ARTHUR J. GALLAGHER & CO.

Red flags

• Debt was $9.55 billion of senior notes plus $3.323 billion under note purchase agreements at December 31, 2025; total contractual debt obligations including interest were $21.961 billion.
• Brokerage reported $1.482 billion of pretax adjustments in 2025, including $894 million of intangible amortization, $257 million of acquisition integration and $183 million of workforce and lease termination costs, making GAAP earnings materially lower than adjusted earnings.
• Corporate reported a $732 million net loss in 2025 versus a $390 million loss in 2024; adjusted corporate net loss was $583 million, up from $363 million.
• Risk-management profitability lagged brokerage: reported net earnings rose only 5% to $183 million, while reported net margin fell 51 bps to 11.6%.
• Acquisition and integration risk is unusually elevated after Woodruff Sawyer and AssuredPartners, which were larger than Gallagher's typical $1 million-$100 million tuck-in acquisitions.