01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Willis Towers Watson Public Limited Company (WTW) reported third-quarter 2025 revenue of $2,288 milliona, essentially flat with $2,289 million in the prior-year quarter, and nine-month revenue of $6,772 million, down from $6,895 million.
The filing attributes the as-reported decline primarily to the December 31, 2024 sale of TRANZACT. Organic revenue growth was 5% for both the three and nine months ended September 30, 2025. Net income attributable to WTW was $304 millionb for the quarter and $870 million for the nine months, compared with net losses of $1,675 million and $1,344 million in the prior-year periods, which included a $1,042 million impairment and a $1,190 million loss on disposal related to TRANZACT.
Diluted earnings per share were $3.11c for the quarter and $8.74 for the nine months. On an adjusted basis, WTW reported adjusted diluted earnings per share of $3.07 for the quarter, up from $2.77, and $9.07 for the nine months, up from $8.33. Adjusted EBITDA was $515 million for the quarter, versus $479 million, with an adjusted EBITDA margin of 22.5% compared with 20.9%.
The filing cites lower marketing expenses, decreased office and technology expenses, and a lower weighted-average share count from repurchases as drivers. The filing also describes the current insurance market as softening, which it says can pressure commission revenue. Cash generation and capital returns were significant.
Net cash from operating activities was $1,004 milliond for the nine months, and free cash flow was $838 million, compared with $724 million a year earlier. During the nine months, WTW repurchased $1.3 billion of shares and paid $269 million in dividends, and approximately $1.6 billion remained under its repurchase authority at September 30, 2025.
Total debt was $5,313 million, including $550 million of 4.400% senior notes due 2026. On October 17, 2025, WTW entered into a new $1.5 billion revolving credit facility maturing in 2030.
02—Key points
Key Highlights
- Q3 2025 revenue was $2,288 million, versus $2,289 million in Q3 2024; nine-month revenue was $6,772 million, down 2% as reported from $6,895 million, mainly due to the TRANZACT sale. Organic revenue growth was 5% in both periods.
- Net income attributable to WTW was $304 million for Q3 2025 and $870 million for the nine months, versus net losses in the prior-year periods that reflected the TRANZACT impairment and disposal loss.
- Diluted EPS was $3.11 for Q3 2025 and $8.74 for the nine months; adjusted diluted EPS was $3.07 for Q3 (versus $2.77) and $9.07 for the nine months (versus $8.33).
- Adjusted EBITDA was $515 million for Q3 2025, with an adjusted EBITDA margin of 22.5%, compared with $479 million and 20.9% a year earlier.
- Segment operating income was $361 million for Health, Wealth & Career and $189 million for Risk & Broking in Q3 2025; nine-month segment operating income was $952 million and $637 million, respectively.
- Nine-month free cash flow was $838 million, up from $724 million, and WTW repurchased $1.3 billion of shares, with about $1.6 billion of repurchase authority remaining at September 30, 2025.
- On October 17, 2025, WTW replaced its $1.5 billion revolving credit facility with a new facility maturing October 17, 2030, after the filing period; $550 million of 4.400% senior notes are due in the first quarter of 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.29B$2.29B | 0.0% |
| Operating Expenses | $1.87B$3.06B | −38.8% |
| Operating Income | $418.00M-$766.00M | +154.6% |
| Interest Expense | $65.00M$65.00M | 0.0% |
| Net Income | $304.00M-$1.68B | +118.1% |
| EPS (Basic) | $3.12$-16.44 | +119.0% |
| EPS (Diluted) | $3.11$-16.44 | +118.9% |
| Shares Outstanding (Basic) | 98.00M102.00M | −3.9% |
| Shares Outstanding (Diluted) | 98.00M102.00M | −3.9% |
05—Questions
Frequently Asked Questions
Why did reported revenue and net income change so much compared with the prior year?
Reported revenue declined slightly because of the December 31, 2024 sale of TRANZACT. The prior-year periods were heavily affected by a $1,042 million goodwill impairment and a $1,190 million loss on disposal related to that sale, which produced net losses of $1,675 million for Q3 2024 and $1,344 million for the nine months of 2024. Those charges were absent in 2025, so net income attributable to WTW was $304 million for Q3 2025 and $870 million for the nine months.
How did underlying business performance compare with reported results?
Organic revenue growth was 5% for both the three and nine months ended September 30, 2025, which excludes currency effects and acquisitions and divestitures. Both segments were cited as contributors. Currency translation increased consolidated revenue by $32 million in Q3 and $26 million for the nine months.
What is the outlook for the insurance broking market?
The filing states that, at the time of filing, WTW was seeing a softening market, meaning lower premium rates that generally put downward pressure on commission revenue and can materially affect revenue and operating margin. It also notes that economic uncertainty, tariffs, and interest rate volatility could affect the business.
How is WTW funding its shareholder returns and debt obligations?
Operating cash flow of $1,004 million for the nine months, along with a $750 million earnout receivable from the 2021 Willis Re divestiture, supported $1.3 billion of share repurchases and $269 million of dividends. Cash and cash equivalents were $1.9 billion at September 30, 2025. Total debt was $5,313 million, and the company stated it was in compliance with all financial covenants.
06—Continue