In a sector that has recently faced headwinds, insurance brokerage firm Brown & Brown has emerged as a standout performer, shattering market expectations with its latest quarterly results. The company’s impressive figures are fueling speculation of a potential sector recovery and demonstrating remarkable operational strength.
Robust Financial Performance Exceeds Forecasts
For the third quarter of 2025, Brown & Brown reported adjusted earnings per share of $1.05, comfortably surpassing the $0.94 consensus estimate among market analysts. The revenue performance proved even more striking, climbing to $1.61 billion. This represents a substantial 35.4% increase compared to the same period last year, signaling powerful business momentum.
Strategic Acquisitions Fuel Expansion
The dramatic revenue surge stems largely from the company’s assertive acquisition strategy. Just yesterday, Brown & Brown subsidiary Wright Flood announced its planned purchase of Poulton Associates, the United States’ largest private flood insurance provider. These strategic transactions not only expand the company’s service portfolio but also fortify its position within specialized insurance niches.
Should investors sell immediately? Or is it worth buying Brown, Brown?
Beyond external growth initiatives, the company demonstrated solid organic performance with a 3.5% increase in revenue from existing operations. Profitability metrics also showed improvement, with the adjusted EBITDAC margin advancing to 36.6%, indicating that acquired businesses contribute meaningfully to earnings power rather than merely boosting top-line figures.
Shareholder Rewards Reflect Confidence
Management reinforced its positive operational results with significant shareholder-friendly announcements. The company declared a 10% dividend increase, marking the 32nd consecutive annual raise. More notably, executives authorized a new $1.5 billion share repurchase program, serving as a powerful vote of confidence in Brown & Brown’s future prospects.
Critical Investor Meeting Ahead
Market attention now turns to the quarterly earnings conference call scheduled for this morning. Investors will be watching closely to see whether management can translate this strong quarterly performance into sustained growth momentum. Following a challenging start to the year, these results could potentially mark a decisive turning point for Brown & Brown shares.
Ad
Brown, Brown Stock: Buy or Sell?! New Brown, Brown Analysis from February 3 delivers the answer:
The latest Brown, Brown figures speak for themselves: Urgent action needed for Brown, Brown investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 3.
Brown, Brown: Buy or sell? Read more here...
