MMC posts strong Q2 with EPS up 11% and revenues up 12%, fueled by robust growth in Risk and Insurance Services.
Marsh & McLennan Companies, Inc. (NYSE:MMC ) Q2 2025 Earnings Conference Call July 17, 2025 8:30 AM ET Company Participants Dean M. Klisura - Corporate Participant Vice Chair - Corporate Participant John Quinlan Doyle - President, CEO & Director Mark Christopher McGivney - Senior VP & CFO Martin C.
While the top- and bottom-line numbers for Marsh & McLennan (MMC) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
MMC's Q2 results are likely to reflect growth in Risk and Insurance Services and Consulting, but rising costs could weigh on margins.
Beyond analysts' top-and-bottom-line estimates for Marsh & McLennan (MMC), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
MMC hikes its quarterly dividend by 10% to 90 cents per share, marking its 16th straight year of increases and sustaining its active record of returning capital to shareholders.
Marsh & McLennan (MMC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
MMC's Oliver Wyman to acquire Validate Health, boosting analytics capabilities for value-based healthcare growth.
MMC's roll-up strategy, highlighted by the McGriff acquisition, has driven impressive scale, recurring revenue, and margin expansion in the insurance brokerage sector. Consistently high returns on equity and invested capital, well above peers, demonstrate MMC's durable competitive advantages and management's capital allocation skill. Valuation remains reasonable relative to historical ranges, despite significant improvements in margins and returns, making MMC attractive for long-term investors.
MMC has maintained consistent cash flow generation for several years, supporting its disciplined capital distribution.
I reiterate a 'Buy' rating on Marsh & McLennan with a fair value of $245 per share, driven by tariff uncertainties and economic risks. Despite declining insurance rates, Marsh & McLennan achieved 4% underlying revenue growth and 8% adjusted operating profit growth, bolstered by consulting and business expansion. Tariff uncertainties may increase risk mitigation costs, potentially raising future insurance premiums and benefiting Marsh & McLennan's business growth.
MMC's first-quarter results benefit on the back of strong international operations and the Mercer business, partly offset by increased compensation and benefits expense.