Havas' €50M Buyback: A Bullish Move to Juice EPS and Signal Confidence

This is the kind of move that makes me say, “BUY!”—Havas is pulling out all the stops to boost shareholder value with a €50 million buyback that's got Wall Street buzzing. Let me break down why this French communications giant's bold capital allocation strategy is a game-changer for investors—and why now is the time to act.

The Buyback: A 10% Share Reduction, Pure and Simple

Havas isn't playing around. By targeting up to 99.18 million shares—10% of its total issued capital—the company is aggressively reducing the number of shares outstanding. That's a direct EPS boost, as earnings are spread across fewer shares. And with the buyback starting June 2, 2025, and running through next year's AGM, this isn't a half-hearted effort. The shares will be purchased on Euronext Amsterdam via open-market transactions, giving the company flexibility to buy low.

Why This Matters: Value Accretion and Management's “Money Where Their Mouth Is”

Buying back shares when the stock is undervalued is a clear signal of confidence. Havas' management isn't just talking about shareholder value—they're putting €50 million behind it. And with a reverse 10:1 share split and a €0.08 dividend (5.2% yield), they're tackling dilution and improving liquidity head-on. This trio of moves—buyback, dividend, and share split—creates a virtuous cycle for the stock price.

Analysts at J.P. Morgan agree. They've called the buyback “accretive” and upgraded Havas to “Overweight”, citing its strong balance sheet (€211 million net cash as of 2024) and undervalued status. The question isn't whether this is a good deal—it's whether you're quick enough to grab it.

The Financials: A Solid Foundation for Growth

Havas isn't just buying back shares on a whim. Its 2024 results were stellar: €2.736 billion in net revenue (a record) and €338 million in adjusted EBIT, with a 40% dividend payout ratio locked in for 2025. Management has also reaffirmed its 2025 targets:
- Organic revenue growth >2%
- Adjusted EBIT margin 12.5%-13.5%

These goals are achievable thanks to the Converged strategy—a tech-driven approach that integrates AI and data analytics into its advertising services—and a dynamic M&A pipeline. Six acquisitions in 2024 and three more this year have already expanded its global footprint.

The Bull Case: EPS Growth and Sector Recovery

Here's the math: Reducing shares by 10% directly lifts EPS by roughly 11%, assuming earnings stay flat. But Havas isn't flat—it's growing. With its AI investments and M&A fuel, revenue should hit that 2%+ target, while margins expand toward the upper end of its 12.5%-13.5% range. Add in the reverse split, which could push the stock price higher by consolidating shares, and this is a multi-pronged value play.

Meanwhile, the communications sector is rebounding. Brands are ramping up ad spending as the economy stabilizes, and Havas' diversified client base (from luxury to tech) positions it to capture this growth.

The Bottom Line: Don't Miss the Boat

Havas is executing a textbook shareholder-friendly strategy—using its strong balance sheet to buy back undervalued shares, reward investors with dividends, and position itself for sector tailwinds. With J.P. Morgan already on board and the buyback starting soon, this isn't a “wait-and-see” situation.

If you're on the sidelines, get in now. This is a stock primed to surge as the buybacks reduce dilution, the dividend attracts income investors, and the sector recovery fuels top-line growth. In my book, this is a BUY—and I'm not just saying that because I want to see you win.

Act fast—because Havas isn't waiting for the crowd to catch up.