Omnicom Group Inc. (NYSE: OMC), a leading global marketing and advertising communications company, reported its first-quarter results for 2025. The company generated revenue of $3.69 billion, marking a 1.6% increase from the prior year’s $3.63 billion, with organic growth of 3.4%.

The company’s operating income for Q1 2025 was $452.6 million, compared to $478.9 million in Q1 2024, reflecting a decrease of 5.5%. The operating income margin declined to 12.3%, from 13.2% in the previous year. The increase in operating expenses was $86.2 million, or 2.7%, totaling $3.24 billion, which included $33.8 million in acquisition-related costs associated with Omnicom’s pending acquisition of The Interpublic Group of Companies (IPG).

Net income for the quarter was $287.7 million, down 9.7% from $318.6 million in Q1 2024. Diluted earnings per share (EPS) were reported at $1.45, an 8.8% decrease from $1.59 in the same quarter last year. Non-GAAP adjusted diluted EPS, which excludes acquisition-related costs, increased to $1.70, up 1.8% from $1.67.

EBITA for the quarter decreased 5.2% to $474.4 million, with an EBITA margin of 12.9%, down from 13.8% in Q1 2024. Excluding acquisition-related costs, adjusted EBITA rose to $508.2 million, reflecting a 1.6% increase, with the margin unchanged at 13.8%.

Reported operating income decreased primarily due to the aforementioned acquisition-related costs, which when excluded, resulted in a non-GAAP adjusted operating income of $486.4 million. Free cash flow for the quarter was $386.5 million, a decrease from $415.1 million in the previous year, driven by changes in net income.

Omnicom reported organic growth by discipline, with Media & Advertising up 7.2%, and Precision Marketing increasing by 5.8%. In contrast, there were declines in Healthcare by 3.2%, Public Relations by 4.5%, and Branding & Retail Commerce by 10%. The company also noted that foreign currency translation negatively impacted revenue by 1.6%.

Omnicom’s guidance for full-year 2025 has been adjusted, with organic revenue growth expected between 2.5% and 4.5% compared to previous estimates. The company maintains a strong balance sheet, closing the quarter with $3.4 billion in cash equivalents and short-term investments. It also expects to continue share repurchases, budgeted at around $600 million for the year.

Debt levels remained stable, with a book value of $6.1 billion, showing no change from the previous year. The acquisition of IPG is anticipated to close in the second half of 2025, with significant benefits yet to be realized as the integration plans are underway. The overall economic environment poses challenges, but Omnicom indicated a strong capacity to navigate uncertainties.