Aon Reports Fourth-Quarter and Full-Year 2025 Results

Aon plc (NYSE: AON) reported results for the three and twelve months ended December 31, 2025.

• Aon delivered another quarter of strong performance and finished 2025 with 9% total revenue growth, 6% organic revenue growth and double-digit free cash flow growth, demonstrating the durability and consistency of our growth model
• We paid down $1.9 billion in debt in 2025 and successfully met our leverage objective in the fourth quarter. We expect our strong balance sheet position will enable us to execute our disciplined capital allocation model in 2026, balancing investment in high-return M&A and capital return to shareholders
• We are introducing 2026 guidance that reflects the power of our Aon United strategy, accelerated through the 3x3 Plan. For 2026, we expect mid-single-digit or greater organic revenue growth, 70 to 80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth

"Our fourth-quarter and full-year results reflect the strong execution of our 3x3 Plan, accelerating our client-centric Aon United strategy," said Greg Case, president and CEO. "In the fourth quarter, we delivered 5% organic revenue growth and 16% free cash flow growth, and we achieved all of our full-year objectives, including a second straight year of 6% organic revenue growth."

"Our strategic investments in data-driven insights and capabilities through Aon Business Services are enabling us to meet rising client demand in an increasingly complex environment," Case added. "We are entering 2026 with momentum and are well positioned to continue to deliver for our clients, generate sustainable growth and create long-term shareholder value."

Net income attributable to Aon shareholders in the fourth quarter increased 138%, to $7.82 per share on a diluted basis, compared to $3.28 per share on a diluted basis in the prior-year period. Adjusted net income per share attributable to Aon shareholders increased 10% to $4.85 on a diluted basis, compared to $4.42 in the prior-year period. Certain items that impacted fourth-quarter results and comparisons with the prior-year period are detailed in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin, and Diluted Earnings Per Share" on page 12 of this press release.

FOURTH-QUARTER 2025 FINANCIAL SUMMARY

Total revenue in the fourth quarter increased 4% to $4.3 billion compared to the prior-year period, reflecting 5% organic revenue growth and a 2% favorable impact from foreign currency translation, partially offset by a 3% unfavorable impact from acquisitions, divestitures and other items. Risk Capital revenue increased $171 million, or 7%, to $2.7 billion and Human Capital revenue decreased $16 million, or 1%, to $1.6 billion.

Total operating expenses in the fourth quarter increased 1% to $3.1 billion compared to the prior-year period, due primarily to the increase in expense associated with 5% organic revenue growth, an unfavorable impact from foreign currency translation and higher Accelerating Aon United Program expenses, partially offset by lower expenses associated with the sale of NFP Wealth and $50 million of net restructuring savings realized in the quarter, as well as lower compensation expense. Risk Capital operating expenses increased $143 million, or 8%, to $1.9 billion and Human Capital operating expenses decreased $110 million, or 10%, to $1.0 billion.

Foreign currency translation in the fourth quarter had a $0.09 per share favorable impact on diluted EPS and a $0.10 per share favorable impact on adjusted EPS. If currency were to remain stable at today's rates, the Company would expect a favorable impact of approximately $0.36 per share in the first quarter of 2026 and a favorable impact of approximately $0.39 per share for full year 2026.

Effective tax rate for the fourth quarter was 22.9%, compared to 17.6% in the prior-year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the fourth quarter of 2025 was 20.0% compared to 16.7% in the prior-year period. The primary drivers of the change in the effective tax rate and adjusted effective tax rate were changes in the geographical distribution of income and a lower favorable impact from discrete items.

Weighted average diluted shares outstanding decreased to 216.5 million in the fourth quarter, compared to 218.3 million in the prior-year period. The Company repurchased approximately 0.7 million class A ordinary shares for approximately $250 million in the fourth quarter. As of December 31, 2025, the Company had approximately $1.3 billion of remaining authorization under its share repurchase program.

FULL-YEAR 2025 CASH FLOW SUMMARY

The full-year 2025 cash flow summary provided below includes supplemental information related to free cash flow, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 11 of this press release.

Cash flows provided by operations for 2025 increased $446 million, or 15%, to $3.5 billion compared to the prior-year period, due primarily to strong adjusted operating income growth and lower NFP-related transaction costs, partially offset by working capital headwinds.

Free cash flow, defined as cash flow from operations less capital expenditures, increased $401 million, or 14%, to $3.2 billion in 2025 compared to the prior year, reflecting an increase in cash flows from operations, partially offset by a $45 million increase in capital expenditures.

FOURTH-QUARTER 2025 REVENUE REVIEW

The fourth-quarter revenue reviews provided below include supplemental information related to organic revenue growth, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 11 of this press release.

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