WTW posts $1.67bn net loss in Q3 as revenue hits $2.29bn

Global brokerage WTW has posted its financial results for the third quarter of 2024, which includes a net loss of $1.67 billion compared to net income of $139 million in the prior-year third quarter.

WTW’s revenue for Q3’24 climbed by 6% on both a reported and organic basis to $2.29 billion, compared to $2.17 billion for the same period in the prior year.

In addition, the firm’s adjusted EBITDA in Q3 2024 was $501 million, or 21.9% of revenue, an increase of 15%, compared to adjusted EBITDA of $436 million, or 20.1% of revenue, in Q3 2023.

Within the firm’s Risk & Broking segment, total revenue climbed 10% on both a reported and organic basis to $940 million, from $855 million in the prior year, as the unit’s operating income increased 27% to $170 million, with a Q3’24 operating margin of 18.1%, compared with 15.7% from a year earlier.

Turning attention towards WTW’s Health, Wealth & Career business, total revenue increased 4% on both a reported and organic basis to $1.33 billion. Operating income also climbed 8% to $329 million, as the operating margin spiked by 90 bps to 24.7%.

WTW noted that organic revenue growth in Health was driven by strong client retention, new local appointments and the continued expansion of the firm’s Global Benefits Management client portfolio in International and Europe, along with increased brokerage income in North America.

Additionally, WTW’s Wealth business generated organic revenue growth from higher levels of Retirement work in Europe. Career also had organic revenue growth from increased compensation survey sales and advisory services in Work & Rewards and product revenue in Employee Experience. Benefits Delivery & Outsourcing (BD&O) had an organic revenue decline for the quarter primarily as a result of deliberately moderating growth in Individual Marketplace and a stronger comparable in Outsourcing, WTW explained.

“We had another strong quarter fueled by revenue growth, operating leverage and the success of our Transformation program. Our revenue growth of 6% for the quarter is evidence that our value proposition is continuing to resonate in the market and that our investments in talent and technology are succeeding,” the firm commented.

Adding: “We are also making ongoing progress on our commitment to improve cash flow. Given our strong performance and momentum, we are entering the fourth quarter with confidence in our ability to deliver on our targets for the year and drive sustainable, profitable growth going forward.”

Looking ahead, WTW confirmed that it is expecting to generate revenue of $9.9 billion or greater and mid-single digit organic revenue growth for the full year 2024.

WTW is also expecting to deliver an adjusted operating margin of 23.0% – 23.5% for the full year 2024, as well as adjusted diluted earnings per share of $16.00 – $17.00 for the full year 2024 too.

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