WTW Reports First Quarter 2025 Earnings
WTW reported Q1 2025 financial results with mixed performance. Revenue decreased 5% to $2.2 billion, though organic revenue grew 5%. The company achieved notable improvements in profitability, with diluted EPS increasing 27% to $2.33 and operating margin expanding 740 basis points to 19.4%.
The Health, Wealth & Career segment saw revenue decline 13% to $1.17 billion, while maintaining organic growth of 3%. The Risk & Broking segment showed stronger performance with revenue increasing 5% to $1.03 billion and organic growth of 7%.
During Q1, WTW repurchased 607,221 shares for $200 million. The company expects to conduct share repurchases of approximately $1.5 billion in 2025, subject to market conditions. Management projects ~100 basis points of average annual margin expansion over the next 3 years in Risk & Broking, with additional margin expansion expected at HWC and enterprise levels.
WTW ha riportato i risultati finanziari del primo trimestre 2025 con performance contrastanti. I ricavi sono diminuiti del 5% a 2,2 miliardi di dollari, nonostante la crescita organica dei ricavi del 5%. L'azienda ha ottenuto miglioramenti significativi nella redditività, con un utile diluito per azione in aumento del 27% a 2,33 dollari e un margine operativo che si è ampliato di 740 punti base raggiungendo il 19,4%.
Il segmento Health, Wealth & Career ha registrato un calo dei ricavi del 13% a 1,17 miliardi di dollari, mantenendo però una crescita organica del 3%. Il segmento Risk & Broking ha mostrato una performance più solida, con ricavi in aumento del 5% a 1,03 miliardi di dollari e una crescita organica del 7%.
Nel primo trimestre, WTW ha riacquistato 607.221 azioni per 200 milioni di dollari. L'azienda prevede di effettuare riacquisti di azioni per circa 1,5 miliardi di dollari nel 2025, soggetti alle condizioni di mercato. La direzione prevede un'espansione media annua del margine di circa 100 punti base nei prossimi 3 anni nel segmento Risk & Broking, con ulteriori incrementi attesi a livello di HWC e dell'intera impresa.
WTW reportó resultados financieros del primer trimestre de 2025 con un desempeño mixto. Los ingresos disminuyeron un 5% hasta 2.200 millones de dólares, aunque los ingresos orgánicos crecieron un 5%. La compañía logró mejoras notables en la rentabilidad, con una ganancia por acción diluida que aumentó un 27% hasta 2,33 dólares y un margen operativo que se expandió 740 puntos básicos hasta el 19,4%.
El segmento de Health, Wealth & Career registró una caída de ingresos del 13% hasta 1.170 millones de dólares, manteniendo un crecimiento orgánico del 3%. El segmento de Risk & Broking mostró un desempeño más fuerte, con ingresos que aumentaron un 5% hasta 1.030 millones de dólares y un crecimiento orgánico del 7%.
Durante el primer trimestre, WTW recompró 607.221 acciones por 200 millones de dólares. La compañía espera realizar recompras de acciones por aproximadamente 1.500 millones de dólares en 2025, sujetas a las condiciones del mercado. La dirección proyecta una expansión anual promedio del margen de aproximadamente 100 puntos básicos durante los próximos 3 años en Risk & Broking, con una expansión adicional esperada en HWC y a nivel empresarial.
WTW는 2025년 1분기 재무 실적을 혼조된 성과로 보고했습니다. 매출은 22억 달러로 5% 감소했으나, 유기적 매출은 5% 성장했습니다. 회사는 희석 주당순이익이 27% 증가한 2.33달러를 기록하고, 영업이익률이 740 베이시스 포인트 상승하여 19.4%에 달하는 등 수익성에서 눈에 띄는 개선을 이루었습니다.
Health, Wealth & Career 부문은 매출이 13% 감소한 11억 7천만 달러였으나, 유기적 성장률은 3%를 유지했습니다. Risk & Broking 부문은 매출이 5% 증가한 10억 3천만 달러를 기록하며 7%의 유기적 성장을 보였습니다.
1분기 동안 WTW는 2억 달러에 해당하는 607,221주를 자사주 매입했습니다. 회사는 시장 상황에 따라 2025년에 약 15억 달러 규모의 자사주 매입을 계획하고 있습니다. 경영진은 향후 3년간 Risk & Broking 부문에서 연평균 약 100 베이시스 포인트의 마진 확대를 예상하며, HWC 및 기업 전체 차원에서도 추가적인 마진 확대가 기대된다고 밝혔습니다.
WTW a publié des résultats financiers du premier trimestre 2025 avec des performances mitigées. Le chiffre d'affaires a diminué de 5 % pour atteindre 2,2 milliards de dollars, bien que le chiffre d'affaires organique ait progressé de 5 %. La société a réalisé des améliorations notables en matière de rentabilité, avec un BPA dilué en hausse de 27 % à 2,33 dollars et une marge opérationnelle qui s'est accrue de 740 points de base pour atteindre 19,4 %.
Le segment Health, Wealth & Career a vu son chiffre d'affaires baisser de 13 % à 1,17 milliard de dollars, tout en maintenant une croissance organique de 3 %. Le segment Risk & Broking a affiché une meilleure performance avec un chiffre d'affaires en hausse de 5 % à 1,03 milliard de dollars et une croissance organique de 7 %.
Au cours du premier trimestre, WTW a racheté 607 221 actions pour 200 millions de dollars. La société prévoit de réaliser des rachats d'actions d'environ 1,5 milliard de dollars en 2025, sous réserve des conditions du marché. La direction projette une expansion moyenne annuelle de la marge d'environ 100 points de base au cours des 3 prochaines années dans le segment Risk & Broking, avec une expansion supplémentaire attendue au niveau de HWC et de l'entreprise.
WTW meldete gemischte Finanzergebnisse für das erste Quartal 2025. Der Umsatz sank um 5 % auf 2,2 Milliarden US-Dollar, obwohl das organische Umsatzwachstum 5 % betrug. Das Unternehmen erzielte bemerkenswerte Verbesserungen in der Rentabilität, mit einem verwässerten Gewinn je Aktie, der um 27 % auf 2,33 US-Dollar stieg, und einer Ausweitung der operativen Marge um 740 Basispunkte auf 19,4 %.
Der Bereich Health, Wealth & Career verzeichnete einen Umsatzrückgang von 13 % auf 1,17 Milliarden US-Dollar, behielt jedoch ein organisches Wachstum von 3 % bei. Der Bereich Risk & Broking zeigte eine stärkere Performance mit einem Umsatzanstieg von 5 % auf 1,03 Milliarden US-Dollar und einem organischen Wachstum von 7 %.
Im ersten Quartal kaufte WTW 607.221 Aktien für 200 Millionen US-Dollar zurück. Das Unternehmen plant, im Jahr 2025 Aktienrückkäufe von etwa 1,5 Milliarden US-Dollar durchzuführen, abhängig von den Marktbedingungen. Das Management prognostiziert in den nächsten 3 Jahren eine durchschnittliche jährliche Margenausweitung von etwa 100 Basispunkten im Bereich Risk & Broking, mit zusätzlicher Margenausweitung auf HWC- und Unternehmensebene.
- Organic revenue growth of 5% across the company
- Operating margin improved significantly by 740 basis points to 19.4%
- Diluted EPS increased 27% to $2.33
- Risk & Broking segment showed strong 7% organic growth
- Planned $1.5 billion share repurchase program for 2025
- Overall revenue declined 5% to $2.2 billion
- Health, Wealth & Career segment revenue dropped 13%
- Free cash flow decreased by $50 million to -$86 million
- Adjusted Net Income declined 3% to $316 million
- Expected headwind of $0.25-$0.35 on adjusted EPS from reinsurance joint venture
Insights
WTW delivers solid Q1 with 5% organic growth and significant margin expansion despite portfolio reshaping affecting reported revenue.
WTW's Q1 2025 results reveal a company effectively executing its transformation strategy while reshaping its portfolio. The headline
Segment performance shows diverging trends but positive momentum in both divisions. Health, Wealth & Career revenue decreased
The primary concern lies in cash flow metrics, with
WTW's capital allocation strategy remains aggressive with
- Revenue1 decreased
5% over prior year to$2.2 billion for the quarter due to the sale of TRANZACT - Organic Revenue growth of
5% for the quarter - Diluted Earnings per Share was
$2.33 for the quarter, up27% over prior year - Adjusted Diluted Earnings per Share was
$3.13 for the quarter, comparable to prior year2 - Operating Margin was
19.4% for the quarter, up 740 basis points over prior year - Adjusted Operating Margin was
21.6% for the quarter, up 100 basis points from prior year2
LONDON, April 24, 2025 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025.
“We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio,” said Carl Hess, WTW’s chief executive officer. “We are well-positioned to help our clients navigate economic uncertainty and highly focused on driving continued growth and margin expansion, and we are confident in our outlook. I’m proud of our team’s dedication and look forward to achieving our strategic and financial goals together.”
Consolidated Results
As reported, USD millions, except %
| Key Metrics | Q1-25 | Q1-242 | Y/Y Change |
| Revenue1 | Reported (5)% | CC (4)% | Organic | ||
| Income from Operations | |||
| Operating Margin % | 740 bps | ||
| Adjusted Operating Income | (1)% | ||
| Adjusted Operating Margin % | 100 bps | ||
| Net Income | |||
| Adjusted Net Income | (3)% | ||
| Diluted EPS | |||
| Adjusted Diluted EPS |
| 1 | The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis. |
| 2 | Refer to "WTW Non-GAAP Measures" below and the Q1-25 Supplemental Slides for recast of historical Non-GAAP measures. |
Revenue was
Net Income for the first quarter of 2025 was
Cash Flow and Capital Allocation
Cash flows used in operating activities were
First Quarter 2025 Segment Highlights
Health, Wealth & Career ("HWC")
As reported, USD millions, except %
| Health, Wealth & Career | Q1-25 | Q1-24 | Y/Y Change |
| Total Revenue | Reported (13)% | CC (12)% | Organic | ||
| Operating Income | (7)% | ||
| Operating Margin % | 160 bps | ||
The HWC segment had revenue of
Operating margins in the HWC segment increased 160 basis points from the prior-year first quarter to
Risk & Broking ("R&B")
As reported, USD millions, except %
| Risk & Broking | Q1-25 | Q1-24 | Y/Y Change |
| Total Revenue | Reported | ||
| Operating Income | |||
| Operating Margin % | 120 bps | ||
The R&B segment had revenue of
Operating margins in the R&B segment increased 120 basis points from the prior-year first quarter to
Select 2025 Financial Considerations
Changes to Non-GAAP financial measures:
- All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
- Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
- Refer to Supplemental Slides for recast of historical Non-GAAP measures
Business mix:
- TRANZACT business, which contributed
$1.14 t o adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024 - Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately
$0.25 t o$0.35
Free cash flow:
- Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024
- Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows
Capital allocation:
- Expect share repurchases of ~
$1.5 billion , subject to market conditions and potential capital allocation to organic and inorganic investment opportunities
Foreign exchange:
- Expect a foreign currency impact on adjusted diluted earnings per share to be neutral in 2025 at today's rates
Adjusted operating margin outlook:
- ~100 basis points of average annual margin expansion over next 3 years in R&B
- Incremental annual margin expansion at HWC and enterprise levels
The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under "WTW Non-GAAP Measures" below.
Conference Call
The Company will host a live webcast and conference call to discuss the financial results for the first quarter 2025. It will be held on Thursday, April 24, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.
WTW Non-GAAP Measures
In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.
We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.
Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:
- Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
- Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
- Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.
We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.
We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.
Our non-GAAP measures and their accompanying definitions are presented as follows:
Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.
Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.
Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.
Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.
Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.
Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.
Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.
Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.
Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.
Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.
These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.
WTW Forward-Looking Statements
This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisition and disposition; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our now-completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future successes, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.
There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our now-completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least
The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.
Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.
Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.
Contact
INVESTORS
Claudia De La Hoz | Claudia.Delahoz@wtwco.com
| WTW Supplemental Segment Information (In millions of U.S. dollars) (Unaudited) | |||||||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||||||
| Components of Revenue Change(i) | |||||||||||||||||||||||||||
| Less: | Less: | ||||||||||||||||||||||||||
| Three Months Ended March 31, | As Reported | Currency | Constant Currency | Acquisitions/ | Organic | ||||||||||||||||||||||
| 2025 | 2024 | % Change | Impact | Change | Divestitures | Change | |||||||||||||||||||||
| Health, Wealth & Career | |||||||||||||||||||||||||||
| Revenue excluding interest income | $ | 1,158 | $ | 1,327 | (13)% | (1)% | (12)% | (14)% | |||||||||||||||||||
| Interest income | 7 | 9 | |||||||||||||||||||||||||
| Total | 1,165 | 1,336 | (13)% | (1)% | (12)% | (14)% | |||||||||||||||||||||
| Risk & Broking | |||||||||||||||||||||||||||
| Revenue excluding interest income | $ | 1,005 | $ | 950 | (2)% | ||||||||||||||||||||||
| Interest income | 22 | 28 | |||||||||||||||||||||||||
| Total | 1,027 | 978 | (2)% | ||||||||||||||||||||||||
| Segment Revenue | $ | 2,192 | $ | 2,314 | (5)% | (2)% | (4)% | (8)% | |||||||||||||||||||
| Corporate, reimbursable expenses and other | 21 | 21 | |||||||||||||||||||||||||
| Interest income | 10 | 6 | |||||||||||||||||||||||||
| Revenue | $ | 2,223 | $ | 2,341 | (5)% | (1)% | (4)% | (8)% | |||||||||||||||||||
| (i) | Components of revenue change may not add due to rounding. |
| (ii) | Interest income did not contribute to organic change for the three months ended March 31, 2025. |
BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||
| HWC | R&B | Corporate | Total | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| Book-of-business settlements | $ | 2 | $ | — | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | $ | 2 | |||||||||||||||
| Interest income | 7 | 9 | 22 | 28 | 10 | 6 | 39 | 43 | |||||||||||||||||||||||
| Total | $ | 9 | $ | 9 | $ | 22 | $ | 30 | $ | 10 | $ | 6 | $ | 41 | $ | 45 | |||||||||||||||
SEGMENT OPERATING INCOME (i)
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Health, Wealth & Career | $ | 311 | $ | 336 | |||
| Risk & Broking | 226 | 203 | |||||
| Segment Operating Income | $ | 537 | $ | 539 | |||
| (i) | Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes. |
SEGMENT OPERATING MARGINS
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Health, Wealth & Career | |||||||
| Risk & Broking | |||||||
RECONCILIATION OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Segment Operating Income | $ | 537 | $ | 539 | |||
| Amortization | (48 | ) | (60 | ) | |||
| Restructuring costs | — | (18 | ) | ||||
| Transaction and transformation(i) | — | (125 | ) | ||||
| Unallocated, net(ii) | (57 | ) | (56 | ) | |||
| Income from Operations | 432 | 280 | |||||
| Interest expense | (65 | ) | (64 | ) | |||
| Other (loss)/income, net | (64 | ) | 26 | ||||
| Income from operations before income taxes and interest in earnings of associates | $ | 303 | $ | 242 | |||
| (i) | In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program. |
| (ii) | Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes. |
| WTW Reconciliations of Non-GAAP Measures (In millions of U.S. dollars, except per share data) (Unaudited) | |||||||
| RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net income attributable to WTW | $ | 235 | $ | 190 | |||
| Adjusted for certain items: | |||||||
| Amortization | 48 | 60 | |||||
| Restructuring costs | — | 18 | |||||
| Transaction and transformation | — | 125 | |||||
| Net periodic pension and postretirement benefits | 75 | (22 | ) | ||||
| Gain on disposal of operations | (14 | ) | — | ||||
| Tax effect on certain items listed above(i) | (28 | ) | (46 | ) | |||
| Adjusted Net Income | $ | 316 | $ | 325 | |||
| Weighted-average ordinary shares, diluted | 101 | 104 | |||||
| Diluted Earnings Per Share | $ | 2.33 | $ | 1.83 | |||
| Adjusted for certain items:(ii) | |||||||
| Amortization | 0.48 | 0.58 | |||||
| Restructuring costs | — | 0.17 | |||||
| Transaction and transformation | — | 1.21 | |||||
| Net periodic pension and postretirement benefits | 0.74 | (0.21 | ) | ||||
| Gain on disposal of operations | (0.14 | ) | — | ||||
| Tax effect on certain items listed above(i) | (0.28 | ) | (0.44 | ) | |||
| Adjusted Diluted Earnings Per Share(ii) | $ | 3.13 | $ | 3.13 | |||
| (i) | The tax effect was calculated using an effective tax rate for each item. |
| (ii) | Per share values and totals may differ due to rounding. |
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Net Income | $ | 239 | $ | 194 | |||||||||||
| Provision for income taxes | 65 | 48 | |||||||||||||
| Interest expense | 65 | 64 | |||||||||||||
| Depreciation | 54 | 59 | |||||||||||||
| Amortization | 48 | 60 | |||||||||||||
| Restructuring costs | — | 18 | |||||||||||||
| Transaction and transformation | — | 125 | |||||||||||||
| Net periodic pension and postretirement benefits | 75 | (22 | ) | ||||||||||||
| Gain on disposal of operations | (14 | ) | — | ||||||||||||
| Adjusted EBITDA and Adjusted EBITDA Margin | $ | 532 | $ | 546 | |||||||||||
RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| Income from operations and Operating margin | $ | 432 | $ | 280 | |||||||||||
| Adjusted for certain items: | |||||||||||||||
| Amortization | 48 | 60 | |||||||||||||
| Restructuring costs | — | 18 | |||||||||||||
| Transaction and transformation | — | 125 | |||||||||||||
| Adjusted operating income and Adjusted operating income margin | $ | 480 | $ | 483 | |||||||||||
RECONCILIATION OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Income from operations before income taxes and interest in earnings of associates | $ | 303 | $ | 242 | |||
| Adjusted for certain items: | |||||||
| Amortization | 48 | 60 | |||||
| Restructuring costs | — | 18 | |||||
| Transaction and transformation | — | 125 | |||||
| Net periodic pension and postretirement benefits | 75 | (22 | ) | ||||
| Gain on disposal of operations | (14 | ) | — | ||||
| Adjusted income before taxes | $ | 412 | $ | 423 | |||
| Provision for income taxes | $ | 65 | $ | 48 | |||
| Tax effect on certain items listed above(i) | 28 | 46 | |||||
| Adjusted income taxes | $ | 93 | $ | 94 | |||
| U.S. GAAP tax rate | 21.5 | % | 19.9 | % | |||
| Adjusted income tax rate | 22.7 | % | 22.3 | % | |||
| (i) | The tax effect was calculated using an effective tax rate for each item. |
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW
| Years Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows (used in)/from operating activities | $ | (35 | ) | $ | 24 | ||
| Less: Additions to fixed assets and software | (51 | ) | (60 | ) | |||
| Free Cash Flow | $ | (86 | ) | $ | (36 | ) | |
| WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Income (In millions of U.S. dollars, except per share data) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue | $ | 2,223 | $ | 2,341 | |||
| Costs of providing services | |||||||
| Salaries and benefits | 1,324 | 1,342 | |||||
| Other operating expenses | 365 | 457 | |||||
| Depreciation | 54 | 59 | |||||
| Amortization | 48 | 60 | |||||
| Restructuring costs | — | 18 | |||||
| Transaction and transformation | — | 125 | |||||
| Total costs of providing services | 1,791 | 2,061 | |||||
| Income from operations | 432 | 280 | |||||
| Interest expense | (65 | ) | (64 | ) | |||
| Other (loss)/income, net | (64 | ) | 26 | ||||
| INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES | 303 | 242 | |||||
| Provision for income taxes | (65 | ) | (48 | ) | |||
| INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES | 238 | 194 | |||||
| Interest in earnings of associates, net of tax | 1 | — | |||||
| NET INCOME | 239 | 194 | |||||
| Income attributable to non-controlling interests | (4 | ) | (4 | ) | |||
| NET INCOME ATTRIBUTABLE TO WTW | $ | 235 | $ | 190 | |||
| EARNINGS PER SHARE | |||||||
| Basic earnings per share | $ | 2.34 | $ | 1.84 | |||
| Diluted earnings per share | $ | 2.33 | $ | 1.83 | |||
| Weighted-average ordinary shares, basic | 100 | 103 | |||||
| Weighted-average ordinary shares, diluted | 101 | 104 | |||||
| WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Balance Sheets (In millions of U.S. dollars, except share data) (Unaudited) | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 1,507 | $ | 1,890 | |||
| Fiduciary assets | 10,293 | 9,504 | |||||
| Accounts receivable, net | 2,366 | 2,494 | |||||
| Prepaid and other current assets | 1,295 | 1,217 | |||||
| Total current assets | 15,461 | 15,105 | |||||
| Fixed assets, net | 667 | 661 | |||||
| Goodwill | 8,841 | 8,799 | |||||
| Other intangible assets, net | 1,255 | 1,295 | |||||
| Right-of-use assets | 487 | 485 | |||||
| Pension benefits assets | 550 | 530 | |||||
| Other non-current assets | 803 | 806 | |||||
| Total non-current assets | 12,603 | 12,576 | |||||
| TOTAL ASSETS | $ | 28,064 | $ | 27,681 | |||
| LIABILITIES AND EQUITY | |||||||
| Fiduciary liabilities | $ | 10,293 | $ | 9,504 | |||
| Deferred revenue and accrued expenses | 1,499 | 2,211 | |||||
| Current debt | 549 | — | |||||
| Current lease liabilities | 120 | 118 | |||||
| Other current liabilities | 923 | 765 | |||||
| Total current liabilities | 13,384 | 12,598 | |||||
| Long-term debt | 4,761 | 5,309 | |||||
| Liability for pension benefits | 552 | 615 | |||||
| Provision for liabilities | 359 | 341 | |||||
| Long-term lease liabilities | 498 | 502 | |||||
| Other non-current liabilities | 296 | 299 | |||||
| Total non-current liabilities | 6,466 | 7,066 | |||||
| TOTAL LIABILITIES | 19,850 | 19,664 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| EQUITY(i) | |||||||
| Additional paid-in capital | 11,017 | 10,989 | |||||
| Retained earnings | 51 | 109 | |||||
| Accumulated other comprehensive loss, net of tax | (2,935 | ) | (3,158 | ) | |||
| Total WTW shareholders' equity | 8,133 | 7,940 | |||||
| Non-controlling interests | 81 | 77 | |||||
| Total Equity | 8,214 | 8,017 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 28,064 | $ | 27,681 | |||
| (i) | Equity includes (a) Ordinary shares | |
| WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited) | |||||||
| Years Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES | |||||||
| NET INCOME | $ | 239 | $ | 194 | |||
| Adjustments to reconcile net income to total net cash from operating activities: | |||||||
| Depreciation | 54 | 59 | |||||
| Amortization | 48 | 60 | |||||
| Non-cash restructuring charges | — | 11 | |||||
| Non-cash lease expense | 25 | 27 | |||||
| Net periodic cost/(benefit) of defined benefit pension plans | 88 | (4 | ) | ||||
| Provision for doubtful receivables from clients | 5 | 8 | |||||
| Benefit from deferred income taxes | (23 | ) | (9 | ) | |||
| Share-based compensation | 37 | 24 | |||||
| Net gain on disposal of operations | (14 | ) | — | ||||
| Non-cash foreign exchange loss/(gain) | 9 | (1 | ) | ||||
| Other, net | 9 | 8 | |||||
| Changes in operating assets and liabilities, net of effects from purchase of subsidiaries: | |||||||
| Accounts receivable | 162 | 113 | |||||
| Other assets | 1 | (53 | ) | ||||
| Other liabilities | (691 | ) | (426 | ) | |||
| Provisions | 16 | 13 | |||||
| Net cash (used in)/from operating activities | (35 | ) | 24 | ||||
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||
| Additions to fixed assets and software | (51 | ) | (60 | ) | |||
| Acquisitions of operations, net of cash acquired | (1 | ) | (15 | ) | |||
| (Purchase)/sale of investments | (32 | ) | 1 | ||||
| Net cash used in investing activities | (84 | ) | (74 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Senior notes issued | — | 746 | |||||
| Debt issuance costs | — | (7 | ) | ||||
| Repayments of debt | (1 | ) | (1 | ) | |||
| Repurchase of shares | (200 | ) | (101 | ) | |||
| Net proceeds from fiduciary funds held for clients | 315 | 1,011 | |||||
| Cash paid for employee taxes on withholding shares | (2 | ) | (5 | ) | |||
| Dividends paid | (88 | ) | (86 | ) | |||
| Acquisitions of and dividends paid to non-controlling interests | — | (1 | ) | ||||
| Net cash from financing activities | 24 | 1,556 | |||||
| (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (95 | ) | 1,506 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 80 | (47 | ) | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (i) | 4,998 | 3,792 | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (i) | $ | 4,983 | $ | 5,251 | |||
| (i) | The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section. |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
| Years Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Supplemental disclosures of cash flow information: | |||||||
| Cash and cash equivalents | $ | 1,507 | $ | 1,893 | |||
| Fiduciary funds (included in fiduciary assets) | 3,476 | 3,358 | |||||
| Total cash, cash equivalents and restricted cash | $ | 4,983 | $ | 5,251 | |||
| (Decrease)/increase in cash, cash equivalents and other restricted cash | $ | (411 | ) | $ | 487 | ||
| Increase in fiduciary funds | 316 | 1,019 | |||||
| Total (i) | $ | (95 | ) | $ | 1,506 | ||
| (i) | Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash. |
FAQ
What was WTW's revenue and organic growth in Q1 2025?
How much did WTW's operating margin improve in Q1 2025?
What is WTW's share repurchase plan for 2025?
How did WTW's Health, Wealth & Career segment perform in Q1 2025?
What was WTW's earnings per share growth in Q1 2025?
