WTW, a global advisory, broking, and solutions company, announced its financial results for the second quarter of 2024. The company reported a 5% increase in revenue, reaching almost US$2.3 billion, with organic growth of 6%.
“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, CEO of WTW. “These results show that our efforts to grow, simplify, and transform WTW continue to create sustainable value for shareholders, clients, and colleagues.”
WTW generated US$431 million in operating cash flow for Q2 2024, similar to the previous year. Free cash flow for the first half of 2024 increased by US$11 million to US$361 million, driven by operating margin expansion. The company repurchased US$200 million of its outstanding shares during the quarter.
The Health, Wealth & Career (HWC) segment saw revenue of US$1.26 billion in Q2 2024, a 4% increase from US$1.22 billion in Q2 2023. The segment’s organic growth, according to the company statement, was driven by increased project work in North America, strong client retention, and expansion of the Global Benefits Management client portfolio. Operating margins in HWC rose to 21.9%, up 360 basis points.
The Risk & Broking (R&B) segment reported revenue of US$979 million, up 9% from US$900 million in Q2 2023. Corporate Risk & Broking saw organic growth due to higher levels of new business activity, strong client retention, and renewal increases across all regions. Operating margins in R&B improved to 20.6%, a 450-basis point increase.
WTW has raised the lower end of its full-year targets for adjusted operating margin to 23.0%-23.5% and adjusted diluted EPS to US$16.00-US$17.00 following the results for the first half of 2024. The company also increased its annual cost savings target, from US$425 million to US$450 million.
WTW will host a conference call to discuss these results on July 25, 2024, at 9:00 a.m. Eastern Time. The webcast and call will be accessible on the company’s website, with a replay available shortly after the event.
WTW provides data-driven, insight-led solutions in the areas of people, risk, and capital, helping organizations enhance strategy, resilience, and performance. Serving 140 countries and markets, WTW collaborates closely with clients to uncover opportunities for sustainable success.
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