WTW Q3 2025 Earnings: Profit Rebounds as Organic Growth Hits 5%

Global advisory and broking firm Willis Towers Watson (WTW) recently released its third-quarter financial results for 2025, offering a detailed look into its operational performance. A deep dive into the company's 10-Q filing with the SEC reveals a story of dramatic profit recovery and steady underlying growth, even as reported revenue remained flat.

At first glance, the top-line figures seem unremarkable, with total revenue for the quarter holding steady at $2.29 billion, nearly identical to the same period last year. However, the real story lies in the bottom line. WTW reported a net income of $306 million, a massive turnaround from the $1.67 billion loss posted in Q3 2024. This dramatic swing is primarily due to the absence of significant one-off charges that skewed last year's results, including a non-cash goodwill impairment of over $1 billion and a substantial loss on the disposal of operations.

The flow of revenue through the company's costs and expenses for the quarter can be visualized in the diagram below.

The diagram shows a small "Unallocated" revenue stream of $20 million, which the company notes consists of reimbursable expenses and other miscellaneous items not assigned to a specific business division.

Under the Hood: Organic Growth and Segment Strength

While reported revenue was flat, this figure was impacted by the sale of its TRANZACT business at the end of 2024. A more telling metric is organic revenue growth, which excludes the effects of acquisitions, divestitures, and currency fluctuations. On this basis, WTW's revenue grew by a healthy 5%, indicating solid performance in its core operations.

This growth was primarily powered by the Risk & Broking (R&B) segment, which saw its revenue climb 7% to $1.01 billion (6% organically). The company attributes this to strong new business wins and project-based placements. The segment's operating income also rose to $189 million from $170 million a year ago, reflecting strong operating leverage.

The larger Health, Wealth & Career (HWC) segment, which provides advice and solutions for employee benefits and compensation, reported revenue of $1.26 billion. While this was a 5% decrease on a reported basis due to the TRANZACT divestiture, the segment still posted 4% organic growth. More importantly, its operating income increased to $361 million from $329 million, signaling improved operational efficiency.

Cost Control and Shareholder Returns

WTW demonstrated effective cost management during the quarter. Total operating expenses fell to $1.87 billion from $3.06 billion in the prior-year period, largely because of the absence of last year's impairment charge. Costs related to "Transaction and transformation" also dropped from $74 million to just $2 million, suggesting the company is moving past a period of significant restructuring.

The company continued to return capital to its shareholders, repurchasing $600 million of its own shares during the third quarter. This brings the year-to-date total to $1.3 billion. Underscoring its confidence, the board also approved a $1.5 billion increase to its share repurchase authorization in September.

In conclusion, WTW's third-quarter results depict a company on a much healthier footing than a year ago. After reshaping its portfolio, the focus has shifted to driving growth from its core businesses and enhancing efficiency. The strong organic growth in both segments, especially the robust performance in Risk & Broking, suggests this strategy is bearing fruit. In a competitive landscape that includes major players like Marsh McLennan and Aon, WTW's ability to generate steady underlying growth while improving profitability will be crucial for its continued success.