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Jun 30, 2023
Willis Towers Watson Q2 2023 Earnings Report
Reported financial results for the second quarter ended June 30, 2023.
Key Takeaways
WTW reported a 6% increase in revenue to $2.16 billion, driven by strong organic revenue growth. However, net income decreased by 16% to $96 million, and adjusted EBITDA decreased by 9% to $411 million due to headwinds from prior-year book sales, inflationary conditions, and investment costs.
Revenue increased by 6% to $2.16 billion compared to the prior year.
Net Income decreased by 16% to $96 million compared to the prior year.
Adjusted EBITDA decreased by 9% to $411 million, representing 19.0% of revenue.
The company repurchased $350 million of WTW shares during the quarter.
Revenue by Segment
Forward Guidance
The Company is updating its 2024 financial targets as set forth in the table below to account for an expected decline in pension income of approximately $1.65 per share. The change also accounts for an expected increase in the adjusted income tax rate and further investments in talent and other strategic initiatives to support long-term growth in Risk & Broking relative to the initial targets set in 2021.
Positive Outlook
- Transformation Program success
- Increasing its 2024 target of total annualized run-rate savings to $380 million
- Investments in talent
- Investments in other strategic initiatives
- Support long-term growth in Risk & Broking
Challenges Ahead
- Decline in pension income of approximately $1.65 per share
- Expected increase in the adjusted income tax rate
- Further investments in talent
- Further investments in other strategic initiatives
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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