Marsh & McLennan Underlying Revenue Growth Accelerates
The professional services firm reported adjusted earnings per share of $9.02, a 9% increase from the prior year.
Marsh & McLennan (MRSH) reported a 9% increase in adjusted earnings per share for the second quarter.
The professional services firm saw a divergence in its growth metrics, as consolidated revenue growth slowed while underlying performance improved. This shift suggests a stabilization in core business demand despite a broader deceleration in top-line expansion.
Consolidated revenue grew 6% year over year, a deceleration from the 8% growth seen in the first quarter and 11% in the third quarter of 2024. However, underlying revenue growth rose to 5%, accelerating from a steady 4% rate maintained over the previous three quarters.
Performance varied across business segments. Consulting revenue grew 10% year over year, slightly down from 11% in the first quarter. Within that segment, Marsh Management Consulting outperformed the broader group with 15% growth. Mercer's Career business also showed recovery, with underlying growth accelerating to 2% from a 2% decline in the fourth quarter of 2024.
Guy Carpenter experienced a downturn, with revenue declining 2% on both a GAAP and underlying basis. This result reversed a trend of growth that had reached 7% on a GAAP basis in the fourth quarter of 2024. Conversely, Marsh Risk saw a surge in Latin America, where underlying revenue growth reached 8%, compared to 2% in the first quarter and a 4% decline in the fourth quarter of 2024.
The consolidated adjusted operating margin compressed slightly to 29.3% from 29.5% in the second quarter of 2024. A $425 million charge related to Greensill litigation impacted GAAP operating income during the first half of the year.
Marsh & McLennan repurchased 4.5 million shares for $750 million during the second quarter. This brought the total for the first six months of the year to 8.7 million shares for $1.5 billion.