NYSE$AON

Aon plc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Aon reported a significant increase in total revenue, driven by acquired revenues from NFP and organic growth, despite a decrease in GAAP operating margin and EPS, while adjusted metrics showed improvement.

Aon plc announced its Second Quarter 2024 results, with total revenue increasing 18% to $3.8 billion, including 6% organic revenue growth. Operating margin decreased 910 basis points to 17.4%, but adjusted operating margin increased 10 basis points to 27.4%. EPS decreased 9% to $2.46, while adjusted EPS increased 6% to $2.93. The company completed the acquisition of NFP and repurchased $250 million in shares.

  • Total revenue increased 18% to $3.8 billion, with 6% organic revenue growth.
  • Adjusted operating margin increased 10 basis points to 27.4%, while GAAP operating margin decreased.
  • Adjusted EPS increased 6% to $2.93, despite a 9% decrease in GAAP EPS.
  • Aon completed the acquisition of NFP for $13.0 billion enterprise value and repurchased $250 million of class A ordinary shares.

Headline financials

Total Revenue

$3.76B

Previous: $3.18B+18.4%
EPS (adj)

$2.93

Previous: $2.71+8.1%
Capital Expenditures

-$101M

Previous: -$145M+30.3%
Free Cash Flow

$721M

Previous: $415M+73.7%
Net Income

$538M

Previous: $560M-3.9%
Operating Income

$656M

Previous: $842M-22.1%

Revenue & EPS history

Aon · Revenue · Quarterly

$3.76B

Q2 2024+18.4%vs Q2 2023
Beat estimate in 2 of 5 quarters(40%)
ActualEstimate

Revenue by segment

Aon · $3.13B total across 4 segments · Q4 2022

  • Commercial Risk
    $1.82B
  • Health
    $678M
  • Wealth
    $353M
  • Reinsurance
    $281M

Forward guidance

The company expects an unfavorable impact from foreign currency translation on adjusted operating income for the third and fourth quarters of 2024, resulting in an estimated $21 million decrease for the full year.

Tailwinds

  • On-track to deliver financial commitments from the NFP acquisition.
  • Well-positioned for the remainder of 2024 and the long term, supported by progress against the 3x3 plan.
  • Strong adjusted operating income growth and adjusted operating margin expansion.
  • Continued strong retention and net new business generation across revenue segments.
  • Ongoing investments in Aon Business Services-enabled technology platforms to drive long-term growth.

Headwinds

  • Expected unfavorable impact of approximately $0.01 per share, or $3 million decrease in adjusted operating income, in the third quarter of 2024 from foreign currency translation.
  • Expected unfavorable impact of approximately $0.02 per share, or $6 million decrease in adjusted operating income, for the fourth quarter of 2024 from foreign currency translation.
  • Total unfavorable impact of approximately $0.07 per share, or $21 million decrease in adjusted operating income, for full year 2024 from foreign currency translation.
  • Potential for volatility in global tax rate due to various factors, including new tax proposals.
  • Risks associated with integrating acquired businesses and potential for unknown or inestimable liabilities from acquisitions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.6%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

33%

11 / 33 earnings

Positive

+5.1%

Q1 2021

Best reaction

-9.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%-1.1%+1.3%
Q4 2025+2.0%+2.1%-2.2%
Q3 2025+3.8%+4.1%+7.8%
Q2 2025+4.6%-0.4%+5.2%
Q1 2025-8.0%-2.8%-2.3%
Q4 2024+0.3%-1.1%+4.0%
Q3 2024-0.5%+0.1%+6.3%
Q2 2024+0.0%+0.8%+12.0%
Q1 2024+0.0%-4.4%-15.5%
Q4 2022+0.0%-0.5%+2.7%
Q3 2023-4.0%-2.5%+3.2%
Q2 2023-5.1%-4.1%-1.5%
Q1 2023-2.3%-3.8%-6.7%
Q3 2022+2.4%-1.1%+8.8%
Q2 2022-0.6%-2.3%-2.4%
Q1 2022-9.4%-8.1%-11.4%
Q3 2021-0.4%-8.2%-8.4%
Q2 2021-1.4%-1.7%+8.1%
Q1 2021+5.1%+6.3%+5.9%
Q3 2020-1.5%-1.8%+10.6%
Q2 2020-1.1%-4.3%-3.5%
Q1 2020+3.2%+2.6%+14.1%
Q3 2019-1.4%+1.7%+4.3%
Q2 2019-1.2%-3.9%-3.9%
Q1 2019+0.3%-2.2%-1.0%
Q3 2018+1.6%+4.1%+7.5%
Q2 2018-2.5%-4.0%-1.9%
Q1 2018-0.4%+0.9%+0.1%
Q3 2017-3.3%-5.5%-8.3%
Q2 2017-0.0%+0.9%-0.1%
Q1 2017+1.2%+1.2%+7.2%
Q3 2016+2.7%-0.8%+5.0%
Q2 2016-3.0%-0.6%-0.3%

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