WTW posts 41% decline in Q4 2025 profit
WTW has reported net income of $736m in the fourth quarter of 2025 (Q4 2025), down 41% from $1.25bn in the previous year.
Diluted earnings per share came in at $7.62, down 38% year-on-year, while income from operations for Q4 rose 13% to $1.01bn.
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Quarterly revenue was $2.94bn, down 3% from $3.04bn a year earlier, but grew 6% organically.
Adjusted earnings before interest, taxes, depreciation and amortisation for the quarter was $1.12bn, or 38.2% of revenue, reflecting a 3% decrease from $1.15bn (37.9% of revenue) in Q4 last year.
The Health, Wealth & Career (HWC) division reported revenue of $1.65bn for the period, an 11% decline on the prior year due to the TRANZACT sale; however, organic growth for this segment was reported at 6%.
The Risk & Broking (R&B) division recorded a 10% rise in revenue to $1.25bn, with organic and constant currency growth at 7%.
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By GlobalDataCorporate Risk & Broking saw increased new business and strong client retention globally.
Insurance Consulting and Technology experienced a modest reduction in organic revenue as clients kept a close watch on spending amid ongoing economic pressures.
Over the full year, WTW generated $9.71bn in revenue, 2% less than the previous year’s $9.93bn, mainly due to the TRANZACT divestiture.
Net income for 2025 reached $1.61bn, reversing a net loss of $88m from the prior year.
WTW repurchased $350m of its shares during Q4 and bought back a total of $1.65bn worth over the whole year.
WTW CEO Carl Hess said: “WTW had strong performance across our businesses, driven by our team’s relentless focus and consistent execution of our strategy.
“We delivered on our financial targets and strengthened our business through strategic investments in talent and innovation to accelerate performance, enhance efficiency and optimise our portfolio. Our strong momentum and continued progress on our strategic objectives give us confidence as we enter 2026.”
Looking ahead to 2026, WTW expects continued margin expansion across its business – around 100 basis points of average annual margin improvement over the next two years in R&B and further incremental gains in HWC.
WTW expects the acquisition of US broker Newfront to be $0.10 dilutive to adjusted earnings per share and generate roughly $250m in post-close annual revenue in 2026.
The Total Rewards unit from Newfront will be reported under HWC and its Business Insurance operations under R&B.
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