Baldwin Revenue Accelerated as Acquisition Costs Deepened Loss
Adjusted free cash flow rebounded to $46.4 million from a first-quarter outflow.
Baldwin Insurance Group (BWIN), an insurance brokerage, posted 30% second-quarter revenue growth as acquisitions lifted commissions and fees, while higher operating costs widened its net loss.
Revenue growth accelerated from 29% in the first quarter and single-digit rates in the final two quarters of 2024. Reported organic growth, however, held at 2%, while the company’s normalized measure eased to 8% from about 9% in the prior quarter.
Revenue rose to $492.9 million from a year earlier, though it declined about 7% sequentially from $532.2 million. Adjusted diluted earnings increased 14% to $0.48 a share, reversing a 3% first-quarter decline, but fell from $0.63 a share sequentially.
Acquisitions accounted for most of the expansion. Partnership commissions and fees climbed to $106.8 million from $2.0 million, while organic revenue was $382.0 million against an adjusted prior-year base of $376.3 million. CAC Group revenue grew 23%, extending the early contribution from partnerships completed in January.
Adjusted EBITDA rose 37% to $116.7 million, accelerating from 21% growth in the first quarter. Its margin expanded 110 basis points from a year earlier to 23.7%, though it narrowed from 25.8% sequentially and left the first-half margin 40 basis points below the prior-year period.
The GAAP net loss widened to $56.0 million from $5.1 million as operating expenses rose 43%, outpacing revenue growth. Amortization more than doubled, while partnership, integration and transformation expenses increased. Net interest expense climbed 46% to $45.7 million as revolving borrowings and long-term debt rose from year-end levels.
Adjusted free cash flow swung positive from both the prior year and the first quarter, while cash increased to $184.5 million during the period. One-time organic-growth headwinds had largely been lapped and are expected to become tailwinds in the second half, after previously projecting a double-digit exit run rate for 2025.