Baldwin Insurance Group reported fourth‑quarter 2025 revenue of $347.3 million, a 5.3% year‑over‑year increase, and adjusted earnings per share of $0.31, beating the consensus estimate of $0.29 by $0.02 (6.9%). Revenue fell short of the consensus range of $351.93 million to $352.4 million, missing by roughly 1.4%. For comparison, the company generated $329.89 million in revenue and $0.27 in adjusted EPS in Q4 2024, indicating a 5.3% revenue gain and a 15% EPS increase year‑over‑year.
The Underwriting, Capacity & Technology Solutions (UCTS) segment drove the top‑line growth, reporting 16% organic revenue growth and significant margin expansion. The Mainstreet Insurance Solutions (MIS) segment, however, experienced a 4% decline in organic revenue. Baldwin’s embedded distribution partnership with Fairway Independent Mortgage Corporation, announced in 2024, continues to contribute to the embedded home‑insurance business, while the company’s AI‑driven “3B30 Catalyst Program” is accelerating automation and cost efficiencies across the organization.
Adjusted EBITDA margin rose to 20.1%, an increase of 100 basis points year‑over‑year, reflecting disciplined cost management and a favorable mix shift toward higher‑margin UCTS contracts. The margin expansion helped offset the revenue miss and enabled the EPS beat, as the company maintained pricing power and leveraged operational efficiencies to protect profitability.
Management guided for full‑year 2026 revenue of $2.01 billion to $2.05 billion and adjusted EBITDA of $460 million to $480 million. For Q1 2026, revenue guidance is $520 million to $530 million with adjusted EBITDA of $130 million to $140 million. The company also approved a share‑repurchase program of up to $250 million, with the first tranche expected to begin in the second quarter of 2026, underscoring confidence in the company’s capital allocation strategy.
"2025 was a year of significant progress for The Baldwin Group. We delivered our sixth consecutive year of top‑of‑industry organic growth, expanded margins, and grew adjusted diluted EPS by double digits—all while navigating meaningful near‑term headwinds that will shortly be behind us," said CEO Trevor Baldwin. "Our business was purpose‑built for this era, and we're excited about our ability to demonstrate that to all of our stakeholders."
Baldwin rebranded from BRP Group to Baldwin Insurance Group in May 2024, positioning the company as a modern, technology‑driven insurer. The firm’s focus on AI and automation, coupled with the 3B30 Catalyst Program, is expected to drive future efficiency gains. Headwinds include disruptions in the Medicare marketplace and changes to commission structures, which contributed to the revenue miss. Tailwinds such as the embedded distribution partnership and AI initiatives are anticipated to support double‑digit organic growth in 2026.
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