Wolters Kluwer 2025 Nine-Month Trading Update

Core Insights - Wolters Kluwer reported a 6% organic growth for the first nine months of 2025, with significant momentum in the third quarter across various sectors including Health, Tax & Accounting, and Corporate Performance & ESG [4][10]. Financial Performance - Nine-month revenues increased by 5% in reporting currency, with a 2% negative impact from currency translation due to the U.S. dollar's depreciation against the Euro. In constant currencies, revenues rose by 7% [5]. - Recurring revenues, which account for 84% of total revenues, maintained a 7% organic growth, while non-recurring revenues declined by 2% [6]. - Adjusted operating profit for the nine months increased by 15% in constant currencies, with an improved profit margin driven by sectors such as Health and Tax & Accounting [8][10]. - Nine-month adjusted free cash flow rose by 17% in constant currencies, benefiting from favorable working capital movements [10][17]. Segment Performance - Health segment revenues grew by 4% in constant currencies, with organic growth at 5%. Clinical Solutions saw a 7% organic growth [9][11]. - Tax & Accounting revenues increased by 9% in constant currencies, with organic growth at 7% [11][14]. - Financial & Corporate Compliance revenues rose by 7% in constant currencies, with organic growth at 4% [12]. - Legal & Regulatory revenues grew by 7% in constant currencies, with organic growth at 6% [13]. - Corporate Performance & ESG revenues increased by 8% in constant currencies, with organic growth also at 8% [14]. Cash Flow and Debt Management - Total acquisition spending for the first nine months was €839 million, primarily for the acquisitions of RASI and Brightflag [18]. - As of September 30, 2025, net debt stood at €4,404 million, reflecting cash flow allocated to dividends, share repurchases, and acquisitions [19]. Shareholder Returns - A share buyback program of up to €1 billion was completed on November 3, 2025, with a new mandate signed for an additional €200 million repurchase from November 6, 2025, to February 23, 2026 [10][24]. Sustainability Initiatives - The company achieved a 7% organic reduction in office space in the first nine months of 2025, contributing to efforts to reduce greenhouse gas emissions [21].