The Baldwin Group opened 2026 with a strong life in reported revenue and earnings from recent acquisitions led by CAC Group, while slower organic growth and negative operating cash flow kept attention on integration and balance sheet management.
The independent insurance distribution firm reported first-quarter 2026 revenue of $532.2 million, up 29% year over year. Adjusted EBITDA rose 21% to $137.2 million, and adjusted net income was $89.3 million.
Baldwin posted a net loss of $1.9 million, effectively breakeven at the margin, with diluted earnings per share of $0.02. Meanwhile, adjusted diluted EPS declined 3% to $0.63, reflecting higher interest and integration‑related costs.
Management cited “normalized” organic growth of about 9% when including the contribution from new partnerships signed in late 2025 and early 2026, and reiterated guidance to exit the year with a double‑digit organic growth run rate.
The quarter was the first to fully reflect Baldwin’s January partnerships, led by CAC Group, a large specialty and middle‑market broker and advisory firm. The deal expands Baldwin’s capabilities in complex commercial P&C, employee benefits, capital solutions and reinsurance intermediation, and is central to its “$3B/30 Catalyst” plan to reach $3 billion of revenue and a 30% margin over time.
Chief executive Trevor Baldwin said the CAC integration is ahead of schedule, with about 80% of targeted three‑year expense synergies already implemented and early cross‑sell revenue emerging. Contributions from CAC and other recent deals were a key driver of the 29% revenue increase and 21% growth in adjusted EBITDA.
Adjusted EBITDA margin, however, slipped to 25.8% from 27.5% a year earlier. The decline reflects integration and financing costs following a large debt‑funded transaction, along with changes in business mix. For brokers and investors, the margin trend underscores the execution risk that comes with using sizable acquisitions to accelerate growth.
Despite stronger adjusted earnings, first-quarter operating cash flow was negative $6.1 million, with adjusted free cash flow essentially breakeven at negative $0.2 million.
As of March 31, 2026, Baldwin reported $146 million of cash and cash equivalents and $393 million of available capacity under its revolving credit facility. The company refinanced and increased its term debt in advance of the CAC transaction and now carries leverage toward the higher end of the range for listed brokers.
Lenders and ratings analysts are likely to focus on whether synergy delivery, margin expansion and a return to consistently positive free cash flow can keep pace with the higher debt load, particularly if the current favorable pricing environment in commercial lines begins to cool.
Compared with larger US and global brokerages, Baldwin’s first‑quarter profile remains more heavily driven by acquisition‑led growth, with profitability and cash generation still trailing top‑tier competitors.
Brown & Brown and Arthur J. Gallagher, for example, have typically reported mid‑ to high‑single‑digit organic growth and operating margins around or above 30% in core brokerage operations, supported by diversified retail, wholesale and program businesses and relatively conservative balance sheets. Ryan Specialty, with a focus on wholesale and MGA distribution, has also reported high‑single‑digit to low‑double‑digit organic growth and adjusted EBITDA margins above 30% since its listing.
Against that backdrop, Baldwin’s 2% reported organic growth and 25.8% adjusted EBITDA margin highlight both the progress made in scaling the platform and the remaining gap to the economics of the highest‑performing intermediaries.
The CAC transaction gives the group broader capabilities and a larger client base to work with, but also raises the bar on integration, producer retention and cross‑sell execution if it is to deliver on its stated $3B/30 targets and move closer to peer performance over the medium term.
