WPP profit falls 71% in 2025 as revenue declines 8.1% in 2025

WPP reported a sharp decline in profit and revenue for 2025, reflecting weaker client spending and impairment charges.

Reported operating profit fell 71.2% to £382 million from £1.33 billion in 2024. The operating margin narrowed to 2.8% from 9.0%. Diluted earnings per share swung to a loss of 20.0 pence, compared with earnings of 49.4 pence a year earlier.

Headline operating profit, which excludes certain items, declined 22.6% to £1.32 billion, with the margin falling to 13.0% from 15.0%.

Revenue for the year dropped 8.1% to £13.55 billion. On a like-for-like basis, revenue fell 3.6%. Revenue less pass-through costs declined 5.4% like-for-like to £10.18 billion. In the fourth quarter, revenue less pass-through costs fell 6.9% on a like-for-like basis.

Adjusted operating cash flow before working capital decreased 11.5% to £1.19 billion. Net cash inflow from operating activities fell 48.6% to £724 million. Average adjusted net debt at year-end stood at £3.4 billion, slightly lower than the previous year.

By region, North America revenue, less pass-through costs, declined 4.6% on a like-for-like basis, the UK fell 7.6%, Western Continental Europe declined 4.7% and the Rest of World dropped 5.9%. India grew 3.8%, while China declined 14.3%.

WPP’s top 25 clients reduced spending by 4.1% on a like-for-like basis during the year. Healthcare and pharma were the only sectors to record improvement, while other sectors saw lower spending.

The board proposed a final dividend of 7.5 pence per share, bringing the full-year dividend to 15.0 pence, down from 39.4 pence in 2024.

For 2026, WPP said it expects like-for-like revenue less pass-through costs to decline in the mid- to high-single digits in the first half, with improvement in the second half. It forecast headline operating profit margin in the range of 12% to 13% and said it remains committed to maintaining an investment-grade balance sheet.

Chief Executive Officer Cindy Rose OBE also announced a multi-year strategic plan aimed at simplifying its structure, integrating operations and returning the business to growth.

The plan, titled ‘Elevate28', will transition the agency from a holding company model to a single integrated company organised around four operating units: WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions.