Willis Towers Watson (WLTW) Q4 2024 earnings summary

Executive summary

• Achieved 5% organic revenue growth in Q4 and full year 2024, with adjusted operating margin expanding 190 bps for both periods and strong execution of strategic initiatives.

• Adjusted diluted EPS grew 9% in Q4 to $8.13 and 17% for the year to $16.93.

• Transformation Program concluded, delivering $473 million in cumulative savings.

• Completed sale of Tranzact, resulting in over $1 billion pre-tax impairment charges and a full-year net loss.

• Entered 2025 with strong momentum, a sharpened portfolio, and a new strategy focused on accelerating performance and portfolio optimization.

Financial highlights

• Q4 2024 revenue was $3.035 billion, up 4% YoY; full year revenue reached $9.93 billion, up 5%.

• Q4 adjusted operating margin: 36.1% (up 190 bps); full year: 23.9% (up 190 bps).

• Q4 adjusted diluted EPS: $8.13 (+9% YoY); full year: $16.93 (+17% YoY).

• Free cash flow for 2024: $1.4 billion, up $184 million YoY, with a margin of 13.9%.

• Returned $1.26 billion to shareholders in 2024 via share repurchases and dividends.

Outlook and guidance

• Targeting mid-single-digit organic revenue growth and continued annual adjusted operating margin expansion in 2025.

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

• Anticipates foreign currency headwind of $0.18 on adjusted diluted EPS in 2025.

• Reinsurance JV expected to be a $0.25–$0.35 headwind to adjusted EPS in 2025.

• Free cash flow margin expected to expand in 2025, with normalization for Tranzact sale and transformation wind-down.