10/21/2025

speaker
Tina
Conference Operator

Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Omnicom third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, simply press star 1 on your telephone keypad. To withdraw your question, press star 1 again. It is now my pleasure to turn today's call over to Greg Lundberg, Investor Relations. Please go ahead.

speaker
Greg Lundberg
Investor Relations

Thank you for joining our third quarter earnings call. With me today are John Wren, Chairman and Chief Executive Officer, and Phil Angelostro, Executive Vice President and Chief Financial Officer. On our website, omc.com, you will find a press release and a presentation covering the information we'll review today. An archived webcast will be available when today's call concludes. Before we start, I would like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we've included at the end of our investor presentation. Certain of the statements made today may constitute forward-looking statements. These represent our present expectations and relevant factors that could cause actual results to differ materially are listed in our earnings materials and in our SEC filings, including our 2024 Form 10-K. During the course of today's call, we will also discuss certain non-GAAP measures. You can find the reconciliation of these to the nearest comparable GAAP measures in the presentation materials. We will begin the call with an overview of our business from John, then Phil will review our financial results, and after our prepared remarks, we'll open the line for your questions. I'll now hand the call over to John.

speaker
John Wren
Chairman and Chief Executive Officer

Thank you, Greg. Good afternoon, everyone, and thank you for joining us today. We're very pleased to share our third quarter results. Organic growth was 2.6% for the quarter. For the first nine months, organic growth is 3%, which is in line with our annual guidance. Non-GAAP adjusted EBITDA was $551.6 million, with an adjusted EBITDA margin of 16.1% for the quarter, up 10 basis points from last year. Non-GAAP-adjusted net income per share was $2.24, up 10.3 percent versus the comparable amount in 2024. Our cash flow continues to support our primary uses of cash, dividends, acquisitions, and share repurchases, and our liquidity and balance sheet remain very strong. I'd like to provide you an update on our proposed acquisition of Interpublic, During the quarter, we secured antitrust clearance from all outstanding jurisdictions except the European Union. We submitted our filing yesterday, October 20th, and expect this to be the final step in securing EU approval. As a result, we currently expect to close on the acquisition in late November. Our dedicated integration teams at both Omnicom and IPG have been working tirelessly to ensure we're ready to hit the ground running on day one. We've made significant progress developing detailed plans to deliver a seamless transition for our teams and clients. Our integration team has also made progress as we prepare to launch OmniPlus, our next generation marketing operating system. This operating system unifies unparalleled data assets spanning campaign performance, consumer behaviors, demographic insights, transaction intelligence, and cultural and social indicators. These integrated data sources will be unified through Axiom's Real ID, the industry's most robust identity graph. The collective intelligence of OmniPlus will provide a unified intuitive experience for both clients and our internal teams. Our objective is clear, empower our clients to accelerate brand growth, expand customer reach, and deliver measurable business outcomes. A key part of our operating system is our generative AI layer, which is an agentic entry point to Omni+. In the last earnings call, we talked about our agentic framework and how we have been rolling it out across our entire organization. It is now the fastest growing platform in our company's history, and our teams continue to create intelligent agents and orchestrate them to deliver faster and better outcomes for our clients. We look forward to sharing more details at its official launch at CES 2026. The result of our integration planning is we remain highly confident in exceeding the synergies we expected when we first announced the acquisition. We maintain an extremely disciplined approach to minimizing disruption to our day-to-day operations, ensuring our client teams remain focused and continue to deliver outstanding results. The commitment is reflected in the new business we've won, including American Express, Porsche, InterSnack, White Castle, OpenAI, just to name a few. Similarly, InterPublic saw significant wins with Amgen, Bayer, Antropic, and Paramount. The level of support we're seeing from both new and existing clients reflects the tremendous value they expect to gain from the proposed combination. We are building strong momentum as we approach the closing of the acquisition of Interpublic. I remain extremely excited about the prospects for our growth, for our people, and our clients. As we approach and close the transaction, we'll keep you informed of our plans, including our leadership team and organization structure, the combined company's strategic priorities, including its expanded capabilities, services, and products, our progress on achieving the targeted synergies, and our updated financial plans and capital allocation strategy. I will now turn the call over to Phil for a closer look at the financial results. Phil?

Disclaimer

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Investor presentation