Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 6% organic growth, with adjusted operating margin expanding by 80 basis points to 36.9% [7][19] - Adjusted EPS for Q4 was $8.12, a 13% increase year-over-year when excluding TRANZACT [7][19] - For the full year, organic growth was 5%, with adjusted operating margin expanding by 130 basis points to 25.2% and adjusted diluted EPS of $17.08, also up 13% year-over-year excluding TRANZACT [7][19] Business Line Data and Key Metrics Changes - Health, Wealth and Career (HWC) segment saw organic growth accelerate to 6% in Q4, with a full-year growth of 4% [7][20] - Risk and Broking (R&B) generated 7% organic growth in Q4, with corporate Risk and Broking achieving 8% growth, marking the 12th consecutive quarter of high single-digit growth [8][25] - The insurance consulting and technology business experienced a 1% decline in Q4, contrasting with 11% growth in the prior year [26] Market Data and Key Metrics Changes - The international market drove growth in the health business, with strong performance in Europe and new business acquisitions [21][22] - The corporate Risk and Broking business saw significant contributions from construction, surety, marine, and credit risk solutions [25] - The company expects high single-digit growth in the health segment for 2026, driven by healthcare inflation and demand for competitive employee benefits [21][64] Company Strategy and Development Direction - The company is focused on optimizing its portfolio for growth and profitability, with recent acquisitions including Newfront, Cushon, and FlowStone Partners [5][16] - A specialization strategy in Risk and Broking is driving new business momentum and enhancing efficiency [4][8] - The company plans to integrate Newfront's technology and team into its operations to enhance client service and drive growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and outlook for 2026, expecting mid-single-digit organic growth and continued margin expansion [17][30] - The political and regulatory environment is seen as a driver for clients seeking advice and solutions [17] - While monitoring potential headwinds, management remains optimistic about the company's competitive advantages and market momentum [17] Other Important Information - The company generated free cash flow of $1.5 billion for the year, with a free cash flow margin of 15.9% [30] - Share repurchases totaled $439 million in Q4, with plans to allocate at least $1 billion to share repurchases in 2026 [31][32] - The company expects foreign exchange to be a tailwind of approximately $0.30 to adjusted EPS for 2026 [29][50] Q&A Session Summary Question: Drivers of organic growth within R&B - Management highlighted strong organic growth in R&B, with significant contributions from various specialty lines and a focus on specialization strategy [36][38] Question: Mid- to high-single-digit guidance for R&B in 2026 - Management acknowledged potential pricing improvements but emphasized that growth is driven by high retention rates and new business [40][43] Question: Impact of talent on organic growth in 2026 - Management confirmed that strategic talent investments have been key to driving organic growth and will continue to be a focus [52][53] Question: Changes in Medicare influencing BD&O growth - Management expects modest headwinds from Medicare changes but anticipates strong demand in the retiree marketplace [58][59] Question: AI's impact on consulting services - Management views AI as an opportunity rather than a threat, focusing on regulatory-driven recurring services [72]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 6% organic growth, with an adjusted operating margin expansion of 80 basis points, and adjusted EPS of $8.12, reflecting a 13% increase year-over-year when excluding TRANZACT [5][18] - For the full year, organic growth was 5%, with adjusted operating margin expanding by 130 basis points to 25.2%, and adjusted diluted EPS of $17.08, also up 13% year-over-year excluding TRANZACT [5][18] Business Line Data and Key Metrics Changes - Health, Wealth and Career (HWC) segment saw organic growth accelerate to 6% in Q4, with a full-year growth of 4% [5][19] - Risk and Broking (R&B) generated 7% organic growth in Q4, with corporate Risk and Broking achieving 8% growth, marking the 12th consecutive quarter of high single-digit growth [6][25] - The insurance consulting and technology business experienced a decline of 1% in Q4, with full-year growth at 1% compared to 4% the previous year [26] Market Data and Key Metrics Changes - The international market drove growth in the health segment, particularly in Europe, while North America faced challenges due to a book of business sale in the prior year [20] - The company expects strong demand across global markets, driven by healthcare inflation and employers' focus on managing costs while maintaining competitive employee benefits [20][66] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through strategic acquisitions, including Newfront, Cushon, and FlowStone Partners, to enhance growth and profitability [4][15] - The specialization strategy in Risk and Broking continues to drive new business momentum, particularly in construction and surety [6][25] - Investments in talent and technology are central to the company's strategy, with a focus on enhancing efficiency and driving margin expansion [11][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position and outlook for 2026, anticipating mid-single-digit organic growth and continued margin expansion [16][30] - The political and regulatory environment remains dynamic, prompting clients to seek the company's advice and solutions [16] - While optimistic about current conditions, management is monitoring potential headwinds for the upcoming year [16] Other Important Information - The company generated free cash flow of $1.5 billion for the year, with a free cash flow margin of 15.9%, an increase from 12.8% the previous year [31] - Share repurchases are a primary method of capital return, with at least $1 billion expected to be allocated to buybacks in 2026 [32] Q&A Session Summary Question: Drivers of organic growth within R&B - Management highlighted strong organic growth of 7% in R&B, driven by specialization strategy and investments in talent, data, and technology [37][39] Question: Mid- to high single-digit guidance for R&B in 2026 - Management acknowledged that while pricing may improve, growth is supported by high retention rates and new business opportunities, particularly in digital infrastructure and electrification [40][42] Question: Impact of talent on organic growth in 2026 - The company plans to continue strategic hiring to support organic growth, emphasizing the importance of talent in driving sustainable and profitable growth [52][54] Question: Changes in Medicare influencing BD&O growth - Management expects modest headwinds from Medicare changes but anticipates strong demand for retiree marketplace services to support low single-digit growth in 2026 [60][61] Question: AI's impact on consulting services - Management views AI as an opportunity rather than a threat, focusing on regulatory-driven recurring services that are expected to remain in demand [74]

February 3, 2026 wtwco.com © 2026 WTW. All rights reserved. WTW Forward-Looking Statements This document contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, ...

分组1 - Willis Towers Watson (WTW) reported quarterly earnings of $8.12 per share, exceeding the Zacks Consensus Estimate of $7.92 per share, with a year-over-year comparison showing earnings of $8.13 per share [1] - The company achieved revenues of $2.94 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.51%, although this represents a decline from year-ago revenues of $3.04 billion [2] - Over the last four quarters, WTW has surpassed consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] 分组2 - The stock has underperformed the market, losing about 3.7% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $3.61 on revenues of $2.34 billion, and for the current fiscal year, it is $19.24 on revenues of $10.21 billion [7] 分组3 - The Zacks Industry Rank indicates that the Insurance - Brokerage sector is currently in the bottom 13% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - The estimate revisions trend for WTW was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Revenue Performance - Revenue for Q4 2025 was $2.94 billion, a decrease of 3% year-over-year, with organic growth of 6%[6]. - Full year 2025 revenue was $9.71 billion, a decrease of 2% compared to $9.93 billion in 2024, with organic growth of 5%[12]. - Total revenue for the three months ended December 31, 2025, was $2,936 million, a decrease of 3% compared to $3,035 million in 2024[52]. - The Health, Wealth & Career segment reported Q4 revenue of $1.65 billion, down 11%, but achieved organic growth of 6%[15][16]. - The Risk & Broking segment saw Q4 revenue increase to $1.25 billion, a 10% rise, with organic growth of 7%[18]. - Health, Wealth & Career segment revenue excluding interest income was $1,641 million, down 11% from $1,847 million in the previous year[52]. - Risk & Broking segment revenue excluding interest income increased by 10% to $1,229 million from $1,115 million[52]. - The company’s total revenue for the year ended December 31, 2025, was $9,708 million, a decrease of 2% from $9,930 million in 2024[53]. Income and Earnings - Net Income for Q4 2025 was $736 million, down 41% from $1.25 billion in Q4 2024, with diluted EPS at $7.62, a 38% decline[7][8]. - Adjusted net income for the three months ended December 31, 2025, was $784 million, compared to $811 million in 2024[62]. - Net income for 2025 was $1.613 billion, a significant recovery from a net loss of $88 million in 2024[81]. - The company reported a net income attributable to WTW of $735 million for Q4 2025, down from $1,246 million in Q4 2024[62]. - Diluted earnings per share for Q4 2025 was $7.62, down from $12.25 in Q4 2024[62]. Cash Flow and Financial Metrics - Free cash flow for the year ended December 31, 2025, was $1.55 billion, an increase of $279 million from the previous year[14]. - Free Cash Flow for the year ended December 31, 2025, was $1,546 million, up from $1,267 million in 2024, resulting in a Free Cash Flow Margin of 15.9%[73]. - Free cash flow is defined as cash flows from operating activities minus cash used for fixed assets and software, reflecting the core operating performance[42]. - Free cash flow margin indicates the percentage of revenue realized on a cash basis, serving as a meaningful metric for cash conversion[43]. - Net cash from operating activities improved to $1.775 billion in 2025, up from $1.512 billion in 2024, a growth of 17.4%[81]. Operating Performance - Adjusted EBITDA for Q4 2025 was $1.12 billion, representing 38.2% of revenue, a decrease of 3% year-over-year[7]. - Adjusted EBITDA for Q4 2025 was $1,121 million with a margin of 38.2%, compared to $1,151 million and a margin of 37.9% in Q4 2024[66]. - Operating margin for Q4 2025 improved to 34.6%, up 490 basis points from the prior year[8]. - Segment operating income for the three months ended December 31, 2025, was $1,164 million, slightly up from $1,159 million in 2024[55]. - Health, Wealth & Career segment operating margin improved to 44.3% in Q4 2025 from 41.9% in Q4 2024[58]. - Adjusted operating income for the year ended December 31, 2025, was $2,449 million with a margin of 25.2%, compared to $2,378 million and a margin of 23.9% in 2024[68]. Assets and Liabilities - Total assets increased to $29.53 billion in 2025 from $27.68 billion in 2024, representing a growth of 6.2%[78]. - Total current liabilities increased to $14.004 billion in 2025 from $12.598 billion in 2024, reflecting a rise of 11.2%[78]. - Long-term debt increased to $5.756 billion in 2025, compared to $5.309 billion in 2024, an increase of 8.4%[78]. - Total equity increased slightly to $8.052 billion in 2025 from $8.017 billion in 2024, reflecting a growth of 0.4%[78]. Shareholder Returns and Future Plans - The company plans to repurchase $1.0 billion or more in shares in 2026, subject to market conditions[20]. - The company repurchased shares worth $1.650 billion in 2025, compared to $901 million in 2024, indicating a significant increase in share buybacks[82]. - Expected foreign currency tailwind on Adjusted Diluted EPS for 2026 is approximately $0.30[23]. Risks and Strategic Focus - Risks include macroeconomic trends, changes in interest rates, and geopolitical risks that could impact financial results[46]. - The company is actively pursuing growth strategies, including acquisitions and enhancing its service offerings[45]. - Forward-looking statements highlight the uncertainties and risks associated with achieving the company's objectives and plans[49]. - The company emphasizes the importance of constant currency measures to provide transparency in performance by excluding foreign currency fluctuations[33]. - Organic change excludes the impact of foreign currency fluctuations and acquisitions, providing a clearer view of core operating results[34]. - Adjusted operating income and margin are key financial measures used to evaluate core operations and benchmark against competitors[36]. - Adjusted EBITDA and margin are also critical metrics for assessing core operations and performance-based compensation plans[37].

Core Insights - WTW reported strong performance in Q4 2025, driven by strategic investments and a focus on operational efficiency, despite a decline in revenue due to the sale of TRANZACT [2][5][10] Consolidated Results - Q4 2025 revenue was $2.94 billion, a decrease of 3% year-over-year, with organic revenue growth of 6% [3][5][7] - Net income for Q4 2025 was $736 million, down 41% from $1.25 billion in Q4 2024, while adjusted net income decreased by 3% to $784 million [6][11] - The operating margin improved to 34.6%, up 490 basis points from the previous year, indicating enhanced operational efficiency [3][7] Full Year 2025 Results - Total revenue for FY 2025 was $9.71 billion, a 2% decline from $9.93 billion in FY 2024, with organic growth of 5% [8][10] - Net income for FY 2025 was $1.61 billion, a significant recovery from a net loss of $88 million in FY 2024 [11][8] - Adjusted diluted EPS for FY 2025 was $17.08, up 5% from the previous year [8][11] Cash Flow and Capital Allocation - Cash flows from operating activities increased to $1.78 billion in FY 2025, compared to $1.51 billion in FY 2024, with free cash flow rising to $1.55 billion [12] - The company repurchased $350 million of shares in Q4 2025 and $1.65 billion for the full year [12] Segment Highlights - The Health, Wealth & Career (HWC) segment reported Q4 revenue of $1.65 billion, down 11% year-over-year, but achieved organic growth of 6% [13][14] - The Risk & Broking (R&B) segment saw revenue increase by 10% to $1.25 billion in Q4 2025, with organic growth of 7% [16][17] 2026 Financial Considerations - The company expects continued annual margin expansion, targeting approximately 100 basis points of average annual margin growth in R&B over the next two years [18] - Anticipated share repurchases of $1.0 billion or more, subject to market conditions [18]

Core Insights - WTW has launched Rewards AI, a Generative AI-enabled software aimed at transforming HR and compensation professionals' access to rewards data, enhancing decision-making clarity and efficiency [1][3] Group 1: Product Features - Rewards AI combines WTW's data integrity with advanced AI technology, offering a "human-led, machine-powered" approach to simplify workflows and accelerate insight discovery [2][3] - The software features a conversational interface that allows users to ask questions in natural language, providing instant and tailored responses to complex rewards data [3] - Transparency is a key feature, with all recommendations traceable to their sources, fostering trust and eliminating guesswork in compensation planning [4] Group 2: Market Relevance - The ability to quickly understand and respond to compensation trends is crucial in today's dynamic market, and Rewards AI provides a transparent and intuitive method for exploring rewards data [5] - The solution empowers organizations to make informed, strategic decisions based on reliable information, moving beyond surface-level insights [5]

Core Insights - Willis Towers Watson Public Limited Company (WTW) is anticipated to experience a decline in both revenue and earnings for the fourth quarter of 2025, with revenues expected to be $2.87 billion, reflecting a 5.5% decrease year-over-year [1] - The consensus estimate for earnings per share is $7.93, indicating a year-over-year decrease of 2.4%, although this estimate has increased by 0.3% over the past 60 days [2] Revenue Expectations - Revenue growth in the fourth quarter is likely to be supported by strong performances across all segments, particularly in Health and Wealth, driven by international expansion and new business initiatives [5][10] - The Wealth business is expected to benefit from robust Retirement work in Great Britain and North America, along with growth from new investment products [6] - The Benefits Delivery & Outsourcing segment is projected to perform well due to strong project and core administration work in Europe, although this may be partially offset by lower commission revenues in North America [7] Expense Projections - Expenses for the fourth quarter are expected to rise to $1.9 billion, influenced by higher incentive costs, salary expenses, and costs associated with the Transformation program [8][10] Earnings Prediction Model - The Zacks Model indicates that WTW is not likely to beat earnings expectations this quarter, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]

In its upcoming report, Willis Towers Watson (WTW) is predicted by Wall Street analysts to post quarterly earnings of $7.93 per share, reflecting a decline of 2.5% compared to the same period last year. Revenues are forecasted to be $2.87 billion, representing a year-over-year decrease of 5.5%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Be ...

Core Insights - Natural catastrophes caused over US$100 billion in insured losses in 2025, marking the sixth consecutive year above this threshold, but a decrease of $40 billion compared to 2024, indicating persistent natural catastrophe risk despite no hurricanes making landfall in the US [1][2] Industry Trends - The Natural Catastrophe Review by Willis highlights the need for insurers to adopt sound strategies to manage high catastrophe risk, emphasizing investment in resilience and mitigation rather than avoiding risk [2] - Insured losses from natural catastrophes in 2025 were over $100 billion globally, indicating a higher risk floor for catastrophic perils [2] - The report discusses structural pressures and systemic vulnerabilities that exacerbated the impact of natural catastrophes in 2025, advising insurers to update their risk perspectives [2] Risk Modelling and Case Studies - Wildfire is identified as a core contributor to insurance portfolio volatility, necessitating adjustments in wildfire models to reflect current conditions and realistic replacement costs [3] - Risk modelling must account for compound perils, as cumulative damage from multiple perils can lead to delayed claims and disputes [3] - The warming North Atlantic is altering hurricane behavior, with implications for the Caribbean and the potential for more intense storms later in the season [3] - Flood risks are expanding beyond traditionally defined zones, with extreme rainfall leading to severe flooding in areas not typically considered high risk [3]