Aon 2025-26: 6% Organic, 32.4% Margin, FY26 +70-80bp
FY25 revenue $17.18B (+9% reported / +6% organic); Op income $4.34B (+13%); NI $3.70B (+39%); EPS $17.02 (+36%). Adj op margin 32.4% (+90bp). Q4 organic +5% (Commercial Risk + Reinsurance each +6%+); Health +2%, Wealth +2%. FY26 guide: organic +mid-single-digit, op margin +70-80bp, double-digit FCF growth.
Key takeaways
- 6% full-year organic growth — strong for an insurance broker. FY25 organic at +6% with Q4 +5%; total reported revenue +9% on FY24 NFP acquisition annualization. Commercial Risk + Reinsurance each grew +6%+. Health + Wealth +2% (modest).
- Operating margin expanded 90bp to 32.4%. Q4 alone +220bp to 35.5%. Restructuring savings + Aon Business Services (ABS) + operating leverage all contributing. Industry-leading among insurance brokers.
- Three-by-Three plan executing. Risk + human capital + client leadership integration. Aon Broker Copilot + Claims Copilot + risk analyzers — AI-assisted broker tools driving productivity + client win rates.
- NFP integration on schedule. $13.4B acquisition closed early FY24 in middle market. Cross-sell + cost synergies + middle-market platform extension on track.
- FY26 guide: organic +mid-single-digit, op margin +70-80bp, double-digit FCF growth. Mgmt has consistently delivered through-cycle organic growth + margin expansion.
Business
Aon plc is the second-largest insurance broker globally (behind Marsh McLennan), specializing in risk + reinsurance + health + wealth advisory. Five primary solution lines:
- Commercial Risk Solutions (~37% of revenue): Property + casualty + cyber + financial lines + crisis management for corporate clients. Commercial brokerage + risk advisory.
- Reinsurance Solutions (~17% of revenue): Reinsurance brokerage + capital markets + analytics. Reinsurance market is hard cycle benefitting; +6%+ Q4 growth.
- Health Solutions (~22% of revenue): Employer health + benefits brokerage + administration + wellness. Q4 +2% organic — modest.
- Wealth Solutions (~14% of revenue): Investment advisory + retirement consulting + delegated investment services. Q4 +2% — modest.
- Other / corporate (~10%): Captive insurance services + Aon Business Services (ABS) shared technology platform.
NFP acquisition (closed Q2 FY24, $13.4B): middle-market property + casualty + benefits brokerage. Adds ~$2B+ of revenue + meaningful presence in mid-market segment where Aon was previously underweight.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 13.38 | 15.70 | 17.18 |
| Gross profit ($B) | 6.47 | 7.42 | 8.20 |
| Op income ($B) | 3.79 | 3.84 | 4.34 |
| Op margin (GAAP) | 28.3% | 24.5% | 25.3% |
| Adj op margin | ~31.4% | ~31.5% | 32.4% |
| EBITDA ($B) | 3.91 | 4.94 | 5.35 |
| Net income ($B) | 2.56 | 2.65 | 3.70 |
| Diluted EPS ($) | 12.51 | 12.49 | 17.02 |
| FCF ($B) | 3.18 | 2.82 | 3.22 |
| Capex ($M) | -252 | -218 | -263 |
| Total debt ($B) | 12.03 | 17.89 | 16.53 |
| Dividends ($M) | -489 | -562 | -629 |
| Buyback ($B) | -2.70 | -1.00 | -1.00 |
The earnings print: Revenue +9% reported / +6% organic. Adj op margin 32.4% (+90bp) — best in peer group. EPS $17.02 (+36%) — operating leverage + buyback + tax efficiency. FCF $3.22B (+14%) — strong cash conversion.
Total debt down to $16.5B from $17.9B post-NFP — paying down deal financing.
Capital allocation
- Capex: $-263M FY25 (1.5% of revenue). Capital-light services model.
- Dividends: $-629M FY25 (+12% YoY). Continued raise.
- Buybacks: $-1.0B FY25 (consistent FY24 pace post-NFP). Pre-NFP pace was $2.7B.
- M&A: NFP integration; smaller bolt-ons.
- Debt management: $16.5B (-$1.4B YoY). Continued paydown post-NFP.
FY26 outlook (per Q4 2025 call, 2026-01-30)
| FY26 guide | Range / target |
|---|---|
| Organic revenue growth | Mid-single-digit (+) |
| Operating margin expansion | 70-80bp |
| FCF growth | Strong double-digit |
| Adj EPS growth | Strong (operating leverage + buyback) |
The 70-80bp op margin expansion drives most of the EPS growth. Combination of restructuring savings annualizing + ABS (Aon Business Services) operating leverage + lower interest expense on continued debt paydown + continued NFP synergies.
Key risks
- Insurance market cycle: Hard market in P&C + reinsurance currently favorable. Soft market would compress commission revenue.
- NFP integration tail: Year 2 of full integration. Cost synergies on track but customer retention + cultural fit risks remain.
- Health Solutions softness: +2% Q4 reflects modest demand for employer health + benefits brokerage. If structural shift continues, segment margin compresses.
- Regulatory: PBM-related regulation could affect employer health benefits side. Other regulatory frameworks across multiple jurisdictions.
- Talent retention: Insurance broking is talent-intensive. Compensation cost pressure + competitor poaching are continuing risks.
- Currency: ~30% revenue international; FX exposure.
Bottom line
AON FY25 is the textbook quality services compounder year — revenue +9% reported / +6% organic, op margin +90bp, EPS +36%. FY26 guide mid-single-digit organic + 70-80bp op margin expansion + double-digit FCF growth. The structural read: insurance brokerage leadership + multi-line diversification + AI-assisted broker tools + NFP middle-market expansion + consistent capital return. Risks are insurance market cycle + NFP integration + Health Solutions softness; manageable at current scale.
Citations
- Aon plc FY25 Form 10-K (filed February 2026, SEC EDGAR).
- Aon Q4 2025 earnings call, 2026-01-30 — full-year organic +6%, total revenue +9% to $17B, Q4 organic +5%, adj op margin 32.4% (+90bp); Q4 organic Commercial Risk + Reinsurance each +6%+, Health +2%, Wealth +2%; FY26 guide (mid-single-digit organic, 70-80bp op margin expansion, double-digit FCF growth, strong adj EPS).
- Internal financial_statements view (consolidated annual + cash flow + capital structure).