Willis Towers Watson (WLTW) investor relations material

Executive summary

• Revenue rose 8% year-over-year to $2.41 billion, with 3% organic growth in Q1 2026 and adjusted operating margin of 22.3%; adjusted diluted EPS increased 19% to $3.72.

• Net income attributable to shareholders was $303 million, up 27% year-over-year; diluted EPS reached $3.10, up 33%.

• AI-enabled solutions, technology investments, and the integration of Newfront's AI-powered broking platform are scaling, driving efficiency and client outcomes.

• $300 million in share repurchases and $88 million in dividends were returned to shareholders in Q1 2026.

• Supported clients through macroeconomic volatility and executed strategic priorities amid challenging global markets, especially in the Middle East.

Financial highlights

• Adjusted operating margin expanded by 70 bps year-over-year to 22.3%; adjusted EBITDA margin rose to 24.4%.

• Adjusted diluted EPS grew 19% to $3.72; net income increased 27% to $303 million.

• Free cash flow was -$65 million, a $21 million improvement year-over-year, reflecting margin expansion and lower transformation outflows.

• Cash and cash equivalents at quarter-end were $1.9 billion, down from $3.1 billion at year-end 2025, mainly due to the Newfront acquisition and share repurchases.

• Net cash from operating activities improved to -$10 million from -$35 million year-over-year.

Outlook and guidance

• Maintains mid-single-digit organic growth and continued margin expansion guidance for 2026, with ~100 bps average annual margin expansion targeted in Risk & Broking.

• Share repurchases of at least $1 billion planned for the year, subject to market conditions.

• Newfront acquisition expected to be ~$0.10 dilutive to adjusted EPS in 2026, with $250 million post-close revenue and ~26% adjusted EBITDA margin.

• Willis Re JV expected to be a ~$0.30 headwind to adjusted diluted EPS in 2026.

• Foreign exchange expected to provide a ~$0.35 tailwind to adjusted diluted EPS for full year 2026.