Wolters Kluwer (WKL) H2 2025 earnings summary

Executive summary

• Achieved 6% organic revenue growth and 7% growth in recurring revenues, with adjusted operating profit margin up 40 basis points to 27.5%.

• 83% of revenues are recurring, and nearly 70% of digital revenues are AI-powered solutions, with cloud software revenues up 15%.

• Major AI product launches and successful integration of recent acquisitions (RASi, Brightflag, Libra) drove new growth opportunities.

• Strong customer adoption and positive feedback for AI-enabled solutions in Health and Tax & Accounting.

• Sustainability efforts led to a 60% reduction in scope 1 and 2 GHG emissions year-over-year and retention of AAA MSCI ESG rating.

Financial highlights

• Full year revenues reached €6,125 million, up 7% in constant currencies and 6% organically.

• Adjusted operating profit was €1,687 million, up 9% in constant currencies, with margin at 27.5%.

• Diluted adjusted EPS increased 9% in constant currencies to €5.29; adjusted free cash flow rose 10% to €1,348 million.

• Net debt to EBITDA ratio at 2.0x; return on invested capital at 18.0%.

• Dividends paid increased 8% to €2.52 per share; share repurchases totaled €1.1 billion in 2025.

Outlook and guidance

• 2026 guidance targets organic revenue growth, margin increase to approximately 28%, and high single-digit EPS growth.

• Product development spend to rise to 12%-13% of revenues to advance AI strategy.

• Adjusted free cash flow expected at €1,300–1,350 million; ROIC guidance at 18–19%.

• Health and Tax & Accounting to maintain prior year growth rates; other divisions expected to accelerate.