Willis Towers Watson Reports Revenue Decline but Profitability Surge in Q2 2025

Willis Towers Watson plc reported its financial results for the second quarter of 2025, revealing a slight decline in revenue but a significant increase in profitability compared to the same period last year. The company generated $2.261 billion in revenue for the three months ended June 30, 2025, a decrease of 0.2% from $2.265 billion in the prior year. For the first half of 2025, revenue totaled $4.484 billion, down 2.7% from $4.606 billion in the same period of 2024. The decline in revenue was primarily attributed to the sale of its TRANZACT business at the end of 2024, which impacted year-over-year comparisons.

Despite the revenue decline, Willis Towers Watson's net income attributable to the company surged to $331 million for the second quarter, up 135% from $141 million in the same quarter of 2024. For the first half of 2025, net income reached $566 million, a 71% increase from $331 million in the prior year. This growth in profitability was driven by lower operating expenses, particularly in marketing and transformation costs, as well as a favorable tax environment that contributed to a lower effective tax rate.

The company also reported operational improvements, with total costs of providing services decreasing to $1.893 billion in the second quarter, down from $2.053 billion a year earlier. Salaries and benefits increased slightly to $1.449 billion, reflecting higher headcount and cost-of-living adjustments. Other operating expenses saw a significant reduction, primarily due to the absence of costs associated with the TRANZACT business and lower professional liability claims. The company’s adjusted operating income for the second quarter was $419 million, compared to $385 million in the same period last year.

In terms of strategic developments, Willis Towers Watson completed several acquisitions and divestitures, including the sale of TRANZACT, which resulted in a gain of $14 million recognized in the first half of 2025. The company continues to focus on enhancing its service offerings and expanding its geographic reach, with strong performances noted in both its Health, Wealth & Career and Risk & Broking segments. The company reported organic revenue growth of 5% for both the second quarter and the first half of 2025, indicating resilience in its core operations despite external market pressures.

Looking ahead, Willis Towers Watson remains cautious about the economic environment, which is characterized by uncertainty and volatility. The company anticipates that ongoing macroeconomic conditions, including inflation and geopolitical tensions, may impact its operations and financial performance. However, management believes that the company has sufficient liquidity to meet its cash needs, supported by a strong balance sheet and access to a $1.5 billion revolving credit facility. The outlook for the remainder of 2025 will depend on the company's ability to navigate these challenges while continuing to drive organic growth and operational efficiencies.