Baldwin Insurance Group, Inc. Q1 FY2025 earnings call

• First quarter overall results: organic revenue growth 10%, adjusted EBITDA growth 12%, adjusted EBITDA margin improvement 80 basis points, adjusted diluted earnings per share growth 16%. • Adjusted free cash flow $26M, up 6% year-over-year. • Paid $123M of earnouts in Q1, $37M in April, with $22M expected in Q2. • Finalized $110M capitalization of BRIE, to migrate builder book. • IAS organic growth 3%, UCTS 32%, MIS 10%.

Insurance Advisory Solutions (IAS): Overall organic revenue growth for the quarter was 3%. Sales velocity remained strong at 14%, client retention improved to approximately 92%, with a negative 3.5% impact from rate and exposure on renewals. Underwriting Capacity and Technology Solution (UCTS): Organic revenue growth accelerated to 32% vs 21% in Q1 2024, driven by multifamily and home portfolios, Juniper Re, and multifamily captive. Main Street Insurance Solution (MIS): Total organic revenue growth of 10%, driven by new business in builder, national mortgage, real estate, and Medicare divisions.

• Full-year consolidated guidance unchanged. • Q2 2025 revenue expected $370M-$380M, organic revenue growth toward low end of 10%-15% range. • Adjusted EBITDA expected $83M-$88M, adjusted diluted EPS $0.41-$0.44. • Target net leverage below 4x by Q3.

• Macro uncertainty affecting client business activity. • Renewal timing and project-based work headwinds. • Quota share reinsurance capacity supply constraints in the market.

Q: Greg Peters asks about IAS organic revenue outlook and project-based headwinds.

A: Trevor Baldwin discusses timing, rate and exposure impacts, and underlying fundamentals.

Q: Greg Peters asks about new cash flow presentation and free cash flow conversion rate.

A: Brad Hale talks about target free cash flow, working capital timing, and AR/accrual impacts.

Q: Tommy McJoynt asks about project-based work in Q2 and UCTS growth.

A: Brad Hale and Trevor Baldwin discuss Q2 project starts and UCTS drivers.

Q: Josh Shanker asks about one-time headwind from renewal timing.

A: Brad Hale mentions couple hundred basis points headwind and timing reversal.

Q: Elyse Greenspan asks about IAS organic growth guide and reinsurance renewals.

A: Trevor Baldwin discusses IAS positioning and reinsurance renewal progress.

Q: Pablo Singzon asks about IAS property mix and employee benefits.

A: Trevor Baldwin talks about Q2 property volume and employee benefits estimates.

Q: Charlie Lederer asks about captive in UCTS and IAS acquisition.

A: Brad Hale discusses captive benefits and IAS acquisition strategy.