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.
Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
Adjusted EBITDAC increased 24.5% to $308 million, with margin expansion of 50 basis points to 36.1%.
GAAP interest expense is expected to be approximately $223 million in 2025, with $57 million in Q3.
M&A remains a top priority with net leverage at 3.5x, and the company is willing to temporarily exceed comfort levels for strategic acquisitions.
Ryan Specialty Holdings reported total revenue growth of 23% in Q2 2025 to $855 million, driven by 7.1% organic growth and 13 percentage points from M&A.
The adjusted effective tax rate was 26%, expected to remain similar for the rest of 2025.
ConnectOne's assets now stand at nearly $14 billion, with $11.2 billion in loans and $11.3 billion of deposits, and a market capitalization exceeding $1.2 billion.
Core deposit growth was strong, including gains in DTA balances from both existing and newly acquired relationships.
Loan-to-deposit ratio improved to 99% at the end of Q2, down from 106% as of March 31.
Loan-to-deposit ratio improved to just below 100%, with expectations to operate around that threshold going forward.
Net interest margin was 3.06% in Q2, with expectations to increase to about 3.25% by year-end and continue expanding through 2026.
Noninterest-bearing demand deposits increased by more than $100 million since March 31, approximately 15% annualized.
Nonperforming asset ratio improved to 0.28% from 0.51% a year ago, and charge-offs remained reasonable at 22 basis points.
Provision for credit losses was $35.7 million in Q2, including a $27.4 million day 1 provision from the merger and an $8.3 million operating provision, higher than usual due to merger-related adjustments.
Tangible common equity ratio stands above 8% at 8.1%, with the bank CET ratio above 12%, slightly down due to the acquisition.
Total deposits were up an annualized 8%, with true core balances increasing by more than $500 million or 17% annualized after factoring in a $200 million decline in brokered deposits.
Dafinchi