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Investing.com -- Aon plc reported second-quarter 2025 adjusted earnings that exceeded analyst expectations, driven by strong organic revenue growth across its business segments and improved operational efficiency.
The firm posted adjusted earnings per share of $3.49, surpassing the analyst consensus estimate of $3.40. Total (EPA:TTEF) revenue increased 11% to $4.16 billion, slightly below the consensus estimate of $4.17 billion but representing 6% organic growth compared to the same quarter last year. Aon (NYSE:AON)’s stock rose 1% following the announcement.
The company’s Risk Capital segment, which includes Commercial Risk Solutions and Reinsurance Solutions, saw revenue increase 8% to $2.9 billion, while Human Capital revenue grew 15% to $1.3 billion. Both segments achieved 6% organic revenue growth, with particularly strong performance in core property and casualty insurance, M&A services, and health benefits.
"We delivered strong second quarter results, including 6% organic revenue growth, 19% growth in adjusted EPS, and 59% free cash flow growth," said Greg Case, president and CEO of Aon. "This performance reflects the growing demand for our advice and solutions, driven by an increasingly complex environment and the need to unlock new sources of capital."
Adjusted operating income rose 14% to $1.17 billion, with adjusted operating margin expanding 80 basis points to 28.2%. The company attributed this improvement to organic revenue growth, contributions from its NFP acquisition, and $35 million in net restructuring savings.
Free cash flow for the first half of 2025 increased 13% to $816 million compared to the same period last year, reflecting strong adjusted operating income growth and improvements in days sales outstanding.
The company reaffirmed its full-year 2025 guidance, expressing confidence in its outlook based on first-half performance and continued execution of its Aon United strategy.