Willis Towers Watson Public Limited Company ( (WTW) ) has released its Q3 earnings. Here is a breakdown of the information Willis Towers Watson Public Limited Company presented to its investors.
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Willis Towers Watson Public Limited Company, a global advisory, broking, and solutions company, specializes in providing data-driven, insight-led solutions across people, risk, and capital domains. In its third-quarter 2024 earnings report, WTW announced a 6% increase in revenue to $2.3 billion, driven by organic growth, while adjusted diluted earnings per share rose 31% to $2.93. However, the company reported a significant net loss of $1.67 billion, largely due to non-cash impairment charges linked to the pending sale of its TRANZACT business.
Despite the reported net loss, WTW achieved a notable improvement in its adjusted operating margin, which increased to 18.1%, up 190 basis points from the previous year. The Health, Wealth & Career segment experienced a 4% revenue growth, while the Risk & Broking segment saw a robust 10% revenue increase, highlighting strong client retention and new business activity. The company’s transformation program is showing results with increased operating leverage and disciplined expense management contributing to these improvements.
WTW’s cash flow from operating activities improved, reaching $913 million for the first nine months of 2024, compared to $823 million in the previous year. The company also repurchased $205 million of its outstanding shares during the quarter, indicating a strategic focus on shareholder value. Despite the challenges faced in the third quarter, WTW remains confident in its ability to achieve its full-year targets, forecasting revenue of $9.9 billion or greater and an adjusted operating margin of 23.0% to 23.5% for the year 2024.
Looking ahead, WTW is poised to continue its strategic initiatives while navigating through its ongoing transformation program. The company remains committed to delivering sustainable, profitable growth and improving cash flow, entering the fourth quarter with confidence in meeting its annual targets.
