WTW reported its financial results for the first quarter of 2025, with revenue declining by 5% year-over-year to $2.22 billion, primarily due to the sale of its TRANZACT business at the end of 2024.
Net income for the quarter was $239 million, up from $194 million in the first quarter of 2024. The company’s operating margin improved to 19.4%, up from 12.0% in the same period last year.
CEO Carl Hess highlighted the company’s solid start to the year, noting that results were in line with expectations and progress was made on its strategy to improve performance, enhance efficiency, and strengthen its portfolio. He added that the company remains focused on driving growth and margin expansion despite ongoing economic uncertainty.
The Health, Wealth & Career (HWC) segment reported revenue of $1.17 billion, a decrease of 13% compared to the previous year. However, the segment saw organic growth of 3%, driven by strong demand in health and wealth services. Operating margin for the segment improved to 26.7%, partly due to the sale of TRANZACT and savings from the company’s transformation program.
The Risk & Broking (R&B) segment saw revenue rise by 5% to $1.03 billion, with organic growth of 7%. The growth was attributed to higher new business activity and strong client retention across its Corporate Risk & Broking and Insurance Consulting and Technology services. Operating margin in the R&B segment increased to 22.0%.
WTW’s free cash flow for the quarter was negative $86 million, compared to negative $36 million in the prior year, mainly due to the absence of cash collections related to TRANZACT and higher compensation payments. The company also repurchased 607,221 shares for $200 million during the quarter.
Looking ahead, WTW expects to repurchase around $1.5 billion in shares this year, subject to market conditions. The company also anticipates some impact on earnings from its reinsurance joint venture with Bain Capital and expects cash outflows related to the completion of its Transformation program. WTW maintains its outlook for continued operating margin expansion, particularly in the R&B segment, and expects foreign exchange impacts to be neutral for 2025 at current rates.
