Q1 2026 Brown & Brown Inc Earnings Call Transcript
Key Points
- Brown & Brown Inc (BRO) reported a strong revenue growth of 35.4% for the first quarter, reaching $1.9 billion.
- The company achieved an adjusted EBITDAC margin increase of 40 basis points to 38.5%, indicating improved profitability.
- Adjusted earnings per share grew nearly 8% to $1.39, reflecting solid financial performance.
- The company generated over $260 million in cash flow from operations, showcasing strong cash generation capabilities.
- Brown & Brown Inc (BRO) is leveraging technology and artificial intelligence to enhance customer experience and operational efficiency, positioning itself for future growth.
- Organic revenue growth was flat compared to the prior year, with only a 2.2% increase when including contingents.
- The company faced pressure on CAT property rates, which negatively impacted organic growth metrics by nearly 100 basis points.
- The revenue model change in one of the pharmacy consulting businesses is expected to negatively impact organic growth by 50 to 100 basis points over the next few quarters.
- The integration of Accession negatively impacted EBITDAC margins by approximately 200 basis points for the quarter.
- Geopolitical issues and the cost of oil and gas have led some customers to adopt a more cautious outlook, potentially affecting future growth.
Good morning, and welcome to the Brown & Brown, Inc., first quarter earnings call. Today's call is being recorded.
Please note that certain information discussed during this call, including information contained in the slide presentation posted in connection with this call and including answers given in your response to your questions, may relate to future results and events or otherwise be forward-looking in nature.
Such statements reflect our current views with respect to our future events including those relating to the company's anticipated financial results for the first quarter and are intended to fall within the Safe Harbor provisions of the security laws.
Actual results or events in the future are subject to a number of risks and uncertainties and may differ materially from those currently anticipated or desired or referenced in any forward-looking statements made as a result of a number of factors. Such factors, including the company's determination as it finalizes its financial results for the first quarter that its financial results differ from the current
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