WTW Q1 earnings miss consensus, organic growth stable at 5%

By Scott Vincent

April 24 - (The Insurer) - WTW reported adjusted diluted earnings per share of $3.13 for the first quarter of 2025 on Thursday, missing analysts consensus estimate of $3.21.

The group reported organic growth of 5% for the quarter, in line with both the first and fourth quarters of 2024.

Total revenue fell by 5% to $2.22 billion, reflecting a 13% contraction in its health, wealth and career segment. Group net income was up 23% to $239 million.

WTW reported an adjusted operating margin of 21.6% for the quarter, an increase of 100 basis points on the prior-year period.

Risk and broking saw growth of 5%, with total revenue rising to $1.03 billion. The segment reported organic growth of 7% for the quarter.

Risk and broking operating income was up 11% to $226 million, with its operating margin increasing by 120 basis points to 22.0%.

In its 2025 guidance, the broker said its reinsurance joint venture with Bain Capital is expected to have a headwind of approximately $0.25 to $0.35 on its adjusted diluted earnings per share.

TranzactWTW, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of its sale in the fourth quarter.