Brown & Brown Q4 Earnings Call Highlights

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MarketBeat

Tue, January 27, 2026 astatine 10:39 AM CST 8 min read

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Strong 2025 financials: Revenue roseate 23% to $5.9 billion (2.8% organic), adjusted EPS was $4.26, and currency from operations accrued 23.5% to $1.45 billion, aided by a grounds 43 acquisitions adding astir $1.8 cardinal of yearly revenue.
Accession acquisition miss and integration plan: Accession contributed astir $405 million successful Q4 versus guidance of $430–$450 million, reducing Q4 adjusted EPS by astir $0.05 and institution margins by ~200 bps; integration is expected to implicit by end-2028 with $30–$40 cardinal of EBITDA synergies targeted for 2026.
Employee departures to startup: Approximately 275 erstwhile employees near for a startup taking known yearly lawsuit gross of $23 million; Brown & Brown has obtained an injunction, plans to support its rights, and whitethorn quantify impacts oregon set integrated maturation if worldly portion keeping its compensation strategy unchanged.
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Brown & Brown (NYSE:BRO) executives highlighted beardown full-year growth, coagulated borderline performance, and continued acquisition enactment during the company’s fourth-quarter net call, portion besides addressing the nonaccomplishment of employees and clients to a startup rival and providing aboriginal expectations for 2026.

CEO Powell Brown said the 4th fourth “capped disconnected different twelvemonth of beardown apical and bottommost enactment fiscal performance,” though comparisons were affected by flood claims processing gross recognized successful the prior-year quarter.

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For the 4th quarter, the institution reported gross of $1.6 billion, up 35.7% twelvemonth implicit year, portion integrated gross declined 2.8%, “driven substantially by flood claims processing gross we recognized successful the 4th fourth of past year,” Brown said. Adjusted EBITDAC borderline was level astatine 32.9%, and adjusted diluted net per stock roseate much than 8% to $0.93.

CFO Andy Watts added that contingent commissions accrued $37 cardinal successful the quarter, including $21 cardinal from Accession, aided by “minimal tempest assertion enactment and higher underwriting profitability.” The effectual taxation complaint for the 4th was 21%, down from 24.9% a twelvemonth earlier, which Watts attributed to benefits from planetary operations and end-of-year adjustments. Shares outstanding roseate by astir 55 cardinal to 339 million, chiefly from shares issued for the Accession acquisition.