WPP (NYSE:WPP) used its 2025 preliminary results presentation and strategy update to acknowledge a difficult year financially, while outlining a multi-year plan to simplify the company, rebuild performance, and position the group around an integrated, AI-enabled client offering.
2025 results: revenue decline, margin pressure, and higher net debt
Chief Financial Officer Joanne Wilson said like-for-like revenue less pass-through costs fell 5.4% for the full year, driven by client assignment losses and spending cuts. The full-year decline was slightly better than the company’s prior guidance for a 5.5% to 6% decline. Wilson noted fourth-quarter like-for-like revenue declined 6.9%, worsening from a 5.9% decline in the third quarter.
On cash flow, WPP generated £1.2 billion of adjusted operating cash flow before working capital (down from £1.3 billion in 2024), including £82 million of cash restructuring charges. Year-end net debt rose to £2.2 billion from £1.7 billion in 2024, while average adjusted net debt was slightly lower at £3.4 billion. The average adjusted net debt to headline EBITDA ratio increased to 2.2x from 1.8x.
Wilson also highlighted WPP’s liquidity of £4.4 billion at December 2025 and said Fitch Ratings assigned WPP a BBB rating with a stable outlook. The company completed a €1 billion bond issue in December 2025, which management said more than covers a €650 million maturity due in September 2026.
The board recommended a final dividend of 7.5 pence, bringing the 2025 total dividend to 15 pence. Wilson said the company recorded further goodwill impairments of £641 million (primarily related to integrated creative agencies) and property impairments of £114 million, both described as non-cash.
Drivers of 2025 performance: losses, weaker spending, and slow win ramp
Wilson said the “major negative impacts” to net sales included gross client losses that worsened through the year, weighing particularly on media, in the U.S. and U.K., and within CPG and TME client sectors. While wins from 2024 and 2025 contributed progressively, she said aggregate in-year wins were lower than expected, mainly due to reduced overall pitch activity. She cited industry estimates that global pitch activity declined double digits in 2025.
Management said spending by existing clients was cautious and volatile, with the impact most strongly seen across CPG, auto, and tech and digital services. Wilson said the spending volatility weighed most heavily on Ogilvy.
2026 outlook: weak first half expected, restructuring ramps, margin 12%-13%
For 2026, Wilson guided to like-for-like revenue less pass-through costs down at a mid-to-high single-digit percentage in the first half, with an improving trajectory in the second half. She said the first quarter is expected to be the weakest of the year.
Wilson estimated that client losses would represent a 500-600 basis point drag in 2026, up from 300-400 basis points in 2025, and said net new business headwinds are expected to persist into the first half of 2026 as wins take time to ramp.
Headline operating margin is expected in the 12%-13% range. On cash, WPP guided to adjusted operating cash flow before working capital of £800 million to £900 million, including anticipated cash restructuring charges of around £250 million, with about £190 million associated with the Elevate28 plan. Excluding restructuring costs, Wilson said the company would anticipate £1.0 billion to £1.1 billion of adjusted operating cash flow before working capital.
Elevate28 strategy: simplify, integrate, and build around WPP Open
CEO Cindy Rose said recent years have been disappointing for shareholders and pointed to client feedback that complexity and siloing hindered client service, slowed the development of WPP’s data proposition, and hurt the media business. Rose said the company’s response is a unified growth strategy called Elevate28, with a stated mission “to be the trusted partner for the world’s leading brands in the era of AI.”
Rose framed the plan around four objectives:
- Deliver superior growth for clients via an integrated proposition
- Become a simpler, more integrated company
- Leverage WPP Open as a competitive advantage
- Create “firm financial foundations” for the future
She described three phases: stabilizing in the near term, returning the company to growth “sometime during 2027,” and accelerating growth from 2028 and beyond. Wilson later clarified that “return to growth during 2027” should be understood as a positive exit rate during 2027, rather than necessarily positive growth for the full fiscal year.
Rose said WPP has already seen improved momentum in new business. She noted WPP was ranked number one in JPMorgan’s net new business rankings in the fourth quarter of 2025 for the first time since 2020. She cited wins including the U.K. government’s lead media account, Reckitt and Henkel media in Europe, Kenvue and Haleon creative mandates globally, and other client appointments. Rose also said WPP had maintained momentum into 2026, including winning Jaguar Land Rover’s global media and integrated services, and claimed the impact of 2026 wins “already exceeds” the impact of all 2025 wins combined, as of February.
Operating model changes, cost savings, and portfolio review
As part of Elevate28, Rose said WPP will move away from being a holding company toward a “single company model,” with four operating units across four regions and common incentives aligned to overall WPP performance. Management also said corporate functions will be simplified, especially finance and people, with greater use of shared services and AI-enabled process redesign.
Wilson said the plan targets £500 million of gross annual cost savings by 2028, with associated cash restructuring costs of around £400 million across 2026 and 2027. In 2026, WPP expects at least £100 million of in-year P&L savings and £250 million of annualized savings, with about £190 million of restructuring costs in 2026. She said WPP intends to reinvest 2026’s in-year savings into growth priorities, consistent with margin guidance.
Wilson also discussed a portfolio review that evaluated operating units and minority investments under a “best owner” framework. She said no specific transactions were announced, but work is underway and WPP will update the market later. She added that any proceeds from asset disposals would be used to strengthen the balance sheet.
During Q&A, management also addressed incentive changes: Rose said operating unit incentives would be split 50% tied to the operating unit and 50% to WPP, corporate functions would be 100% WPP, and global client leaders would be paid based on client growth.
About WPP (NYSE:WPP)
WPP plc (NYSE: WPP) is a British multinational advertising and public relations company headquartered in London, England. Recognized as one of the world’s largest communications services groups, WPP provides a wide array of marketing, advertising, media investment management and data consultancy services. Through its integrated network of agencies—among them Ogilvy, Grey, GroupM and Wavemaker—the company delivers creative content, brand strategy, digital transformation and media planning solutions to clients across virtually every industry.
Established in 1971 by Martin Sorrell as Wire and Plastic Products, the firm underwent a strategic transformation in the 1980s, focusing on acquisitions that expanded its capabilities into advertising and communications.
