H&R Block's Strategic Succession Planning and Leadership Transition
Jeff Jones announced his retirement as President and CEO effective December 31, 2025, after leading the company for 8 years.
The company has a well-managed succession plan, appointing Curtis as the new President and CEO starting January 1, 2026.
Jones emphasized the importance of internal leadership development, with Curtis having over a decade of industry experience and familiarity with the company's strategy.
Jones will remain as President and CEO until the end of 2025 to ensure a smooth transition, then serve as a strategic adviser until September 2026.
The leadership change is positioned as a continuation of the current strategy, with no expected shifts in long-term plans.
Jones expressed pride in the company's accomplishments under his leadership and confidence in Curtis's fit for the role.
Adjusted operating margin was 18.5% for the quarter, a 150 basis point improvement over prior year, driven by strong organic growth and expense management.
Free cash flow for the first half of 2025 was $217 million, down $88 million from prior year due to increased incentive costs, retirement program redesign, higher cash taxes, and absence of TRANZACT cash inflows.
Health, Wealth & Career (HWC) segment revenue grew 4% with strong growth in Health at 8%, Wealth at 3%, Career at 1%, and flat growth in Benefits Delivery & Outsourcing (BD&O).
HWC operating margin increased 190 basis points to 23.8%, and R&B operating margin improved 60 basis points to 21.2%, or 100 basis points excluding foreign exchange impact.
Returned $591 million to shareholders via $500 million in share repurchases and $91 million in dividends during the quarter.
Risk & Broking (R&B) segment revenue grew 6%, with Corporate Risk & Broking (CRB) growing 6% or 7% excluding book of business activity and fiduciary interest income.
WTW delivered 5% organic revenue growth and 150 basis points of adjusted operating margin expansion in Q2 2025, with adjusted EPS of $2.86, up roughly 20% year-over-year.
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