Interpublic Announces Second Quarter and First Half 2025 Results
Rhea-AI Summary
Interpublic (NYSE:IPG) reported Q2 2025 financial results with total revenue of $2.54 billion and net revenue of $2.17 billion, marking an organic net revenue decrease of 3.5%. The company posted net income of $162.5 million, including an after-tax expense of $88.4 million for strategic restructuring.
Key metrics include adjusted EBITA of $393.7 million with an 18.1% margin, and adjusted earnings per share of $0.75. The company maintained its full-year guidance for organic net revenue decrease of 1-2% while expecting to exceed its previously announced adjusted 2025 EBITA margin target of 16.6%.
IPG continues to progress with its planned merger with Omnicom, expected to complete in H2 2025, while implementing strategic restructuring actions anticipated to cost $375-400 million through year-end.
Positive
- Adjusted EBITA margin improved significantly to 18.1% in Q2 2025
- Strong performance in media, healthcare, sports marketing, and PR disciplines
- Positive new business momentum and client support for Omnicom merger
- Strategic restructuring expected to drive significant structural expense savings
Negative
- Organic net revenue declined 3.5% year-over-year
- Total revenue decreased to $2.54B from $2.71B in Q2 2024
- Restructuring charges of $321.3M in first half 2025
- Net income declined to $162.5M from prior year
News Market Reaction
On the day this news was published, IPG gained 6.95%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.4% during that session. Our momentum scanner triggered 35 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $614M to the company's valuation, bringing the market cap to $9.45B at that time.
Data tracked by StockTitan Argus on the day of publication.
New York, NY, July 22, 2025 (GLOBE NEWSWIRE) --
- Total revenue of
$2.5 billion , including billable expenses
- Revenue before billable expenses ("net revenue") of
$2.2 billion
- Organic net revenue decrease of -
3.5% due to prior-year client account activity
- Reported net income was
$162.5 million , which includes after-tax expense of$88.4 million for previously announced strategic restructuring actions
- Adjusted EBITA before restructuring charges and deal costs was
$393.7 million with margin of18.1% on revenue before billable expenses
- Diluted loss per share of
$0.44 as reported and diluted earnings per share of$0.75 as adjusted
Philippe Krakowsky, CEO of Interpublic:
“Organic revenue was in line with expectations, reflecting the impact of account activity in 2024. Underlying growth in the quarter showed sequential improvement against those headwinds, with strong performance at our media and healthcare practice areas. We also saw growth in our sports marketing and public relations disciplines. Our adjusted Q2 margin was very strong due to significant progress on our program of strategic transformation, as well as the benefit of improving operating performance at our two largest units.
“Given our first-half results, client activity that remains largely resilient in the face of macro uncertainty, and the work we are doing to further develop our portfolio in growth areas such as media trading, commerce and data-driven marketing, we remain on track against the full-year target for an organic net revenue decrease of 1 to
“Our organization continues to evolve as we connect more of our capabilities to the strong foundational elements of data and technology. This includes continued progress in embedding artificial intelligence in our workflows and products, allowing us to deliver the benefits of our centers of excellence and platforms to clients through solutions that drive marketing and sales outcomes for their businesses. With these investments in our people and our capabilities, we are seeing positive new business performance.
“Looking ahead to our combination with Omnicom, we remain on track to see the transaction completed in the second half of this year. The level of interest and support from clients continues to be strong, and there is enthusiasm on the part of practitioners across both organizations to unlock the value that the combination will create. By bringing together our deep pools of talent, complementary capabilities, and geographic strengths, we can create an organization with unmatched ability to deliver business outcomes for marketers in every industry sector, around the world."
Summary
Revenue
- Second quarter 2025: Total revenue, which includes billable expenses, was
$2.54 billion , compared to$2.71 billion in the second quarter of 2024.
- Revenue before billable expenses ("net revenue") was
$2.17 billion , a reported decrease of6.6% from the second quarter of 2024, which reflects a net decrease due to strategic dispositions of3.4% , an organic decrease of3.5% , and a positive impact of foreign currency translation of0.3% , compared to the second quarter of 2024.
- First half 2025: Total revenue, which includes billable expenses, was
$4.86 billion , compared to$5.21 billion in the first half of 2024.
- Revenue before billable expenses ("net revenue") was
$4.17 billion , a reported decrease of7.6% from the first half of 2024, which reflects a net decrease due to strategic dispositions of3.6% , an organic decrease of3.6% , and a negative impact of foreign currency translation of0.4% , compared to the first half of 2024.
Operating Results
- In the second quarter of 2025, operating income was
$243.7 million , including charges for previously announced strategic restructuring of$118.0 million and deal costs of$10.9 million related to the planned acquisition of IPG by Omnicom, compared to operating income of$318.2 million in 2024. Adjusted EBITA before restructuring charges and deal costs was$393.7 million compared to$338.9 million for the same period in 2024. Second quarter 2025 margin of adjusted EBITA before restructuring charges and deal costs was18.1% on revenue before billable expenses.
- In the first half of 2025, operating income was
$201.7 million , including charges for previously announced strategic restructuring of$321.3 million and deal costs of$15.7 million , compared to operating income of$502.4 million in 2024. Adjusted EBITA before restructuring charges and deal costs was$580.2 million compared to$544.4 million for the same period in 2024. First half 2025 margin of adjusted EBITA before restructuring charges and deal costs was13.9% on revenue before billable expenses.
- In the second quarter of 2025, management continued restructuring actions, as previously announced, which are designed to transform our business, enhance our offerings and drive significant structural expense savings. Restructuring charges were
$118.0 million and$321.3 million in the second quarter and first half of 2025, respectively.
- Net restructuring charges of
$0.3 million and$0.9 million in the second quarter and first half of 2024, respectively, were related to adjustments to our restructuring actions taken in 2020 and 2022.
- Refer to reconciliations in the appendix within this press release for further detail.
Net Results
- In the second quarter of 2025, the income tax expense was
$54.6 million on income before income taxes of$218.0 million .
- Second quarter 2025 net income available to IPG common stockholders was
$162.5 million , resulting in earnings of$0.44 per basic share and diluted share compared to earnings of$0.57 per basic share and diluted share for the same period in 2024. Adjusted earnings were$0.75 per diluted share as adjusted for after-tax amortization of acquired intangibles of$16.9 million , after-tax restructuring charges of$88.4 million , after-tax deal costs of$11.0 million and an after-tax gain of$1.5 million on the sales of businesses. This compares to adjusted earnings of$0.61 per diluted share a year ago.
- In the first half of 2025, the income tax expense was
$45.4 million on income before income taxes of$123.6 million .
- First half 2025 net income available to IPG common stockholders was
$77.1 million , resulting in earnings of$0.21 per basic share and diluted share compared to earnings of$0.86 per basic share and diluted share for the same period in 2024. Adjusted earnings were$1.08 per diluted share as adjusted for after-tax amortization of acquired intangibles of$33.1 million , after-tax restructuring charges of$242.1 million , after-tax deal costs of$15.6 million and an after-tax loss of$33.4 million on the sales of businesses. This compares to adjusted earnings of$0.96 per diluted share a year ago.
- Refer to reconciliations in the appendix within this press release for further detail.
Operating Results
Revenue
Revenue before billable expenses of
Revenue before billable expenses of
Operating Expenses
In the second quarter of 2025, total operating expenses, excluding billable expenses, restructuring charges, deal costs and amortization of acquired intangibles decreased
In the first half of 2025, total operating expenses, excluding billable expenses, restructuring charges, deal costs and amortization of acquired intangibles decreased
In the second quarter of 2025, staff cost ratio, which is total salaries and related expenses as a percentage of revenue before billable expenses, decreased to
In the second quarter of 2025, office and other direct expenses as a percentage of revenue before billable expenses decreased to
Selling, general and administrative ("SG&A") expenses increased by
Depreciation and amortization expense decreased by
In the first quarter of 2025, management initiated restructuring actions, as previously announced, which are designed to transform our business, enhance our offerings and drive significant structural expense savings. Restructuring charges were
Non-Operating Results and Tax
Net interest expense increased by
Other expense, net was
The income tax provision in the second quarter of 2025 was
Balance Sheet
At June 30, 2025, cash and cash equivalents totaled
Share Repurchase Program
During the first half of 2025, the Company repurchased 7.4 million shares of its common stock at an aggregate cost of
Common Stock Dividend
During the second quarter of 2025, the Company declared and paid a common stock cash dividend of
For further information regarding the Company's financial results as well as certain non-GAAP measures including organic revenue before billable expenses change, adjusted EBITA, adjusted EBITA before restructuring charges and deal costs and adjusted earnings per diluted share, and the reconciliations thereof, please refer to the appendix within this press release and our Investor Presentation filed on Form 8-K herewith and available on our website, www.interpublic.com.
# # #
About Interpublic
Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively-driven provider of marketing solutions. Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of
# # #
Contact Information
Tom Cunningham
(Press)
(212) 704-1326
Jerry Leshne
(Analysts, Investors)
(212) 704-1439
Cautionary Statement
This release contains forward-looking statements. Statements in this report that are not historical facts, including statements regarding goals, intentions and expectations as to future plans, trends, events, or future results of operations or financial position, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “intend,” “could,” “would,” “should,” “will likely result” or comparable terminology are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results and outcomes to differ materially from those reflected in the forward-looking statements, and are subject to change based on a number of factors, including those outlined under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K, and our other filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
On December 8, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Omnicom Group Inc. (“Omnicom”), pursuant to which a merger subsidiary of Omnicom will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom. The forward-looking statements in this report, other than the statements regarding the proposed merger transaction with Omnicom, do not assume the consummation of the proposed transactions unless specifically stated otherwise.
Actual results and outcomes could differ materially for a variety of reasons, including, among others:
- risks relating to the pending merger transaction with Omnicom, including: the occurrence of any event, change, or other circumstances that could delay or prevent closing of the proposed transactions with Omnicom, or give rise to the termination of the Merger Agreement; unanticipated costs or restrictions resulting from regulatory review of the merger transactions; restrictions on our business activities imposed by the Merger Agreement; costs incurred in connection with the merger and subsequent integration with Omnicom; litigation risks relating to the merger; any failure to integrate successfully the business and operations of Omnicom and IPG in the expected time frame, to realize all of the anticipated benefits of the combination or to effectively manage the combined companies’ expanded operations; and any merger-related loss of clients, service providers, vendors, or other business counterparties;
- the effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition;
- our ability to attract new clients and retain existing clients, including as a result of the announced merger transaction with Omnicom;
- our ability to retain and attract key employees; including as a result of the announced merger transaction with Omnicom;
- unanticipated changes in the competitive environment in the marketing and communications services industry, including risks and challenges from new or developing technologies such as artificial intelligence (AI);
- risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in interest rates, inflation rates and currency exchange rates;
- the economic or business impact of military or political conflict in key markets, or any significant market disruptions as a result of factors like public health crises;
- developments from changes in the regulatory and legal environment for advertising and marketing services companies around the world, including laws and regulations related to data protection and consumer privacy;
- the impact on our business as a result of general or directed cybersecurity events; and
- risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a challenging economy, and potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments.
Investors should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those outlined in more detail under Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and our other SEC filings. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update or revise publicly any of them in light of new information, future events, or otherwise.
APPENDIX
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2025 AND 2024 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Three Months Ended June 30, | ||||||
| 2025 | 2024 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue before Billable Expenses | | | (6.6) % | |||
| Billable Expenses | 364.1 | 382.9 | (4.9) % | |||
| Total Revenue | 2,536.8 | 2,710.0 | (6.4) % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 1,378.2 | 1,557.6 | 11.5 % | |||
| Office and Other Direct Expenses | 325.2 | 358.4 | 9.3 % | |||
| Billable Expenses | 364.1 | 382.9 | 4.9 % | |||
| Cost of Services | 2,067.5 | 2,298.9 | 10.1 % | |||
| Selling, General and Administrative Expenses | 46.4 | 27.6 | (68.1) % | |||
| Depreciation and Amortization | 61.2 | 65.0 | 5.8 % | |||
| Restructuring Charges | 118.0 | 0.3 | >(100)% | |||
| Total Operating Expenses | 2,293.1 | 2,391.8 | 4.1 % | |||
| Operating Income | 243.7 | 318.2 | 23.4 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (50.5) | (57.9) | ||||
| Interest Income | 26.2 | 36.6 | ||||
| Other Expense, Net | (1.4) | (1.2) | ||||
| Total (Expenses) and Other Income | (25.7) | (22.5) | ||||
| Income Before Income Taxes | 218.0 | 295.7 | ||||
| Provision for Income Taxes | 54.6 | 75.6 | ||||
| Income of Consolidated Companies | 163.4 | 220.1 | ||||
| Equity in Net Income (Loss) of Unconsolidated Affiliates | 0.2 | (0.5) | ||||
| Net Income | 163.6 | 219.6 | ||||
| Net Income Attributable to Non-controlling Interests | (1.1) | (5.1) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 367.9 | 376.3 | ||||
| Diluted | 370.1 | 378.7 | ||||
| Dividends Declared Per Common Share | | | ||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS SECOND QUARTER REPORT 2025 AND 2024 (Amounts in Millions except Per Share Data) (UNAUDITED) | ||||||
| Six Months Ended June 30, | ||||||
| 2025 | 2024 | Fav. (Unfav.) % Variance | ||||
| Revenue: | ||||||
| Revenue before Billable Expenses | | | (7.6) % | |||
| Billable Expenses | 690.4 | 695.9 | (0.8) % | |||
| Total Revenue | 4,859.4 | 5,205.9 | (6.7) % | |||
| Operating Expenses: | ||||||
| Salaries and Related Expenses | 2,792.6 | 3,130.4 | 10.8 % | |||
| Office and Other Direct Expenses | 644.4 | 680.5 | 5.3 % | |||
| Billable Expenses | 690.4 | 695.9 | 0.8 % | |||
| Cost of Services | 4,127.4 | 4,506.8 | 8.4 % | |||
| Selling, General and Administrative Expenses | 86.8 | 65.6 | (32.3) % | |||
| Depreciation and Amortization | 122.2 | 130.2 | 6.1 % | |||
| Restructuring Charges | 321.3 | 0.9 | >(100)% | |||
| Total Operating Expenses | 4,657.7 | 4,703.5 | 1.0 % | |||
| Operating Income | 201.7 | 502.4 | 59.9 % | |||
| Expenses and Other Income: | ||||||
| Interest Expense | (100.6) | (120.7) | ||||
| Interest Income | 60.8 | 85.3 | ||||
| Other Expense, Net | (38.3) | (10.7) | ||||
| Total (Expenses) and Other Income | (78.1) | (46.1) | ||||
| Income Before Income Taxes | 123.6 | 456.3 | ||||
| Provision for Income Taxes | 45.4 | 122.9 | ||||
| Income of Consolidated Companies | 78.2 | 333.4 | ||||
| Equity in Net Income (Loss) of Unconsolidated Affiliates | 0.1 | (0.2) | ||||
| Net Income | 78.3 | 333.2 | ||||
| Net Income Attributable to Non-controlling Interests | (1.2) | (8.3) | ||||
| Net Income Available to IPG Common Stockholders | | | ||||
| Earnings Per Share Available to IPG Common Stockholders: | ||||||
| Basic | | | ||||
| Diluted | | | ||||
| Weighted-Average Number of Common Shares Outstanding: | ||||||
| Basic | 370.2 | 377.4 | ||||
| Diluted | 372.5 | 379.7 | ||||
| Dividends Declared Per Common Share | | | ||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||
| Three Months Ended June 30, 2025 | |||||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges1 | Deal Costs2 | Net Gains on Business Dispositions3 | Adjusted Results (Non-GAAP) | ||||||
| Operating Income and Adjusted EBITA before Restructuring Charges & Deal Costs4 | | | | | | ||||||
| Total (Expenses) and Other Income5 | (25.7) | | (27.6) | ||||||||
| Income Before Income Taxes | 218.0 | (21.1) | (118.0) | (10.9) | 1.9 | 366.1 | |||||
| Provision for Income Taxes | 54.6 | 4.2 | 29.6 | (0.1) | (0.4) | 87.9 | |||||
| Equity in Net Income of Unconsolidated Affiliates | 0.2 | 0.2 | |||||||||
| Net Income Attributable to Non-controlling Interests | (1.1) | (1.1) | |||||||||
| Net Income Available to IPG Common Stockholders | | | | | | | |||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 367.9 | 367.9 | |||||||||
| Dilutive effect of stock options and restricted shares | 2.2 | 2.2 | |||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 370.1 | 370.1 | |||||||||
| Earnings per Share Available to IPG Common Stockholders6: | |||||||||||
| Basic | | | | | | | |||||
| Diluted | | | | | | | |||||
| 1 Restructuring charges for the three months ended June 30, 2025 relate to new actions, including severance, lease terminations, and other restructuring items designed to drive significant structural expense savings. | |||||||||||
| 2 Consists of deal costs recorded in the second quarter of 2025 related to the planned acquisition of IPG by Omnicom. | |||||||||||
| 3 Primarily relates to net gains as a result of complete dispositions of businesses. | |||||||||||
| 4 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges and Deal Costs on page A5 in the appendix. | |||||||||||
| 5 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||||
| 6 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||||
| Six Months Ended June 30, 2025 | |||||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges1 | Deal Costs2 | Net Losses on Business Dispositions3 | Adjusted Results (Non-GAAP) | ||||||
| Operating Income and Adjusted EBITA before Restructuring Charges & Deal Costs4 | | | | | | ||||||
| Total (Expenses) and Other Income5 | (78.1) | | (43.6) | ||||||||
| Income Before Income Taxes | 123.6 | (41.5) | (321.3) | (15.7) | (34.5) | 536.6 | |||||
| Provision for Income Taxes | 45.4 | 8.4 | 79.2 | 0.1 | 1.1 | 134.2 | |||||
| Equity in Net Income of Unconsolidated Affiliates | 0.1 | 0.1 | |||||||||
| Net Income Attributable to Non-controlling Interests | (1.2) | (1.2) | |||||||||
| Net Income Available to IPG Common Stockholders | | | | | | | |||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 370.2 | 370.2 | |||||||||
| Dilutive effect of stock options and restricted shares | 2.3 | 2.3 | |||||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 372.5 | 372.5 | |||||||||
| Earnings per Share Available to IPG Common Stockholders6: | |||||||||||
| Basic | | | | | | | |||||
| Diluted | | | | | | | |||||
| 1 Restructuring charges for the first half of 2025 relate to new actions, including severance, lease terminations, and other restructuring items designed to drive significant structural expense savings. | |||||||||||
| 2 Consists of deal costs recorded in the first six months ended June 30, 2025 related to the planned acquisition of IPG by Omnicom. | |||||||||||
| 3 Primarily relates to net losses as a result of complete dispositions of businesses. | |||||||||||
| 4 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges and Deal Costs on page A5 in the appendix. | |||||||||||
| 5 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||||
| 6 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions) (UNAUDITED) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| Revenue Before Billable Expenses | | | | | |||
| Non-GAAP Reconciliation: | |||||||
| Net Income Available to IPG Common Stockholders | | | | | |||
| Add Back: | |||||||
| Provision for Income Taxes | 54.6 | 75.6 | 45.4 | 122.9 | |||
| Subtract: | |||||||
| Total (Expenses) and Other Income | (25.7) | (22.5) | (78.1) | (46.1) | |||
| Equity in Net Income (Loss) of Unconsolidated Affiliates | 0.2 | (0.5) | 0.1 | (0.2) | |||
| Net Income Attributable to Non-controlling Interests | (1.1) | (5.1) | (1.2) | (8.3) | |||
| Operating Income | 243.7 | 318.2 | 201.7 | 502.4 | |||
| Add Back: | |||||||
| Amortization of Acquired Intangibles | 21.1 | 20.4 | 41.5 | 41.1 | |||
| Adjusted EBITA | | | | | |||
| Adjusted EBITA Margin on Revenue before Billable Expenses % | 12.2 % | 14.6 % | 5.8 % | 12.1 % | |||
| Restructuring Charges | 118.0 | 0.3 | 321.3 | 0.9 | |||
| Deal Costs | 10.9 | — | 15.7 | — | |||
| Adjusted EBITA before Restructuring Charges and Deal Costs | | | | | |||
| Adjusted EBITA before Restructuring Charges and Deal Costs Margin on Revenue before Billable Expenses % | 18.1 % | 14.6 % | 13.9 % | 12.1 % | |||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||
| Three Months Ended June 30, 2024 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Gains on Sales of Businesses1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges2 | | | | | |||||
| Total (Expenses) and Other Income3 | (22.5) | | (24.6) | ||||||
| Income Before Income Taxes | 295.7 | (20.4) | (0.3) | 2.1 | 314.3 | ||||
| Provision for Income Taxes | 75.6 | 4.2 | 0.1 | (0.6) | 79.3 | ||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.5) | (0.5) | |||||||
| Net Income Attributable to Non-controlling Interests | (5.1) | (5.1) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 376.3 | 376.3 | |||||||
| Dilutive effect of stock options and restricted shares | 2.4 | 2.4 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 378.7 | 378.7 | |||||||
| Earnings per Share Available to IPG Common Stockholders4: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to gains on complete dispositions of businesses and the classification of certain assets as held for sale. | |||||||||
| 2 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix. | |||||||||
| 3 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||
| 4 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||
| THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES U.S. GAAP RECONCILIATION OF NON-GAAP ADJUSTED RESULTS (Amounts in Millions except Per Share Data) (UNAUDITED) | |||||||||
| Six Months Ended June 30, 2024 | |||||||||
| As Reported | Amortization of Acquired Intangibles | Restructuring Charges | Net Losses on Sales of Businesses1 | Adjusted Results (Non-GAAP) | |||||
| Operating Income and Adjusted EBITA before Restructuring Charges2 | | | | | |||||
| Total (Expenses) and Other Income3 | (46.1) | | (41.4) | ||||||
| Income Before Income Taxes | 456.3 | (41.1) | (0.9) | (4.7) | 503.0 | ||||
| Provision for Income Taxes | 122.9 | 8.4 | 0.2 | (1.7) | 129.8 | ||||
| Equity in Net Loss of Unconsolidated Affiliates | (0.2) | (0.2) | |||||||
| Net Income Attributable to Non-controlling Interests | (8.3) | (8.3) | |||||||
| Net Income Available to IPG Common Stockholders | | | | | | ||||
| Weighted-Average Number of Common Shares Outstanding - Basic | 377.4 | 377.4 | |||||||
| Dilutive effect of stock options and restricted shares | 2.3 | 2.3 | |||||||
| Weighted-Average Number of Common Shares Outstanding - Diluted | 379.7 | 379.7 | |||||||
| Earnings per Share Available to IPG Common Stockholders4: | |||||||||
| Basic | | | | | | ||||
| Diluted | | | | | | ||||
| 1 Primarily relates to losses on complete dispositions of businesses and the classification of certain assets as held for sale. | |||||||||
| 2 Refer to non-GAAP reconciliation of Adjusted EBITA before Restructuring Charges on page A5 in the appendix. | |||||||||
| 3 Consists of non-operating expenses including interest expense, interest income and other expense, net. | |||||||||
| 4 Earnings per share amounts are calculated on an unrounded basis but rounded for purposes of presentation. | |||||||||
| Note: Management believes the resulting comparisons provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. | |||||||||
FAQ
What were IPG's Q2 2025 earnings results?
What is IPG's organic revenue growth forecast for 2025?
How much will IPG's restructuring program cost in 2025?
When will the IPG-Omnicom merger complete?
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