Yahoo Finance

• Fourth Quarter Revenue: $1.4 billion, 15% total growth, 14% organic growth over Q4 2023.

• Adjusted EBITDAC Margin: Improved by 200 basis points to 33%.

• Adjusted Earnings Per Share: Grew 24.5% to $0.86.

• Full Year 2024 Revenue: $4.8 billion, 13% total growth, over 10% organic growth.

• Full Year Adjusted EBITDAC Margin: Over 35%, increased by more than 100 basis points.

• Full Year Diluted Net Income Per Share: Grew over 18% to $3.84.

• Cash from Operations: Nearly $1.2 billion generated.

• M&A Activity: 10 acquisitions with estimated annual revenues of $137 million in Q4; $174 million for the full year.

• Retail Segment Organic Growth: 4.4% in Q4; 5.8% for the full year.

• Programs Segment Organic Growth: 38.6% in Q4; 22.4% for the full year.

• Wholesale Brokerage Organic Growth: 7.1% in Q4; 9.1% for the full year.

• Fourth Quarter Income Before Income Taxes: Increased by 27.2%.

• Fourth Quarter EBITDAC Growth: 22.6% increase.

• Fourth Quarter Effective Tax Rate: 24.7%.

• Dividends Paid Per Share: Increased by 15.4% compared to Q4 2023.

• Cash Flow from Operations: $1.174 billion for the full year, 16.2% growth over prior year.

• Warning! GuruFocus has detected 8 Warning Sign with BRO.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Brown & Brown Inc (NYSE:BRO) reported a strong fourth quarter with revenues of $1.4 billion, growing 15% in total and 14% organically over Q4 of 2023.

• The company achieved a significant improvement in its adjusted EBITDAC margin, which increased by almost 200 basis points to 33%.

• For the full year of 2024, Brown & Brown Inc (NYSE:BRO) delivered revenues of $4.8 billion, growing 13% in total and over 10% organically.

• The company completed 10 acquisitions in the fourth quarter with estimated annual revenues of $137 million, enhancing its market position.

• Brown & Brown Inc (NYSE:BRO) generated nearly $1.2 billion of cash from operations, demonstrating strong cash flow management.

Negative Points

• The company anticipates contingent commissions for the full year of 2025 to be down slightly compared to 2024, which could impact profitability.

• There is ongoing downward pressure on CAT property rates, with rates decreasing by 10% to 20%, which may affect revenue from this segment.

• The retail segment's organic growth was partially impacted by the timing of new business and certain nonrecurring revenue, affecting quarterly performance.

• Brown & Brown Inc (NYSE:BRO) faces fierce competition in the M&A market, with increased activity from financial sponsors for smaller and midsized deals.

• The company expects adjusted EBITDAC margins for 2025 to be relatively flat, indicating potential challenges in achieving margin expansion.