Yahoo Finance

• Revenue: Increased 9% to $7.1 billion, with underlying growth of 4%.

• Adjusted Operating Income: Increased 8% to $2.2 billion.

• Adjusted Operating Margin: 31.8%.

• Adjusted EPS: $3.06, up 5% from the previous year.

• Stock Repurchase: $300 million in the quarter.

• Risk and Insurance Services Revenue: $4.8 billion, up 11% or 4% on an underlying basis.

• Consulting Revenue: $2.3 billion, up 5% or 4% on an underlying basis.

• Assets Under Management: $613 billion at the end of the first quarter.

• Interest Expense: $245 million, up from $159 million in the first quarter of 2024.

• Cash Position: $1.6 billion at the end of the first quarter.

• Capital Deployment Expectation for 2025: Approximately $4.5 billion across dividends, acquisitions, and share repurchases.

• Warning! GuruFocus has detected 7 Warning Sign with MMC.

Release Date: April 17, 2025

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

Positive Points

• Marsh & McLennan Companies Inc (NYSE:MMC) reported a 9% increase in consolidated revenue for the first quarter, reaching $7.1 billion.

• The company achieved an 8% growth in adjusted operating income, with an adjusted operating margin of 31.8%.

• Marsh & McLennan Companies Inc (NYSE:MMC) experienced 4% underlying revenue growth across all four of its businesses.

• The acquisition of McGriff is progressing well, with the integration on track and expected to be accretive to adjusted EPS by 2026.

• The company repurchased $300 million of stock in the first quarter, demonstrating strong capital management.

Negative Points

• The adjusted operating margin declined by 20 basis points compared to the first quarter of 2024, reflecting seasonality at McGriff.

• The global economic outlook remains uncertain, with ongoing trade negotiations impacting consumer and business confidence.

• Fiduciary income decreased by $19 million compared to the first quarter of last year due to lower interest rates.

• Foreign exchange posed a $0.05 headwind in the first quarter, adding volatility to earnings predictions.

• The insurance market saw a 3% decrease in rates in the first quarter, with global property rates declining by 6% year over year.

Q & A Highlights

Q: Can you provide additional color on the impact of tariffs and trade issues on your business, and how it might affect your risk and consulting segments? A: John Doyle, President and CEO, explained that while it's difficult to predict the exact impact on a country-by-country basis, there are no direct impacts currently. However, global GDP may slow, affecting business confidence and market volatility. This could create challenges and opportunities in their investment and advisory work. The situation remains fluid, and a quicker resolution to trade negotiations would be beneficial for the global economy.