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Marsh Reports Solid Fourth Quarter and Full-Year 2025 Results

businesswire.com

NEW YORK--( BUSINESS WIRE)--Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, today reported financial results for the fourth quarter and year ended December 31, 2025.

John Doyle, President and CEO, said: "Our fourth quarter results capped another solid year for Marsh. For the full year, we generated 10% revenue growth, 4% underlying revenue growth, double-digit adjusted NOI growth, 9% adjusted EPS growth and our 18th consecutive year of reported margin expansion. We also launched our new brand, successfully completed the integration of McGriff and announced our Thrive program."

"Our team performed well in a complex environment, and we are positioned for sustained momentum in 2026."

Consolidated Results

As a result of the Company's previously announced brand change, results that were previously reported under our Marsh business will now be reported as "Marsh Risk" and results that were previously reported as "Oliver Wyman Group" will now be reported as "Marsh Management Consulting." Mercer and Guy Carpenter will continue to be reported under their current brands through a transition period.

Consolidated revenue in the fourth quarter of 2025 was $6.6 billion, an increase of 9% compared with the fourth quarter of 2024, or 4% on an underlying basis. Operating income rose 7% to $1.2 billion. Adjusted operating income, which excludes noteworthy items and identified intangible amortization expense as presented in the attached supplemental schedules, rose 12% to $1.6 billion. Net income attributable to the Company was $821 million. Earnings per share were $1.68.

Adjusted earnings per share increased 10% to $2.12, and included a benefit of 7 cents per share from favorable discrete tax items as well as a benefit of 2 cents per share from foreign exchange.

For the full year 2025, revenue was $27.0 billion, an increase of 10% on a GAAP basis or 4% on an underlying basis compared to 2024. Operating income was $6.2 billion, an increase of 7% from 2024. Adjusted operating income rose 11% to $7.3 billion. Net income attributable to the Company was $4.2 billion or $8.43 per diluted share, compared with $8.18 in 2024. Adjusted earnings per share increased 9% to $9.75.

Risk & Insurance Services

Risk & Insurance Services revenue was $4.0 billion in the fourth quarter of 2025, an increase of 9%, or 2% on an underlying basis. Operating income increased 8% to $830 million, while adjusted operating income increased 11% to $1.1 billion. For the year 2025, revenue was $17.3 billion, an increase of 12%, or 4% on an underlying basis. Operating income rose 6% to $4.6 billion, and adjusted operating income increased 12% to $5.5 billion.

Marsh Risk's revenue in the fourth quarter of 2025 was $3.7 billion, an increase of 10%, or 3% on an underlying basis. In U.S./Canada, underlying revenue growth was 3%. In International, underlying revenue growth was 4%, and included 6% growth in EMEA, 2% growth in Asia Pacific, and a 4% decline in Latin America. For the year 2025, Marsh Risk’s revenue was $14.4 billion, an increase of 15% compared to a year ago, or 4% on an underlying basis.

Guy Carpenter's revenue in the fourth quarter was $215 million, an increase of 7%, or 5% on an underlying basis. For the year 2025, Guy Carpenter’s revenue was $2.5 billion, an increase of 6% compared to a year ago, or 5% on an underlying basis.

Consulting

Consulting revenue was $2.6 billion in the fourth quarter of 2025, an increase of 8%, or 5% on an underlying basis. Operating income increased 4% to $483 million, while adjusted operating income increased 10% to $550 million. For the year 2025, revenue was $9.8 billion, an increase of 7%, or 5% on an underlying basis. Operating income rose 7% to $1.9 billion, and adjusted operating income increased 10% to $2.1 billion.

Mercer’s revenue in the fourth quarter was $1.6 billion, an increase of 9%, or 4% on an underlying basis. Wealth revenue grew 5%, Health revenue increased 6%, and Career revenue declined 2%, all on an underlying basis. For the year 2025, Mercer’s revenue was $6.2 billion, an increase of 8%, or 4% on an underlying basis.

Marsh Management Consulting’s revenue in the fourth quarter of 2025 was $1.0 billion, an increase of 8% on a GAAP and underlying basis. For the year 2025, Marsh Management Consulting’s revenue was $3.6 billion, an increase of 6% on a GAAP and underlying basis.

Other Items

The Company repurchased 10.1 million shares for $2.0 billion in 2025.

On January 14, the Company's stock ticker symbol on the NYSE changed to MRSH.

Conference Call

A conference call to discuss fourth quarter 2025 results will be held today at 8:30 a.m. Eastern time. The live audio webcast may be accessed at corporate.marsh.com. A replay of the webcast will be available approximately two hours after the event. The webcast is listen-only. Those interested in participating in the question-and-answer session may register here to receive the dial-in numbers and unique PIN to access the call.

About Marsh

Marsh (NYSE: MRSH) is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information, visit corporate.marsh.com, or follow us on LinkedIn and X.

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "plan," "project" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would".

Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. Factors that could materially affect our future results include, among other things:

The factors identified above are not exhaustive. Marsh and its subsidiaries (collectively, the "Company") operate in a dynamic business environment in which new risks emerge frequently. Accordingly, we caution readers not to place undue reliance on any forward-looking statements, which are based only on information currently available to us and speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made.

Further information concerning the Company, including information about factors that could materially affect our results of operations and financial condition, is contained in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section and the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of our most recently filed Annual Report on Form 10-K.

Marsh & McLennan Companies, Inc.

Consolidated Statements of Income

(In millions, except per share data)

(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenue

$

6,595

$

6,067

$

26,981

$

24,458

Expense:

Compensation and benefits

3,938

3,630

15,577

13,996

Other operating expenses

1,438

1,295

5,181

4,645

Operating expenses

5,376

4,925

20,758

18,641

Operating income

1,219

1,142

6,223

5,817

Other net benefit credits

51

67

194

268

Interest income

14

22

48

83

Interest expense

(235

)

(231

)

(960

)

(700

)

Investment income

7

9

34

12

Income before income taxes

1,056

1,009

5,539

5,480

Income tax expense

222

208

1,305

1,363

Net income before non-controlling interests

834

801

4,234

4,117

Less: Net income attributable to non-controlling interests

13

13

74

57

Net income attributable to the Company

$

821

$

788

$

4,160

$

4,060

Net income per share attributable to the Company:

- Basic

$

1.69

$

1.60

$

8.48

$

8.26

- Diluted

$

1.68

$

1.59

$

8.43

$

8.18

Average number of shares outstanding:

- Basic

487

491

491

492

- Diluted

490

496

494

496

Shares outstanding at December 31

485

491

485

491

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Three Months Ended December 31

(Millions) (Unaudited)

The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

Components of Revenue Change*

Three Months Ended December 31,

% Change GAAP Revenue*

Currency Impact

Acquisitions/

Dispositions/ Other Impact**

Non-GAAP Underlying Revenue

2025

2024

Risk and Insurance Services

Marsh Risk (a)

$

3,664

$

3,334

10

%

1

%

6

%

3

%

Guy Carpenter

215

201

7

%

1

%

5

%

Subtotal

3,879

3,535

10

%

1

%

5

%

3

%

Fiduciary interest income

92

112

Total Risk and Insurance Services

3,971

3,647

9

%

1

%

5

%

2

%

Consulting

Mercer

1,617

1,487

9

%

2

%

3

%

4

%

Marsh Management Consulting (b)

1,027

954

8

%

2

%

(2

)%

8

%

Total Consulting

2,644

2,441

8

%

2

%

1

%

5

%

Corporate Eliminations

(20

)

(21

)

Total Revenue

$

6,595

$

6,067

9

%

2

%

3

%

4

%

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

Components of Revenue Change*

Three Months Ended December 31,

% Change GAAP Revenue*

Currency Impact

Acquisitions/

Dispositions/ Other Impact**

Non-GAAP Underlying Revenue

2025

2024

Marsh Risk:

EMEA

$

934

$

846

10

%

4

%

1

%

6

%

Asia Pacific

355

345

3

%

2

%

Latin America

178

179

4

%

(4

)%

Total International

1,467

1,370

7

%

3

%

1

%

4

%

U.S./Canada (a)

2,197

1,964

12

%

9

%

3

%

Total Marsh Risk

$

3,664

$

3,334

10

%

1

%

6

%

3

%

Mercer:

Wealth

$

759

$

675

12

%

3

%

5

%

5

%

Health

527

495

6

%

2

%

(1

)%

6

%

Career

331

317

4

%

3

%

3

%

(2

)%

Total Mercer

$

1,617

$

1,487

9

%

2

%

3

%

4

%

(a)

Acquisitions, dispositions and other in 2025 includes the impact of McGriff.

(b)

Acquisitions, dispositions and other in 2024 includes a gain from the sale of a business in Marsh Management Consulting.

*

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

Acquisitions, dispositions and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

Marsh & McLennan Companies, Inc.

Supplemental Information - Revenue Analysis

Twelve Months Ended December 31

(Millions) (Unaudited)

The Company advises clients in 130 countries. As a result, foreign exchange rate movements may impact period over period comparisons of revenue. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue. Non-GAAP underlying revenue measures the change in revenue from one period to the next by isolating these impacts.

Components of Revenue Change*

Twelve Months Ended

December 31,

% Change GAAP Revenue*

Currency Impact

Acquisitions/

Dispositions/ Other Impact**

Non-GAAP Underlying Revenue

2025

2024

Risk and Insurance Services

Marsh Risk (a)

$

14,366

$

12,536

15

%

10

%

4

%

Guy Carpenter

2,496

2,362

6

%

1

%

5

%

Subtotal

16,862

14,898

13

%

9

%

4

%

Fiduciary interest income

403

497

Total Risk and Insurance Services

17,265

15,395

12

%

8

%

4

%

Consulting

Mercer (b)

6,190

5,743

8

%

1

%

3

%

4

%

Marsh Management Consulting (c)

3,604

3,390

6

%

1

%

(1

)%

6

%

Total Consulting

9,794

9,133

7

%

1

%

2

%

5

%

Corporate Eliminations

(78

)

(70

)

Total Revenue

$

26,981

$

24,458

10

%

6

%

4

%

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

Components of Revenue Change*

Twelve Months Ended

December 31,

% Change

GAAP Revenue*

Currency Impact

Acquisitions/

Dispositions/ Other Impact**

Non-GAAP Underlying Revenue

2025

2024

Marsh Risk:

EMEA

$

3,812

$

3,530

8

%

1

%

6

%

Asia Pacific

1,460

1,414

3

%

4

%

Latin America

571

575

(1

)%

(2

)%

(1

)%

2

%

Total International

5,843

5,519

6

%

1

%

5

%

U.S./Canada (a)

8,523

7,017

21

%

18

%

3

%

Total Marsh Risk

$

14,366

$

12,536

15

%

10

%

4

%

Mercer:

Wealth (b)

$

2,819

$

2,584

9

%

1

%

4

%

4

%

Health (b)

2,284

2,100

9

%

2

%

6

%

Career

1,087

1,059

3

%

1

%

4

%

(2

)%

Total Mercer

$

6,190

$

5,743

8

%

1

%

3

%

4

%

(a)

Acquisitions, dispositions and other in 2025 includes the impact of McGriff.

(b)

Acquisitions, dispositions and other in 2024 includes a net gain from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a gain in Wealth, offset by a loss in Health.

(c)

Acquisitions, dispositions and other in 2024 includes a gain from the sale of a business in Marsh Management Consulting.

*

Rounded to whole percentages. Components of revenue may not add due to rounding.

**

Acquisitions, dispositions and other includes the impact of current and prior year items excluded from the calculation of non-GAAP underlying revenue for comparability purposes. Details on these items are provided in the reconciliation of non-GAAP revenue to GAAP revenue tables included in this release.

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended December 31

(Millions) (Unaudited)

Overview

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (referred to in this release as in accordance with "GAAP" or "reported" results). The Company also refers to and presents certain additional non-GAAP financial measures, within the meaning of Regulation G and item 10(e) Regulation S-K in accordance with the Securities Exchange Act of 1934. These measures are: non-GAAP revenue, adjusted operating income (loss), adjusted operating margin, adjusted income, net of tax and adjusted earnings per share (EPS). The Company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP in the following tables.

The Company believes these non-GAAP financial measures provide useful supplemental information that enables investors to better compare the Company’s performance across periods. Management also uses these measures internally to assess the operating performance of its businesses and to decide how to allocate resources. However, investors should not consider these non-GAAP measures in isolation from, or as a substitute for, the financial information that the Company reports in accordance with GAAP. The Company's non-GAAP measures include adjustments that reflect how management views its businesses, and may differ from similarly titled non-GAAP measures presented by other companies.

In the first quarter of 2025, the Company changed its methodology to report adjusted operating income (loss), adjusted income, net of tax and adjusted EPS to exclude the impact of intangible amortization and other net benefit credits. Prior year results are presented using the new methodology for comparative purposes.

Adjusted Operating Income (Loss) and Adjusted Operating Margin

Adjusted operating income (loss) is calculated by excluding the impact of certain noteworthy items and identified intangible amortization expense from the Company's GAAP operating income (loss). The following tables reconcile adjusted operating income (loss) to GAAP operating income (loss) on a consolidated and reportable segment basis for the three and twelve months ended December 31, 2025 and 2024. The following tables also present adjusted operating margin. For the three and twelve months ended December 31, 2025 and 2024, adjusted operating margin is calculated by dividing the sum of adjusted operating income by consolidated or segment adjusted revenue. The Company's adjusted revenue used in the determination of adjusted operating margin is calculated by excluding the impact of certain noteworthy items from the Company's GAAP revenue.

Risk & Insurance Services

Consulting

Corporate/

Eliminations

Total

Three Months Ended December 31, 2025

Operating income (loss)

$

830

$

483

$

(94

)

$

1,219

Operating margin

20.9

%

18.3

%

N/A

18.5

%

Add (deduct) impact of noteworthy items:

Restructuring (a)

83

32

11

126

Change in contingent and deferred consideration (b)

17

12

29

McGriff integration and retention related costs

47

2

49

Acquisition and disposition related gains

2

4

6

Total noteworthy items

149

48

13

210

Identified intangible amortization expense

118

19

137

Operating income adjustments

267

67

13

347

Adjusted operating income (loss)

$

1,097

$

550

$

(81

)

$

1,566

Adjusted operating margin

27.6

%

20.8

%

N/A

23.7

%

Three Months Ended December 31, 2024

Operating income (loss)

$

770

$

466

$

(94

)

$

1,142

Operating margin

21.1

%

19.1

%

N/A

18.8

%

Add (deduct) impact of noteworthy items:

Restructuring (a)

75

49

12

136

Change in contingent and deferred consideration (b)

(8

)

2

(6

)

McGriff integration and retention related costs

58

1

59

Acquisition related costs

1

1

2

Acquisition and disposition related gains (c)

(34

)

(34

)

Other

(3

)

(3

)

Total noteworthy items

123

18

13

154

Identified intangible amortization expense

93

15

108

Operating income adjustments

216

33

13

262

Adjusted operating income (loss)

$

986

$

499

$

(81

)

$

1,404

Adjusted operating margin

27.0

%

20.7

%

N/A

23.3

%

(a)

In the third quarter of 2025, the Company launched a three-year program, Thrive, which focuses on our brand strategy, delivering greater value to clients, accelerating growth and improving efficiency. The program will generate savings from process and automation efficiencies and optimization of our global operating model. Costs in 2025 relate primarily to severance and lease exit charges. Costs in 2024 included severance and lease exit charges for a restructuring program completed in 2024.

(b)

Reflects the change in the fair value of contingent consideration and deferred acquisition related costs.

(c)

Consulting in 2024 includes primarily the gain on sale of a business in Marsh Management Consulting. The amounts are included in the consolidated statements of income and excluded from non-GAAP revenue and adjusted revenue used in the calculation of adjusted operating margin.

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Twelve Months Ended December 31

Millions (Unaudited)

Risk & Insurance Services

Consulting

Corporate/

Eliminations

Total

Twelve Months Ended December 31, 2025

Operating income (loss)

$

4,636

$

1,896

$

(309

)

$

6,223

Operating margin

26.8

%

19.4

%

N/A

23.1

%

Add (deduct) impact of noteworthy items:

Restructuring (a)

134

64

24

222

Change in contingent and deferred consideration (b)

79

21

100

McGriff integration and retention related costs

211

4

215

Acquisition related costs (c)

7

12

19

Acquisition and disposition related gains (d)

(29

)

(2

)

(31

)

Total noteworthy items

402

95

28

525

Identified intangible amortization expense

475

74

549

Operating income adjustments

877

169

28

1,074

Adjusted operating income (loss)

$

5,513

$

2,065

$

(281

)

$

7,297

Adjusted operating margin

32.0

%

21.1

%

N/A

27.1

%

Twelve Months Ended December 31, 2024

Operating income (loss)

$

4,365

$

1,770

$

(318

)

$

5,817

Operating margin

28.4

%

19.4

%

N/A

23.8

%

Add (deduct) impact of noteworthy items:

Restructuring (a)

148

79

49

276

Change in contingent and deferred consideration (b)

9

6

15

McGriff integration and retention related costs

60

3

63

Acquisition related costs (c)

26

32

58

Acquisition and disposition related gains (d)

(55

)

(55

)

Other

(3

)

(3

)

Total noteworthy items

240

62

52

354

Identified intangible amortization expense

326

51

377

Operating income adjustments

566

113

52

731

Adjusted operating income (loss)

$

4,931

$

1,883

$

(266

)

$

6,548

Adjusted operating margin

32.0

%

20.7

%

N/A

26.8

%

(a)

In the third quarter of 2025, the Company launched a three-year program, Thrive, which focuses on our brand strategy, delivering greater value to clients, accelerating growth and improving efficiency. The program will generate savings from process and automation efficiencies and optimization of our global operating model. Costs in 2025 relate primarily to severance and lease exit charges. Costs in 2024 included severance and lease exit charges for a restructuring program completed in 2024.

(b)

Reflects change in the fair value of contingent consideration and deferred acquisition costs.

(c)

Reflects one-time acquisition and disposition related retention and other costs.

(d)

RIS in 2025 includes primarily a gain on the sale of a business and a gain on the remeasurement of an investment. Consulting in 2024 includes the net gain on sale of Mercer U.K. pension administration and U.S. health and benefits administration businesses, which was adjusted in 2025, and a gain on the sale of a business in Marsh Management Consulting. These amounts are included in revenue in the consolidated statements of income and excluded from non-GAAP underlying revenue and adjusted revenue used in the calculation of adjusted operating margin.

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three and Twelve Months Ended December 31

(In millions, except per share data)

(Unaudited)

Adjusted income, net of tax is calculated as the Company's GAAP income from continuing operations, adjusted to reflect the after tax impact of the operating income adjustments in the preceding tables and the additional items listed below. Adjusted EPS is calculated by dividing the Company’s adjusted income, net of tax, by the average number of shares outstanding-diluted for the relevant period. The following tables reconcile adjusted income, net of tax to GAAP income from continuing operations and adjusted EPS to GAAP EPS for the three and twelve months ended December 31, 2025 and 2024.

Three Months Ended December 31, 2025

Three Months Ended December 31, 2024

Amount

Adjusted EPS

Amount

Adjusted EPS

Net income before non-controlling interests, as reported

$

834

$

801

Less: Non-controlling interest, net of tax

13

13

Subtotal

$

821

$

1.68

$

788

$

1.59

Operating income adjustments

$

347

$

262

Other net benefit credits

(51

)

(67

)

Investments adjustment

(1

)

Financing costs (a)

26

Income tax effect of adjustments (b)

(77

)

(54

)

218

0.44

167

0.34

Adjusted income, net of tax

$

1,039

$

2.12

$

955

$

1.93

Twelve Months Ended December 31, 2025

Twelve Months Ended December 31, 2024

Amount

Adjusted EPS

Amount

Adjusted EPS

Net income before non-controlling interests, as reported

$

4,234

$

4,117

Less: Non-controlling interest, net of tax

74

57

Subtotal

$

4,160

$

8.43

$

4,060

$

8.18

Operating income adjustments

$

1,074

$

731

Other net benefit credits

(194

)

(268

)

Investments adjustment

(3

)

(2

)

Financing costs (a)

26

Income tax effect of adjustments (b)

(225

)

(104

)

652

1.32

383

0.77

Adjusted income, net of tax

$

4,812

$

9.75

$

4,443

$

8.95

(a)

Primarily reflects amortization of bridge financing fees related to the acquisition of McGriff.

(b)

For items with an income tax impact, the tax effect was calculated using an estimated effective tax rate for each item based on jurisdiction with a blended rate for items occurring in multiple jurisdictions.

Marsh & McLennan Companies, Inc.

Supplemental Information

Three and Twelve Months Ended December 31

(Millions) (Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Consolidated

Compensation and benefits

$

3,938

$

3,630

$

15,577

$

13,996

Other operating expenses

1,438

1,295

5,181

4,645

Total expenses

$

5,376

$

4,925

$

20,758

$

18,641

Depreciation and amortization expense

$

91

$

93

$

361

$

369

Identified intangible amortization expense

137

108

549

377

Total

$

228

$

201

$

910

$

746

Risk and Insurance Services

Compensation and benefits

$

2,374

$

2,178

$

9,711

$

8,499

Other operating expenses

767

699

2,918

2,531

Total expenses

$

3,141

$

2,877

$

12,629

$

11,030

Depreciation and amortization expense

$

51

$

52

$

204

$

192

Identified intangible amortization expense

118

93

475

326

Total

$

169

$

145

$

679

$

518

Consulting

Compensation and benefits

$

1,520

$

1,421

$

5,710

$

5,358

Other operating expenses

641

554

2,188

2,005

Total expenses

$

2,161

$

1,975

$

7,898

$

7,363

Depreciation and amortization expense

$

26

$

26

$

100

$

114

Identified intangible amortization expense

19

15

74

51

Total

$

45

$

41

$

174

$

165

Marsh & McLennan Companies, Inc.

Consolidated Balance Sheets

(Millions) (Unaudited)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$

2,687

$

2,398

Cash and cash equivalents held in a fiduciary capacity

11,473

11,276

Net receivables

7,670

7,156

Other current assets

1,370

1,287

Total current assets

23,200

22,117

Goodwill and intangible assets

29,083

28,126

Fixed assets, net

829

859

Pension related assets

2,140

1,914

Right of use assets

1,460

1,498

Deferred tax assets

212

237

Other assets

1,786

1,730

TOTAL ASSETS

$

58,710

$

56,481

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$

1,267

$

519

Accounts payable and accrued liabilities

3,652

3,402

Accrued compensation and employee benefits

3,962

3,620

Current lease liabilities

333

325

Accrued income taxes

373

376

Fiduciary liabilities

11,473

11,276

Total current liabilities

21,060

19,518

Long-term debt

18,320

19,428

Pension, post-retirement and post-employment benefits

786

840

Long-term lease liabilities

1,529

1,590

Liabilities for errors and omissions

288

305

Other liabilities

1,412

1,265

Total equity

15,315

13,535

TOTAL LIABILITIES AND EQUITY

$

58,710

$

56,481

Marsh & McLennan Companies, Inc.

Consolidated Statements of Cash Flows

(Millions) (Unaudited)

For the Years Ended

December 31,

2025

2024

Operating cash flows:

Net income before non-controlling interests

$

4,234

$

4,117

Adjustments to reconcile net income to cash provided by operations:

Depreciation and amortization

910

746

Non-cash lease expense

295

280

Gain on consolidation of entity

(13

)

Share-based compensation expense

394

368

Changes to contingent consideration and net (gain) loss on dispositions and investments

(10

)

(134

)

Changes in assets and liabilities:

Accrued compensation and employee benefits

242

92

Provision for taxes, net of payments and refunds

12

123

Net receivables

(128

)

(467

)

Other changes to assets and liabilities

(50

)

(162

)

Contributions to pension and other benefit plans in excess of current year credit

(259

)

(352

)

Operating lease liabilities

(335

)

(309

)

Net cash provided by (used for) operations

5,292

4,302

Financing cash flows:

Purchase of treasury shares

(2,012

)

(900

)

Proceeds from issuance of debt

8,170

Repayments of debt

(519

)

(1,617

)

Payment of bridge loan commitment fees

(23

)

Net issuance of common stock from treasury shares

102

84

Net distributions from non-controlling interests and deferred/contingent consideration

(124

)

(157

)

Dividends paid

(1,699

)

(1,513

)

Change in fiduciary liabilities

(382

)

411

Net cash provided by (used for) financing activities

(4,634

)

4,455

Investing cash flows:

Capital expenditures

(291

)

(316

)

Net purchases of long-term investments and other

(24

)

(107

)

Sales of long-term investments

100

55

Dispositions

22

89

Acquisitions, net of cash and cash held in a fiduciary capacity acquired

(652

)

(8,542

)

Net cash provided by (used for) investing activities

(845

)

(8,821

)

Effect of exchange rate changes on cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

673

(414

)

Increase (Decrease) in cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

486

(478

)

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at beginning of year

13,674

14,152

Cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity at end of year

$

14,160

$

13,674

Reconciliation of cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity to the Consolidated Balance Sheets

Balance at December 31,

2025

2024

(In millions)

Cash and cash equivalents

$

2,687

$

2,398

Cash and cash equivalents held in a fiduciary capacity

11,473

11,276

Total cash, cash equivalents, and cash and cash equivalents held in a fiduciary capacity

$

14,160

$

13,674

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Three Months Ended December 31

(Millions) (Unaudited)

Non-GAAP revenue isolates the impact of foreign exchange rate movements and certain transaction-related items from the current period GAAP revenue. The non-GAAP revenue measure is presented on a constant currency basis, excluding the impact of foreign currency fluctuations. The Company isolates the impact of foreign exchange rate movements period over period, by translating the current period foreign currency GAAP revenue into U.S. Dollars based on the difference in the current and corresponding prior period exchange rates. Similarly, certain other items such as acquisitions and dispositions, including transfers among businesses, may impact period over period comparisons of revenue and are consistently excluded from current and prior period GAAP revenues for comparability purposes. Percentage changes, referred to as non-GAAP underlying revenue, are calculated by dividing the period over period change in non-GAAP revenue by the prior period non-GAAP revenue.

The following table provides the reconciliation of GAAP revenue to non-GAAP revenue:

2025

2024

Three Months Ended December 31,

GAAP Revenue

Currency Impact

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

GAAP Revenue

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

Risk and Insurance Services

Marsh Risk (a)

$

3,664

$

(40

)

$

(189

)

$

3,435

$

3,334

$

1

$

3,335

Guy Carpenter

215

(2

)

213

201

201

Subtotal

3,879

(42

)

(189

)

3,648

3,535

1

3,536

Fiduciary Interest Income

92

(1

)

91

112

112

Total Risk and Insurance Services

3,971

(42

)

(190

)

3,739

3,647

1

3,648

Consulting

Mercer

1,617

(36

)

(54

)

1,527

1,487

(13

)

1,474

Marsh Management Consulting (b)

1,027

(21

)

1,006

954

(24

)

930

Total Consulting

2,644

(57

)

(54

)

2,533

2,441

(37

)

2,404

Corporate Eliminations

(20

)

(20

)

(21

)

(21

)

Total Revenue

$

6,595

$

(99

)

$

(244

)

$

6,252

$

6,067

$

(36

)

$

6,031

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

2025

2024

Three Months Ended December 31,

GAAP Revenue

Currency Impact

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

GAAP Revenue

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

Marsh Risk:

EMEA

$

934

$

(32

)

$

(3

)

$

899

$

846

$

4

$

850

Asia Pacific

355

(1

)

(1

)

353

345

1

346

Latin America

178

(7

)

1

172

179

179

Total International

1,467

(40

)

(3

)

1,424

1,370

5

1,375

U.S./Canada (a)

2,197

(186

)

2,011

1,964

(4

)

1,960

Total Marsh Risk

$

3,664

$

(40

)

$

(189

)

$

3,435

$

3,334

$

1

$

3,335

Mercer:

Wealth

$

759

$

(18

)

$

(41

)

$

700

$

675

$

(7

)

$

668

Health

527

(9

)

(2

)

516

495

(6

)

489

Career

331

(9

)

(11

)

311

317

317

Total Mercer

$

1,617

$

(36

)

$

(54

)

$

1,527

$

1,487

$

(13

)

$

1,474

(a)

Acquisitions, dispositions and other in 2025 includes the impact of McGriff.

(b)

Acquisitions, dispositions and other in 2024 includes a gain of $20 million from the sale of a business in Marsh Management Consulting.

Note: Amounts in the tables above are rounded to whole numbers.

Marsh & McLennan Companies, Inc.

Reconciliation of Non-GAAP Measures

Twelve Months Ended December 31

(Millions) (Unaudited)

The following table provides the reconciliation of GAAP revenue to Non-GAAP revenue:

2025

2024

Twelve Months Ended December 31,

GAAP Revenue

Currency Impact

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

GAAP Revenue

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

Risk and Insurance Services

Marsh Risk (a)

$

14,366

$

(28

)

$

(1,283

)

$

13,055

$

12,536

$

(17

)

$

12,519

Guy Carpenter

2,496

3

(20

)

2,479

2,362

2,362

Subtotal

16,862

(25

)

(1,303

)

15,534

14,898

(17

)

14,881

Fiduciary Interest Income

403

(16

)

387

497

497

Total Risk and Insurance Services

17,265

(25

)

(1,319

)

15,921

15,395

(17

)

15,378

Consulting

Mercer (b)

6,190

(41

)

(233

)

5,916

5,743

(43

)

5,700

Marsh Management Consulting (c)

3,604

(38

)

(13

)

3,553

3,390

(37

)

3,353

Total Consulting

9,794

(79

)

(246

)

9,469

9,133

(80

)

9,053

Corporate Eliminations

(78

)

(78

)

(70

)

(70

)

Total Revenue

$

26,981

$

(104

)

$

(1,565

)

$

25,312

$

24,458

$

(97

)

$

24,361

Revenue Details

The following table provides more detailed revenue information for certain of the components presented above:

2025

2024

Twelve Months Ended December 31,

GAAP Revenue

Currency Impact

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

GAAP Revenue

Acquisitions/

Dispositions/

Other Impact

Non-GAAP Revenue

Marsh Risk:

EMEA

$

3,812

$

(52

)

$

(3

)

$

3,757

$

3,530

$

$

3,530

Asia Pacific

1,460

5

1

1,466

1,414

(6

)

1,408

Latin America

571

11

3

585

575

575

Total International

5,843

(36

)

1

5,808

5,519

(6

)

5,513

U.S./Canada (a)

8,523

8

(1,284

)

7,247

7,017

(11

)

7,006

Total Marsh Risk

$

14,366

$

(28

)

$

(1,283

)

$

13,055

$

12,536

$

(17

)

$

12,519

Mercer:

Wealth (b)

$

2,819

$

(25

)

$

(183

)

$

2,611

$

2,584

$

(79

)

$

2,505

Health (b)

2,284

(4

)

(13

)

2,267

2,100

36

2,136

Career

1,087

(12

)

(37

)

1,038

1,059

1,059

Total Mercer

$

6,190

$

(41

)

$

(233

)

$

5,916

$

5,743

$

(43

)

$

5,700

(a)

Acquisitions, dispositions and other in 2025 includes the impact of McGriff.

(b)

Acquisitions, dispositions and other in 2024 includes a net gain of $35 million from the sale of the U.K. pension administration and U.S. health and benefits administration businesses, that comprised of a $70 million gain in Wealth, offset by a $35 million loss in Health.

(c)

Acquisitions, dispositions and other in 2024 includes a gain of $20 million from the sale of a business in Marsh Management Consulting.

Note: Amounts in the tables above are rounded to whole numbers.