Aon plc (NYSE: AON) has released its first-quarter 2025 results, reporting a 16% increase in total revenue to $4.7 billion compared to the same period in 2024. The company achieved mid-single-digit organic revenue growth, reaching 5%, and delivered adjusted earnings per share (EPS) of $5.67. Notably, Aon announced a 10% increase to its quarterly dividend, marking the 15th consecutive year of dividend growth.
Operating income remained steady at $1.461 billion, while adjusted operating income grew by 12% to $1.816 billion. The operating margin stood at 30.9%, down from 36.0% in the prior year. Adjusted operating margin decreased to 38.4% from 39.7% in the same period in 2024.
However, there was a 17% decrease in diluted EPS, which came in at $4.43 compared to $5.35 in the first quarter of 2024. The company reported a 55% decrease in cash provided by operations, down to $140 million, and a 68% decrease in free cash flow, which amounted to $84 million for the first three months of 2025.
In terms of revenue breakdown, risk capital revenue increased by 7% to $3.2 billion, while human capital revenue surged by 40% to $1.5 billion.
The company's total operating expenses increased by 25% to $3.3 billion compared to the first quarter of 2024, primarily due to the inclusion of NFP's ongoing operating expenses, an increase in expenses associated with organic revenue growth, and investments in long-term growth.
Noteworthy expense increases included compensation and benefits, which rose by 19%, and information technology expenses, which increased by 10%.
Looking ahead, Aon reaffirmed its 2025 guidance, including mid-single-digit or greater organic revenue growth, adjusted operating margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth. Aon President and CEO Greg Case emphasized the company's momentum entering year two of the 3x3 plan, attributing the results to robust demand for Aon's risk capital and human capital solutions.
The company will host a conference call on April 25, 2025, to further discuss these results.
Aon plc operates in over 120 countries, providing actionable analytic insight, globally integrated risk capital, and human capital expertise to help clients make better risk and people decisions.
These results reflect the company's resilience and strength in its business and financial model, despite various challenges and changes compared to the prior year period. The market has reacted to these announcements by moving the company's shares -9.6% to a price of $330.0. For more information, read the company's full 8-K submission here.
