Core Insights - Willis Towers Watson (WTW) reported first-quarter 2025 adjusted earnings of $3.13 per share, missing the Zacks Consensus Estimate by 2.1% and remaining flat year over year [1] - The company experienced a 5% decline in adjusted consolidated revenues to $2.2 billion year over year, primarily due to the sale of TRANZACT, with a 3.9% miss against the consensus estimate [2] Financial Performance - Total costs of providing services decreased by 13% year over year to $1.8 billion, attributed to lower salaries, benefits, and other operating expenses, which was below the estimated $2 billion [3] - Adjusted operating income was $480 million, down 1% year over year, while adjusted operating margin expanded by 100 basis points to 21.6% [3] - Adjusted EBITDA was $532 million, reflecting a 3% year-over-year decline, with an adjusted EBITDA margin of 23.9%, which expanded by 60 basis points [4] Segment Performance - Health, Wealth & Career segment revenues totaled $1.1 billion, down 13% year over year, with a 12% decrease on a constant currency basis [5] - The Wealth segment saw organic revenue growth driven by increased Retirement work in Europe and International, alongside improvements in the Investments business [6] - Risk & Broking segment revenues rose by 5% year over year to $1.03 billion, matching estimates, with strong client retention and new business activity contributing to growth [7] Cash Flow and Debt Management - Cash and cash equivalents decreased by 20.2% to $1.5 billion at quarter-end, while long-term debt decreased by 10.3% to $4.7 billion [10] - Free cash outflow was $86 million, compared to $36 million in the previous year, primarily due to the absence of cash collections related to TRANZACT [11] - The company repurchased shares worth $200 million during the quarter [11] Future Guidance - WTW anticipates cash outflows related to the Transformation program, which concluded in 2024, and projects share repurchases of $1.5 billion, subject to market conditions [12] - The company expects an average annual margin expansion of 100 basis points over the next three years in the Risk & Broking segment and incremental margin expansion at the Health, Wealth & Career segment [13]

Willis Towers Watson Public Limited Company (NASDAQ:WTW) Q1 2025 Results Conference Call April 24, 2025 9:00 AM ET Company Participants Carl Hess - Chief Executive Officer Andrew Krasner - Chief Financial Officer Julie Gebauer - President of Health, Wealth & Career Lucy Clarke - President of Risk & Broking Conference Call Participants Gregory Peters - Raymond James Elyse Greenspan - Wells Fargo Rob Cox - Goldman Sachs Paul Newsome - Piper Sandler Brian Meredith - UBS David Motemaden - Evercore ISI Mark Hugh ...

Shares of Willis Towers Watson Public Limited Company (NASDAQ: WTW ) have been an excellent performer over the past year, adding 24%, and even recovering most of their losses during the post- “ Liberation Day ” market plunge. AsOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s ...

Revenue Performance - Revenue for Q1 2025 was $2.2 billion, a decrease of $118 million, or 5%, compared to Q1 2024's $2.3 billion[127] - Organic revenue growth for Q1 2025 was 5%, driven by strong performances in both segments, despite a decrease in as-reported revenue due to the sale of the TRANZACT business[127] - The Health, Wealth & Career (HWC) segment reported revenue of $1.2 billion for Q1 2025, down 13% from $1.3 billion in Q1 2024, with organic growth of 3%[140] - R&B segment revenue for Q1 2025 was $1.0 billion, a 6% increase from $950 million in Q1 2024, with organic revenue growth of 8%[145] - Revenue for the three months ended March 31, 2025, was reported at $2,223 million, reflecting a 5% decrease compared to $2,341 million for the same period in 2024[202] - For the three months ended March 31, 2025, as-reported revenue decreased by 5% while organic revenue grew by 5%[205] Income and Profitability - Income from operations for Q1 2025 was $432 million, representing 19% of revenue, an increase from 12% in Q1 2024[126] - Net income attributable to the company for Q1 2025 was $235 million, or $2.33 per diluted share, compared to $190 million, or $1.83 per diluted share in Q1 2024[126] - Segment operating income for Q1 2025 was $226 million, up from $203 million in Q1 2024, primarily due to strong organic revenue growth and transformation savings[146] - Net income attributable to WTW for Q1 2025 was $235 million, a 24% increase from $190 million in Q1 2024[158] - Adjusted operating income for the same period was $480 million, a slight decrease from $483 million in 2024, primarily due to lower revenue from the sale of the TRANZACT business[207] - Adjusted EBITDA for the three months ended March 31, 2025, was $532 million, down from $546 million in 2024, attributed to lower revenue from the TRANZACT sale[211] - Adjusted operating income margin improved to 21.6% in 2025 from 20.6% in 2024, reflecting better core operating results despite revenue challenges[207] Costs and Expenses - Total costs of providing services for Q1 2025 were $1.791 billion, compared to $2.061 billion in Q1 2024[126] - Total costs of providing services decreased by $270 million, or 13%, to $1.8 billion in Q1 2025 from $2.1 billion in Q1 2024[147] - Salaries and benefits for Q1 2025 were $1.3 billion, representing 60% of revenue, compared to 57% in Q1 2024[148] Cash Flow and Capital Management - Cash and cash equivalents at March 31, 2025 totaled $1.5 billion, down from $1.9 billion at December 31, 2024, primarily due to share repurchases and dividend payments[166] - Cash flows used in operating activities were $35 million in Q1 2025, compared to cash flows from operating activities of $24 million in Q1 2024[169] - Cash flows used in investing activities for Q1 2025 were $84 million, compared to $74 million in Q1 2024, mainly for capital expenditures[171] - Cash flows from financing activities for Q1 2025 were $24 million, significantly lower than $1.6 billion in Q1 2024, which included substantial debt issuance[172] - Free cash flow for the three months ended March 31, 2025, was negative at $(86) million, compared to $(36) million in 2024, primarily due to the absence of cash collections related to TRANZACT[223] Debt and Equity - As of March 31, 2025, total debt was $5,310 million, with long-term debt at $4,761 million and current debt at $549 million, showing a slight increase from $5,309 million total debt on December 31, 2024[175][179] - Total shareholders' equity increased to $8,133 million as of March 31, 2025, compared to $7,940 million on December 31, 2024, resulting in a capitalization ratio of 39.5%[175] - The company had fiduciary funds of $3.8 billion as of March 31, 2025, up from $3.4 billion on December 31, 2024[179] - The board of directors approved a $1.0 billion increase to the share repurchase program, bringing the total authorization to $10.2 billion since its inception[181] Taxation - The effective tax rate for Q1 2025 was 21.5%, up from 19.9% in Q1 2024, primarily due to changes in geographical income distribution[157] - The U.S. GAAP tax rate for the three months ended March 31, 2025, was 21.5%, compared to 19.9% in 2024, influenced by changes in geographical income distribution[220] - The adjusted income tax rate for the same period was 22.7%, slightly higher than 22.3% in 2024, also affected by geographical income distribution changes[221] Strategic Focus - The company is focused on developing technology, data, and analytic solutions to enhance service delivery and meet client needs amid increasing competition[118] - The company emphasizes the importance of constant currency and organic change measures to provide transparency in performance, excluding foreign currency fluctuations and transaction-related impacts[204]

Core Insights - WTW reported a solid start to 2025, with results aligning with expectations and progress on strategic goals [2] - The company is focused on growth, efficiency, and margin expansion amid economic uncertainty [2] Consolidated Results - Revenue for Q1 2025 was $2.22 billion, a decrease of 5% from $2.34 billion in Q1 2024; on a constant currency basis, revenue decreased by 4%, but organic revenue grew by 5% [3][5] - Income from operations increased by 54% to $432 million, with an operating margin of 19.4%, up 740 basis points year-over-year [3][6] - Net income rose to $239 million, a 23% increase from $194 million in the prior year [3][6] - Diluted EPS increased by 27% to $2.33, while adjusted diluted EPS remained stable at $3.13 [3][6] Segment Highlights Health, Wealth & Career (HWC) - HWC segment revenue was $1.17 billion, down 13% year-over-year; however, organic growth was 3% [9][10] - Operating income decreased by 7% to $311 million, with an operating margin of 26.7%, up 160 basis points [9][10] Risk & Broking (R&B) - R&B segment revenue increased by 5% to $1.03 billion, with organic growth also at 7% [11][12] - Operating income rose by 11% to $226 million, and operating margin improved to 22.0%, up 120 basis points [11][12] Cash Flow and Capital Allocation - Cash flows used in operating activities were $(35) million, compared to $24 million in the prior year; free cash flow was $(86) million, down from $(36) million [7][8] - The company repurchased 607,221 shares for $200 million during the quarter [8] Financial Considerations - The company expects share repurchases of approximately $1.5 billion, subject to market conditions [14] - Anticipated foreign currency impact on adjusted diluted earnings per share is expected to be neutral in 2025 [14]

EXHIBIT 99.1 WTW Reports First Quarter 2025 Earnings 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 executi ...

NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ:WTW), today announced the appointment of Harry Merker as Property and Casualty (P&C) Cross Industry Sales Leader and Alternative Asset Insurance Solutions (AAIS) Sales, Strategy and Execution Leader for North America (NA). In this newly created dual role, Merker will drive broking growth initiatives across Willis' P&C business and lead strategic broking sales efforts and collaboration across the company's 12 industry verticals. He w ...

NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) -- Willis, a WTW business (Nasdaq: WTW), today announced the appointment of Harry Merker as Property and Casualty (P&C) Cross Industry Sales Leader and Alternative Asset Insurance Solutions (AAIS) Sales, Strategy and Execution Leader for North America (NA). In this newly created dual role, Merker will drive broking growth initiatives across Willis’ P&C business and lead strategic broking sales efforts and collaboration across the company’s 12 industry verticals. He ...

Core Viewpoint - Willis Towers Watson (WTW) is expected to report first-quarter 2025 earnings on April 24, with a history of earnings surprises averaging 6.29% over the last four quarters [1] Revenue Insights - Revenues for the first quarter are projected at $2.31 billion, reflecting a decrease of 1.1% compared to the same quarter last year [2] - Organic revenue growth in Health is anticipated due to increased project work and brokerage income in North America, along with the expansion of the Global Benefits Management client portfolio in International and Europe [2] Segment Performance - The Wealth business is expected to benefit from higher Retirement work globally and growth in the Investments business driven by the LifeSight solution and capital market improvements [3] - Career revenues are likely to see positive impacts from increased advisory services and product revenues [3] - The Benefits Delivery & Outsourcing segment may experience moderating growth in the TRANZACT business [3] Corporate Risk & Broking - Corporate Risk & Broking is anticipated to benefit from higher new business activity and strong client retention [4] Expense Outlook - First-quarter expenses are expected to rise due to higher incentive costs, salary expenses, losses on professional liability claims, and increased consulting and compensation costs related to the Transformation program, with a projected decrease of 2.8% to $2 billion [4] Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is $3.23, indicating a decrease of 1.8% from the previous year [5] Earnings Prediction Model - The earnings prediction model does not indicate a conclusive earnings beat for WTW, as the Earnings ESP is -3.06% with a Zacks Rank of 4 (Sell) [6][7]

Willis Towers Watson (WTW) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 24, 2025, might help the stock move higher if these key numbers are better th ...