WPP Sees 5.4% Revenue Drop, Guides 12%-13% Margins and Launches £500m Savings Plan
WPP posted full-year 2025 like-for-like revenues down 5.4%, a 13% headline operating margin and net debt of £2.2bn. It outlined 2026 H1 guidance of mid-to-high single-digit revenue declines, 12%-13% margins, £800m-£900m adjusted operating cash flow and Elevate28 cost-saving plan targeting £500m by 2028.
1. 2025 Financial Results
WPP’s like-for-like revenues in 2025 fell 5.4%, with Q4 down 6.9%, headline operating margin at 13% (-180bps YoY) and fully diluted EPS at 63.2p (-28.4%). Year-end net debt rose to £2.2bn from £1.7bn, while adjusted operating cash flow before working capital reached £1.2bn, down from £1.3bn.
2. 2026 Outlook and Guidance
For H1 2026 management expects like-for-like revenue declines of mid-to-high single digits, with Q1 the weakest quarter. Headline margins are guided at 12%-13% and adjusted operating cash flow before working capital is projected at £800m-£900m (or £1.0bn-£1.1bn excluding restructuring charges).
3. Elevate28 Strategic Plan
The Elevate28 initiative targets £500m of annual cost savings by 2028 with approximately £400m of restructuring cash costs, aiming to reinvest 2026 savings into growth and achieve a positive exit rate during 2027. The plan will simplify the operating model into a single, AI-enabled WPP Open offering.