Brown & Brown

Brown & Brown’s balance sheet shifted in 2025 to fund the Accession acquisition with new senior notes and a follow‑on equity offering. As of Q3‑25, long‑term debt stood near 7.65 billion (plus 75 million current), and interest expense increased accordingly; however, trailing operating cash flow exceeds 1.3 billion and capex needs are minimal.

On our estimates, net debt to TTM FCF is roughly mid‑to‑high 5s, with a clear path to delever through organic cash generation while funding moderate buybacks and dividends. The board also authorized up to 1.5 billion in repurchases, providing flexibility to counter 2025 issuance over time.

Primary risks are a faster‑than‑expected softening of premium rates and slower synergy capture from Accession.