Willis Towers Watson-WTW Reports First Quarter 2025 Earnings

Core Insights - WTW reported a solid start to 2025, with results aligning with expectations and progress on strategic goals [2] - The company is focused on growth, efficiency, and margin expansion amid economic uncertainty [2] Consolidated Results - Revenue for Q1 2025 was $2.22 billion, a decrease of 5% from$ 2.34 billion in Q1 2024; on a constant currency basis, revenue decreased by 4%, but organic revenue grew by 5% [3][5] - Income from operations increased by 54% to $432 million, with an operating margin of 19.4%, up 740 basis points year-over-year [3][6] - Net income rose to$ 239 million, a 23% increase from $194 million in the prior year [3][6] - Diluted EPS increased by 27% to$ 2.33, while adjusted diluted EPS remained stable at $3.13 [3][6] Segment Highlights Health, Wealth & Career (HWC) - HWC segment revenue was$ 1.17 billion, down 13% year-over-year; however, organic growth was 3% [9][10] - Operating income decreased by 7% to $311 million, with an operating margin of 26.7%, up 160 basis points [9][10] Risk & Broking (R&B) - R&B segment revenue increased by 5% to$ 1.03 billion, with organic growth also at 7% [11][12] - Operating income rose by 11% to $226 million, and operating margin improved to 22.0%, up 120 basis points [11][12] Cash Flow and Capital Allocation - Cash flows used in operating activities were$ (35) million, compared to $24 million in the prior year; free cash flow was$ (86) million, down from $(36) million [7][8] - The company repurchased 607,221 shares for$ 200 million during the quarter [8] Financial Considerations - The company expects share repurchases of approximately $1.5 billion, subject to market conditions [14] - Anticipated foreign currency impact on adjusted diluted earnings per share is expected to be neutral in 2025 [14]