Jul 30, 2026 earnings call — CAC merger drives revenue and integration focus
Baldwin reported total revenue of $493 million and adjusted EBITDA of $117 million, with adjusted diluted EPS of $0.48.
Revenue $0.5B (est $0.5B) · EPS $-0.41 (est $0.47) · Next-quarter revenue outlook $0.5B–$0.5B
Key quotes
"Collectively, the 3 partnerships grew 25% in the second quarter and 34% through the first 6 months of the year. A truly remarkable performance."
"We now have converted over 47 thousand tasks which have been completed in the past 17 weeks at a 98%+ quality rate, which has gone to over 99% in recent weeks."
"We ended the quarter with net leverage at approximately 4.5x, as we deployed an additional $80 million to repurchase approximately 4 million shares. Therefore, as of the end of Q2, approximately half of our authorized $250 million buyback program has been deployed."
Analyst Q&A 6
CAC Group growth and deal effects
Q (Tommy McJoynt-Griffith · KBW): They asked which industries CAC focuses on and whether the strong first-half growth is sustainable. They also asked if the $8 million of eliminated redundancies is the full extent of dis-synergies and when that laps.
A: Management said CAC is having an extraordinary start driven by combining deep expertise and Baldwin’s distribution. They listed industries like natural resources, public companies, private equity and transaction liability solutions, and said growth is broad based and repeatable though some quarter-to-quarter variability is normal. On the $8 million item, they said that amount represents reallocation between P&Ls after quick alignment, and they believe that is the extent of those impacts.
"Combining the depth breadth of expertise in large and complex end client markets, including industries like natural resources, large and complex public companies, transaction liability solutions, private equity, and large risk management oriented accounts." — Trevor Lowry Baldwin (CEO)
Rate exposure and buybacks
Q (Hristian Getsov · Wells Fargo): He asked whether rate and exposure headwinds have troughed and what gives them confidence for the second half. He also asked how to think about buybacks after the $80 million repurchase.
A: They said the market is softening, casualty rates are positive but ebbing, and property — especially cat property — is very deeply soft. Q2 renews most of their cat-exposed property reinsurance, so the composition of renewals gives confidence that those headwinds will abate. On buybacks, they repurchased about 4 million shares for about $80 million in Q2, are not currently buying, and future repurchases will be balanced against their 4 to 4.5x leverage range.
"So the second quarter is when you know, we renew the preponderance of our cat exposed property, our largest cat property reinsurance renewals," — Trevor Lowry Baldwin (CEO)
UCTS results and MIS drivers
Q (Charles Lederer · BMO): He asked if UCTS will bounce back in the back half thanks to lower reinsurance costs and how the renters book will perform. He also asked how MIS organic growth will split across homebuilders, mortgage servicers, and Medicare.
A: They said Q2 was hit by about $4 million of year-over-year decline at Juniper from risk-adjusted rate decreases over 20% on some large placements and a stub cover renewal timing. They expect organic growth from Juniper for the year in excess of 20% and said renters had double-digit organic growth with new large software partners and a new co-developed renters product. For MIS, they believe most Medicare impacts are behind them, see strong mortgage origination momentum (including Fairway) and Hippo integration margin gains, and said normalized organic for the segment would have been 10%.
"We expect organic growth from Juniper for the year in excess of 20%." — Trevor Lowry Baldwin (CEO)
AIF fees and AI gains
Q (Mitch · Raymond James): He asked how big the AIF economics uplift is today and whether the AI productivity gains are already in the P&L.
A: They said the AIF impact is relatively de minimis year to date and that AIF fees are roughly 5% of premium earned ratably, with Baldwin receiving roughly 2/3 of that but booked via equity method, not the top line. On AI, they said the benefit is very much embedded in the numbers and gave production-scale examples: 47 thousand tasks converted in 17 weeks at a 98%+ quality rate, 27 standardized processes, improved direct-bill reconciliation from roughly 90% to a sustained 98%, and run-rate cost reductions from $3 million to $1 million and labor from $1.2 million to roughly $400 thousand.
"Oh, it is very much embedded in the numbers." — Trevor Lowry Baldwin (CEO)
New business, retention, and buyback view
Q (Andrew · TD Cowen): He asked whether pricing pressure could hurt retention and what drove the very high new-business sales velocity. He also asked about rumors of an LBO and how management views the stock and buybacks.
A: They said legacy IS retention has been hovering around 90% but was pulled to mid–high eighties this quarter by a one-time integration impact, while CAC retention is in excess of 92%. New-business velocity reflects deep capability, product expertise, and share gains in areas like M&A and private equity. They would not comment on rumors, said they believe intrinsic value exceeds the current share price, repurchased roughly $80 million or 4 million shares in the quarter, are not currently buying, and will consider future repurchases relative to leverage (they are at the top end of 4.5x).
"So retention at legacy IS business has been hovering around 90%." — Trevor Lowry Baldwin (CEO)
3D30 program progress and timeline
Q (Pablo Singzon · JPMorgan): He asked if they still expect to reach the 3 billion revenue and 30% margin goals, and what initiatives and timing make that possible.
A: They said they continue to feel really good about the path to 3 b 30 and that early AI results under the Catalyst program are encouraging for productivity and revenue. They expect to finish the year around $2 billion of revenue, said the path to the goal was planned as roughly equal parts organic and inorganic, noted partnerships this year are meaningful, and said normalized organic growth year-to-date inclusive of partnerships is roughly 10%, so they are tracking in line and gaining confidence from AI and market share wins.
"you know, we will finish the year around $2 billion of revenue." — Trevor Lowry Baldwin (CEO)