Havas (HAVAS) Q4 2025 earnings summary

Executive summary

• Achieved 2025 organic growth of 3.1% and adjusted EBIT margin of 12.9%, both surpassing guidance, with adjusted EBIT at €358 million.

• Net income (Group share) grew 9.2% to €189 million; total net income up 11.1% to €210 million.

• 2025 marked the first full year as a listed company, with the rollout of the Converged strategic plan and expansion of AI-driven capabilities.

• Achieved strong sustainability ratings, including EcoVadis gold medal (top 5% globally) and a B rating from CDP.

• Strengthened client relationships with major wins and high retention, including Emirates and the European Commission.

Financial highlights

• Net revenue reached €2,783 million, up 1.7% year-over-year, with organic growth of 3.1%.

• Adjusted EBIT was €358 million, up 5.9% year-over-year, with a margin of 12.9% (+50bps).

• Operating cash flow after working capital rose 53% to €360 million.

• Net cash at year-end was €207 million, with available liquidity of €1,288 million.

• Dividend payout ratio at 42%; proposed dividend €0.80 per share and €25 million in share buybacks.

Outlook and guidance

• 2026 organic growth guidance set at 2%-3%, with targeted adjusted EBIT margin of 13.2%-13.5%.

• Midterm (2028) margin target of 14%-15% and 40% dividend payout ratio reaffirmed.

• Plans to acquire 5–10 majority stakes in agencies in 2026.

• No major client losses expected; cautious but confident outlook for 2026, with seasonality expected to mirror 2025.