Q2 2026 Arthur J. Gallagher & Co. Earnings Call Transcript
Key Points
- Delivered 24% total revenue growth in Q2 2026, driven by strong organic growth of 6% and successful acquisitions.
- Marked 25 consecutive quarters of double-digit adjusted EBITDAC growth, with solid underlying margin expansion.
- Gallagher Bassett (Risk Management) posted 16% revenue growth, including 12% organic, driven by excellent new business and strong client retention.
- Completed 7 new tuck-in acquisitions in Q2, with a robust pipeline of over 30 term sheets representing ~$500 million in annualized revenues.
- AssuredPartners integration is performing well, with strong retention and synergies on track to reach $160 million by end of 2026 and up to $325 million by early 2028.
- Property pricing continued to soften, with renewal premiums down 10% in Q2, impacting overall organic growth.
- Organic growth in brokerage was 5%, slightly below the full-year target of 5.5%, with some seasonality expected in Q3.
- M&A activity is running at about 80% of historical average, with sellers adjusting to lower valuation multiples, potentially slowing deal flow.
- Employee benefits organic growth remains modest at 3-4%, with no significant acceleration expected in the near term.
- The company faces ongoing comparability noise from prior-year investment income on AssuredPartners funds, which complicates financial analysis.
Good afternoon, and welcome to Arthur J. Gallagher & Company's second quarter 2026 earnings conference call. (Operator Instructions) Today's call is being recorded. If you have any objections, you may disconnect at this time.
Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially. Please refer to the information concerning forward-looking statements and risk factors sections contained in the company's most recent 10-K, 10-Q and 8-K filings for more details on such risks and uncertainties.
In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of
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