NYSE:AON
Aon plc
A global leader in professional risk, health, and wealth management solutions with a diversified revenue base of $17.18B in the latest fiscal year.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Aon attractive due to its resilient fee-based business model which provides recurring revenue streams less sensitive to economic cycles, combined with a diversified portfolio that mitigates single-market risks and offers stable dividend payouts of $629M annually.
Bear Case
Concerns regarding potential valuation compression if growth slows, the heavy reliance on third-party reinsurance partners for profitability, and the capital intensity required to maintain its global infrastructure could pressure margins if macroeconomic conditions deteriorate or client spending contracts significantly.
About Aon plc
Aon plc is a global professional services firm specializing in risk management, human capital solutions, and retirement services. Serving clients across North America, Europe, the Asia-Pacific region, Latin America, and Africa, Aon provides consulting, insurance brokerage, and reinsurance expertise to Fortune 500 companies and government entities.
Analysis
Management Discussion
The latest annual data reveals a robust financial performance with revenue climbing to $17.18B from $15.70B the prior year, driven by strong organic growth and acquisitions totaling $394M. Net income surged to $3.75B compared to $2.72B previously, supported by operating profits of $4.34B and healthy cash flow from operations of $3.48B despite $1.85B in debt repayments.
Industry Overview
The professional services industry is experiencing a shift towards data-driven risk management and digital transformation, where firms that can integrate analytics with traditional brokerage expertise gain a distinct edge over competitors lacking these advanced capabilities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $12.48B | $13.38B | $15.70B | $17.18B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $12.48B | $13.38B | $15.70B | $17.18B |
| Operating Expenses | $8.81B | $9.59B | $11.86B | $12.84B |
| Operating Income | $3.67B | $3.79B | $3.83B | $4.34B |
| Stock-Based Comp | $397.0M | $438.0M | $474.0M | $432.0M |
| Depreciation | $151.0M | $167.0M | $183.0M | $188.0M |
| Non-Operating Income | $-513.0M | $-616.0M | $-373.0M | $415.0M |
| Interest Expense | $406.0M | $484.0M | — | — |
| Pre-Tax Income | $3.16B | $3.17B | $3.46B | $4.76B |
| Income Tax | $510.0M | $541.0M | $742.0M | $1.01B |
| Continuing Ops | $2.65B | $2.63B | $2.72B | $3.75B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $2.65B | $2.63B | $2.72B | $3.75B |
| Minority Interest | $57.0M | $64.0M | $66.0M | $55.0M |
| Net to Common | $2.59B | $2.56B | $2.65B | $3.69B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $20.72B | $21.70B | $23.43B | $25.77B |
| Cash & Equivalents | $690.0M | $778.0M | $1.08B | $1.20B |
| Marketable Securities | $452.0M | $369.0M | $219.0M | $1.60B |
| Accounts Receivable | $3.04B | $3.25B | $3.80B | $4.21B |
| Other Current Assets | $16.55B | $17.30B | $18.32B | $18.77B |
| Long-Term Assets | $11.98B | $12.26B | $25.53B | $25.01B |
| PP&E (Net) | $558.0M | $638.0M | $637.0M | $702.0M |
| Intangibles | $447.0M | — | — | — |
| Goodwill | $8.29B | $8.41B | $15.23B | $15.80B |
| Operating Leases | $699.0M | $650.0M | $711.0M | $677.0M |
| LT Investments | $60.0M | $45.0M | $90.0M | $192.0M |
| Other LT Assets | $1.93B | $2.51B | $8.86B | $7.64B |
| Total Assets | $32.70B | $33.96B | $48.97B | $50.78B |
| Current Liabilities | $20.31B | $21.65B | $23.00B | $23.23B |
| Current Leases | $163.0M | $159.0M | $176.0M | $181.0M |
| Deferred Revenue | $250.0M | $270.0M | $280.0M | $259.0M |
| Taxes Payable | $193.0M | $291.0M | $260.0M | $309.0M |
| Other Current Liab | $19.70B | $20.93B | $22.28B | $22.48B |
| Long-Term Liabilities | $12.83B | $13.05B | $19.54B | $18.01B |
| Long-Term Debt | $9.82B | $9.99B | $16.27B | $14.66B |
| LT Operating Leases | $693.0M | $641.0M | $685.0M | $641.0M |
| Other LT Liab | $1.48B | $1.55B | $1.68B | $1.67B |
| Total Liabilities | $33.13B | $34.70B | $42.53B | $41.24B |
| Shareholders' Equity | $-429.0M | $-742.0M | $6.43B | $9.55B |
| Retained Earnings | $-2.77B | $-3.40B | $-2.31B | $-245.0M |
| AOCI | $-4.62B | $-4.37B | $-4.75B | $-3.84B |
| Total L&E | $32.70B | $33.96B | $48.97B | $50.78B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.65B | $2.63B | $2.72B | $3.75B |
| Non-Cash Adjustments | $339.0M | $681.0M | $-532.0M | $-401.0M |
| Working Capital Changes | $234.0M | $126.0M | $847.0M | $132.0M |
| Cash from Operations | $3.22B | $3.44B | $3.04B | $3.48B |
| Capital Expenditures | $196.0M | $252.0M | $218.0M | $263.0M |
| Cash from Investing | $-449.0M | $-188.0M | $-2.83B | $286.0M |
| Debt Issuances | $1.97B | $744.0M | $7.93B | $0 |
| Debt Repayments | $500.0M | $350.0M | $4.93B | $1.85B |
| Dividends Paid | $463.0M | $489.0M | $562.0M | $629.0M |
| Cash from Financing | $-1.79B | $-2.87B | $796.0M | $-4.21B |
| FX Effect | $-549.0M | $264.0M | $-387.0M | $678.0M |
| Net Change in Cash | $431.0M | $646.0M | $611.0M | $240.0M |
| Beginning Cash | $6.64B | $7.08B | $7.72B | $8.33B |
| Ending Cash | $7.08B | $7.72B | $8.33B | $8.57B |
Frequently Asked Questions
How does Aon plc make money?
The company operates primarily through three core segments: Risk Consulting which offers analytics and advisory services; Human Capital Solutions providing benefits administration and consulting; and Retirement Services delivering investment and plan design strategies, all underpinned by a massive brokerage network that generates significant fee-based revenue.
What are the main risks for AON?
Significant exposure to economic downturns reducing corporate insurance demand, potential regulatory changes in healthcare and reinsurance markets, high fixed cost structure due to global operations, and the challenge of retaining top-tier talent in a competitive professional services environment.
What is AON's competitive advantage?
Aon possesses an unmatched global footprint with deep client relationships spanning over 150 countries, a highly specialized workforce of risk experts, and proprietary data analytics capabilities that create high switching costs for enterprise clients seeking comprehensive risk transfer solutions.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.