Willis Towers Watson(WTW) - 2024 Q4 - Annual Results

Revenue Performance - Revenue for Q4 2024 was $3.04 billion, a 4% increase from $2.91 billion in Q4 2023, with organic growth also at 5%[5] - Full Year 2024 revenue was $9.93 billion, a 5% increase from $9.48 billion in 2023, with organic growth at 5%[8] - Revenue for the year ended December 31, 2024, increased to $9,930 million, a 5% increase from $9,483 million in 2023[56] - The Health, Wealth & Career segment generated $1.85 billion in revenue for Q4 2024, a 3% increase from the prior year[11] - The Risk & Broking segment reported revenue of $1.14 billion for Q4 2024, a 6% increase year-over-year[14] - Risk & Broking segment revenue grew to $4,038 million in 2024, an 8% increase compared to $3,735 million in 2023[54] Net Income and Earnings - Net Income for Q4 2024 reached $1.25 billion, a 100% increase compared to $623 million in the prior year[6] - The company reported a net loss of $88 million for the full year 2024, compared to a net income of $1.1 billion in 2023, primarily due to impairment charges related to the sale of TRANZACT[9] - Net income for Q4 2024 was $1,248 million, a 41.1% increase from $623 million in Q4 2023[62] - Adjusted net income for the three months ended December 31, 2024, was $827 million, compared to $775 million in 2023, marking a 6.7% increase[59] - Diluted earnings per share for the year ended December 31, 2024, was $12.25, up from $5.97 in 2023, representing a significant increase[59] Adjusted Financial Metrics - Adjusted EBITDA for Q4 2024 was $1.2 billion, representing 38.6% of revenue, up from 37.1% in Q4 2023[6] - Adjusted Diluted EPS for Q4 2024 was $8.13, a 9% increase from $7.44 in Q4 2023[4] - Adjusted EBITDA for Q4 2024 reached $1,173 million, with a margin of 38.6%, compared to $1,080 million and 37.1% in Q4 2023[62] - Adjusted operating income for the year ended December 31, 2024, was $2,378 million, with a margin of 23.9%, compared to $2,082 million and 22.0% in 2023[64] Cash Flow and Liquidity - Free cash flow for the year ended December 31, 2024, was $1,376 million, representing a margin of 13.9%, compared to $1,192 million and 12.6% in 2023[67] - Free cash flow is highlighted as a liquidity measure, representing cash flows from operating activities minus capital expenditures[38] - Cash flows from operating activities increased to $1,512 million in 2024 from $1,345 million in 2023, reflecting a growth of about 12.4%[77] - Total cash, cash equivalents, and restricted cash rose to $4,998 million in 2024, up from $3,792 million in 2023, marking an increase of approximately 32%[80] Assets and Liabilities - Cash and cash equivalents as of December 31, 2024, were $1,890 million, an increase from $1,424 million in 2023[72] - Total current assets as of December 31, 2024, were $15,105 million, compared to $13,433 million in 2023[72] - Total assets decreased from $29,090 million in 2023 to $27,681 million in 2024, a decline of approximately 4.8%[73] - Long-term debt rose to $5,309 million in 2024, up from $4,567 million in 2023, an increase of approximately 16.2%[73] - Total liabilities increased slightly to $19,664 million in 2024 from $19,497 million in 2023, reflecting a marginal rise of about 0.9%[73] - The total equity of the company decreased to $8,017 million in 2024 from $9,593 million in 2023, a decline of approximately 16.5%[73] Impairment and Charges - The company reported an impairment of $1,042 million for the year ended December 31, 2024[66] - The company incurred an impairment charge of $1,042 million in 2024, which was not present in 2023, impacting overall financial performance[75] Strategic Plans and Expectations - The company plans to repurchase approximately $1.5 billion in shares in 2025, subject to market conditions[16] - Expected foreign currency headwinds on adjusted diluted EPS for 2025 are projected to be between $0.18[18] - Forward-looking statements include expectations for organic revenue growth and free cash flow generation, reflecting management's strategic goals[41] - The company acknowledges various risks and uncertainties that could impact future performance, including economic conditions and regulatory changes[43] Segment Performance - Segment operating income for Health, Wealth & Career was $1,717 million in 2024, up from $1,565 million in 2023, reflecting a growth of 9.7%[54] - Segment operating margins for Health, Wealth & Career improved to 41.9% in Q4 2024, compared to 40.5% in Q4 2023[55] - Segment operating income for the Risk & Broking segment was $958 million in 2024, up from $813 million in 2023, reflecting an 18% increase[54] - Book-of-business settlements for the Risk & Broking segment were $14 million in Q4 2024, compared to $11 million in Q4 2023[52]