Havas (HAVAS) Q1 2025 earnings summary

Executive summary

• Net revenue reached €649m in Q1 2025, up 5.2% year-over-year, with organic growth of 2.1%, supported by acquisitions and favorable currency effects.

• Growth was driven by positive foreign exchange (+1.7%) and scope effects (+1.4%).

• Dynamic bolt-on M&A strategy continued, with acquisitions in sports, e-commerce, and creative sectors across key regions.

• Strong business momentum in North America and Latin America, with focus on creative excellence and high-growth sectors.

• Major new business wins spanned media, creative, and health sectors, including key clients in pharmaceuticals, retail, and tourism.

Financial highlights

• Q1 2025 net revenue was €649m, up 5.2% as reported and 2.1% organically year-over-year.

• Revenue totaled €676m, up 4.0% as reported and 2.4% at constant exchange rates compared to Q1 2024.

• Foreign exchange contributed €10m and acquisitions €8.9m to net revenue growth.

• Scope changes contributed +1.4% and forex effects +1.7% to net revenue growth.

Outlook and guidance

• Full-year 2025 guidance confirmed: organic growth above 2%, adjusted EBIT margin of 12.5%-13.5%, payout ratio around 40%.

• Mid-term (2028) guidance: adjusted EBIT margin of 14.0%-15.0%, payout ratio around 40%.

• Closely monitoring macroeconomic and geopolitical uncertainties, including new US protectionist measures.