Slide 1: Earnings Conference Call Second Quarter 2025
Earnings Conference Call Second Quarter 2025 July 25, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains certain statements related to future results, or states Aon’s intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1
Slide 3: Explanation of Non-GAAP Measures
Explanation of Non-GAAP Measures This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), including Organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin,
Slide 4: Strategic Execution of 3x3 Plan Delivering Strong Results
“Strategic Execution of 3x3 Plan Delivering Strong Results” Insights from this quarter’s conference call “ Aon's strategic execution continues to drive meaningful results, reinforcing our commitment to sustainable growth. Our 3x3 Plan is delivering momentum across every element of our business, from
Slide 5: Q2'25 Highlights and Key Messages
Q2’25 Highlights and Key Messages Organic Revenue Growth Adj. Op. Margin Expansion Adj. EPS Growth Free Cash Flow Growth 6% 80bps 19% 59% Aon United Client demand for our advice and solutions remains strong as they navigate increasing strategy and complexity. We are executing our Aon United strategy
Slide 6: Summary Financial Results
Summary Financial Results ($ in millions) Q2’25 Q2’24 Inc./(Dec.) Total revenue $4,155 $3,760 11% Organic revenue growth (Non-GAAP) 6% 6% N/A Operating income $859 $656 31% Adjusted operating income (Non-GAAP) $1,171 $1,029 14% Adjusted operating margin (Non-GAAP) 28.2% 27.4% 80 bps Diluted earnings
Slide 7: Organic Revenue
Organic Revenue Q2’25 Q2’24 Risk Capital: Commercial Risk Solutions +6% +6% Reinsurance Solutions +6% +7% Human Capital: Health Solutions +6% +6% Wealth Solutions +3% +9% Total Aon +6% +6% Organic revenue is a non-GAAP measure that is reconciled to its corresponding U.S. GAAP measure in the Appendic
Slide 8: Organic Revenue Growth
Organic Revenue Growth Guidance: Mid-Single-Digit or 6% Greater (5)pts ~1pt 11pts New Retention / Net Market Q2’24 Q2’25 Business (Client Losses) Impact Organic revenue is a non-GAAP measure that is reconciled to its corresponding U.S. GAAP measure in the Appendices of this presentation. For illustr
Slide 9: Adjusted Operating Income and Margin
Adjusted Operating Income and Margin Adjusted Operating Income Adjusted Operating Margin ($ in millions) 14% $1,171 80 bps 28.2% 27.4% $1,029 Q2’24 Q2’25 Q2’24 Q2’25 Adjusted operating income and Adjusted operating margin are non-GAAP measures that are reconciled to their corresponding U.S. GAAP mea
Slide 10: Non-Operating Financials
Non-Operating Financials ($ in millions) Q2’25 Q2’24 Interest Income $0 $31 Interest Expense $(212) $(225) Adjusted Other Income (Expense)1 $(32) $(15) Effective Tax Rate¹ 16.5% 22.2% Noncontrolling Interest $(15) $(14) Actual Common Shares Outstanding2 215.7 217.2 1. Adjusted Other Income (Expense)
Slide 11: Free Cash Flow
Free Cash Flow Free Cash Flow Capital Return ($ in millions) ($ in millions) Dividend Share Repurchase 59% $732 $411 $397 $147 $161 $460 $250 $250 Q2’24 Q2’25 Q2’24 Q2’25 YTD $721 $816 YTD $769 $808 Free cash flow is a non-GAAP measure that is reconciled to its corresponding U.S. GAAP measure in the
Slide 12: 2025 Guidance
2025 Guidance Financial Guidance Supplemental Information Organic Revenue Mid-Single-Digit or Greater Growth Net NFP: ~(20)bps Fiduciary Income: ~(20)bps Adjusted Operating Margin Expansion Restructuring: ~85bps Operating Leverage: ~35–45bps Expected Tax Rate1: 19.5%–20.5% Adjusted EPS Strong Growth
Slide 13: Appendices: Reconciliation of Non-GAAP Measures
Appendices Reconciliation of Non-GAAP Measures
Slide 14: Appendix A: Organic Revenue Growth – Aon
Appendix A: Organic Revenue Growth – Aon Aon Organic Revenue Reconciliation Q2’25 Q2’24 ($ millions, except percentages) Total Revenue Current period revenue 4,155 3,760 Prior year period revenue 3,760 3,177 % change 11% 18% Less: Currency Impact (1) 1% (1)% Less: Fiduciary Investment Income (2) -%
Slide 15: Appendix A: Organic Revenue Growth – By Solution Line
Appendix A: Organic Revenue Growth – By Solution Line ($ millions, except percentages) Q2’25 Q2’24 Commercial Risk Current period revenue 2,178 2,015 Prior year period revenue 2,015 1,774 % change 8% 14% (1) Less: Currency Impact 1% (1)% (2) Less: Fiduciary Investment Income 0% -% Less: Acquisitions
Slide 16: Appendix B: Operating Income, Operating Margin & Diluted Earnings Per Share
Appendix B: Operating Income, Operating Margin & Diluted Earnings Per Share Three Months Ended June 30, ($ millions, except percentages) 2025 2024 Revenue $4,155 $3,760 Operating income $859 $656 Amortization and impairment of intangible assets 201 128 Change in the fair value of contingent consider
Slide 17: Appendix C: Free Cash Flow
Appendix C: Free Cash Flow Three Months Ended June 30, ($ millions) 2025 2024 % Change Cash Provided by Operating Activities $796 $513 55% Capital Expenditures (64) (53) 21% Free Cash Flow (1) $732 $460 59% Six Months Ended June 30, ($ millions) 2025 2024 % Change Cash Provided by Operating Activiti
Slide 18: Appendix D: Leverage Ratio
Appendix D: Leverage Ratio ($ millions) TTM Q2’25 TTM Q1’25 Net income $2,665 $2,609 Interest expense 837 850 Income tax expense 628 679 Depreciation of fixed assets 187 185 Amortization and impairment of intangible assets 759 686 EBITDA $ 5,076 $ 5,009 Short-term debt and current portion of long-te
Slide 19: Investor Relations
Investor Relations Hallie Miller investor.relations@aon.com +1 847-442-0622