Willis Towers Watson(US:WTW)2025-04-24 10:00Revenue Performance - Revenue for Q1 2025 was $2.22 billion, a decrease of 5% compared to $2.34 billion in Q1 2024, with organic revenue growth of 5%[6] - Total revenue for the three months ended March 31, 2025, was $2,223 million, a decrease of 5% compared to $2,341 million in the same period of 2024[45] - The Health, Wealth & Career segment reported revenue of $1.17 billion, down 13% year-over-year, but achieved organic growth of 3%[10] - The Risk & Broking segment generated revenue of $1.03 billion, an increase of 5% year-over-year, with organic growth of 7%[12] - Health, Wealth & Career segment revenue was $1,158 million, down 13% from $1,327 million year-over-year, with an organic change of 3%[45] - Risk & Broking segment revenue increased by 5% to $1,027 million from $978 million, with an organic growth of 8%[45] Profitability Metrics - Net Income for Q1 2025 increased to $239 million, up 23% from $194 million in Q1 2024[7] - Diluted EPS for Q1 2025 was $2.33, reflecting a 27% increase from $1.83 in the prior year[8] - Operating Margin improved to 19.4%, up 740 basis points from 12.0% in Q1 2024[4] - Adjusted Operating Income for Q1 2025 was $480 million, a slight decrease of 1% from $483 million in Q1 2024[4] - Income from operations increased to $432 million for Q1 2025, compared to $280 million in Q1 2024, reflecting a growth of 54.3%[59] - Adjusted net income for Q1 2025 was $316 million, slightly down from $325 million in Q1 2024, indicating a decrease of 2.8%[52] - The company reported a net income attributable to WTW of $235 million for Q1 2025, up from $190 million in Q1 2024, reflecting a growth of 23.7%[59] Cash Flow and Liquidity - Free cash flow for Q1 2025 was $(86) million, a decrease of $50 million compared to $(36) million in Q1 2024, primarily due to the sale of TRANZACT[9] - Free cash flow for the three months ended March 31, 2025, was negative at $(86) million, compared to $(36) million in the same period of 2024[57] - Net cash used in operating activities was $(35) million in 2025, compared to $24 million in 2024, indicating a significant decline in cash flow from operations[63] - Net cash used in investing activities increased to $(84) million in 2025 from $(74) million in 2024, showing a rise of 13.5% in cash outflow for investments[63] - Net cash from financing activities was $24 million in 2025, a decrease from $1,556 million in 2024, indicating a substantial reduction in financing cash flow[63] - Total cash, cash equivalents, and restricted cash at the end of the period was $4,983 million, down from $5,251 million in the previous year, reflecting a decrease of 5.1%[65] Assets and Liabilities - Total assets as of March 31, 2025, were $28,064 million, an increase from $27,681 million as of December 31, 2024[60] - Total liabilities increased to $19,850 million as of March 31, 2025, compared to $19,664 million at the end of 2024[60] Taxation - The U.S. GAAP tax rate for Q1 2025 was 21.5%, compared to 19.9% in Q1 2024, indicating an increase in the effective tax rate[56] - Adjusted income tax rate is calculated based on adjusted income before taxes, providing a more accurate reflection of the tax rate incurred[33] Strategic Outlook - The company anticipates future growth driven by strategic acquisitions and ongoing operational transformation initiatives[37] - The company faces significant risks including economic conditions, regulatory changes, and competition that could impact future performance[38] Shareholder Activities - The company plans to repurchase approximately $1.5 billion in shares, subject to market conditions[15] - The company repurchased shares worth $200 million in 2025, up from $101 million in 2024, representing a 98% increase in share repurchase activity[63]