Stock Markets February 18, 2026

Havas posts steady quarter, keeps 2026 growth and margin targets amid AI-driven restructuring

Advertising group sees modest organic growth and margin improvement as generative AI reshapes production and creates selective acquisition prospects

By Marcus Reed
Havas posts steady quarter, keeps 2026 growth and margin targets amid AI-driven restructuring

Havas delivered 3.7% organic growth in the fourth quarter and reported adjusted EBITA margins of 12.9% for 2025, a 50 basis point increase year-over-year. The company reiterated guidance for 2026 of 2-3% organic growth and projected adjusted EBITA margins of 13.2-13.5%, citing recent account wins, client retentions and efficiency gains from generative AI that have reduced headcount slightly and lowered production costs.

Key Points

  • Havas reported fourth quarter organic growth of 3.7%, with balanced performance across regions and disciplines - impacts advertising and media services sectors.
  • Adjusted EBITA margins reached 12.9% in 2025, a 50 basis point improvement year-over-year; 2026 margin guidance is 13.2-13.5% - relevant to corporate profitability and investor returns.
  • Generative AI is influencing production activities, enabling in-house work previously outsourced, contributing to a roughly 1% decline in headcount (ex-acquisitions) and estimated production cost savings of 10-50% - affecting operations and cost structures in creative production and media supply chains.

Havas reported a modest acceleration in organic revenue during the fourth quarter, recording 3.7% growth that slightly outpaced analyst expectations. Management described the performance as broadly balanced across its geographic regions and service disciplines.

For the full year 2025, the company posted adjusted EBITA margins of 12.9%, reflecting a 50 basis point improvement compared with the prior year and aligning with the company's own forecasts.

Looking ahead to 2026, Havas maintained guidance for organic growth of 2-3%. Management noted that that outlook is supported by a series of recent client additions and successful contract renewals. The company specifically cited account wins that include Emirates and Activision Blizzard as contributors to the revenue pipeline, alongside retained relationships with clients such as the BBC and Hyundai.

On profitability, Havas expects adjusted EBITA margins to rise to a range of 13.2% to 13.5% in 2026, which would represent a further improvement of 30 to 60 basis points relative to the 2025 margin level.

The company also reported a small reduction in headcount, excluding the impact of acquisitions, with employee counts down by roughly 1% in fiscal 2025. Management attributed this decline in part to the early effects of generative AI technology.

Havas said generative AI is primarily affecting production activities. The firm is beginning to internalize some production tasks that were previously outsourced to third-party vendors. Management indicated this shift has a modestly positive effect on organic growth while yielding cost savings for those production activities estimated in the range of 10% to 50%.

On industry consolidation, Havas discussed the breakup and sale of Dentsu's international agency activities (Aegis) in parts. Management suggested that the disaggregation of Aegis could create selective acquisition opportunities for Havas in specific markets, but emphasized the company is not seeking scale for its own sake and would focus on targeted deals rather than broad expansion for scale alone.


Summary

Havas closed 2025 with slightly stronger-than-expected organic growth and modest margin expansion. The company is guiding to continued low-single-digit organic growth and further margin improvement in 2026, while beginning to realize efficiency gains and modest headcount reductions from generative AI-driven changes in production. The management team is open to selective acquisitions tied to market dislocations, though it is not pursuing aggressive scale-seeking M&A.

Risks

  • Continued adoption of generative AI could result in further workforce reductions or restructuring, creating execution and transition risks for Havas and the wider advertising and media services sector.
  • Reliance on recent account wins and client retentions to meet 2026 growth guidance introduces revenue concentration risk if any targeted accounts do not perform as expected - this affects top-line stability in marketing services.
  • Potential acquisition opportunities arising from the dismantling of Aegis carry integration and market-entry risks; Havas has signaled it will be selective, which could limit scale benefits if attractive assets are pursued cautiously.

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