Aon plc (NYSE: AON) has reported results for the three months ended June 30, 2025.

• Aon delivered another quarter of strong performance, including 11% total revenue growth and 6% organic revenue growth. We are executing our Aon United strategy through the 3×3 Plan to meet client demand
• Strong Free Cash Flow is powering our capital allocation strategy – supporting debt reduction, disciplined middle-market M&A and capital return to shareholders
• Our first-half performance reinforces our confidence in achieving our full-year 2025 financial guidance

“We delivered strong second quarter results, including 6% organic revenue growth, 19% growth in adjusted EPS, and 59% free cash flow growth,” said Greg Case, president and CEO of Aon. “This performance reflects the growing demand for our advice and solutions, driven by an increasingly complex environment and the need to unlock new sources of capital. Our solutions are resonating with clients and we are effectively meeting that demand. The continued successful execution of our Aon United strategy – operationalized by our 3×3 Plan and powered by Aon Business Services – is fueling sustainable organic growth, margin expansion and free cash flow growth, as we invest in our business. Looking ahead, we remain confident in our outlook and are reaffirming our full-year 2025 guidance.”

Net income attributable to Aon shareholders increased 8%, to $2.66 per share on a diluted basis, compared to $2.46 per share on a diluted basis, in the prior year period. Adjusted net income per share attributable to Aon shareholders increased 19% to $3.49 on a diluted basis compared to $2.93 in the prior year period. Certain items that impacted second 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 11 of this press release.

SECOND QUARTER 2025 FINANCIAL SUMMARY

Total revenue in the second quarter increased 11% to $4.2 billion compared to the prior year period, reflecting 6% organic revenue growth, the contribution from NFP and 1% favorable impact from foreign currency translation. Risk Capital revenue increased $216 million, or 8%, to $2.9 billion and Human Capital revenue increased $166 million, or 15%, to $1.3 billion.

Total operating expenses in the second quarter increased 6% to $3.3 billion compared to the prior year period due primarily to the inclusion of NFP’s ongoing operating expenses, an increase in intangible asset amortization associated with the NFP acquisition and an increase in expense associated with 6% organic revenue growth and investments in long-term growth, partially offset by transaction costs incurred in the prior year period, lower Accelerating Aon United program expense and $35 million of net restructuring savings. Risk Capital operating expenses increased $136 million, or 7%, to $2.0 billion and Human Capital operating expenses increased $139 million, or 13%, to $1.2 billion.

Foreign currency translation had a de minimis impact on EPS in the second quarter. If currency were to remain stable at today’s rates, the Company would expect an unfavorable impact on adjusted EPS of approximately $0.05 per share for the full year 2025.

Effective tax rate was 15.5% in the second quarter compared to 22.9% 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 second quarter of 2025 was 16.5% compared to 22.2% in the prior year period. The primary drivers of the change in adjusted effective tax rate were the net favorable impact from discrete items and changes in the geographical distribution of income.

Weighted average diluted shares outstanding increased to 217.3 million in the second quarter compared to 213.3 million in the prior year period. The Company repurchased 0.7 million class A ordinary shares for approximately $250 million in the second quarter. As of June 30, 2025, the Company had approximately $1.8 billion of remaining authorization under its share repurchase program.

YEAR TO DATE 2025 CASH FLOW SUMMARY

Cash flows provided by operations for the first six months of 2025 increased $114 million, or 14%, to $936 million compared to the prior year period, primarily due to strong adjusted operating income growth and days sales outstanding improvements, partially offset by higher payments related to incentive compensation, interest, and restructuring.

Free cash flow, defined as cash flow from operations less capital expenditures, increased 13%, to $816 million for the first six months of 2025 compared to the prior year period, reflecting an increase in cash flows provided by operations, partially offset by a $19 million increase in capital expenditures.

SECOND QUARTER 2025 REVENUE REVIEW

The second 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 10 of this press release.

Total revenue increased $395 million, or 11%, to $4.2 billion, compared to the prior year period, reflecting 6% organic revenue growth, the contribution from NFP and a 1% favorable impact from foreign currency translation. Risk Capital revenue increased $216 million, or 8%, to $2.9 billion and Human Capital revenue increased $166 million, or 15%, to $1.3 billion.

Risk Capital

Commercial Risk Solutions Organic revenue growth of 6% reflects growth across all major geographies driven by net new business and ongoing strong retention. Performance was highlighted by strong growth globally in core P&C and strength in M&A services relative to the prior year. Market impact was modestly positive.

Reinsurance Solutions Organic revenue growth of 6% reflects double-digit increases in insurance-linked securities and facultative placements. Results also reflect growth in treaty, driven by net new business and ongoing strong retention, partially offset by a modest unfavorable market impact.

Human Capital

Health Solutions Organic revenue growth of 6% reflects strength in core health and benefits, driven by net new business, ongoing strong retention, and a modestly positive market impact. The core performance was highlighted by double-digit growth internationally. Results also reflect strength in executive benefits and pharmacy benefits in NFP.

Wealth Solutions Organic revenue growth of 3% reflects growth in Retirement driven by advisory related to the ongoing impact of regulatory change. In Investments, results reflect strength in NFP, driven by net asset inflows and market performance.

SECOND QUARTER 2025 EXPENSE REVIEW

Compensation and benefits expense increased $230 million, or 11%, compared to the prior year period due primarily to the inclusion of operating expenses from NFP and expense associated with 6% organic revenue growth, partially offset by savings from Accelerating Aon United restructuring actions.

Information technology expense increased $4 million, or 3%, compared to the prior year period due primarily to the inclusion of ongoing operating expenses from NFP.

Premises expense increased $3 million, or 4%, compared to the prior year period, due primarily to the inclusion of ongoing operating expenses from NFP.

Depreciation of fixed assets increased $2 million, or 4%, compared to the prior year period.

Amortization and impairment of intangible assets increased $73 million, or 57%, compared to the prior year period due primarily to an increase in intangible assets related to the acquisition of NFP.

Other general expense decreased $82 million, or 18%, compared to the prior year period due primarily to a decrease in transaction and integration costs.

Accelerating Aon United Restructuring Program expense decreased $38 million, or 29%, compared to the prior year period due to lower costs related to workforce optimization and asset impairments, partially offset by higher costs related to technology and other costs.

SECOND QUARTER 2025 INCOME SUMMARY

Certain noteworthy items impacted adjusted operating income and Adjusted operating margin in the second quarters of 2025 and 2024, which are also described in detail in “Reconciliation of Non-GAAP Measures – Operating Income, Operating Margin and Diluted Earnings Per Share” on page 11 of this press release.

Operating income increased $203 million and operating margin increased 330 basis points to 20.7%, each compared to the prior year period. Adjusted operating income increased $142 million, or 14%, and Adjusted operating margin increased 80 basis points to 28.2%, each compared to the prior year period. The increase in adjusted operating income reflects organic revenue growth, the impact from NFP, and net restructuring savings, partially offset by increased expenses and investments in long-term growth.

Interest income decreased $31 million compared to the prior year period due primarily to interest earned in the prior year period on the investment of $5 billion of term debt proceeds which were used to fund the purchase of NFP. Interest expense decreased $13 million compared to the prior year period, reflecting lower total debt.

Other income was $56 million compared to $236 million in the prior year period, primarily due to gains related to the sale of a business in the prior year period, partially offset by deferred consideration from the 2017 sale of our outsourcing business. Adjusted other expense was $32 million compared to $15 million in the prior year period, primarily due to the unfavorable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies and an increase in non-cash pension expense.

Net income attributable to Aon shareholders increased 10% to $579 million compared to $524 million in the prior year period. Adjusted net income attributable to Aon shareholders increased 22% to $759 million compared to $624 million in the prior year period.