Willis Towers Watson plc

WTW
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
TTM ROIC
14%
FY2025 · NOPAT / Invested Capital (Net Debt + Equity) · WACC ~4.7% · Moat spread +9.3pp

Financial Snapshot

ticker: WTW step: 04 generated: 2026-05-12 source: quick-research

Willis Towers Watson (WTW) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $8.87B $9.48B $9.93B +4.7%
Gross Margin ~25% ~26% ~27%
Operating Margin ~12% ~13% ~14%
Net Income (GAAP) ~$400M ~$550M ~$140M*
Adjusted EPS ~$12.00 ~$14.50 ~$16.50

*2024 GAAP net income significantly impacted by Transformation Program costs and restructuring charges. Adjusted metrics substantially higher. Net margin on a GAAP basis was ~1.4% in 2024 vs. adjusted margins significantly higher.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$1.7B
Free Cash Flow ~$1.4B
FCF Margin ~14%
Cash & Equivalents ~$1.0B
Total Debt ~$5.0B

Key Ratios (approximate)

  • P/E (adjusted): ~18x | EV/EBITDA: ~14x | FCF Yield: ~4–5%
  • Revenue Growth (FY2024): +4.7% | FCF Growth YoY: +17%
  • Shares Repurchased: $3.5B in FY2022, $1.0B in FY2023 — aggressive buyback program

Growth Profile

WTW has delivered consistent mid-single-digit revenue growth from $8.87B in FY2022 to $9.93B in FY2024, a 3-year CAGR of ~5.8%. Free cash flow improved dramatically over the same period — from $674M in FY2022 to $1.4B in FY2024 — as the Transformation Program drove $350M+ in cost savings and eliminated structural inefficiencies. The company's pivot toward technology-enabled services (proprietary SaaS platforms, analytics) is gradually improving the margin profile. Capital returns have been aggressive, with $4.5B+ in share repurchases over FY2022–FY2023.

Forward Estimates

  • FY2025 Revenue: ~$9.71B (slight decline from FY2024, reflecting portfolio optimization and divestitures)
  • FY2025 FCF: ~$1.55B (strong; exceeded FY2024 by $279M per company report)
  • Long-term target (FY2028): ~$10.9B revenue, ~$2.5B earnings — requires ~3.7% annual revenue growth and meaningful margin expansion

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $WTW.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/wtw/financials/md · → thesis · → memo