Financial Data and Key Metrics Changes - The company reported 5% organic growth in Q2 2025, with adjusted EPS of $2.86, reflecting a 20% year-over-year increase [5][22] - Adjusted operating margin expanded by 150 basis points to 18.5%, with a 100 basis point improvement when excluding the impact of the TRANZACT divestiture [22][36] - Free cash flow for the first half of 2025 was $217 million, a decrease of $88 million from the prior year, primarily due to increased incentive costs and cash tax payments [39][63] Business Line Data and Key Metrics Changes - Health, Wealth, and Career (HWC) revenue grew by 4% year-over-year, with health business achieving 8% growth [23][25] - Wealth had a revenue growth of 3%, driven by the retirement business, while Career growth was 1% [27][29] - Risk and Broking (R&B) delivered 6% revenue growth, with corporate risk and broking growing 6% or 7% when excluding certain income [31][32] Market Data and Key Metrics Changes - The company noted strong demand for health care cost management solutions and pension derisking amidst rising global trade and inflation [8][9] - Growth in the Middle East was highlighted as a key opportunity, with significant client wins in the region [16][32] - The construction specialty business is experiencing strong results, particularly in data centers, which are forecasted for significant global growth [17] Company Strategy and Development Direction - The company is focused on accelerating performance, enhancing efficiency, and optimizing its portfolio, which are key drivers of its results [6][10] - A holistic approach to technology is being adopted to enhance growth and efficiency, including the rollout of a global broking platform and AI tools [11][12] - The inorganic growth strategy remains consistent, with a focus on enhancing broking and wealth presence in key markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver on 2025 guidance, including mid-single digit organic growth and adjusted operating margin expansion [20][41] - The macroeconomic environment remains dynamic, with clients increasingly seeking assistance in managing risks and costs [7][8] - There is optimism regarding the second half of the year, with expectations for strong demand in health and wealth sectors [26][30] Other Important Information - The company returned $591 million to shareholders through share repurchases and dividends, with plans for approximately $1.5 billion in share repurchases for 2025 [40] - The adjusted tax rate for the quarter was 18%, compared to 22.4% in the prior year, with expectations for consistency in the full year [38] Q&A Session Summary Question: HWC organic growth acceleration - Management indicated that HWC is expected to maintain mid-single digit organic revenue growth and margin expansion for the full year, driven by strong demand for global benefits management and outsourcing [43][44] Question: Risk and Broking growth contributions - Management confirmed that the 6% growth in R&B was attributed to the specialization strategy, talent investments, and strong client retention [55][56] Question: Free cash flow performance - Management explained that the decrease in free cash flow was due to increased compensation and cash tax payments, but expects improvement in the second half of the year [61][63] Question: Talent competition in insurance brokerage - Management acknowledged ongoing competition for talent but emphasized their strategic hiring approach to enhance capabilities [65][66] Question: Guidance on reinsurance joint venture costs - Management clarified that the revised cost estimate for the joint venture is based on better insights into expenses, with no expected changes at this time [70][72] Question: Drivers of margin expansion - Management highlighted operating leverage and efficiency improvements as key drivers for margin expansion, reaffirming their commitment to achieving 100 basis points of annual margin expansion over the next three years [73][78]

Financial Data and Key Metrics Changes - The company reported 5% organic growth and adjusted EPS of $2.86, reflecting a 20% year-over-year increase [4][19] - Adjusted operating margin expanded by 150 basis points to 18.5%, with a 100 basis point improvement when excluding the impact of the TRANZACT divestiture [19][33] - Free cash flow for the first half of 2025 was $217 million, a decrease of $88 million from the prior year, primarily due to increased incentive costs and cash tax payments [36][61] Business Line Data and Key Metrics Changes - Health, Wealth, and Career (HWC) revenue grew by 4%, with health business achieving 8% growth, driven by strong demand for global benefits management and cost management projects [20][21] - Wealth revenue increased by 3%, primarily from the retirement business, while Career growth was 1%, with solid performance outside North America [24][25] - Risk and Broking (R&B) delivered 6% revenue growth, with corporate risk and broking growing 6% or 7% when excluding certain income [28][29] Market Data and Key Metrics Changes - The company noted strong growth in health care costs globally, with U.S. healthcare inflation projected to exceed 10% [46] - The Middle East remains a key market for growth, with significant client wins contributing to the expansion [13][29] - The construction specialty business is experiencing strong results, particularly in data centers, which are forecasted for significant global growth [14] Company Strategy and Development Direction - The company is focused on enhancing efficiency, optimizing its portfolio, and executing a holistic technology strategy to drive growth [5][8] - The strategy includes expanding its presence in high-growth, high-margin areas and enhancing its broking and wealth capabilities [16][38] - The company is committed to delivering long-term operating and free cash flow margin expansion, aiming for 100 basis points of average annual margin expansion over the next three years [32][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and deliver on financial objectives for 2025 [6][17] - There are positive signs of improvement in client demand and market conditions, with expectations for continued growth in the second half of the year [6][41] - The company anticipates strong demand for health solutions and expects mid-single-digit organic growth across its segments [22][52] Other Important Information - The company returned $591 million to shareholders through share repurchases and dividends, with plans for approximately $1.5 billion in share repurchases for 2025 [37][38] - The company is strategically hiring to enhance its talent pool, particularly in specialty areas, to support growth [64][66] Q&A Session Summary Question: HWC organic growth acceleration - Management noted strong demand for global benefits management and expects mid-single-digit organic revenue growth and margin expansion for HWC in 2025 [41][42] Question: Free cash flow performance - Management explained that the decrease in free cash flow was due to increased compensation and cash tax payments, but expects improvement in the second half of the year [60][61] Question: Impact of talent competition - Management acknowledged ongoing competition for insurance brokerage talent but emphasized their strategic hiring approach to enhance capabilities [63][64] Question: ICT growth expectations - Management expects low to mid-single-digit growth for ICT, driven by a strong technology pipeline despite a softer consulting environment [86][88] Question: Impact of rate environment on CRB - Management confirmed that while rates in certain classes are trending downward, the overall growth in CRB remains strong due to client retention and new business generation [91]

Financial Performance - WTW generated organic revenue growth of 5% in Q2 2025[12] - Adjusted Operating Margin expanded by +150 bps in Q2 2025[12] - Adjusted Diluted EPS grew by 20% in Q2 2025[12] - WTW repurchased $500 million of shares and paid dividends of $91 million in Q2 2025[12] - Q2 2025 revenue was $2261 million, a 0% change compared to Q2 2024[14] - Income from Operations increased by 74% to $368 million in Q2 2025[14] - Net Income increased by 134% to $332 million in Q2 2025[14] - Diluted EPS increased by 144% to $332 in Q2 2025[14] Segment Performance - Health, Wealth & Career (HWC) organic revenue growth was 4% in Q2 2025[23] - Risk & Broking (R&B) organic revenue growth was 6% in Q2 2025[26] Financial Position - Cash and Cash Equivalents were $1963 million as of June 30, 2025[28] - Total Debt was $5311 million as of June 30, 2025[28]

Core Viewpoint - Willis Towers Watson (WTW) reported quarterly earnings of $2.86 per share, exceeding the Zacks Consensus Estimate of $2.65 per share, and showing an increase from $2.55 per share a year ago, representing an earnings surprise of +7.92% [1][2] Financial Performance - The company posted revenues of $2.26 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.20%, although this is a slight decrease from year-ago revenues of $2.27 billion [2] - Over the last four quarters, WTW has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - WTW shares have declined approximately 3.6% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4][7] Estimate Revisions and Industry Context - The trend for estimate revisions ahead of the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $2.27 billion, and for the current fiscal year, it is $16.57 on revenues of $9.58 billion [7] - The Insurance - Brokerage industry, to which WTW belongs, is currently in the top 33% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - WTW reported strong second quarter results for 2025, indicating progress in its strategic initiatives and solid financial performance despite economic uncertainties [2][3][5] Consolidated Results - Revenue for Q2 2025 was $2.26 billion, flat compared to $2.27 billion in Q2 2024, with organic revenue growth of 5% [3][5][7] - Net income increased to $332 million, a 134% rise from $142 million in the prior year [3][6][7] - Diluted earnings per share (EPS) rose to $3.32, up 144% year-over-year [3][6][7] Segment Performance Health, Wealth & Career (HWC) - HWC segment revenue was $1.18 billion, down 6% year-over-year, but showed organic growth of 4% [9][10] - Operating income for HWC was $280 million, with an operating margin of 23.8%, up 190 basis points from the previous year [9][10] Risk & Broking (R&B) - R&B segment revenue increased to $1.05 billion, a 7% rise from the prior year, with organic growth of 6% [11][12] - Operating income for R&B was $222 million, with an operating margin of 21.2%, up 60 basis points year-over-year [11][12] Cash Flow and Capital Allocation - Cash flows from operating activities for the first half of 2025 were $326 million, down from $431 million in the same period last year [8] - Free cash flow decreased to $217 million from $305 million year-over-year, primarily due to increased compensation and cash tax payments [8] Financial Considerations - The company expects share repurchases of approximately $1.5 billion in 2025, subject to market conditions [14] - A foreign currency tailwind on adjusted diluted EPS of about $0.05 is anticipated for 2025 at current rates [14]

EXHIBIT 99.1 WTW Reports Second Quarter 2025 Earnings LONDON, July 31, 2025 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW) (the "Company"), a leading global advisory, broking and solutions company, today announced financial results for the second quarter ended June 30, 2025. "Our strong second quarter results demonstrate the meaningful progress we've made towards advancing our strategy, helping deliver solid topline results, along with margin and earnings growth," said Carl Hess, WTW's Chief Executive Officer. "I'm ...

LONDON, July 29, 2025 (GLOBE NEWSWIRE) -- Natural catastrophes continue to put a strain on global insurance markets, according to the latest Natural Catastrophe Review published today by Willis, a WTW business (NASDAQ: WTW). Worldwide, insured losses from natural catastrophes now consistently exceed USD 100 billion per year. It’s been six years since the insurance industry last experienced a year with low losses from natural catastrophes. Events so far in 2025 indicate that losses exceeding USD 100 billion ...

Core Insights - The upcoming earnings report from Willis Towers Watson (WTW) is projected to show quarterly earnings of $2.65 per share, reflecting a 3.9% increase year-over-year, while revenues are expected to decline by 1.4% to $2.23 billion [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.2% in the last 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Revenue- Health, Wealth and Career' at $1.18 billion, indicating a year-over-year decline of 6.5% [5] - The 'Revenue- Risk and Broking' is estimated at $1.04 billion, suggesting a year-over-year increase of 6.6% [5] - The overall 'Segment Revenue' is expected to reach $2.22 billion, reflecting a year-over-year change of -0.8% [5] Operating Income Estimates - The consensus for 'Segment Operating Income- Risk and Broking' is projected at $220.59 million, compared to $202.00 million from the previous year [6] - For 'Segment Operating Income- Health, Wealth and Career', the estimate is $284.46 million, up from $276.00 million year-over-year [7] Stock Performance - Over the past month, WTW shares have returned +2.8%, while the Zacks S&P 500 composite has increased by +4.9% [7] - WTW currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Core Insights - Many defined contribution (DC) plans are skeptical about members achieving sufficient retirement income, with a belief that reversing this trend will take decades [1][2] - The Global DC Peer Study 2025 highlights that 60% of expert participants view retirement income as the primary challenge for DC funds in the next decade [2] Investment Trends - Alternative investments now have an average allocation equal to bonds, both at 20%, with equities comprising the remaining 60%, indicating a significant shift in investment strategy [5] - There is a growing consensus that current lifecycle designs may be underperforming, particularly by being too conservative in the early investment stages [6][9] Member Engagement and Behavior - Many retirees are engaging late and tactically rather than strategically, which is a concern for DC plans focusing on retirement adequacy [3] - There is an increasing engagement from members, plans, and governments regarding the sufficiency of current DC contributions for a decent retirement [10][11] Future Directions - Some plans are experimenting with collective defined contribution (CDC) or hybrid options to balance flexibility and sustainable income, although these are still exceptions [4] - The emphasis on decumulation and whole-of-life solutions is growing, with a recognition that greater contributions and long-term investment returns are essential for addressing retirement adequacy [8]

Core Viewpoint - Willis Towers Watson (WTW) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ended June 2025, with the consensus outlook indicating a potential impact on the stock price based on actual results compared to estimates [1][2]. Earnings Estimates - The Zacks Consensus Estimate predicts quarterly earnings of $2.65 per share, reflecting a year-over-year increase of +3.9%, while revenues are expected to be $2.23 billion, down 1.4% from the previous year [3]. - The consensus EPS estimate has been revised 0.21% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for WTW is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.20%, indicating a bearish outlook from analysts [12]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [10]. Historical Performance - In the last reported quarter, WTW was expected to post earnings of $3.20 per share but delivered $3.13, resulting in a surprise of -2.19%. Over the last four quarters, the company has beaten consensus EPS estimates three times [13][14]. Conclusion - WTW does not currently appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].