Financial Data and Key Metrics Changes - The company achieved 5% organic growth in Q3 2025, with adjusted EPS of $3.07, reflecting an 11% year-over-year increase [4][15] - Adjusted operating margin expanded by 230 basis points year-over-year to 20.4% [15][26] - Free cash flow for the nine months ending September 30, 2025, was $838 million, an increase of $114 million from the prior year [27][28] Business Line Data and Key Metrics Changes - Health, Wealth & Career (HWC) revenue grew 4% year-over-year, with 5% growth when excluding book of business settlement activity and interest income [16][20] - The Health segment achieved 7% growth, or 8% excluding certain impacts, driven by strong performance in International and North America [17][20] - Risk and Broking (R&B) reported 6% organic growth, with Corporate Risk & Broking (CRB) also growing 6%, or 7% when excluding specific activities [21][24] Market Data and Key Metrics Changes - The company noted headwinds from declining rates in certain segments of the commercial insurance market [6][5] - Pricing pressure was particularly noted in the property insurance sector, with expectations of mid to high single-digit organic revenue growth despite these challenges [42][43] Company Strategy and Development Direction - The company continues to focus on its specialization strategy and investments in technology to drive sustainable growth [21][24] - The strategy aims to enhance efficiency and optimize the portfolio, which has been effective despite a volatile macroeconomic environment [5][4] - The company is committed to delivering 100 basis points of average annual adjusted operating margin expansion over the next three years [24][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic growth and margin expansion for the full year 2025 [29][15] - The company is monitoring economic indicators such as employment levels, which may impact business prospects [5][6] - There is a strong pipeline for the remainder of the year, particularly in the Health segment, driven by healthcare inflation and employers' focus on managing costs [17][69] Other Important Information - The divestiture of TRANZACT is expected to create a headwind to adjusted diluted earnings per share of $1.14 for the full year 2025 [15][26] - The company returned $690 million to shareholders through share repurchases and dividends [28][29] Q&A Session Summary Question: Insights on Risk and Broking organic revenue results - Management noted that the 6% growth in R&B was supported by strong new business across global markets, particularly in construction and credit risk solutions [32][34] Question: Concerns about margin expansion in Risk and Broking - Management remains committed to achieving 100 basis points of margin improvement annually, driven by investments in technology and process improvements [37] Question: Expectations for free cash flow in the fourth quarter - The company anticipates continued free cash flow margin expansion, supported by the divestiture of TRANZACT and reduced transformation costs [40] Question: Impact of insurance pricing headwinds - Pricing pressure has been significant in property insurance, but the company expects to maintain mid to high single-digit organic revenue growth in Risk and Broking [42][43] Question: HWC margins and future expectations - HWC margins improved significantly in Q3, and management is confident in sustaining this performance through disciplined resource management and process optimization [46][47] Question: Confidence in BD&O growth - BD&O is expected to see strong growth in Q4 due to the timing of commissions and new client implementations [48] Question: Interest income levels and sustainability - Interest income levels are influenced by geographic cash balances, and while there are no one-time factors, the company expects healthy interest income moving forward [50] Question: Talent acquisition and retention - The company is successfully attracting and retaining top talent, which is crucial for driving organic growth [54][55] Question: Long-term growth prospects in Wealth - The Wealth segment is expected to grow steadily, supported by new client acquisitions and project work [71][74]

Willis Towers Watson (NasdaqGS:WTW) Q3 2025 Earnings Call October 30, 2025 09:00 AM ET Speaker2Good morning and welcome to the WTW third quarter 2025 earnings call. Please refer to the wtwco.com for the press release and supplemental information that was issued earlier today. Today's call is being recorded and will be available for the next three months on WTW's website. Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Reform Act of ...

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may face access issues if ad-blockers are enabled, suggesting the need to disable them for a better experience [1]

WTW Earnings Release Supplemental Materials 2025 Third Quarter Financial Results October 30, 2025 wtwco.com © 2025 WTW. All rights reserved. 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 resul ...

分组1 - Willis Towers Watson reported quarterly earnings of $3.07 per share, exceeding the Zacks Consensus Estimate of $3 per share, and showing an increase from $2.93 per share a year ago, resulting in an earnings surprise of +2.33% [1] - The company posted revenues of $2.29 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.53%, with year-ago revenues also at $2.29 billion [2] - Over the last four quarters, Willis Towers Watson has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has added about 1.4% since the beginning of the year, underperforming the S&P 500's gain of 17.2% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $7.93 on $2.87 billion in revenues, and for the current fiscal year, it is $16.83 on $9.63 billion in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Insurance - Brokerage sector is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Willis Towers Watson was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Revenue Performance - Revenue for Q3 2025 was $2.29 billion, flat compared to Q3 2024, with organic growth of 5%[4] - Total revenue for the three months ended September 30, 2024, was $2,288 million, showing a 0% change compared to the previous year[47] - Revenue for Q3 2025 was $2,288 million, slightly down from $2,289 million in Q3 2024[69] - Revenue for the Health, Wealth & Career segment was $3,584 million for the nine months ended September 30, 2025, down 8% from $3,898 million in 2024[49] - Risk & Broking segment revenue increased by 7% to $3,008 million for the nine months ended September 30, 2025, compared to $2,811 million in 2024[49] - Total segment revenue for the company decreased by 2% to $6,772 million for the nine months ended September 30, 2025, from $6,895 million in 2024[49] - The Health, Wealth & Career segment reported revenue of $1.26 billion, a decrease of 5% year-over-year, but achieved organic growth of 4%[12] - The Risk & Broking segment had revenue of $1.01 billion, an increase of 7% year-over-year, with organic growth of 6%[14] Profitability Metrics - Net Income for Q3 2025 was $306 million, a significant recovery from a net loss of $1.67 billion in Q3 2024[8] - Adjusted Diluted EPS for Q3 2025 was $3.07, up 11% from $2.77 in the prior year[4] - Operating Margin for Q3 2025 was 18.3%, with an adjusted operating margin of 20.4%, an increase of 230 basis points year-over-year[4] - Adjusted operating income for Q3 2025 was $467 million, with a margin of 20.4%, compared to $414 million and 18.1% in Q3 2024[63] - The Health, Wealth & Career segment's operating margin improved to 26.4% for the nine months ended September 30, 2025, from 24.0% in 2024[54] - The Risk & Broking segment's operating margin increased to 20.7% for the nine months ended September 30, 2025, compared to 19.8% in 2024[54] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,517 million with a margin of 22.4%, compared to $1,470 million and 21.3% in the same period of 2024[62] Cash Flow and Capital Management - Cash flows from operating activities for the nine months ended September 30, 2025, were $1.0 billion, up from $913 million in the prior year[11] - Free cash flow for the nine months ended September 30, 2025, was $838 million, an increase of $114 million from the prior year[11] - Free Cash Flow is defined as cash flows from operating activities less cash used to purchase fixed assets and software, reflecting core operating performance[36] - The company reported a net gain of $870 million from the sale of operations in 2025, with no comparable figure in 2024[76] - The company repurchased shares worth $1,300 million in 2025, compared to $506 million in 2024, indicating a substantial increase in share repurchase activity[76] - The company expects share repurchases of approximately $1.5 billion in 2025, subject to market conditions[17] Financial Position - Total assets as of September 30, 2025, were $27,439 million, a slight decrease from $27,681 million at the end of 2024[72] - The company reported a decrease in total liabilities to $19,629 million in 2025 from $19,664 million in 2024, a reduction of approximately 0.2%[73] - The total equity for the company decreased to $7,810 million in 2025 from $8,017 million in 2024, representing a decline of about 2.6%[73] - Cash and cash equivalents as of September 30, 2025, were $1,895 million, a slight increase from $1,890 million at the end of 2024[72] - The company’s cash and cash equivalents increased to $1,895 million in 2025 from $1,372 million in 2024, reflecting a growth of 38.2%[77] - Total cash, cash equivalents, and restricted cash at the end of the period was $5,423 million, up from $4,712 million in 2024, reflecting an increase of 15%[77] Risks and Future Outlook - The company faces risks related to changes in economic conditions, competition, and regulatory environments that could impact financial performance[41] - Forward-looking statements indicate potential impacts from global events and strategic initiatives, with actual results subject to significant uncertainties[39] - A foreign currency tailwind is expected to positively impact adjusted diluted EPS by approximately $0.15 in Q4 2025[17] - The company anticipates future capital expenditures and ongoing working capital efforts as part of its growth strategy[39] - Management emphasizes the importance of free cash flow generation and adjusted earnings per share in achieving financial goals[40] Impairment and Restructuring - The company experienced a significant reduction in impairment charges, with no impairment reported for the nine months ended September 30, 2025, compared to $1,042 million in 2024[56] - The company incurred restructuring costs of $0 in Q3 2025, down from $8 million in Q3 2024[63]

Core Insights - WTW reported strong financial results for Q3 2025, with solid revenue performance, operating margin expansion, and earnings per share growth, despite macroeconomic uncertainties [2][3][6] Consolidated Results - Revenue for Q3 2025 was $2.288 billion, flat compared to $2.289 billion in Q3 2024, with organic revenue growth of 5% [3][6] - Net income for Q3 2025 was $306 million, a significant recovery from a net loss of $1.672 billion in the prior year [3][7] - Adjusted diluted EPS increased by 11% to $3.07 from $2.77 in the previous year [3][8] - Operating margin improved to 18.3% from a negative 33.5% in Q3 2024, with adjusted operating margin at 20.4%, up 230 basis points [3][8] Segment Performance Health, Wealth & Career (HWC) - HWC segment revenue was $1.261 billion, down 5% year-over-year, but showed organic growth of 4% [10][11] - Operating income in the HWC segment increased by 10% to $361 million, with operating margin rising to 28.6% [10][11] Risk & Broking (R&B) - R&B segment revenue reached $1.007 billion, up 7% year-over-year, with organic growth of 6% [12][13] - Operating income for the R&B segment increased by 11% to $189 million, maintaining an operating margin of 18.8% [12][13] Cash Flow and Capital Allocation - Cash flows from operating activities for the nine months ended September 30, 2025, were $1.0 billion, up from $913 million in the prior year [8][9] - Free cash flow for the same period increased to $838 million from $724 million [8][9] - The company repurchased 1,848,098 shares for $600 million during the quarter [9] Financial Considerations - The company expects share repurchases of approximately $1.5 billion, subject to market conditions [17] - Anticipated foreign currency tailwinds on adjusted diluted EPS of about $0.15 in Q4 2025 [17]

Core Insights - Nearly half of organizations believe that optimizing performance management could boost productivity by at least 10% [2] - A significant number of organizations are integrating AI and skills into their performance management processes to enhance effectiveness [4][5] Performance Management Optimization - 39% of organizations report that their performance management processes effectively meet employee expectations for clear goals, regular feedback, and fair ratings [2] - Only 20% of organizations find managers effective in providing coaching and feedback, highlighting a gap in managerial capabilities [3] AI Integration - 37% of organizations are currently using AI in performance management, with goal setting (44%) and development plans (40%) being the most common applications [4] - A similar percentage of organizations are considering the adoption of AI to improve performance management processes [4] Skills Integration - 54% of organizations have incorporated skills into their performance management, primarily for learning and development (78%) and goal setting (40%) [5] - Only 18% of organizations utilize skills for pay decisions, indicating a potential area for growth [5] Performance Ratings - Approximately 45% of organizations use a five-point rating scale, with over half either having changed or considering changes to their rating scales [6] - Organizations are seeking simplification and fairness in performance ratings to enhance differentiation [6] Pay for Performance - High-performing employees receive merit increases that are more than twice as large compared to average performers at one-third of organizations [8] - The primary reasons for implementing pay for performance include rewarding high performers (68%) and motivating employees (53%) [8] Research Methodology - The findings are based on the 2025 Performance Management and Pay for Performance Virtual Focus Groups, which included 280 registrants for performance management and 208 for pay for performance [10]

Core Insights - The upcoming earnings report from Willis Towers Watson (WTW) is projected to show quarterly earnings of $3.00 per share, reflecting a 2.4% increase year-over-year, while revenues are expected to decline by 0.6% to $2.28 billion [1] Earnings Estimates - There has been a downward revision of 0.2% in the consensus EPS estimate over the last 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3] Revenue Projections - The consensus estimate for 'Revenue- Health, Wealth and Career' is $1.25 billion, down 6% from the previous year [5] - 'Revenue- Reimbursable expenses and other' is expected to reach $29.01 million, marking a significant increase of 93.4% year-over-year [5] - 'Revenue- Segment Revenue' is projected at $2.24 billion, indicating a decline of 1.3% from the prior year [5] - 'Revenue- Risk and Broking' is forecasted to be $991.67 million, reflecting a 5.5% increase from the previous year [6] Operating Income Estimates - Analysts expect 'Segment Operating Income- Risk and Broking' to reach $190.41 million, up from $170.00 million in the same quarter last year [6] - 'Segment Operating Income- Health, Wealth and Career' is projected at $337.54 million, compared to $329.00 million from the previous year [7] Stock Performance - Over the past month, WTW shares have decreased by 7.3%, contrasting with the S&P 500 composite's increase of 3.8% [7] - WTW currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Key Takeaways Willis Towers Watson likely saw revenue gains from solid global growth across all business segments. Health and Wealth units benefited from new business wins, client focus, and product launches. Career and Corporate Risk & Broking growth offset higher expenses from incentives and consulting. Willis Towers Watson Public Limited Company (WTW) is expected to register an improvement in its bottom line but a decline in the top line when it reports third-quarter 2025 results on Oct. 30, before the o ...