Herbert Smith Freehills reports historic profit surge and revenue peak before finalising merger with US giant Kramer Levin
Herbert Smith Freehills has delivered its most lucrative financial performance in the firm’s history, signing off its solo legacy with soaring profits, rising revenues and a significant merger with US powerhouse Kramer Levin.
In the year ending 30 April 2025, HSF reported a 9.5% leap in profits, reaching a record-breaking £486.9 million. Revenues rose by 4% to hit £1.36 billion, while profit per equity partner (PEP) surged 8.6%, landing at £1.428 million. This marked the twelfth consecutive year of revenue growth for the international law firm.
The figures cap a historic chapter in the firm’s journey, as it officially merged last month with New York-based Kramer Levin to form Herbert Smith Freehills Kramer, a transatlantic legal juggernaut boasting a combined turnover of approximately $2.7 billion.
Global CEO Justin D’Agostino hailed the results as a defining achievement: “This is our best-ever financial performance and a very fitting final set of results for Herbert Smith Freehills. We are proud to have achieved growth across all regions despite significant macroeconomic challenges in many of our markets.”
Embed from Getty ImagesHSF’s expansion in Europe was also highlighted. The firm opened a new office in Luxembourg and onboarded a ten-lawyer team in Germany, steps D’Agostino described as “strategic investments” that have “significantly strengthened our position in Europe.”
The timing of the bumper earnings coincides with a flurry of reporting across the legal sector. Magic Circle firms Clifford Chance and Linklaters posted similarly strong results earlier this week, while Macfarlanes recently revealed that its PEP had crossed the £3 million mark.
D’Agostino emphasised that HSF’s merger with Kramer Levin was the culmination of years of planning: “A major highlight of the past year was the combination between Herbert Smith Freehills and Kramer Levin. We previously identified an expanded US presence as one of our highest strategic priorities, and I’m proud we’ve turned that ambition into a reality.”
HSF Kramer now spans major financial centres across Europe, Asia, the Middle East, and North America, offering balanced strengths across corporate transactions and high-stakes disputes.
Further sweetening the summer for its junior lawyers, the firm also announced a pay rise for newly qualified solicitors in London. Base salaries were hiked to £145,000—placing HSF Kramer firmly among the City’s elite when it comes to associate compensation.
With the merger now complete, HSF Kramer is positioning itself as a dominant global player in an increasingly consolidated legal market. Analysts expect the firm to push further into the US and Asian markets in the coming months, leveraging its expanded platform to win cross-border mandates from multinational clients.
In an increasingly competitive landscape, these results provide a clear signal: HSF didn’t just bow out—it did so at the top of its game.