Willis Towers Watson (WLTW) Q2 2025 earnings summary

Executive summary

• Achieved 5% organic revenue growth and 150 basis points of adjusted operating margin expansion in Q2 2025, with adjusted EPS up 20% year-over-year to $2.86 and diluted EPS up 144% to $3.32.

• Net income rose 135% to $332 million for the quarter, driven by cost reductions and operational efficiencies.

• Strategic focus on performance acceleration, efficiency, and portfolio optimization, with technology and AI investments delivering measurable efficiency gains.

• Returned $500 million to shareholders via share repurchases and paid $91 million in dividends in Q2 2025.

• Completed divestiture of TRANZACT on December 31, 2024, impacting year-over-year revenue comparisons and creating a $1.14 headwind to adjusted EPS for 2025.

Financial highlights

• Q2 2025 revenue was $2.26 billion, flat year-over-year; organic revenue up 5%.

• Net income for Q2 2025 was $332 million, up from $142 million in Q2 2024; diluted EPS was $3.32.

• Adjusted operating margin reached 18.5% in Q2 2025, up 150 basis points year-over-year.

• Adjusted EBITDA for Q2 2025 was $470 million (20.8% margin), up from $445 million (19.6%).

• Free cash flow for the first half of 2025 was $217 million, down from $305 million in the prior year due to higher incentive costs, tax payments, and the absence of TRANZACT inflows.

Outlook and guidance

• On track to deliver full-year 2025 guidance: mid-single-digit organic growth, adjusted operating margin expansion, adjusted EPS growth, and free cash flow margin improvement.

• Expecting ~$1.5 billion in share repurchases in 2025, subject to market conditions and M&A opportunities.

• Risk & Broking expected to achieve mid to high single-digit organic growth and ~100 basis points of average annual margin expansion over the next three years.

• Health, Wealth & Career expected to maintain mid-single-digit revenue growth and incremental margin expansion.

• Foreign currency expected to provide a $0.05 tailwind to adjusted diluted EPS in 2025.