities ($32.5B) and declining current assets ($34.4B from $44.1B) deserves scrutiny as a liquidity indicator.

Comparing 2026-02-17 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

Revenue grew a solid 10.1% to $6.2B, consistent with AJG's acquisition-driven expansion strategy, while accounts receivable expanded 32.8% to $5.2B — likely reflecting the enlarged client base from recent deals. On the other side of the ledger, interest expense grew substantially to $639.0M, current assets declined meaningfully to $34.4B, and operating cash flow contracted roughly 25% to $1.9B, painting a picture of a company absorbing significant acquisition debt and integration complexity. Stockholders' equity of $23.3B and a modest reduction in share buybacks ($11.3M) suggest capital is being conserved and directed toward deleveraging, making near-term free cash flow recovery the key metric for investors to track.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+67.6%
$381.3M→$639.0M

Interest expense surged 67.6% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
-35.8%
$17.6M→$11.3M

Buyback activity reduced 35.8% — capital being redeployed elsewhere or cash conservation underway.

Accounts Receivable
Balance Sheet
+32.8%
$3.9B→$5.2B

Receivables surged 32.8% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Operating Cash Flow
Cash Flow
-25.3%
$2.6B→$1.9B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Current Assets
Balance Sheet
-22.1%
$44.1B→$34.4B

Current assets declined 22.1% — monitor working capital adequacy and short-term liquidity.

Stockholders Equity
Balance Sheet
+15.7%
$20.2B→$23.3B

Equity base grew 15.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Cash & Equivalents
Balance Sheet
-15%
$402.6M→$342.3M

Cash decreased 15% — monitor burn rate and upcoming capital needs.

Current Liabilities
Balance Sheet
+11.1%
$29.3B→$32.5B

Current liabilities rose 11.1% — increased short-term obligations, watch current ratio.

Revenue
P&L
+10.1%
$5.6B→$6.2B

Revenue growing 10.1% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-18
ADDED
726(b)) by the registered public accounting firm that prepared or issued its audit report Yes x No o .
The number of outstanding shares of the registrant s Common Stock, $1.00 par value, as of January 31, 2026 was 257.1 million.
(which we refer to as Woodruff Sawyer) and Dolphin TopCo, Inc., the holding company of AssuredPartners, Inc.
or foreign tax rate change, such as those resulting from the One Big Beautiful Bill Act (which we refer to as OBBBA), changes to the U.S.
Inflation Reduction Act, the Organisation for Economic Co-operation and Development s (which we refer to as the OECD) global minimum corporate tax regime, and other local policy changes; Competitive pressures, including as a result of innovation, in each of our businesses; Volatility or declines in premiums or other adverse trends in the insurance industry; The higher level of variability inherent in contingent and supplemental revenues versus standard commission revenues; Risks particular to our benefit consulting operations, including risks related to the acquisition of BCHR Holdings, L.P.
and its subsidiaries, dba Buck (which we refer to as Buck) and Redington Ltd.
The brokerage and risk management segments contributed approximately 87% and 13%, respectively, to 2025 revenues.
The corporate segment did not generate any significant revenues in 2025.
Brokerage Segment The brokerage segment accounted for 87% of our revenues in 2025.
Domestic Retail Insurance Brokerage Operations Our retail insurance brokerage operations accounted for 75% of our brokerage segment revenues in 2025.
REMOVED
The number of outstanding shares of the registrant s Common Stock, $1.00 par value, as of January 31, 2025 was 254.7 million .
Information Concerning Forward-Looking Statements This report contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future of Arthur J.
(which we refer to as Cadence Insurance), Eastern Insurance Group, LLC (which we refer to as Eastern Insurance), My Plan Manager Group Pty Ltd (which we refer to as My Plan Manager), and the acquisition of all the issued and outstanding stock of Dolphin TopCo, Inc., the holding company of AssuredPartners, Inc.
or foreign tax rate change, potential changes in guidance related to the U.S.
Inflation Reduction Act, the Organisation for Economic Co-operation and Development s (OECD) global minimum corporate tax regime, and other local policy changes; Competitive pressures, including as a result of innovation, in each of our businesses; Volatility or declines in premiums or other adverse trends in the insurance industry; The higher level of variability inherent in contingent and supplemental revenues versus standard commission revenues; Risks particular to our benefit consulting operations, including risks related to the acquisition of Buck and Redington Ltd.
Form 10-K Summary 126 Signatures 127 Schedule II - Valuation and Qualifying Accounts 128 4 Part I Item 1.
The brokerage and risk management segments contributed approximately 86% and 14%, respectively, to 2024 revenues.
The corporate segment did not generate any significant revenues in 2024.
Brokerage Segment The brokerage segment accounted for 86% of our revenues in 2024.
and approximately 350 sales and service offices in approximately 5 60 countries, most of which are in the Australia, Canada, New Zealand and the U.K.
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