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Mar 31, 2025
Willis Towers Watson Q1 2025 Earnings Report
WTW reported a solid Q1 performance with EPS growth, margin improvement, and steady organic revenue growth.
Key Takeaways
WTW delivered strong Q1 results marked by significant improvement in margins and consistent organic revenue growth. The quarter reflected the impact of the TRANZACT divestiture, but the company maintained steady performance through strategic execution.
Revenue decreased 5% YoY to $2.22 billion due to the TRANZACT divestiture.
Net Income grew 23% YoY to $239 million.
Adjusted EPS held steady at $3.13 compared to last year.
Operating margin rose 740 basis points to 19.4%.
Revenue by Segment
Forward Guidance
WTW expects continued margin expansion and strategic capital deployment in 2025, despite divestiture and transformation-related cash flow impacts.
Positive Outlook
- Forecasting ~100 bps annual margin expansion in R&B over next 3 years
- Incremental margin expansion at HWC and enterprise level expected
- Foreign currency expected to have neutral impact on EPS
- Projected $1.5B in share repurchases subject to conditions
- Ongoing benefit from Transformation program savings
Challenges Ahead
- Free cash flow expected to decline due to TRANZACT sale and compensation payments
- Reinsurance JV with Bain Capital to reduce adjusted EPS by $0.25 to $0.35
- Cash tax outflows from reinsurance earnout receipt
- High compensation costs in early 2025
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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