Willis Towers Watson — Income Statement, Cash Flows & Balance Sheet
Is Willis Towers Watson profitable?
WTW swung from a loss to strong profitability in 2025, largely because 2024 was weighed down by large one-time charges.
| Item | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Revenue | $9,483M | $9,930M | $9,708M | –$222M (–2.2%) |
| Total costs of providing services | $8,118M | $9,303M | $7,474M | –$1,829M |
| — of which: Impairment | $0 | $1,042M | $0 | –$1,042M |
| — of which: Transaction & transformation | $386M | $409M | $23M | –$386M |
| Income from operations | $1,365M | $627M | $2,234M | +$1,607M |
| Net income/(loss) attributable to WTW | $1,055M | –$98M | $1,605M | +$1,703M |
| Diluted EPS | $9.95 | –$0.96 | $16.26 | +$17.22 |
Revenue dipped modestly in 2025, largely because TRANZACT (a direct-to-consumer Medicare business WTW sold at the end of 2024) contributed about $785M of revenue in 2024 that is simply absent in 2025. The real story is costs: 2024 included a $1.0B goodwill impairment tied to the TRANZACT sale and $409M in transaction and transformation charges — both largely gone in 2025 — which is why operating income and net income rebounded so sharply.
Where does Willis Towers Watson's revenue come from?
WTW operates two segments; Risk & Broking is the clear growth driver while Health, Wealth & Career shrunk due to the TRANZACT divestiture.
| Segment | 2023 Revenue | 2024 Revenue | 2025 Revenue | Change (2024→2025) |
|---|---|---|---|---|
| Health, Wealth & Career (HWC) | $5,582M | $5,777M | $5,254M | –$523M (–9.1%) |
| Risk & Broking (R&B) | $3,735M | $4,038M | $4,334M | +$296M (+7.3%) |
| HWC Segment Operating Income | $1,565M | $1,717M | $1,681M | –$36M |
| R&B Segment Operating Income | $813M | $958M | $1,072M | +$114M (+11.9%) |
HWC's revenue decline is almost entirely explained by the removal of TRANZACT's ~$785M in annual revenue after the 2024 sale; the rest of that segment actually grew. R&B has been on a consistent upswing, adding nearly $600M in revenue over two years, driven by strong broking demand across North America, Europe, and internationally. R&B's profitability is improving faster than its revenue, a sign of good operating leverage.
Does Willis Towers Watson generate cash?
WTW is a healthy cash generator, and free cash flow (operating cash minus capex) improved meaningfully in 2025.
| Item | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Net cash from operating activities | $1,345M | $1,512M | $1,775M | +$263M |
| Capital expenditures (fixed assets & software) | –$242M | –$245M | –$229M | +$16M |
| Free cash flow (GAAP operating cash minus capex) | ~$1,103M | ~$1,267M | ~$1,546M | +$279M |
| Share repurchases | –$1,000M | –$901M | –$1,650M | –$749M |
| Dividends paid | –$352M | –$354M | –$358M | –$4M |
Operating cash flow has grown each year, and capital spending is modest for a services firm — reflecting the asset-light nature of advisory and broking. WTW returned significant cash to shareholders through buybacks (reducing share count from ~107K shares in 2022 to ~95K by end of 2025) and a steadily rising dividend, now $3.68 per share annually.
How strong is Willis Towers Watson's balance sheet?
WTW carries meaningful debt but has ample liquidity; the large "fiduciary" assets and liabilities on the balance sheet are client funds that net to zero and should not be confused with corporate debt.
| Item | Dec 31, 2024 | Dec 31, 2025 | Change |
|---|---|---|---|
| Cash & cash equivalents | $1,890M | $3,132M | +$1,242M |
| Total debt (current + long-term) | $5,309M | $6,306M | +$997M |
| Revolving credit facility drawn | $0 | $0 | — |
| Total WTW shareholders' equity | $7,940M | $7,976M | +$36M |
| Fiduciary assets (client funds, not corporate) | $9,504M | $10,445M | — |
Cash on hand nearly doubled, partly from the April 2025 receipt of a $750M earnout from the 2021 Willis Re sale. Debt rose because WTW issued $1B of new senior notes in late 2025 to pre-fund the January 2026 Newfront acquisition. The undrawn $1.5B revolving credit facility provides additional cushion. The large fiduciary asset and liability balances — over $10B each — represent insurance premiums WTW holds temporarily on behalf of clients and are fully offset; they are not available for corporate use and do not represent financial risk to shareholders.