Baldwin books 19% organic growth and 19.1% adj Ebitda margin in Q4

By Chris Munro

Feb 25 - (The Insurer) - The Baldwin Group ended Q4 2024 with organic growth that accelerated by four points year on year to 19%, while the expansive intermediary’s adjusted Ebitda for the fourth quarter grew 38% year on year to $63.2 million and its adjusted Ebitda margin expanded 3.1 points to 19.1%.

Tampa, Florida-based Baldwin’s fourth quarter 2024 organic growth was an acceleration compared with the 14 percent generated in Q3 2024.

The company booked adjusted diluted earnings per share of $0.27 for 2024’s final quarter, a marginal beat on the $0.26 that was the consensus forecast of eight analysts as per S&P Capital IQ.

In 2023’s fourth quarter, Baldwin had generated $0.14 of adjusted diluted earnings per share.

Total revenue across Baldwin’s operations increased 16 percent year on year to $329.9 million.

Fourth quarter 2024 commissions and fees totalled $326.7 million, compared with $282.5 million in the same three months in 2023.

It closed out the final three months of 2024 with adjusted net income of $32.1 million, up from the prior year period’s $16.2 million.

For the full year, Baldwin booked organic growth of 17%, a slow down compared with 2023’s 19%.

Baldwin’s adjusted Ebitda grew 25% year on year to $312.5 million, while the company’s adjusted Ebitda margin increased 200 basis points to 22.5%.

The company’s total revenue increased 14% year on year to $1.39 billion, while commissions and fees increased from $1.21 billion in 2023 to $1.38bn in the final three months of 2024.

“We saw continued momentum across our business with organic growth of 19% for the fourth quarter, 17% for the full year, and double digits across all three of our segments showcasing the strength of our colleague and client franchise,” said Trevor Baldwin, the company’s CEO.

“Our continued focus on efficient execution across our business and thoughtful investments in innovative and proprietary technology platforms delivered 200 basis points of adjusted Ebitda margin expansion and adjusted free cash flow growth of 97% alongside our industry leading organic growth profile in 2024.

“With the vast majority of our earn-out obligations satisfied, we anticipate a meaningful inflection in free cash flow generation and significant growth and flexibility in capital allocation to support continued strength in our financial performance,” the executive added.