- 2025 Financial Performance: Organic revenue growth of 6%, adjusted operating margin of 32.4%, and adjusted EPS of $17.07 (+9% YoY), with $3.2 billion in free cash flow (+14% YoY).
- Q4 2025 Highlights: Organic revenue growth of 5%, 35.5% adjusted operating margin (+220 bps YoY), and adjusted EPS of $4.85 (+10% YoY), alongside $1.3 billion in Q4 free cash flow.
- Capital Deployment & Leverage: $1.9 billion in debt reduction, leverage ratio down to 2.9x, $1 billion returned to shareholders via buybacks, and $7 billion in available capital for 2026.
- 2026 Guidance: Mid-single-digit organic revenue growth, 70-80 bps margin expansion, $4.3 billion free cash flow, and $1 billion in share repurchases, supported by a $7 billion capital runway.
- Strategic Priorities: Technology investments (e.g., Aon Broker/Claims Copilot), $450 million AAU savings target, and a focus on high-margin M&A opportunities, particularly in data centers and AI-driven markets.
Segment Performance
Aon's commercial risk business saw 6% growth for the year and 6% or better for the last three quarters, driven by global strength in core P&C, net new business retention, and priority growth areas like construction, including data center contributions. The company's reinsurance business also performed well, contributing to the overall growth.
Guidance and Outlook
For 2026, Aon expects mid-single-digit or greater organic revenue growth, supported by investments in revenue-generating talent, Aon client leadership, and the middle market strategy. The company forecasts operating margin expansion of 70 to 80 basis points, strong adjusted EPS growth, and double-digit free cash flow growth. Aon is confident in its ability to deliver on its growth expectations, driven by its investments in talent and technology.
Valuation and Return Metrics
With a P/E Ratio of 20.35 and an EV/EBITDA of 15.94, Aon's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's ROIC of 13.18% and ROE of 45.99% indicate a high level of profitability. Aon's Free Cash Flow Yield of 4.28% is also attractive, driven by its expected double-digit free cash flow growth in 2026.
Capital Management
Aon generated $1.3 billion of free cash flow in Q4 2025, bringing the full-year total to $3.2 billion, a 14% increase from 2024. The company returned $1 billion in capital to shareholders, including $1 billion in share repurchases, and has $7 billion of available capital, providing strategic flexibility for investments and capital return.