The Baldwin Insurance Group Stock Earnings Reports

The Baldwin Insurance Group reported a solid Q1 2026 with total revenue of $532M, adjusted EBITDA of $137M (up 21% year-over-year) and adjusted diluted EPS of $0.63. Organic revenue growth was 2% (5% on an adjusted basis removing three transitory items: the QBE builder book transition, Medicare disruption, and an IAS revenue-recognition change). The company closed partnerships with CAC, Ovi and Capstone, with CAC, in particular, delivering strong early results (27% revenue growth year-over-year for the partnership group, $38M of new business at CAC in Q1) and rapid synergy capture—$34M of cost synergies actioned (≈80% of the $43M three-year target) and initial revenue synergies accelerating. Segment notes: Insurance Advisory Solutions (IAS) organic up 4% (sales velocity 13%); Underwriting, Capacity & Technology Solutions (UCTS) organic up 3% with multifamily and Juniper Re strong (Juniper Re +90%), though E&S homeowners down ~30% as underwriting discipline was maintained; Main Street Insurance Solutions (MIS) down 5% due to QBE commission change and Medicare softness but normalized would be +7%. The company is actively deploying AI via its proprietary orchestration layer and the Catalyst (3B30) program, citing internal productivity gains of up to 80% on early implementations and expecting $3M–$5M in near-term operational savings from role transformation within IAS. Cash and capital: adjusted free cash flow was roughly flat in Q1 (working capital timing and CAC-related payouts drove a $60M cash use); net leverage ~4.3x after deploying $50M of a $250M buyback authorization (2.2M shares repurchased). A large deferred tax benefit (~$145M) and a roughly offsetting TRA liability (~$130M) were recognized; both are excluded from adjusted metrics. Guidance was reaffirmed: Q2 revenue $485M–$490M, adjusted EBITDA $113M–$118M, adjusted diluted EPS $0.44–$0.48; full-year guidance unchanged with expectation of accelerating organic growth as the three transitory headwinds roll off in Q2 and the partnerships continue to integrate. Management emphasized confidence in long-term margin expansion toward the 3B30 objective, continued disciplined buybacks when attractive, prioritization of organic investment and M&A, and that AI and embedded distribution are durable competitive advantages.