Arthur J. Gallagher & Co "2Q26 Investor Meeting: Guidance reaffirmed and..."

Research evidence excerpt

Arthur J. Gallagher & Co "2Q26 Investor Meeting: Guidance reaffirmed and..."

Global Research

17 June 2026ab

Arthur J. Gallagher & Co Equities

United States2Q26 Investor Meeting: Guidance reaffirmed

and higher synergies from AP Insurance, Property & Casualty

12-month rating Buy

12m price target US$250.00Main takeaways from AJG Investor Meeting Pre 2Q26

AJG held its pre 2Q26 investor meeting today and our impressions were positive. The

company reaffirmed its FY2026 brokerage organic growth guidance at 5.5% (in Price (17 Jun 2026) US$219.96

line with our estimates), which should be seen as a relief by investors following recent RIC: AJG.N BBG: AJG US

downward revisions from peers. The organic growth for the RM segment increased

to 8% in 2026 (from 7%), driven by 2Q26 expected at 11% (from 8% previously). Trading data and key metrics

Additionally, expected synergies from the AssuredPartners acquisition were 52-wk range US$325.98-192.00

increased to a $325M run rate by 2028, up from $300M previously. This supports Market cap. US$57.3b

our recent Upgrade to Buy, where we highlighted that AssuredPartners synergies appear Shares o/s 260m (COM)

conservative and we expect consensus catching-up over time, as we are ~70bps above Free float 65%

consensus on EBITDAC margins. As a result, we are 3% above consensus on cash EPS in Avg. daily volume ('000) 503

2Q26E, while we are modestly increasing by 1% our expectations for the longer-term in Avg. daily value (m) US$106.3

2028-30E driven by AP synergies. AJG did a opportunistic share repurchase of $170m in Common s/h equity (12/26E) US$24.9b

2Q26 so far, but should continue to remain active on M&A going forward. P/BV (12/26E) 2.2x

Net debt to EBITDA (12/26E) 2.1x

How is AJG leveraging AI and technology to leverage its platform?