Arthur J. Gallagher reported that its revenue has grown about 20% annually over the past two years and earnings per share have increased about 18.5% annually over the past five years, alongside a free cash flow margin of roughly 17.3%. Management also disclosed that AJG has about US$10,000,000,000 of capacity for acquisitions over the next two years, backed by solid free cash generation. The company's narrative projects $20.5 billion revenue and $3.0 billion earnings by 2029, requiring 10.6% yearly revenue growth and about a $1.4 billion earnings increase from $1.6 billion today. Some cautious analysts were assuming revenue of about US$20,400,000,000 and earnings of roughly US$2,700,000,000 by 2029, far less enthusiastic than the consensus view.
Arthur J Gallagher & CoReports 20% annual revenue growth, 18.5% EPS CAGR, and $10B acquisition capacity, with bullish 2029 projections.
