Saturday, October 25, 2025

Omnicom Reports Q3 Growth, Eyes November IPG Merger

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Omnicom Group Inc. reported steady third-quarter growth for 2025, underscoring its strong financial footing ahead of the anticipated Omnicom IPG merger. The global advertising major posted a 2.6% year-over-year rise in organic revenue to $4.04 billion, as the company prepares to finalize its integration with Interpublic Group by the end of November.

According to the company’s financial statement, the growth was mainly supported by strong performance in media advertising and continued expansion in the U.S. market. Omnicom noted that the merger integration process with IPG is moving ahead of schedule.

Growth Segments

Media advertising remained Omnicom’s strongest segment, contributing 58% of its total revenue. The segment recorded a 9.1% increase, while branding and retail commerce saw a robust growth of 16.9%. Experiential marketing also reported an impressive 17.7% rise during the quarter.

In contrast, healthcare and precision marketing businesses displayed slower momentum, growing by only 1.8% and 2.6%, respectively. Executives said the company remains focused on diversifying services and expanding regional operations to offset the slower growth in selective verticals.

Omnicom Financial Metrics

Revenue growth was most notable in Latin America, which rose by 27.3%. The United Kingdom and the Asia-Pacific region both grew by 3.7%, while the U.S. market, still Omnicom’s largest, saw 4.6% organic growth.

Operating income for the quarter declined to $530 million from $600 million a year ago, reflecting restructuring and acquisition-related expenses of $99 million. Despite these costs, adjusted EBITA increased 4.6% to $651 million, achieving a margin of 16.1%. Adjusted diluted earnings per share were reported at $2.24, a 10.3% rise from the previous year.

Cash Flow and Returns

Omnicom generated $1.32 billion in free cash flow during the first nine months of 2025, slightly below last year’s $1.40 billion. The company repurchased $89 million worth of shares in the third quarter, bringing the total buyback for the year to $312 million. Net debt decreased to $2.89 billion, helping improve the leverage ratio to 1.2 times EBITDA.

Return on equity stood at 31.2%, while return on invested capital reached 17.4%, indicating stable financial health amid the ongoing merger preparations.

IPG Merger by Nov

The merger with Interpublic Group is expected to be completed by the end of November 2025, creating the world’s largest marketing communications network. Leadership at Omnicom reaffirmed its target of realizing $750 million in cost synergies through operational and structural integration.

However, the management also acknowledged potential regulatory review delays and short-term business challenges during the transition period. Once finalized, the combined entity is expected to strengthen global capabilities in marketing, media, and digital analytics.

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