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Cash conversion is volatile, with OCF/NI ranging from -0.29 to 2.89, and Q2 2026 buybacks of $450M nearly matched OCF of $530M, suggesting capital returns may strain liquidity.
Willis Towers Watson Public Limited Company (WTW) cash flow statement — 26-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 1.97B | 1.77B | 1.51B | 1.34B | 812M | 2.06B | 1.77B | 1.08B | 1.29B | 862M | 967M | 243M | 477M | 561M | 525M | 439M | 489M | 418M | 211M | 268M | 147M | 140M | 490M | 493M | 343M | 221M | 79M |
| Operating CF Growth % | 187.62% | 17.39% | 12.42% | 65.64% | -60.6% | 16.18% | 64.11% | -16.07% | 49.42% | -10.86% | 297.94% | -49.06% | -14.97% | 6.86% | 19.59% | -10.22% | 16.99% | 98.1% | -21.27% | 82.31% | 5% | -71.43% | -0.61% | 43.73% | 55.2% | 179.75% | - |
| Operating CF / Revenue % | 19.49% | 18.28% | 15.23% | 14.18% | 9.16% | 22.91% | 20.59% | 12.92% | 15.13% | 10.51% | 12.26% | 6.35% | 12.55% | 15.35% | 15.09% | 12.74% | 14.68% | 12.81% | 7.46% | 10.4% | 6.05% | 6.18% | 21.54% | 23.75% | 19.77% | 15.52% | 6.05% |
| Net Income | 1.56B | 1.61B | 1.25B | 1.05B | 1.02B | 4.24B | 1.02B | 1.07B | 715M | 592M | 330M | 384M | 373M | 377M | -433M | 219M | 470M | 457M | 303M | 409M | 449M | 300M | 427M | 414M | 210M | 2M | 9M |
| Depreciation & Amortization | 370M | 226M | 456M | 505M | 567M | 650M | 770M | 729M | 747M | 833M | 769M | 171M | 146M | 149M | 138M | 142M | 145M | 160M | 90M | 66M | 63M | 54M | 47M | 39M | 35M | 68M | 72M |
| Stock-Based Compensation | 194M | 153M | 121M | 125M | 99M | 101M | 90M | 74M | 54M | 67M | 123M | 64M | 52M | 42M | 32M | 41M | 47M | 39M | 40M | 33M | 18K | 0 | 11K | 20K | 80M | 0 | 0 |
| Deferred Taxes | -34M | 55M | -213M | -109M | -50M | 226M | 99M | -72M | -115M | -285M | -136M | -99M | 66M | 39M | 54M | 17M | 77M | -21M | 46M | 66M | 82M | 47M | -19M | 6M | -8M | -18M | -8M |
| Other Non-Cash Items | 356M | 439M | 226M | 140M | 60M | -2.7B | -149M | 67M | -112M | -67M | -58M | -98M | -10M | 71M | 908M | 171M | 1M | -40M | -40M | -50M | -102.02M | -95M | 17.99M | 29.98M | -22M | 144M | -7M |
| Working Capital Changes | -502M | -711M | -326M | -371M | -888M | -449M | -56M | -790M | -1M | -278M | -61M | -179M | -150M | -117M | -174M | -151M | -251M | -177M | -228M | -256M | -345M | -166M | 17M | 4M | 48M | 25M | 13M |
| Cash from Investing | -1.34B | 447M | 250M | -1.08B | -173M | 2.77B | -160M | -1.61B | -341M | -335M | 188M | -943M | -276M | -120M | -172M | -101M | -94M | 102M | -1.04B | -221M | 67M | 32M | -183M | -135M | -50M | -10M | -41M |
| Capital Expenditures | -234M | -229M | -245M | -242M | -204M | -201M | -223M | -305M | -322M | -375M | -307M | -158M | -117M | -119M | -137M | -111M | -83M | -96M | -94M | -185M | -55M | -32M | -49M | -57M | -47M | -40M | -30M |
| Acquisitions | -1.04B | 855M | 515M | -6M | -169M | 2.97B | 143M | -1.31B | -32M | -13M | 475M | -801M | -155M | -6M | -33M | 2M | -22M | 113M | -936M | -81M | -68M | -35M | -147M | -91M | -13M | 27M | -8M |
| Purchase of Investments | -66M | -125M | -15M | -4M | 200M | -200M | 0 | 0 | 0 | 0 | 0 | 12M | -10M | -7M | -7M | -5M | -1M | 20M | -31M | -1M | -25M | -42M | -80M | -48M | -21M | -16M | -32M |
| Sale/Maturity of Investments | 16M | 0 | 0 | 0 | 200M | 53M | 0 | 0 | 0 | 0 | 0 | 3M | 4M | 7M | 2M | 0 | 10M | 21M | 15M | 19M | 10M | 47M | 69M | 42M | 13M | 14M | 25M |
| Other Investing | -16M | -54M | -5M | -833M | -200M | 147M | -80M | 3M | 13M | 53M | 20M | 1M | 2M | 5M | 3M | 13M | 2M | 44M | 6M | 27M | 205M | 94M | 24M | 19M | 18M | 5M | 4M |
| Cash from Financing | -1.2B | -936M | -459M | -1.2B | -3.44B | -3.11B | 378M | 397M | -903M | -479M | -775M | 641M | -323M | -137M | -291M | -214M | -293M | -516M | 828M | -146M | -129M | -315M | -333M | -222M | -218M | -167M | -23M |
| Dividends Paid | -357M | -358M | -354M | -352M | -369M | -374M | -346M | -329M | -306M | -277M | -199M | -277M | -210M | -193M | -185M | -180M | -202M | -191M | -146M | -143M | -145M | -135M | -115M | -63M | 0 | 0 | 0 |
| Share Repurchases | -1.7B | -1.65B | -901M | -1B | -3.53B | -1.63B | 0 | -150M | -602M | -709M | -396M | -82M | -213M | 0 | -100M | 0 | 0 | 0 | -75M | -480M | -211M | -360M | -339M | -1M | -1M | -284M | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 7M | 10M | 16M | 45M | 45M | 61M | 63M | 131M | 139M | 155M | 53M | 60M | 36M | 18M | 15M | 25M | 16M | 37M | 58M | 40M | 4M | 289M | 9M |
| Debt Issuance (Net) | -2M | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K |
| Other Financing | 640M | 88M | 705M | -342M | 323M | -115M | 753M | -140M | -39M | -64M | -101M | 566M | -19M | -12M | -45M | -17M | -34M | -16M | 649M | 9M | 11M | 0 | 113M | -62.94M | 0 | 0 | 0 |
| Net Change in Cash | -607M | 1.49B | 1.21B | -929M | -2.97B | 1.59B | 2.12B | -138M | 3M | 160M | 338M | -103M | -161M | 296M | 64M | 120M | 95M | 15M | -24M | -88M | 95M | -158M | -13M | 153M | 83M | 40M | 8M |
| Exchange Rate Effect | -38M | 203M | -97M | 11M | -164M | -127M | 126M | -2M | -41M | 112M | -15M | -44M | -39M | -8M | 2M | -4M | -7M | 11M | -23M | 11M | 10M | -15M | 13M | 17M | 8M | -4M | -7M |
| Cash at Beginning | 5.41B | 5B | 3.79B | 4.72B | 7.69B | 6.3B | 4.18B | 1.03B | 1.03B | 870M | 532M | 635M | 796M | 500M | 436M | 316M | 221M | 176M | 200M | 288M | 193M | 351M | 364M | 211M | 128M | 88M | 80M |
| Cash at End | 4.74B | 6.49B | 5B | 3.79B | 4.72B | 7.89B | 6.3B | 895M | 1.03B | 1.03B | 870M | 532M | 635M | 796M | 500M | 436M | 316M | 191M | 176M | 200M | 288M | 193M | 351M | 364M | 211M | 128M | 88M |
| Free Cash Flow | 1.8B | 1.55B | 1.27B | 1.1B | 608M | 1.86B | 1.49B | 776M | 966M | 487M | 660M | 85M | 360M | 442M | 388M | 328M | 406M | 322M | 117M | 83M | 92M | 108M | 441M | 436M | 296M | 181M | 49M |
| FCF Growth % | 26.4% | 22.02% | 14.87% | 81.41% | -67.31% | 25% | 91.75% | -19.67% | 98.36% | -26.21% | 676.47% | -76.39% | -18.55% | 13.92% | 18.29% | -19.21% | 26.09% | 175.21% | 40.96% | -9.78% | -14.81% | -75.51% | 1.15% | 47.3% | 63.54% | 269.39% | - |
| FCF Margin % | 17.82% | 15.93% | 12.76% | 11.63% | 6.86% | 20.67% | 17.27% | 9.27% | 11.35% | 5.94% | 8.37% | 2.22% | 9.47% | 12.09% | 11.15% | 9.52% | 12.18% | 9.87% | 4.14% | 3.22% | 3.79% | 4.76% | 19.38% | 21% | 17.06% | 12.71% | 3.75% |
| FCF per Share | 19.15 | 15.62 | 12.42 | 10.41 | 5.43 | 14.42 | 11.45 | 5.97 | 7.32 | 3.58 | 4.78 | 1.23 | 5.27 | 6.5 | 5.94 | 4.94 | 6.29 | 5.05 | 2.09 | 1.5 | 1.54 | 1.76 | 7.04 | 6.87 | 4.78 | 3.24 | 1.07 |
Quick answers to the most common questions about buying WTW stock.
Willis Towers Watson Public Limited Company (WTW) generated $1.77B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Willis Towers Watson Public Limited Company (WTW) generated $1.55B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Willis Towers Watson Public Limited Company (WTW) spent $229.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Willis Towers Watson Public Limited Company (WTW) returned $358.0M to shareholders via cash dividends and spent $1.65B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Reserve volatility and integration risks
Metrics are mathematically derived from official filings.
Float Generation Remains Resilient
WTW's underwriting cash generation shows resilience, with Q2 2026 OCF of $530M against $229M net income, a 2.31x conversion, according to recent SEC filings, indicating strong premium collection efficiency.
The consistent positive operating cash flow, even in quarters with negative net income like Q3 2024, suggests that the core brokerage operations generate substantial cash from premiums before claims are paid. This float is a key driver of the company's ability to fund dividends and buybacks without relying on external financing.
Claims Payments Reflect Stable Loss Trends
Claims and loss payments have remained steady around $1.3-1.8B per quarter, as reported in financial statements, with Q1 2026 seeing a spike to $1.8B, which may indicate a seasonal or one-off increase in loss settlements.
The stability in claims payments, despite fluctuations in net income, suggests that the underwriting cycle is not experiencing significant deterioration. However, the Q1 2026 increase warrants monitoring, as it could signal emerging loss cost inflation or a change in settlement patterns.
Buybacks Outpace Cash Generation
WTW's capital return program appears aggressive, with Q2 2026 buybacks of $450M exceeding the $530M OCF, and cumulative buybacks over the last year totaling $2.4B, based on reported figures, suggesting a reliance on balance sheet strength.
The company has consistently returned capital to shareholders through dividends and buybacks, with buybacks often exceeding quarterly operating cash flow. This may indicate that management is confident in future cash generation, but investors should monitor the sustainability of this pace, especially if operating cash flow were to weaken.
Cash Conversion Diverges from Earnings
WTW's OCF/NI ratio fluctuates widely, from -0.29 in Q3 2024 to 2.89 in Q2 2024, as per SEC filings, indicating that net income is not always a reliable proxy for cash generation, likely due to non-cash items.
The negative OCF/NI in Q1 2025 and Q1 2026, despite positive net income, suggests significant working capital outflows or timing differences. This divergence highlights the importance of analyzing cash flows separately from earnings, especially given the prior income statement analysis pointing to reserve releases inflating earnings.
What Could Invalidate the Base Case
The reliance on reserve releases and the Q3 2024 loss raise questions about earnings quality, as per WTW's reported figures, and the cash flow statement may obscure underlying volatility in claims and investment income.
While operating cash flow appears stable, the underlying drivers—such as the timing of premium collections and claims payments—could be influenced by changes in reinsurance arrangements or client payment behavior. Additionally, the lack of investment portfolio cash flow data limits visibility into the contribution of investment income to overall cash generation.