Havas posts 2.5 per cent organic growth, maintains FY26 outlook

MUMBAI: Havas is proving that even in a choppy ad market, growth can still find its audience. The global advertising and communications group reported 2.5 per cent organic growth for the first half of 2026, backed by stronger profitability, rising net income and continued investment in AI and specialist agencies, while reaffirming its full-year guidance.

The company posted net revenue of 1.362 billion euros, with second-quarter net revenue rising 3.8 per cent to 724 million euros, supported by acquisitions despite the drag from foreign exchange movements. Revenue stood at 1.416 billion euros, up 0.6 per cent, while pass-through costs declined 12.9 per cent.

Adjusted EBIT increased 4.2 per cent to 150 million euros, lifting the adjusted EBIT margin by 30 basis points to 11.0 per cent. Net income attributable to the Group climbed 13.5 per cent to 84 million euros, while net cash improved to (76) million euros at the end of June 2026, compared with (79) million euros a year earlier.

Chairman and CEO Yannick Bolloré said the performance reflected the resilience of Havas’ operating model, strong client relationships and the continued rollout of its Converged strategy.

He added that the company continues to see momentum in new business while investing in high-growth areas such as sports marketing, experiential activation, corporate influence and AI-powered services.

Across regions, North America remained the standout performer, delivering 6.9 per cent organic growth in the first half, while Europe recorded 0.7 per cent growth. Latin America grew 4.0 per cent, whereas Asia Pacific & Africa declined 4.8 per cent, reflecting continued weakness in China and disruption in the Middle East, although India remained a strong-performing market.

The company continued to strengthen its portfolio through acquisitions, adding majority stakes in Format in France, Archrival in the United States and MUT in Spain during the quarter. It also announced the acquisition of SportVibes in the Netherlands after the reporting period, further expanding its sports marketing capabilities across Europe.

Havas also highlighted progress at Horizon Global, its operating joint venture with Horizon Media, citing an expanding commercial pipeline and new multi-market client wins driven by its AI-enabled BluConverged platform. The group further increased its investment in Vurvey Labs, committing 19 million euros to the AI-powered consumer insights company, while acquiring 2.07 per cent of Louis Hachette Group through the purchase of 20,551,616 shares at an average price of 1.66 euros each.

Operationally, Havas ended the first half with a workforce of 22,960 employees, compared with 22,795 a year earlier, while maintaining stable personnel costs despite continued expansion. Available liquidity stood at 1.301 billion euros, with gross debt of 378 million euros and cash and cash equivalents of 302 million euros.

Looking ahead, Havas reaffirmed its FY26 guidance, forecasting organic net revenue growth of between 2.0 per cent and 3.0 per cent, an adjusted EBIT margin of 13.2 per cent to 13.5 per cent, and a dividend payout ratio of around 40 per cent. It also maintained its medium-term target of achieving an adjusted EBIT margin of 14.0 per cent to 15.0 per cent by 2028, signalling confidence that investments in AI, data-driven marketing and specialist capabilities will continue to underpin growth despite macroeconomic and geopolitical uncertainty.