Aon NYSE: AON executives highlighted what they described as strong execution in 2025, pointing to sustained organic revenue growth, margin expansion, and rising free cash flow, while outlining a 2026 outlook that calls for continued mid-single-digit or better organic growth and additional profitability gains.
Strategy update: 3x3 plan, ABS, and innovation
CEO Greg Case said 2025 marked “great strategic progress” as the company advanced the disciplined execution of its “3x3 plan,” which is designed to accelerate Aon United by integrating risk capital and human capital, expanding Aon Client Leadership, and leveraging Aon Business Services (ABS) to improve capability, innovation, and efficiency.
Case emphasized innovation as a recurring theme, citing expansions to Aon’s Risk Analyzers and the launch of Aon Broker Copilot and Claims Copilot. He also pointed to growth in alternative capital solutions, noting cat bond market issuance rose more than 40% in 2025, while Aon’s issuance increased more than 50%, including structures that may involve parametric triggers.
Case also discussed initiatives in population health, including strategies around GLP-1 medications for employers managing healthcare costs, and highlighted the company’s Data Center Lifecycle Insurance Program (DCLP). He said the DCLP program was expanded by $1 billion, bringing total capacity to $2.5 billion.
Full-year 2025 results: revenue growth and margin expansion
CFO Edmund Reese said results for the year were in line with the company’s guidance for mid-single-digit or greater organic growth, margin expansion, strong earnings growth, and double-digit free cash flow growth.
- Organic revenue growth: 6% for the full year, marking the second consecutive year at that level
- Total revenue: up 9% year-over-year to $17 billion
- Adjusted operating margin: 32.4%, up 90 basis points year-over-year
- Adjusted EPS: $17.07, up 9%
- Free cash flow: $3.2 billion, up 14% year-over-year
Reese said Aon’s margin expansion was supported by ABS-enabled scale improvements, disciplined expense management including NFP operating expense synergies, and benefits from a restructuring initiative tied to the 3x3 plan. He said the company ended the year with $160 million in restructuring savings, $10 million ahead of plan, including $50 million of savings in the fourth quarter.
Fourth quarter: organic growth of 5% and margin expansion of 220 bps
For the fourth quarter, Reese reported 5% organic revenue growth and total revenue of $4.3 billion, up 4% year-over-year (noting the impact of wealth and other dispositions). Adjusted operating margin expanded 220 basis points to 35.5%. Adjusted EPS rose 10% to $4.85, and free cash flow increased 16%.
Reese said both commercial risk and reinsurance delivered “6% or better” growth in the quarter, driven by new business and strong retention. In commercial risk, 6% growth reflected strength in core P&C globally, including the U.S., EMEA, and Latin America. He added that construction delivered another quarter of double-digit growth, citing demand for large global infrastructure projects, including data center construction for major technology clients.
Reinsurance grew 8%, driven by double-digit growth in insurance-linked securities and the strategy and technology group, along with strength in facultative placements. Reese said insurance-linked securities benefited from record cat bond issuance, with $59 billion outstanding, and noted growing investor demand for uncorrelated asset classes.
In other business lines, health solutions grew 2% in the quarter, which Reese attributed to mid-single-digit growth in core health and benefits offerings in the U.S. and EMEA, partially offset by delayed closed sales shifting into Q1 2026 and slower discretionary spend in talent solutions. Wealth grew 2%, in line with prior guidance of 1%-2%, led by advisory demand in the U.K. and EMEA tied to regulatory change.
Talent, NFP integration, and capital allocation
Management repeatedly framed talent as a key growth driver. Case and Reese said Aon continued investing in priority growth areas and emphasized the role of ABS and AI-enabled tools in helping new and existing colleagues be more effective with clients. Reese said revenue-generating talent increased a net 6% in 2025, within the company’s 4%-8% objective. He also said the 2024 and 2025 hiring cohorts contributed roughly 50 basis points to 2025 organic revenue growth, and the company plans to expand revenue-generating headcount by another 4%-8% in 2026.
On retention, Reese said Q4 retention remained strong at a “mid-90s” rate, supported by continued improvement in commercial risk and reinsurance and increased engagement through the Enterprise Client Group, as well as enhanced service delivery from ABS.
Reese also highlighted progress integrating NFP, describing critical milestones and noting the sale of the NFP Wealth business as part of disciplined portfolio management. He said strong operating cash generation and the divestiture contributed to “total capital available in 2026” of $7 billion.
In capital deployment, Reese said Aon paid down $1.9 billion of debt in 2025 and lowered its leverage ratio to 2.9x, consistent with the objective set at the time of the NFP acquisition. He said the company returned $1.6 billion of capital to shareholders in 2025, including $1 billion in share repurchases. He also said NFP completed middle market tuck-in acquisitions totaling $42 million of EBITDA for the year, which he described as in line with expectations.
During Q&A, Reese said the company expects to repurchase “at least $1 billion” of shares in 2026, while maintaining flexibility for M&A. He described a robust acquisition pipeline but said opportunities must meet strategic and financial criteria, noting that valuations for high-quality assets have remained resilient and that sellers often anchor to trailing EBITDA and prior transaction comps.
2026 outlook: organic growth, margin expansion, and free cash flow guidance
Reese provided full-year 2026 guidance that includes:
- Organic revenue growth: mid-single-digit or greater
- Adjusted operating margin expansion: 70-80 basis points
- Adjusted EPS growth: described as “strong”
- Free cash flow growth: double-digit, with $4.3 billion expected from operating income and working capital improvements (before the tax impact tied to NFP Wealth proceeds)
Reese said the margin outlook includes a 20-basis-point dilution from lower interest rates reducing fiduciary investment income, about 50 basis points of benefit from $100 million of restructuring savings in 2026 (part of $180 million of savings expected over 2026 and 2027), and 40-50 basis points of expansion from operating leverage in the ABS platform.
He added that adjusted EPS guidance includes a two-point FX tailwind (assuming current rates remain stable), a two-point headwind from the sale of the NFP Wealth business, an expected tax rate of 19.5%-20.5% excluding extraordinary items, and a non-cash pension expense of $80 million.
On free cash flow, Reese said the tax impact from more than $2 billion of proceeds generated from the NFP Wealth sale will reduce free cash flow by about $300 million, reflected in operating cash flows, prior to any benefit from use of the proceeds.
About AON NYSE: AON
Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
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