Wolters Kluwer (WKL) Q3 2025 TU earnings summary

Executive summary

• Nine-month revenues rose 7% in constant currencies and 6% organically, with recurring revenues (84% of total) up 7% organically and cloud software revenues up 15% organically.

• Adjusted operating profit increased 15% in constant currencies, with margin improvement driven by mix shift and cost efficiencies.

• Share buyback of €1 billion completed; new €200 million buyback mandate signed, bringing forward part of 2026's program.

• Full-year 2025 guidance reaffirmed, with momentum in Health, Tax & Accounting, and Corporate Performance & ESG segments.

Financial highlights

• Nine-month adjusted free cash flow up 17% in constant currencies, aided by favorable working capital timing.

• Net-debt-to-EBITDA ratio at 2.2x as of September 30, 2025.

• Total acquisition spending was €839 million, mainly for RASI and Brightflag.

• Gross dividends paid in the first nine months totaled €531 million; share repurchases reached €788 million.

Outlook and guidance

• Full-year 2025 organic growth expected to be broadly in line with prior year; adjusted operating profit margin to be near the top end of guidance (27.1%-27.5%).

• Adjusted free cash flow guidance: €1,250-€1,300 million; diluted adjusted EPS growth mid- to high-single-digit.

• Division outlook: Health and Tax & Accounting to match or slightly trail prior year; Corporate Performance & ESG to exceed prior year; Financial & Corporate Compliance to be below prior year.

• Guidance assumes no major changes in scope beyond completed acquisitions/divestitures.