WTW, a leading global advisory, broking and solutions company, announced financial results for the fourth quarter ended December 31, 2024.
“WTW is entering 2025 with considerable momentum after delivering on our 2024 financial targets through solid revenue growth, robust margin expansion and earnings growth,” said Carl Hess, WTW’s chief executive officer. “The successful completion of our Grow, Simplify and Transform strategy has primed all of our businesses to perform, and we are now stronger, more connected and more efficient than we have ever been. I’m confident our new strategy to accelerate our performance, enhance our efficiency and optimize our portfolio will produce innovative solutions for our customers and create more value for shareholders. I’m proud of our team’s dedication and look forward to executing on our strategic and financial goals in the years ahead.”
Consolidated Results
Fourth Quarter 2024, as reported, USD millions, except %
| Key Metrics | Q4-24 | Q4-23 | Y/Y Change |
| Revenue1 | $3,035 | $2,914 | Reported 4% | CC 5% | Organic 5% |
| Income from Operations | $901 | $779 | 16% |
| Operating Margin % | 29.7% | 26.7% | 300 bps |
| Adjusted Operating Income | $1,096 | $998 | 10% |
| Adjusted Operating Margin % | 36.1% | 34.2% | 190 bps |
| Net Income | $1,248 | $623 | 100% |
| Adjusted Net Income | $827 | $775 | 7% |
| Diluted EPS | $12.25 | $5.97 | 105% |
| Adjusted Diluted EPS | $8.13 | $7.44 | 9% |
Revenue was $3.04 billion for the fourth quarter of 2024, an increase of 4% as compared to $2.91 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue increased 5%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.
Net Income for the fourth quarter of 2024 was $1.25 billion compared to Net Income of $623 million in the prior-year fourth quarter. Adjusted EBITDA for the fourth quarter was $1.2 billion, or 38.6% of revenue, an increase of 9%, compared to Adjusted EBITDA of $1.1 billion, or 37.1% of revenue, in the prior-year fourth quarter. The U.S. GAAP tax rate for the fourth quarter was 26.0%, and the adjusted income tax rate for the fourth quarter used in calculating adjusted diluted earnings per share was 21.3%.
Full Year 2024, as reported, USD millions, except %
| Key Metrics | FY-24 | FY-23 | Y/Y Change |
| Revenue1 | $9,930 | $9,483 | Reported 5% | CC 5% | Organic 5% |
| Income from Operations | $627 | $1,365 | (54)% |
| Operating Margin % | 6.3% | 14.4% | (810) bps |
| Adjusted Operating Income | $2,378 | $2,082 | 14% |
| Adjusted Operating Margin % | 23.9% | 22.0% | 190 bps |
| Net (Loss)/Income2 | $(88) | $1,064 | NM |
| Adjusted Net Income | $1,730 | $1,536 | 13% |
| Diluted EPS2 | $(0.96) | $9.95 | NM |
| Adjusted Diluted EPS | $16.93 | $14.49 | 17% |
| 1 | The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. This excludes reinsurance revenue which is reported in discontinued operations. The segment discussion is on an organic basis. |
| 2 | Net Loss and Diluted Loss Per Share for the year ended 2024 primarily includes impairment charges of over $1.0 billion related to the sale of TRANZACT. |
| NM | Not meaningful |
Revenue was $9.93 billion for the year ended December 31, 2024, an increase of 5% as compared to $9.48 billion for the prior year. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.
Net Loss for the year ended December 31, 2024 was $88 million, compared to Net Income of $1.1 billion in the prior year. Adjusted EBITDA for 2024 was $2.7 billion, or 27.3% of revenue, an increase of $278 million, compared to Adjusted EBITDA of $2.4 billion, or 25.6% of revenue, in the prior year.
The U.S. GAAP tax rate for 2024 was 184.7%, and the adjusted income tax rate for 2024 used in calculating adjusted diluted earnings per share was 21.5%.
Cash Flow and Capital Allocation
Cash flows from operating activities were $1.5 billion for the year ended December 31, 2024, compared to $1.3 billion for the prior year. Free cash flow for the years ended December 31, 2024 and 2023 was $1.4 billion and $1.2 billion, respectively, an increase of $184 million, primarily driven by operating margin expansion, partially offset by cash outflows related to transformation and discretionary compensation payments. During the fourth quarter and year ended December 31, 2024, the Company repurchased $395 million and $901 million of WTW shares, respectively.
Fourth Quarter 2024 Segment Highlights
Health, Wealth & Career ("HWC")
As reported, USD millions, except %
| Health, Wealth & Career | Q4-24 | Q4-23 | Y/Y Change |
| Total Revenue | $1,853 | $1,798 | Reported 3% | CC 3% | Organic 3% |
| Operating Income | $776 | $729 | 6% |
| Operating Margin % | 41.9% | 40.5% | 140 bps |
The HWC segment had revenue of $1.85 billion in the fourth quarter of 2024, an increase of 3% (3% increase constant currency and organic) from $1.80 billion in the prior year. Health had organic revenue growth led by increased project work and brokerage income in North America and the continued expansion of our Global Benefits Management client portfolio in International and Europe. Wealth generated organic revenue growth from higher levels of Retirement work globally, an increase in our Investments business due to growth of our LifeSight solution and capital market improvements. Career had organic revenue growth from increased advisory services and product revenue. Benefits Delivery & Outsourcing (BD&O) had an organic revenue decline for the quarter primarily as a result of deliberately moderating growth in TRANZACT.
Operating margins in the HWC segment increased 140 basis points from the prior-year fourth quarter to 41.9%, primarily from Transformation savings. Please refer to the Supplemental Slides for TRANZACT's standalone historical financial results.
