On July 25, 2024, Willis Towers Watson PLC (WTW, Financial) released its 8-K filing for the second quarter of 2024, showcasing a strong financial performance that surpassed analyst estimates. The company, formed in January 2016 through the merger of Towers Watson and Willis Group, operates as a global advisory, insurance brokerage, and solutions company with approximately 48,000 employees.
Performance Overview
Willis Towers Watson PLC (WTW, Financial) reported a 5% increase in revenue to $2.27 billion for Q2 2024, compared to $2.16 billion in the same period last year. This growth was driven by a 6% organic increase. The company's diluted earnings per share (EPS) rose to $1.36, a 55% increase from the previous year, meeting the analyst estimate of $1.36. Adjusted diluted EPS was $2.55, up 24% from the prior year.
Financial Achievements and Metrics
Key financial metrics for Q2 2024 include:
| Metric | Q2 2024 | Q2 2023 | Y/Y Change |
|---|---|---|---|
| Revenue | $2,265 million | $2,159 million | 5% |
| Income from Operations | $212 million | $142 million | 49% |
| Operating Margin | 9.4% | 6.6% | 280 bps |
| Adjusted Operating Income | $385 million | $315 million | 22% |
| Adjusted Operating Margin | 17.0% | 14.6% | 240 bps |
| Net Income | $142 million | $96 million | 48% |
| Adjusted Net Income | $263 million | $219 million | 20% |
| Diluted EPS | $1.36 | $0.88 | 55% |
| Adjusted Diluted EPS | $2.55 | $2.05 | 24% |
Segment Performance
The Health, Wealth & Career (HWC) segment reported a 4% increase in revenue to $1.26 billion, driven by strong client retention and new appointments. The Risk & Broking (R&B) segment saw a 9% increase in revenue to $979 million, primarily due to higher levels of new business activity and strong client retention.
Cash Flow and Capital Allocation
Cash flows from operating activities were $431 million for the quarter, consistent with the prior year. Free cash flow for the first half of 2024 was $361 million, up from $350 million in the same period last year. The company repurchased $200 million of its outstanding shares during the quarter.
Outlook and Strategic Initiatives
Willis Towers Watson PLC (WTW, Financial) raised the low end of its full-year 2024 target ranges for adjusted operating margin and adjusted EPS to 23.0%-23.5% and $16.00-$17.00, respectively. The company also increased its annual cost savings target to $450 million.
“WTW delivered a strong second quarter, generating significant EPS growth and margin expansion through robust organic growth, operating efficiency and the continued execution of our Transformation program,” said Carl Hess, WTW’s Chief Executive Officer.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Willis Towers Watson PLC for further details.
