Q2 2026 Baldwin Insurance Group, Inc Earnings Call Transcript
Key Points
- Total revenue grew to $493 million with adjusted EBITDA up 37% year-over-year to $117 million, and adjusted free cash flow surged 437% to $46 million.
- CAC Group delivered exceptional performance with 23% revenue growth in Q2, 43% year-to-date increase in booked new business, and strong sales velocity of 59%.
- Underlying organic revenue growth, excluding one-time headwinds and including new partnerships, was 8%, indicating strong momentum in the core business.
- The company is making significant progress with AI initiatives, converting over 47,000 tasks at a 98%+ quality rate, leading to cost reductions and productivity gains.
- Main Street Insurance Solutions organic growth improved to 4% in Q2, with normalized growth of approximately 10% excluding QBE and Medicare impacts, driven by strong mortgage and homebuilder momentum.
- The company repurchased approximately 4 million shares for $80 million, demonstrating confidence in intrinsic value and capital allocation discipline.
- Organic revenue growth was only 2% in Q2, impacted by a 240 basis point headwind from rate and exposure and a 150 basis point headwind from a procedural accounting change.
- Legacy IAS organic revenue declined 2% due to integration-related attrition of approximately $8 million in annualized revenue, with an expected $4-5 million impact in the back half of 2026.
- UCTS organic growth was impacted by a $4 million year-over-year revenue reduction at Juniper Re due to softer reinsurance pricing and a one-time stub cover.
- Net leverage increased to approximately 4.5 times, at the top end of the company's target range, limiting near-term buyback capacity.
- The company faces ongoing headwinds from a softening insurance market, particularly in property and casualty lines, which could pressure future rate and exposure growth.
- GAAP net loss attributable to Baldwin was $39 million in Q2, reflecting significant non-cash charges and one-time expenses.
Good day, and thank you for standing by. Welcome to the Baldwin Group second quarter 2026 earnings call. (Operator Instructions) Today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Bonnie Bishop, Executive Director of Investor Relations. Please go ahead.
Thank you. Welcome to the Baldwin Group's second quarter 2026 earnings call. Today's call is being recorded. Second quarter financial results, supplemental information and the company's Form 10-Q were issued earlier this afternoon and are available on the company's website at ir.baldwin.com.
Please note that remarks made today may include forward-looking statements subject to various assumptions, risks and uncertainties including, for example, our strategy with respect to our capital allocation in the future. The company's actual results may differ materially from those contemplated by such statements. For a more detailed discussion, please refer
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
