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Investing.com -- Havas reported first-half 2025 results that were broadly in line with expectations, with EBITA coming in ahead of forecasts while unadjusted net income fell below projections.
The company posted 2.6% organic growth in the second quarter, slightly above analyst estimates of 2.5%. Management maintained its full-year 2025 guidance, which was initially outlined during the company’s IPO and reaffirmed during the full-year 2024 results announcement.
Havas continues to target organic growth of more than 2% for 2025, with an EBITA margin between 12.5% and 13.5%. Management specified they expect the margin to be around 13.0% for the year.
The company also announced a share buyback program of approximately 3%, which is expected to boost earnings per share growth.
According to analysis from December 2024, Havas offers the highest EBITA growth rate among its peers, with a 6.5% compound annual growth rate compared to 4.1-6.0% for competitors. This superior growth is attributed to margin improvement as the company works toward its 2028 margin target of 14.0-15.0% from a relatively low base.
With the newly announced buyback program, Havas is projected to achieve low double-digit EPS growth, based on 2.5% organic growth, 1.5% growth from mergers and acquisitions, and meeting its 2028 margin targets.
The company currently trades at approximately 7 times its 2025 estimated price-to-earnings ratio, which some analysts consider undervalued both on an absolute basis and relative to peers, even accounting for the 7% historical average P/E discount observed from 2009 to 2017.
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