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Despite a year-on-year revenue dip, Interpublic Group (IPG) reported a strong adjusted EBITA margin of 18.1% in Q2 2025, signaling that its sweeping transformation efforts are beginning to pay off.
With significant restructuring charges, a sharpened focus on media and healthcare, and deeper integration of AI across workflows, the global advertising giant is clearly laying the groundwork for a leaner, tech-forward organization. As the industry watches closely ahead of its much-anticipated merger with Omnicom, IPG’s margin beat offers a glimpse into how holding companies are rewriting the playbook to stay competitive in a shifting macro environment.
In the second quarter of 2025, IPG reported total revenue of $2.54 billion, down from $2.71 billion in the same quarter last year. Revenue before billable expenses (net revenue) stood at $2.17 billion, marking a 6.6% year-on-year decline. This drop was driven by strategic business dispositions (-3.4%), an organic revenue decline (-3.5%), partially offset by a positive foreign currency impact (+0.3%).
For the first half of 2025, total revenue came in at $4.86 billion, compared to $5.21 billion during the same period in 2024. Net revenue was $4.17 billion, reflecting a 7.6% decline year-over-year. The fall was attributed to strategic dispositions (-3.6%), an organic decrease (-3.6%), and a negative currency impact (-0.4%).
“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,” said Philippe Krakowsky, CEO of Interpublic.
“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 2%. At this level, we expect to drive adjusted 2025 EBITA margin significantly ahead of the 16.6% we had previously shared, reflecting both structural and operating improvement,” Krakowsky added.
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 was 18.1% 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 was 13.9% on revenue before billable expenses.
The company continued executing its previously announced restructuring strategy in Q2, aimed at transforming its operations and unlocking structural cost savings. Restructuring charges amounted to $118.0 million for Q2 and $321.3 million for the first half, compared to nominal restructuring charges in the prior-year period.
According to Krakowsky the company’s focus on AI-led transformation and operational synergy is not only driving new business momentum but also setting the stage for its upcoming merger with Omnicom, expected to close later this year.
“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,” he said.
“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,” Krakowsky added.
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