Willis Towers Watson (WTW) 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 $331M for the quarter, driven by cost reductions and operational efficiencies.

• Results reflect progress on strategic objectives, resilience amid macroeconomic and geopolitical uncertainty, and strong execution in both organic and inorganic growth strategies.

• Technology and AI investments are driving measurable efficiency gains and client value, with notable adoption of global broking platforms and AI-powered tools.

• Strong new business wins in specialty, technology, and global collaboration, with expansion in the Middle East and data center construction sectors.

Financial highlights

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

• Net income for Q2 2025 was $332M, up from $142M in Q2 2024.

• Adjusted operating margin reached 18.5%, up 150 basis points; adjusted EBITDA margin was 20.8%, up from 19.6%.

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

• Returned $591M to shareholders in Q2 via $500M in share repurchases and $91M in dividends.

Outlook and guidance

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

• 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 deliver incremental annual margin expansion.

• Expecting ~$1.5B in share repurchases for 2025, subject to market and investment opportunities.

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