Aon shares fall as q1 earnings miss estimates

Published 25/04/2025, 11:26
Aon shares fall as q1 earnings miss estimates

NEW YORK - Insurance broker Aon plc (NYSE:AON) reported first quarter earnings that fell short of analyst expectations, sending shares down 2.5% in early trading on Friday.

Aon posted adjusted earnings per share of $5.67, missing the consensus estimate of $6.03. Revenue for the quarter came in at $4.73 billion, below analyst projections of $4.84 billion. Despite the miss, total revenue grew 16% YoY, while organic revenue increased 5%.

The company reaffirmed its 2025 guidance, including mid-single-digit or greater organic revenue growth, adjusted operating margin expansion, and double-digit free cash flow growth.

"Aon has momentum entering year two of the 3x3 Plan and our continued execution drove another quarter of mid-single-digit Organic revenue growth and strong operating performance," said Greg Case, president and CEO of Aon.

Free cash flow generation enabled continued targeted tuck-in acquisitions and $397 million of capital return to shareholders through dividends and share repurchases. The company also announced a 10% increase to its quarterly dividend, marking the 15th consecutive year of dividend growth.

Aon reported 12% growth in adjusted operating income for the quarter. The company stated it remains on track to reach its 2.8-3.0x leverage objective by the fourth quarter of 2025.

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