WPP (WPP) investor relations material

Executive summary

• Q3 2025 saw a like-for-like revenue less pass-through costs decline of 5.9%, reflecting client losses, spending cuts, and underperformance, with leadership committing to urgent action and a new strategic direction focused on simplification, integration, and AI-driven solutions.

• Leadership changes include a new CEO, COO, and expanded roles to drive growth, client experience, and operational efficiency.

• Strategic priorities are simplifying the client offer, leveraging data and AI, expanding into enterprise/tech solutions, and strengthening financial foundations.

• New business wins and retentions included major clients across media and creative sectors, with industry recognition for Ogilvy and WPP Media.

Financial highlights

• Q3 2025 revenue less pass-through costs was £2,459m, down 11.1% reported and 5.9% like-for-like year-over-year; YTD revenue less pass-through costs was £7,485m, down 10.5% reported and 4.8% like-for-like.

• M&A activity, notably the disposal of FGS Global, reduced net sales by 3.2–3.5%; FX headwinds contributed a 1.7–1.8% drag.

• Adjusted net debt at 30 September 2025 was £3.6–3.65bn, stable year-on-year.

• Available liquidity stood at £2.9bn at September end.

• Weighted average bond maturity was 6.1 years, with an average coupon of 3.5%.

Outlook and guidance

• Full-year 2025 like-for-like revenue less pass-through costs guidance revised to -5.5% to -6.0%, with headline operating margin expected around 13%.

• Adjusted operating cash flow before working capital expected at £1.1–1.2bn.

• M&A to reduce revenue by ~3 percentage points; FX to drag by ~1.8%.

• Headline net finance costs estimated at £280m; effective tax rate around 31%; capex planned at £220m; restructuring costs at £90m.

• Cautious approach to Q4 due to continued volatility in client spend and limited new business cushion.