Willis Towers Watson(US:WTW)2025-10-30 10:03Revenue 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]