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Jun 30, 2022

Willis Towers Watson Q2 2022 Earnings Report

Announced financial results that were in line with expectations, raised the target for run-rate savings, and continued to return capital to shareholders.

Key Takeaways

WTW reported a 3% decrease in revenue compared to the same period last year, with revenue reaching $2.03 billion. However, excluding a 4% foreign currency headwind, revenue increased by 1%. On an organic basis, revenue increased 3%. The company is raising its target for run-rate savings from $30 million to over $80 million in 2022 and expects to achieve in excess of $300 million by the end of 2024.

Revenue was $2.03 billion, a decrease of 3% compared to the prior-year second quarter.

Excluding a 4% foreign currency headwind, revenue increased 1%. On an organic basis, revenue increased 3%.

Adjusted EBITDA was $450 million, or 22.2% of revenue, down 3% compared to the prior-year second quarter.

The company repurchased approximately $471 million of WTW stock during the quarter.

Total Revenue
$2.03B
Previous year: $2.29B
-11.2%
EPS
$2.32
Previous year: $2.66
-12.8%
Organic Revenue Growth
3%
Previous year: 8%
-62.5%
Gross Profit
$2.03B
Previous year: $2.09B
-2.9%
Cash and Equivalents
$1.92B
Previous year: $2.22B
-13.4%
Total Assets
$32.5B
Previous year: $38.3B
-15.0%

Willis Towers Watson

Willis Towers Watson

Willis Towers Watson Revenue by Segment

Forward Guidance

The Company is maintaining its 2022 full-year targets for organic revenue growth, adjusted operating margin expansion, and non-cash pension income and raising its 2022 full-year targets for run-rate cost savings and foreign currency headwind to adjusted earnings per share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income