Wpp Stock Earnings Reports

WPP presented preliminary 2025 results and a new strategic plan, Elevate28, aimed at simplifying the group, accelerating integrated growth, and seizing AI-driven opportunities. Key financials: 2025 like‑for‑like revenue less pass‑through costs fell 5.4%; headline operating margin was 13%; headline diluted EPS was 63.2p (down 28%); adjusted operating cash flow before working capital was £1.2bn; net debt at year‑end was £2.2bn (average adjusted net debt ~£3.4bn) and Fitch assigned a BBB stable rating. The Board proposed a full‑year dividend of 15p. Management highlighted improved new business momentum (WPP was #1 in JPMorgan’s Q4 net new business rankings and has continued winning major accounts into 2026), but warned account losses and client spending volatility will continue to depress near‑term organic growth. Elevate28’s pillars: 1) reorient around an integrated client proposition with media, creative, production and enterprise solutions powered by the WPP Open agentic marketing platform; 2) move from a holding company to a single‑company model with four operating units across four regions and new aligned incentives; 3) create next‑generation production and a consolidated WPP Creative (keeping agency brands but enabling easier collaboration); 4) scale Enterprise Solutions as a distinct growth engine. Financial framework: target to unlock £500m gross annual cost savings by 2028 (c.£400m cash restructuring costs across 2026–27), reinvest savings into media/commerce, high‑velocity production and enterprise solutions, and preserve an investment‑grade balance sheet. 2026 guidance: like‑for‑like net revenue expected down mid‑ to high single digits in H1 with improvement in H2; headline operating margin guidance 12–13%; adjusted operating cash flow before working capital £800–900m (including ~£250m expected cash restructuring charges, ~£190m of which relate to Elevate28). Management will provide more frequent investor deep dives and expects stabilization in 2026, return to organic growth in 2027 (positive exit rate), and accelerating growth from 2028.