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Jun 30
Willis Towers Watson Q2 2025 Earnings Report
Willis Towers Watson reported second quarter 2025 earnings, demonstrating progress in strategy, solid topline results, and growth in margins and earnings.
Key Takeaways
Willis Towers Watson delivered strong second quarter 2025 results with revenue of $2.26 billion, flat year-over-year due to the TRANZACT sale, but with 5% organic revenue growth. Diluted EPS increased by 144% to $3.32, and adjusted diluted EPS rose by 20% to $2.86. Operating margin expanded to 16.3%, and adjusted operating margin reached 18.5%, reflecting significant improvements in profitability.
Revenue for Q2 2025 was $2.26 billion, flat compared to the prior-year quarter, primarily due to the sale of TRANZACT.
Organic Revenue growth was strong at 5% for the quarter, indicating underlying business health.
Diluted Earnings per Share significantly increased by 144% to $3.32, while Adjusted Diluted Earnings per Share grew by 20% to $2.86.
Operating Margin improved to 16.3%, and Adjusted Operating Margin expanded to 18.5%, reflecting enhanced profitability.
Willis Towers Watson
Willis Towers Watson
Willis Towers Watson Revenue by Segment
Revenue by Segment
Health, Wealth & Career Revenue
CapyFin.comRisk & Broking Revenue
CapyFin.com Forward Guidance
WTW expects to achieve mid-single digit organic revenue growth, operating margin expansion, adjusted earnings per share growth, and free cash flow margin expansion for the full year 2025. The company anticipates approximately $1.5 billion in share repurchases, subject to market conditions.
Positive Outlook
- Mid-single digit organic revenue growth expected for 2025.
- Operating margin expansion anticipated for 2025.
- Adjusted earnings per share growth projected for 2025.
- Free cash flow margin expansion expected for 2025.
- Anticipated share repurchases of approximately $1.5 billion in 2025.
Challenges Ahead
- TRANZACT business, which contributed $1.14 to adjusted diluted EPS in 2024, is no longer part of the business portfolio.
- Reinsurance joint venture with Bain Capital expected to be a headwind of approximately $0.20 on adjusted diluted EPS.
- Net headwind of approximately $0.10 at the interest in earnings of associates level due to the reinsurance joint venture.
- Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program.
- Foreign currency tailwind on adjusted diluted EPS is only approximately $0.05 in 2025 at current rates.