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ManpowerGroup Inc. Stock Price: Quote, Forecast, Splits & News (MAN)

Perplexity Finance

Company Profile

ManpowerGroup Inc. Price & Performance (MAN)

Stock Performance

Updated Apr 25, 8:00 PM UTC

ManpowerGroup Inc.

$42.43USD

+$0.55 (+1.31%)

After Hours

-$0.33 (-0.78%)

Open

$41.52

Market Cap

$1.98B

Year High

$78.87

High

$42.54

P/E Ratio

18.3

Year Low

$39.22

Low

$40.93

Dividend Yield

7.26%

Volume

853.84K

Latest News

Analysts Maintain 'Hold' on ManpowerGroup Despite Stock Slide
today
ManpowerGroup continues to face headwinds as analysts uphold a consensus 'Hold' rating following the company’s first-quarter earnings miss. The stock has dropped over 27% year-to-date, trading near its 52-week low. While revenue slightly exceeded expectations, persistent margin pressure and weak guidance, particularly in Europe, remain key concerns for investors.123
Earnings Miss Triggers Steep Decline in ManpowerGroup Shares
Apr 17, 2025
A disappointing first-quarter report sent ManpowerGroup’s stock tumbling nearly 16% in recent trading, marking one of the sharpest drops in decades. The company’s profits were hampered by higher restructuring costs and tax charges, and its outlook for the next quarter remains subdued, with ongoing uncertainty in key markets like Europe.456
Dividend Sustainability in Question as ManpowerGroup Faces Profit Pressure
Apr 24, 2025
ManpowerGroup’s dividend yield stands at nearly 6%, but a payout ratio exceeding 100% and a 29% share price decline over the past year raise concerns about sustainability. Ongoing revenue and earnings declines, especially in Europe, suggest continued financial challenges for the workforce solutions provider through the first half of 2025.789

What's Happening

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Earnings

Report Date

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Report Period

Q1 2025

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Transcript

10m 4s

Thank you for joining us for our first quarter twenty twenty five conference call. Our Chief Financial Officer, Jack McGinnis is with me today. For your convenience, we've included our prepared remarks within the Investor Relations section of our website at manpowergroup.com. I will start by going through some of the highlights of the quarter, Jack will go through the first quarter results and guidance for the second quarter of twenty twenty five. I will then share some concluding thoughts before we start our Q and A session. Jack will now cover the safe harbor language. Good morning, everyone. This conference call includes forward looking statements including statements concerning economic and geopolitical which are subject to known and unknown risks and uncertainties. These statements are based on management's current expectations or beliefs. Actual results might differ materially from those projected in the forward looking statements. We assume no obligation to update or revise any forward looking statements. Slide two of our earnings release presentation further identifies forward looking statements made in this call. And factors that may cause our actual results to differ materially and information regarding reconciliation of non GAAP measures.

11m 10s

Thank you, Jack. This quarter, I spent time with many of our clients and leadership teams across our key markets in Europe, Latin America and Asia Pacific. As well as here in North America. Broadly, the consensus is the quarter has been of two halves. We began the year with a sense of optimism for economic growth in The U. Particularly, And a greater acknowledgement among EU policymakers that Europe needed to do more to remain competitive. The last several weeks have impacted the sense of confidence, and the mood is significantly more uncertain and cautious as a result of recent trade policy announcements in The US. With ripple effects far beyond. At this stage, most of our clients are adopting a wait and see approach. And it is difficult to provide any concrete of how significantly this might affect demand from our customers in our major markets around the world. As always, we're staying very close to our clients during this time, and taking an industry and country specific view as announced tariffs impact in different ways. We remain agile and are monitoring demand changes closely. At the same time, the benefits of a flexible workforce are highly visible during periods of increased uncertainty.

12m 28s

We know that those closest to their clients will win opportunities to deliver more flexible workforce solutions in a time of need. Our message to our organization and leadership teams in our 75 plus countries and territories around the world is clear. Control what you can control, stay close to our clients and candidates, and build agility so we can act quickly to anticipate and respond to evolving client needs. There remain plenty of opportunities to win in the market and provide value, to those we serve. And we are determined to be the partner of choice during unsettled times. Now, to our results, In the first quarter, revenue was $4,100,000,000 down 5% year over year in constant currency. Our reported EBITDA for the quarter was $36,000,000 Adjusting for restructuring costs, EBITDA was $52,000,000 representing a decrease of 32% in constant currency year over year. Reported EBITDA margin was 0.9% and adjusted EBITDA margin was 1.3%. Earnings per diluted share was $0.12 on a reported basis while earnings per diluted share was $0.44 on an adjusted basis. Adjusted earnings per share decreased 51% year over year in constant currency. In the first quarter, we saw the continuation of a challenging environment in Europe and North America, while demand for our services in LatAm and APME remained good.

13m 59s

Staffing margin was solid reflecting business mix changes and ongoing disciplined pricing. However, permanent recruitment softened further, and we saw reduced our placement volumes which impacted our margins. We took further cost actions to mitigate these trends and we will continue to adjust as needed as the environment evolves. But we have seen a period of volatility relating to the tariff announcements and uncertainty is elevated right now. Underlying economic indicators, including labor markets, continue to be relatively stable. Based on what we see today, we expect employers to continue to cautiously look at hiring select talent particularly those with in demand skills that enable their businesses to transform. Indeed, as AI accelerates, we expect to see a greater focus on skills development as organizations seek to guide their workforce through a period of transition and prepare them to work alongside AI. This is supported by our most recent Experis CIO report. Which found that more than half of the companies are planning on upskilling existing talent with AI skills and one in three are hiring people with the ability to collaborate across functions to solve business challenges. Thanks Jonas.

15m 18s

US dollar reported revenues in the first quarter were impacted by foreign currency translation. And after adjusting for currency impacts, came in above the high end of our constant currency guidance range. Although conditions remain challenging, our revenue trends demonstrate we continue to perform well in the market. Following various recent sale and franchise arrangements, our revenues from franchise offices are significant. And are included within system wide revenues. Which equaled 4,500,000,000.0 for the quarter. Additional information on franchise offices can be found in our press release financials. Gross profit margin came in just below the low end of our guidance range driven by weaker permanent recruitment. As adjusted, EBITDA was $52,000,000 representing a 32% decrease in constant currency compared to the prior year period. As adjusted, EBITDA margin was 1.3% and came in just below the low end of our guidance range. Representing 50 basis points of decline year over year. Foreign currency translation drove a 2.5% unfavorable impact to the U. S. Dollar reported revenue trend from the constant currency decrease of 4.5%. Organic days adjusted constant currency revenue decreased 1% in the quarter, which was favorable to our guidance. Turning to the EPS bridge, reported net earnings per share was $0.12 Adjusted EPS was $0.44 and came in $03 below our guidance range.

16m 43s

Walking from our guidance midpoint of $0.52 our results included a lower operational performance of $09 a foreign currency impact that was $04 favorable to our guide and interest and other expenses, was $03 unfavorable. Higher tax charges from a France law change imposed for a one year period for 2025, and updated country earnings mix for the current environment represented $06 and restructuring costs represented $0.26 resulting in the reported EPS of $0.12 Next, let's review our revenue by business line. Year over year on an organic constant currency basis, the Manpower brand declined 2% in the quarter, the Experis brand declined by 5%, and the Talent Solutions brand declined by 2%. Within Talent Solutions, our RPO business experienced a slight year over year revenue decrease. Our MSP business recorded a strong double digit revenue increase compared to the prior year While Right Management experienced a year over year revenue decline in the quarter as Outplacement activity continued to slow. Looking at our gross profit margin in detail, our gross margin came in at 17.1% for the quarter. Staffing margin contributed 10 basis point reduction due to mix shifts and lower bench utilization in select countries, while pricing remained stable.

18m

Permanent recruitment was weaker than expected, and contributed 10 basis point GP margin reduction as permanent hiring activity in the first quarter decreased year over year. Bright management career transition within Talent Solutions contributed 10 basis point reduction as outplacement activity decreased in the quarter. Other items resulted in a 10 basis point margin decrease. Moving on to our gross profit by business line. During the quarter, the Manpower brand comprised 59% of gross profit. Our experienced professional business comprised 24% and talent solutions comprised 17%. During the quarter, our consolidated gross profit decreased by percent on an organic constant currency basis year over year, representing a sequential step down from the 4% decline in the fourth quarter. Our Manpower brand reported an organic gross profit decrease of 2% in constant currency year over year. A slight improvement from the 3% decrease in the fourth quarter. Gross profit in our Experis brand decreased 11% in organic constant currency year over year, flat from the 11% decrease in the fourth quarter. Gross profit in Talent Solutions decreased 5% in organic constant currency year over year, representing a step down from the fourth quarter increase of 7%. MSP saw continued year over year gross profit growth in the first quarter, while RPO and Right Management gross profit declined due to the end of select client projects and lower outplacement volumes.

19m 26s

Reported SG and A expense in the quarter was $670,000,000 SG and A as adjusted was down 4% year over year on a constant currency basis, and down 3% on an organic constant currency basis. The year over year SG and A decreases largely consisted of reductions in operational costs of $18,000,000 Corporate costs continue to include our back office transformation spend and these programs are progressing well with expected medium and long term efficiencies. Dispositions represented a decrease of 8,000,000 and currency changes contributed to a $15,000,000 decrease. Adjusted SG and A expenses as a percentage of revenue represented 15.9% in constant currency in the first quarter. Adjustments represented restructuring costs of 16,000,000 The Americas segment comprised 25% of consolidated revenue. Revenue in the quarter was 1,100,000,000.0 representing an increase of 5% year over year on a constant currency basis. OUP was 25,000,000 and OUP margin was 2.4%. The US is the largest country in the Americas segment. Comprising 65% of segment revenues. Revenue in The US was $689,000,000 during the quarter. Representing a 2% days adjusted increase compared to the prior year. This represents an improvement from the 1% decline in the fourth quarter, as Manpower and Talent Solutions had revenue growth while the rate of decline improved in Experis.

20m 52s

OUP for our US business was $11,000,000 in the quarter. OUP margin was 1.6%. Within The U. S, the Manpower brand comprised 25% of gross profit during the quarter. Revenue for the Manpower brand in The U. S. Increased 7% on a days adjusted basis during the quarter. Which represented strong market performance and an improvement from the 2% increase in the fourth quarter. The Xperis brand in The U. S. Comprised 42% of gross profit in the quarter. Within Experis in The US, IT skills comprised approximately 90% of revenues. ExperisUS revenue decreased 2% on a days adjusted basis during the quarter. An improvement from the 6% decline in the fourth quarter. The improvement in the first quarter was driven by seasonal healthcare IT go live projects, and the remaining business was relatively stable from the previous quarter. Talent Solutions in The US contributed 33% of gross profit and saw revenue increase of 3% in the quarter. A decrease from the 16% increase in the fourth quarter driven by RPO and Right Management. RPO experienced a modest revenue increase in The U. S. During the quarter, following the completion of higher volume seasonal projects in the previous quarter. The US MSP business executed well during the quarter posting strong double digit revenue increases while I'll place an activity within our Right Management business was down year over year, as outplacement activity slowed.

22m 18s

In the second quarter of twenty twenty five, we do not anticipate the seasonal Xperis Healthcare IT projects to be significant we expect the overall US business to have a low single digit year over year revenue decline. Southern Europe revenue comprised 45% of consolidated revenue in the quarter. Revenue in Southern Europe was 1,800,000,000.0 representing a 5% decrease in constant currency. As adjusted, OUP for our Southern Europe business was $54,000,000 in the quarter, and OUP margin was 2.9%. Restructuring charges of $3,000,000 primarily represented actions in Spain and Portugal. France revenue comprised 53% of Southern Europe segment in the quarter and decreased 8% on a days adjusted constant currency basis. France has historically managed our Morocco business as a small component of their overall business. In line with regional management changes, beginning with this 2025 reporting cycle, we have reclassified Morocco to other Southern Europe. And have restated prior periods to reflect like for like year over year variances.

23m 22s

That said, we saw an improvement in the rate of revenue decline in France from January to March. In March, the largest month, revenue decreased 7.5%. As adjusted, OUP for our France business was $21,000,000 in the quarter. Adjusted OUP margin was 2.2%. Activity to date in April is similar to the month of March. And we are estimating the second quarter trend to be similar to the month of March trend. Revenue in Italy equaled $398,000,000 in the first quarter, reflecting an increase of 5% on a days adjusted constant currency basis. OUP equaled $25,000,000 and OUP margin was 6.2%. We estimate that Italy will have a similar constant currency revenue trend in the second quarter compared to the first quarter. Northern Europe segment comprised 18% of consolidated revenue in the quarter. Revenue of $731,000,000 represented a 14% decline in constant currency. As adjusted, OUP equaled a $6,000,000 loss. The majority of the restructuring charges of $12,000,000 was recorded in the Nordics, Belgium and The UK. Our largest market in the Northern Europe segment is The UK. Which represented 35% of segment revenues in the quarter. During the quarter, UK revenues decreased 16% on a days adjusted currency basis.

24m 46s

The UK market continues to be very challenging. And we expect the rate of revenue decline to be similar in the second quarter compared to the first quarter. In Germany, revenues decreased 26% on a days adjusted constant currency basis in the quarter. Germany manufacturing trends have been weak driving further declines. In the second quarter, we are expecting a similar to slightly improved year over year revenue decline. Compared with the first quarter trend. The Nordics continue to experience very difficult difficult market conditions with revenues decreasing 16% in days adjusted constant currency in the quarter. Within the Nordics, Sweden is experiencing the largest declines based on a weak manufacturing environment, and the adjustment to new temporary work term limits discussed in previous quarters. The Asia Pacific Middle East segment comprises 12% of total company revenue. In the quarter, revenues equaled 76,000,000 representing an increase of 7% in organic constant currency. OUP was $20,000,000 and OUP margin was 4.2%. Our largest market in the APME segment is Japan. Which represented 60% of segment revenues in the quarter. Revenue in Japan grew 9% on a days adjusted constant currency basis. We remain very pleased with the consistent performance of our Japan business and we expect continued strong revenue growth in the second quarter.

26m 11s

I'll now turn to cash flow and balance sheet. In the first quarter, free cash flow represented an outflow of $167,000,000 compared to an inflow of $104,000,000 in the prior year. Timing of payables impacted the level of outflow in the first quarter. Outflow of free cash flow in the first half of the year typically follows strong free cash flow in the second half. At quarter end, day sales outstanding decreased by about half a day to fifty four days. During the first quarter, capital expenditures represented 14,000,000 During the first quarter, we repurchased 433,000 shares of stock for $25,000,000 As of March 31, we have 2,200,000.0 shares remaining for repurchase under the share program approved in August of twenty twenty three. Our balance sheet ended the quarter with cash of $395,000,000 and total debt of 1,070,000,000.00 Net debt equaled $677,000,000 at quarter end. Our debt ratio at year end reflect total gross debt to trailing twelve months adjusted EBITDA of of 2.5 and total debt to total capitalization at 34%. Our debt and credit facility arrangements are displayed in the appendix of the presentation. Next, I'll review our outlook for the second quarter of twenty twenty five. Based on trends in the first quarter and April activity to date, our forecast is cautious.

27m 37s

And anticipates the second quarter will continue to be challenging in Europe and North America. It is important to note that our forecast reflects demand trends we are currently experiencing. If tariff policy related matters have an additional significant dampening effect on demand for our services globally, this is not included in our guidance. With that said, we are forecasting earnings per share for the second quarter to be in the range of $0.65 to $0.75 As I mentioned earlier, the increased French income tax for the one year period of 2025 and the updated country mix effects have increased our global effective tax rate. Which will have the impact of decreasing our second quarter EPS estimate by $0.14 from the beginning of the year tax rate guidance. The guidance range also includes a favorable foreign currency impact of 3¢ per share and our foreign currency translation rate estimates are disclosed at the bottom of the guidance slide. Our constant currency revenue guidance range is between a decrease of 37%. And at the midpoint is a 5% decrease. Considering the impact of our dispositions and the slightly lower number of working days, our organic days adjusted constant currency revenue decrease represents 2% at the midpoint.

28m 56s

EBITDA margin for the second quarter is projected to be down 60 basis points at the midpoint compared to the prior year. We estimate that the effective tax rate for the second quarter will be 46.5%. Which represents the previously mentioned French tax charge for the one year period of 2025, and the overall mix effect of lower earnings from lower tax geographies in the current environment, including the impact of valuation allowances in certain markets which will reverse in the future when those markets rebound. In addition, as usual, our guidance does not incorporate restructuring charges or additional share repurchases, And we estimate our weighted average shares to be 47,300,000.0. I will now turn it back to Jonas. Thank you, Jack. We are confident in our strategic plan to diversify, digitize and innovate. In our next call, we will share more detail on the progress of our technology roadmap and how we're implementing AI and AgenTiC AI. We're preparing to showcase this at Viva Tech in Paris in May, one of the world's largest tech conferences. We'll be sharing how we're partnering with best in class platforms to build tailored solutions with candidate experience and data privacy front and center.

30m 10s

We know our approach to buy best in class and build to differentiate will stand us apart We are focused on ensuring we have a strong foundation of data and aligned global that enable us to scale, drive efficiencies, and create even more value for our clients and candidates. Executing our diversification, digitization and innovation strategy at speed and scale requires process convergence across our global enterprise. And continued discipline to manage costs at the center for the benefit of our brands and countries. Where business is done. In our last call, we shared that we had evolved our organizational structures to align our global brands Manpower, Experis and Talent Solutions, within the strength and global commercial function to drive profitable revenue growth. In Q1, we continued this progress expanding alignment of our global functions, advancing the centralization and standardization of finance, technology, marketing, people and culture and legal across countries and regions. This is already enabling us to better leverage subject matter expertise, for greater global consistency and efficiency. Because we help our clients build workforces with the best specialist talent, we need to attract and retain the best people. And to that end, we're delighted to have been named a world's most ethical company for the sixteenth time.

31m 34s

We know this accolade matters to our people and to our clients. It is one of the reasons talent and organizations choose ManpowerGroup and its family of brands ManpowerExperis and Talent Solutions. In closing, we have been through uncertain times before and are confident in our ability to manage the business for short term performance and long term success. We are committed to being nimble and taking actions as needed adjusting our cost base, and adding resources to respond to demand opportunities. We continue to transform our business at pace investing in technology, process and talent, across our brands to serve our client needs globally. All while maintaining a strong local presence in every market we serve. Finally, I want to thank our dedicated teams around the world for supporting our clients, who place their trust in us. And for guiding millions of people eager to contribute their skills and talent to make organizations successful. I would now like to open the line to Q and A. Operator?

32m 39s

Thank you. If your question hasn't answered and you'd like to remove yourself in the queue, please press [indiscernible] Our first question comes from Andrew Steinerman with JPMorgan. Your line is open.

32m 55s

Good morning, Jonas. I definitely heard ManpowerGroup second quarter guide does not include the prospective impact of pending tariffs. But I was trying to think about if there was a resolution of U. S. Tariffs that was considered kind of reasonable for trade between US and Europe what kind of rebound might ManpowerGroup anticipate in that scenario? Good morning, Andrew. Thank you. And that's a great question. As you could tell from our from our earnings release, the first quarter really progressed as we had anticipated with one exception. Actually revenues came in a bit stronger. We saw good good and positive revenue growth in The US. Italy, in Spain, and of course continued strong performance in LATAM and APME. But we had weakness in perm, most notably in France, and in a couple of other European countries. And that's the GP that we were missing really in terms of what we had planned to execute for the quarter. Now, of that perm hesitation or slowing, we believe came from continued caution by employers. And that's really what we're guiding to a continued trend of stability with operations continuing more or less with the trends that they have. But we note that there's a lot of caution.

34m 22s

Now, if you look at this from a from a uncertainty level, the cause of this from is a US trade policy that's been communicated across the world. Which is not great in terms of our visibility. But the good news with that is as quickly as it came on, it can when this gets removed, lead to a very quick change going the other way. And that coupled with the optimism that we talked about in our last earnings call around what Europe needs to do to become more competitive. And I think those conversations are continuing. In our biggest market, France, last time we spoke, there was still budget uncertainty. Today, we have a budget that's been approved by the legislature. We think that's positive. As you can tell, our U. S. Business, is actually seeing growth in all of our in Talent Solutions and in Manpower for three consecutive quarters. And we have a number of European countries that are big for us, Italy, for instance, that is moving forward with good growth and good profitability as well. So when a policy that's disrupted it gets to a good resolution in a reasonable way, there is a path to an actual quick turnaround in terms of employer confidence, because in the end, it's all about employer confidence, what they think could happen, and, you know, how they feel about the future when it comes to increasing their workforce.

36m 1s

Thanks, Janis.

36m 3s

Thanks, Andrew.

36m 5s

Thank you. Our next comes from Manav Patnaik with Barclays. Your line is open.

36m 12s

Thank you.

36m 13s

Good morning.

36m 14s

Just a couple of things. Jonas, if I could follow-up on the comment on the permanent weakness that you're seeing. It sounds like most of it is just a freezing of hiring decisions, but I was just wondering if you're starting to see any signs of layoffs. And I don't know if it's an early indicator or something you've seen in prior cycles of what happens in that area typically.

36m 36s

I would say it follows, you know, our discussion in our prepared remarks. When employers adopt a wait and see approach, they become more cautious. And in the first phase of that caution, they pull back on their temporary staffing. As you can tell, in many countries, we have stabilized. And in some, we've actually seen an improvement when before we saw a more pronounced pullback, so what then happens is they move to their permanent hiring. But I would provide this color though, that I think is an interesting element that we also talked about in our prepared remarks, which is that the pullback on the is primarily focused around lower skills. We are still seeing good demand on more specialized skills, more technical skills within manufacturing, and logistics, other parts of you know, our client segments, And I think that distinction tells you that this notion of employers are uncertain, but they're holding on to their workforces. They are not letting go of workforces to any major degree. They're also not hiring to any major degree. They are, however, when we are, when they need any workforce, they are coming to us you can see reflected in a number of our countries actually performing with better revenues than what we had anticipated.

38m 10s

When we gave our guidance for the first quarter. So it is a pretty traditional dynamic when employers get cautious later on, they will pull back on perm. But the distinction here is more specialized skills are still very important as companies are in full transformation mode in many areas of their businesses. And it's the skills that are easier to replace at a later point that we're seeing a little bit more weakness.

38m 42s

Okay, got it. That's helpful. And just one more, you know, you talked about how uncertainty is typically a benefit for kind of your services. But, you know, I think there's always that level, like when it gets too uncertain, which is probably what it is now, it isn't. And my question is more when do you start deciding that you need to, you know, write size your cost base and workforce you know, even more than perhaps what you've already done?

39m 10s

Well, it's something that we're looking at on an ongoing ongoing basis, and it very much depends on where which country we're talking about, what do we anticipate in terms of the demand, what are we seeing coming in terms of future pipeline? So it's a balance that we're managing each country on a continuous basis. As you've seen in our results in the first quarter, clearly, we've taken some significant additional action in Northern Europe. Because there is a clear dichotomy in Europe. It's Southern Europe is performing much better. Northern Europe continues. To struggle. A lot of that is tied to their economic outlook in terms of the country. And we're seeing that reflected in our business, and then we take actions. But we try to do this in a balanced way. Because we want to protect our ability to deliver great great service to our clients and drive increased performance in terms of our market share And I think our results this quarter illustrate that we're managing that that quite well. The revenues came in higher, and I think that is a testament to competing well in the market across the world.

40m 26s

Okay. Thank you very much.

40m 31s

Thank you. Our next question comes from Alexander Sinatra with Baird. Your line is open.

40m 39s

Hey, this is Mark Marcon.

40m 42s

Got to dial in through Alex's line. There was a little snafu.

40m 48s

Jonas, you started your presentation by mentioning that you had been to Europe recently and met with both your clients and your leadership teams And I'm wondering, if you could communicate to an even greater extent what is the mindset of some of those clients? Are they in disbelief with regards to the tariff policy? Is their expectation that it's going to settle down and potentially go back to the way it was Or are they in the early stages of trying to prepare for a new reality?

41m 34s

Good morning, Mark. Well, would say, as we mentioned in our prepared remarks, first of all, no one is making any big moves right now. They are adopting a wait and see approach. If their business is progressing, we're seeing good staffing trends in those countries. If their business isn't, they're more cautious. Overall, as I just mentioned, from the perm perspective, we're seeing a little bit more softening. But most of them anticipate that this is a negotiation tactic to change the trade dynamics But that ultimately, this will result in a settlement that is different than what was announced. On April. So that is the belief in the vast majority of client conversations that we've had. Now, the uncertainty comes from each country is different, [indiscernible] application of this trade policy is different country by country, industry by industry. And I think that is what's causing a greater degree of uncertainty. But there is a pretty uniform view that this is going to be part of a negotiated settlement Most of them don't anticipate that it's going to be exactly the way it was before, they accept that there's going to be changes, but they believe that the changes or they hope, I should say, that those changes are going to be manageable and different from what was announced [indiscernible] Now, some of the regions, as I mentioned in my prepared remarks, I was in Latin America recently.

43m 18s

That's a region that has seen relatively mild changes to tariff arrangements. So there clearly, they are not seeing this as that much of an obstacle. And are feeling much better about the outlook. But overall, the sentiment is the sooner that this gets sort sorted, the better it is because there are opportunities and there is a belief that, you know, we can see good growth come back or accelerate if we just get past this policy hurdle. Great. And then you took some actions in Northern Europe Can you describe the savings that you may get from those recent actions and how we should think about it? And then secondly, can you also describe what the outlook is in terms of the French taxes for the balance of the year, how we should think about that? And is this a one year deal or could it continue into '26 as well?

44m 33s

Mark, this is Jack. I'd be happy to talk to that. So, specifically on the restructuring charges, so you can see for the quarter overall, we took 15,800,000.0 As Jonas said, if you look at our Northern Europe slide, you can see that's where we've been experiencing the most pressure. That's where the majority of our actions are happening. So at the top of the list would be the Nordics, about 5,000,000. Of the total charge is the Nordics. Next would be Belgium and The UK, about 2,500,000.0 to $3,000,000 each. You can see in The UK continued to see very difficult conditions there. And I'd say lastly, The Netherlands continues to be a market we're focused on rightsizing as well based on current demand levels. And and a bit in Spain as well. So the rest were relatively small. In terms of your point, Mark, on payback, generally, when we look at the majority of the the majority of them are FTE related. So we see a pretty quick payback. And there are small number of office optimization efforts there as well. But generally, our overall pay back is about nine months. So we will start to see that improvement coming through in q two.

45m 54s

And I should say also, we did restructuring of course in the second half of twenty twenty four. And you see some of that coming through now, particularly in Northern Europe. Where we took some very significant actions. We're taking more now, but we took, some good actions last year. That are actually helping improve the sequential profitability in that region. And we're very focused on getting Northern Europe back to breakeven and then profitability which, you can see through these actions. So that's what I'd say about the restructuring activities. In terms of your question on the France tax rate, yes, it is it is enacted as a one year increase. So that is the legislation. As and you can see in our materials, we estimate that about a 5.3% increase in our, I should say 5.6% increase in our overall tax rate. That we guided at the beginning of the year. And then you add the country mix update to that, which is about 3.2 on top of that. So that gets us to the new effective tax rate that I've guided to. In terms of France and whether or not, there will be any changes beyond this year, I would say, you know, everything we've seen from the administration is they're very, very focused on the competitiveness of France.

47m 16s

And, and for that reason, we we believe at this point that this is a one year increase as they enacted. And for them to increase it further, they would have to do that through new legislation and through a new budget, at the end of the year. And at this stage, we just don't see any signs, that would indicate that that is a probability. So we do we are viewing this as it's been enacted in the law as a one year change. And as we go forward, as I mentioned previously, we would also expect some of the countries where we have valuation allowances to start to see significant tax benefits as we move forward and we rebound in those markets back to profitability. And you'll see the tax rate improve pretty significantly once that happens in the future.

48m 7s

Great. Thank you. And then one last one, just perm as a percentage of gross profit and what your expectations are? As it relates to the second quarter for perm?

48m 20s

Yes. So perm as a percentage of GP in q one was 16.4%. Because Q1 is our lowest quarter of earnings in GP dollars, that's a bit inflated generally because the staffing base a bit lower in Q1. As we ended the year last year, we were at about 15.5%. So I think that's a reasonable guideline as we go forward. I think perm overall, to Jonas's point, that we talked about, that really was the key factor in the earnings this quarter. As we ended the year last year, we actually saw the year over year perm trend really come in line with what was happening with staffing at that time. So perm was down about 3% organically and we saw, you know, staffing GP down around four or a little bit higher than that, but very closely aligned And as we walked into the first quarter, we saw perm step down further year over year. So perm was down about 8% year over year in the first quarter. And that really was what drove the lower. We had seen some good stabilization, but as Jonas said, the step down a bit further in the first quarter. So as we go forward, I think we're being cautious, as you heard me say in the guide.

49m 40s

And I think our perm expectations for Q2 are pretty much aligned to what we just experienced in Q1.

49m 47s

Great. Thank you very much.

49m 52s

Thank you. Our next comes from Kartik Mehta with Northcoast Research. Your line is open.

49m 58s

Hey, good morning. I wanted to ask you a little bit of a bigger picture question And I know temporary staffing fundamentals have been under stress for almost three years now. But have you seen any impact from other technology that might be impacting temporary staffing, whether it's LinkedIn or other apps or is there any pressure on the business from kind of secondary competitors?

50m 29s

As we look out over the world, what's important to remember is when we talk about difficulties for three years, we have two regions that have been progressing all during this time and growing revenues and improving their profitability in Asia Pac and LatAm. Europe's economy has been very challenged PMI has been well below fifty. For more than two years, coming up to three. And the biggest engine in Europe, Germany, has been in recession for two years. But as you look at the industry dynamics, really the country that sticks out is The US. Because we've had good growth, solid employment, although both of those factors are cooling right now, yet as an industry, we have seen negative growth for those three years. So the question then is, you know, why do we think these are you know, this is the case? And a lot of that we think has to do with the post pandemic you know, strong hiring, right after the pandemic, probably over hiring, employers realizing that finding skilled talent is difficult, and they've been holding on to their workforce. So this element of labor hoarding, we think, has been a feature as to why our industry has been impacted in this way.

51m 58s

And at this stage, we are seeing no signs that this has anything to do with a technological change or structural change. We think this is primarily due to pandemic anomalies that are playing out and through, We anticipate that they will normalize in the traditional dynamics in our industry will come back into play. If there were to be any indication of a technology change, I would look at certain roles primarily in the technology sector. And specifically as it relates to programmers. And so software coding and programming, you can really see how AI has made that much more efficient.

52m 44s

And you can see it also come through in the unemployment rate for software programmers here in The US, which is which is above 7% right now and we're at 4.2% unemployment for the country. So that would be the one area where we can clearly see that there is a structural change in demand in a specific role, where the application of technology is making those workers much more productive when they are augmented by Gen AI in particular.

53m 22s

And then just as a follow-up, Jonas. And this I realize this might be a difficult question, but you talked about France and maybe some certainty around when the budget was passed. Did you see as the budget was passed and the tax rate was increased, was the did the certainly result in less demand And maybe that's difficult because all this tariff stuff is going on. But I'm wondering if that resulted in less demand and once the budget year is over, could that increase demand?

53m 52s

It definitely could. I think the current uncertainty around the trade policy clearly now causes more hesitation on the part of employers. But just as we said at the top of the call, as quickly as this trade uncertainty came on and was really solidified, on April, if it is negotiated and settled at a reasonable level, it could turn around the sentiment pretty quickly because companies feel that Europe is on the path of becoming more or wanting to take steps to become more competitive along the lines of the fight pillars of the Draghi plan, which talks about productivity, better innovation and technology adoption, reducing regulation, things like that, which would be good for business. You've also seen a surge in defense spending and announced willingness, especially in Germany to finance for their part, greater investments in that area, which from our perspective could be really good, because we have a very strong position in aerospace and defense across all of our brands and especially exposure into Manpower, which is our biggest brand in Europe. We think that could be very good. So you're absolutely right. If the current overhang of the trade policy enactment gets resolved, things and sentiment could change pretty quickly.

55m 22s

I would just add to that Kartik. In France, we actually saw that play out, that uncertainty around the budget. Impacted the month of January specifically. So January was down the most. In the quarter. And as that budget, was passed, and moved forward in February, we started to see, demand improve. And it actually ended the quarter at probably the best part of the average for the quarter overall. And we take that guide into Q2. So we did see it play out to some degree in Q1 and, we're now seeing trends that are more aligned with where we were early in the fourth quarter.

56m 4s

Thank you very much, both of you. Appreciate it.

56m 8s

Thanks, Kartik.

56m 10s

Thank you. Our next question comes from Josh Chan with UBS. Line is open.

56m 16s

Hi, good morning Jonas and Jack. Thanks for taking my questions. I guess you mentioned that the perm weakness was primarily in France and a couple of European countries. Is there any insight that you can give as to why those countries are weaker in terms of perm? Because I would think the trade policy uncertainty would really impact the globe, really, including even The US. I think as Jack just talked about, in France, there was a greater deal of uncertainty with the budget not having been passed. And once that started to improve, we saw some improvement in our trends in France, I also think it depends on the composition. You heard me talk earlier about how specialized skills that perm pipeline and sales are in revenues actually holding steady and stable. But it's the lower skilled where companies are making specific decisions. So I wouldn't read too much into it in terms of the various countries, but rather say [indiscernible] there is stability except with weakness in some countries and that we're being looking into Q2 because we know hiring is highly dependent on employer confidence. And when the uncertainty is increasing, employers hold back a little bit more.

57m 41s

And at this stage that would impact perm, to a greater degree than anything else. So think that would be our take on the perm trends. But overall, many countries held up well and we saw stability. In many countries and actually good performance in a number of them as well.

58m 3s

Okay, great. Yeah, thank you for that color, Jonas. And then maybe one question on cash flow. I think Jack suggested that it may be kind of timing related. Could you give us a little bit more color on what happened in Q1 and kind of your confidence that cash flow can bounce back over the rest of the year?

58m 24s

Josh, this is Jack. I'd be happy to talk to that. Yeah, as I mentioned in the prepared remarks, we typically see much softer cash flow and net out outflows in the first half of the year. That's been the case actually in 2024 and 2023. The first half of the net outflow, and then we generally seasonally see very strong cash flows in the second half of the year. We certainly saw that last year. As well. So that's definitely part of the equation. We would expect that dynamic to play out again this year. I think specifically on the payables, we have a very large market leading MSP business. And so as we manage the spend under management, that actually has a pretty big impact on our balance sheet. In terms of our payables. So there will generally be a little bit of volatility on the timing of payables. As a result of the MSP business. And and and so that was a little bit of a factor, in q one. So I would say that generally works itself out over the course of the year as well. But those, I would say those are the main factors to think about in terms of free cash flow.

59m 32s

Great. Thank you both for the color and the time.

59m 38s

Our next question comes from Trevor Romeo with William Blair. Your line is open.

59m 44s

Hi, good morning Jonas and Jack. Thanks so much for taking the questions.

59m 49s

First one I had was just kind of two quick ones on the U. S. Manpower brand. Think in the quarter, it was up 7%, nice improvement back into positive territory. What were some of the drivers of that improvement? And are you seeing any influence from changes in U. S. Immigration policy there? And then I guess over the medium term or the long term, who knows what will happen with the tariffs. But if we do actually see reshoring and domestic manufacturing activity, increase. Any way to think about how much of a benefit that could be for the Manpower brand?

1h 22s

Well, so Trevor, let me start with your last question with your questions in reverse order. So on the first one, it's really hard to tell in terms of what impact and to what degree the I mean, to what I mentioned, trade change would impact manufacturing. And thus, subsequently how much that would impact our Manpower business. But suffice to say that any increase in manufacturing employment will be good news for the country and will be good news from a Manpower brand perspective. From an immigration perspective right now, as as we all know, you know, immigration really drove a lot of the economic growth that we've seen over a number of years. But as it relates to our business today, we're not seeing any impact that we can directly relate to a tougher immigration policy, so that's not been impacting our numbers. And then lastly, would say the U. S. Team and Manpower has done an excellent job. We've really been working hard at innovating our offerings. You've heard us talk about our branch openings in Walmart, which we think is a great innovation in terms of being where our candidates come and also our clients. Come to.

1h 1m 38s

So that's very encouraging. We've also been very strong in building [indiscernible] pipeline of client opportunities across various industry verticals, And finally, are seeing the very positive early signs of our investments in our data analytics and our technology investments, which we now leveraging AI use to provide really unique and differentiated workforce insights to our clients. To help them optimize cost. And we can do this down to a very granular level. We can go into a particular worksite, look at the overall wage levels with surrounding a client's location, analyze with the help of data and AI the implications of their current workforce strategy, and what we think can be an optimal workforce strategy that will result in cost optimization, productivity improvements, things of that nature. And so we can predict changes in outcome with the data that we have collected in The US, and frankly, leveraging our global database we believe we have the biggest global database in the world as we are now collecting data points from our digitization, our technology infrastructure, in a way that is really starting to pay off for us. In our client engagements in The US. So the team has done a really nice job and we're very encouraged with these early indicators of what what can happen when we apply technology and AI to drive better outcomes for our clients.

1h 3m 33s

Thank you, Jonas. That's That's really helpful. And actually a good segue into my other question, was I think for Jack, he had mentioned the back office transformation spending in your prepared remarks. I was just wondering if you could give an update on how much of that spend is currently flowing through the P and L and then how much of a I guess, a margin benefit you'd expect whenever those investments are completed? And the timing of that as well? Thanks. Trevor, I'd be happy to talk to that. So you can see that actually through our corporate SG and A, the corporate component. That's where a lot of the spend on our transformation, programs are coming through. As I mentioned, previously, it's been elevated as we continue to execute. That transformation. To your point on where we are in terms of the overall transformation, making very, very good progress. I think Jonas has covered the front office and the power suite front office. Progress in the past, you know, with over 80% of our revenues now on our new cloud enabled market leading PowerSuite front office. That will pay off as we get operational leverage back. It already is having significant benefits in recruiter productivity and those type things.

1h 4m 47s

But you'll see it more meaningful when operational leverage returns. On the back office side, we're doing really well on PowerSuite back office as well. So we have just about 50% of our revenues going through the new platform. We have implementation going live again this quarter in some of our largest countries. So we feel really good about that. And what goes hand in hand with that is our standardization of our process in our shared service center. So we're making very, very good progress on that. I think we're up to seven countries now going through our shared service operations. With another four to five in flight as we speak. Those will continue this year. And into 2026, where we'll start to inflect into savings from those programs during calendar year 2026. As I've mentioned in the past, that impact is going to be because you'll see an increase in the over, you'll see a decrease in the overall spend on those programs as they complete. But you'll see the increase in efficiency and you'll see that come through in our bottom line, margin. So I think the efficiency is somewhere in the range of 25 basis points.

1h 6m 2s

The drop off spend, as I've said in the past, is another 15 to 25 basis points. So, that will be a significant step change in our overall as we move forward with those programs.

1h 6m 14s

Okay. Thank you both very much. Appreciate the updates.

1h 6m 21s

Thank you. Our next question comes from Tobey Sommer with Tuohy Securities. Your line is open.

1h 6m 28s

Thanks. You've talked about the way you're managing expenses and where you're investing in the business. In terms of broader capital deployment, how do you think about things now And what might you be looking to add to the portfolio as you pursue a change in the mix over time? If recession occurs in The U. S, typically, come out and deployed capital more to a greater extent After such a period, Thanks.

1h 7m 7s

Yes. Thanks for the question, Toby. I think I would start by just saying our overall strategy and capital allocation principles are unchanged. So as you've seen in environments like this, you see us continuing to do share repurchases. And looking at our when we look at our excess cash, we also look at whether or not there are opportunities for M and A and we've prioritized that in the past. In the current environment, as we've talked it isn't very conducive to significant M and A. When we start to see an inflection point in the market, we would expect that would start to change. So as we look at our overall businesses, the areas that we have been successful in M and A is on the Experis side. Focused on IT, services, and also on the talent solutions side. I would say, you know, RPO would be an area that we continue to be very interested in opportunities to continue to add skill sets and expansion in key markets. And as we've talked about before, we think The US market is a great opportunity You've seen us do outsized acquisitions in that market in the past. And in terms of internally and as we continue to run the business, we continue to invest in key markets where there's great opportunities.

1h 8m 32s

You see us doing that in Italy. As Jonas talked about, Italy grew 5% days adjusted in the first quarter. That's a market where we continue to invest. Japan, you know, continuing to have, you know, a great track record with ten years of growth. We are investing in the Japan business, and we're doing that in other markets as well, like Israel and in Jonas talked about US Manpower. One of the reasons US manpower is performing very well is we continue to invest in sales. Professionals as part of that. So we although we are continuing to balance the equation with cost rightsizing, we're making sure we do not impact our sales capabilities so that we have opportunities to continue to take market share and win in the market. So in this current environment, we're going to be very focused on allocating our internal capital into those businesses that have good opportunities. And, I think, you know, to my point, when the market changes in the future, we'll probably talk more about other opportunities externally.

1h 9m 41s

Thanks. If I could sneak in a follow-up, I know we're long on time. With respect to demand from your customers for upskilling What kind of occupations are they most focused on?

1h 9m 51s

In what you're hearing in customer conversations? Because that could inform us about where AI may be impacting the labor force.

1h 10m

Thanks. Well, it's really early days still, but I would say generally speaking, companies are really looking at upskilling people so they can handle more technology or different technology. So, you know, the our view is that there is going to be a significant transformation with technology in general and with AI in particular. But we also believe that this is an augmentation of human capabilities. So over time, we think that companies will want to accompany and help the upskilling of their workers. Around areas that help them work better with AI, and that's what we're starting to see generally. I think specifically the areas where we're seeing demand from a AI perspective and where we can see skill sets really pulling is full stack developers, cyber security, data analytics, and as I earlier mentioned, AI, in particularly generative AI, although those volumes, the demand is there, but the volumes are not as strong. And some of these skills are new to the market, This really plays well into our strength around the Experis Academy. And how we can continue to develop our consultants and candidates in these key areas to build the workforce of the future. And we doubled the amount of people going through our academy last year versus 2023.

1h 11m 38s

And we anticipate to see further strong growth in this area also in 2025. And the same is true for our Manpower MyPath program, where we have almost 300,000 people who've now gone through various upskilling and reskilling initiatives. And we think this remains a very strong differentiator for both Manpower and Experis. And I think into the future and demand for this is technology progresses at an accelerating pace. This will continue to be an area of great focus of ours. Both in Manpower and in Experis.

1h 12m 18s

Thank you. Thank you. Our next question comes from Stephanie Moore with Jefferies. Hi, good morning. Thank you. I wanted to maybe touch on certain hiring verticals if you're seeing any indication for maybe improved trends or a little bit more of a more favorable appetite in any certain verticals? I know in the past you've talked about government hiring, healthcare, and the like that may be being good indicators of an inflection in demand. Any specific industry vertical color would helpful. Thank you.

1h 12m 57s

Thanks for the question, Stephanie, and good to have you on the call. I would say in terms of industry verticals where we've seen some strength, I'd say aerospace for sure has been a strength, particularly in France for us. I'd say food manufacturing generally has held up fairly well, while I'd say broader manufacturing has been weaker Jonas mentioned, with lower manufacturing PMIs. But food has held up well. In markets like The US, France, and Italy. I'd say a bit mixed on financials. I'd say certain markets have been holding up better than others. And then logistics, I think we've seen some strength in markets like Spain. And again, a bit of a mix elsewhere, a bit lower in The UK. And in France. I think in terms of where it's been continued to be a bit more sluggish, I'd say the public sector generally in The UK and Canada is the area where we've seen just a bit more of a pullback. Auto has been pretty well documented that that continues to be fairly sluggish and trending softer. And as I mentioned, manufacturing more broadly I think in terms of technology, clearly a year ago that was down quite significantly.

1h 14m 17s

Where that sits now is really just more stable at lower levels. From our enterprise tech clients. And as Jonas said, I think, you know, again, maybe a bit more caution and wait and see approach before we start to see that dynamic change significantly.

1h 14m 35s

Great. Well, I'll leave it at that. Thank you so much.

1h 14m 41s

Thank you. Our next comes from George Tong with Goldman Sachs. Your line is open.

1h 14m 48s

Hi, thanks. Good morning. Can you talk about how demand trends exiting the quarter performed relative to earlier in the quarter in your key countries? And to what extent these trends reflected early changes to hiring demand in response to tariff uncertainty given the quarter closed prior to major U. S. Tariff announcements on April 2.

1h 15m 12s

George, thanks for the question. This is Jack. I'd be happy to talk to that briefly. I think you know, as I mentioned in some of our larger countries as we ended quarter going into April, we saw trends that were fairly stable actually. So you know, France really in line what we've been seeing in April we just received an update again this morning. Pretty much showing trends pretty much in line with what we saw in France in the month of March, I should say. So fairly stable there. I would say similar in The US. I think in The US, the item we highlighted was the surge in the healthcare IT seasonal projects in Q1. If you put that to the side, I think underlying activity levels fairly stable in both Experis and Manpower. And as we mentioned in Manpower, they've certainly seen bit of an uptick So stable with some good underlying growth.

1h 16m 10s

And then I'd say the same thing really in terms of The UK pretty stable as we end the quarter. Into April. So no significant movements. And then our fourth biggest business, Japan, very similar as well. We see good ongoing trends there.

1h 16m 31s

So I'd say in terms of our biggest markets and biggest countries, the punchline is really so far April's pretty stable with what we saw in the month of March.

1h 16m 42s

Got it.

1h 16m 42s

That's helpful. You mentioned your 2Q guide reflects demand trends that you're currently seeing. Can you quantify approximately how much tariffs may have lowered staffing demand so far across your business through mid April? And which countries you're seeing the most hesitation in hiring because of tariff uncertainty?

1h 17m 5s

You know, I think we are really not reflecting any changes in trend, just as Jack said, we're looking stable For most part, uncertainty is really mostly reflected in the the perm numbers that we think are going to be a little bit softer, But the overall staffing numbers, we look at this from a Manpower and as well as from an experience perspective, we expect to in our guide to be running along the trends that Jack just talked about. Exactly. Got it. Thank Customers are adopting the wait and see approach, which means we don't expect any major changes until they have clarity on what the trade policy actually means. And how they estimate that it would impact the business.

1h 17m 58s

Makes sense. Thank you.

1h 18m

Thanks, George. Thank you. There are no further questions at this time. I'd like to turn the call back over to Jonas Prezin for closing remarks.

1h 18m 11s

Thanks, everyone. We look forward to speaking with you again in our second quarter earnings call later on in July. A good rest of the week.

1h 18m 22s

Thank you for your participation. This does conclude the program. You may now disconnect.

1h 18m 27s

Good day.

Key Insights

Q1 2025 revenue was $4.1B, down 5% YoY in constant currency; adjusted EBITDA was $52M (down 32% YoY), and adjusted EPS was $0.44 (down 51% YoY). Revenue came in above the high end of guidance, but gross profit margin and EBITDA margin were at or just below guidance due to weaker permanent recruitment.
The business environment remains challenging, especially in Europe and North America, with increased uncertainty due to recent US trade policy/tariff announcements. Clients are adopting a "wait and see" approach, particularly impacting permanent hiring, though demand for specialized and technical skills remains solid.
Regional performance was mixed: US revenue grew 2% (with Manpower brand up 7%), Italy grew 5%, Japan grew 9%, while France declined 8%, UK declined 16%, and Germany declined 26%. Southern Europe outperformed Northern Europe, which continues to face significant headwinds and restructuring.
Q2 2025 guidance anticipates continued challenges in Europe and North America, with constant currency revenue expected to decrease 3–7% (midpoint -5%) and adjusted EPS forecasted at $0.65–$0.75. Guidance does not include potential further impact from tariffs; effective tax rate is expected to be elevated at 46.5% due to a one-year French tax increase.
The company continues to invest in technology, digitization, and upskilling initiatives (e.g., Experis Academy, MyPath), with back office transformation expected to yield 40–50 bps margin improvement by 2026. Capital deployment remains focused on share repurchases and targeted M&A in IT and RPO when market conditions improve.

Recent Transcripts

Q1 revenue declined 5% YoY; cautious outlook amid tariff uncertainty and weak perm hiring.

1.3% (adj.), down 50bps YoY

Q4 revenue declined 3%, with ongoing margin pressure and cautious 2025 outlook.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$18B	$21B	$20B	$19B	$3.1B
Cost of Revenue	$15B	$17B	$16B	$16B	$0
Gross Profit	$2.8B	$3.4B	$3.6B	$3.4B	$3.1B
Gross Profit %	16%	16%	18%	18%	100%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$18B

$21B

$20B

$19B

$3.1B

Cost of Revenue

$15B

$17B

$16B

Gross Profit

$2.8B

$3.4B

$3.6B

$3.4B

$3.1B

Gross Profit %

16%

18%

100%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$24M	$382M	$374M	$89M	$145M
Dep. & Amort.	$76M	$73M	$85M	$89M	$87M
Def. Tax	-$10M	-$1.3M	$4.8M	-$21M	-$32M
Stock Comp.	$24M	$37M	$38M	$29M	$27M
Chg. in WC	$704M	$136M	-$140M	$99M	$65M

2020

2021

2022

2023

2024

Net Income

$24M

$382M

$374M

$89M

$145M

Dep. & Amort.

$76M

$73M

$85M

$89M

$87M

Def. Tax

-$10M

-$1.3M

$4.8M

-$21M

-$32M

Stock Comp.

$24M

$37M

$38M

$29M

$27M

Chg. in WC

$704M

$136M

-$140M

$99M

$65M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$1.6B	$848M	$639M	$581M	$509M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$1.6B	$848M	$639M	$581M	$509M
Receivables	$4.9B	$5.4B	$5.1B	$4.8B	$4.3B
Inventory	$1	$1	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$1.6B

$848M

$639M

$581M

$509M

ST Investments

Cash & ST Inv.

$1.6B

$848M

$639M

$581M

$509M

Receivables

$4.9B

$5.4B

$5.1B

$4.8B

$4.3B

Inventory

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
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Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

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Rev Estimate

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Avg 1d Change

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Report Period

Q1 2025

EPS Estimate

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Implied Move 1d

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Transcript

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36m 1s

Thanks, Janis.

36m 3s

Thanks, Andrew.

36m 5s

Thank you. Our next comes from Manav Patnaik with Barclays. Your line is open.

36m 12s

Thank you.

36m 13s

Good morning.

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Okay. Thank you very much.

40m 31s

Thank you. Our next question comes from Alexander Sinatra with Baird. Your line is open.

40m 39s

Hey, this is Mark Marcon.

40m 42s

Got to dial in through Alex's line. There was a little snafu.

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48m 7s

Great. Thank you. And then one last one, just perm as a percentage of gross profit and what your expectations are? As it relates to the second quarter for perm?

48m 20s

49m 40s

And I think our perm expectations for Q2 are pretty much aligned to what we just experienced in Q1.

49m 47s

Great. Thank you very much.

49m 52s

Thank you. Our next comes from Kartik Mehta with Northcoast Research. Your line is open.

49m 58s

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55m 22s

56m 4s

Thank you very much, both of you. Appreciate it.

56m 8s

Thanks, Kartik.

56m 10s

Thank you. Our next question comes from Josh Chan with UBS. Line is open.

56m 16s

57m 41s

58m 3s

58m 24s

59m 32s

Great. Thank you both for the color and the time.

59m 38s

Our next question comes from Trevor Romeo with William Blair. Your line is open.

59m 44s

Hi, good morning Jonas and Jack. Thanks so much for taking the questions.

59m 49s

1h 22s

1h 1m 38s

1h 3m 33s

1h 4m 47s

1h 6m 2s

The drop off spend, as I've said in the past, is another 15 to 25 basis points. So, that will be a significant step change in our overall as we move forward with those programs.

1h 6m 14s

Okay. Thank you both very much. Appreciate the updates.

1h 6m 21s

Thank you. Our next question comes from Tobey Sommer with Tuohy Securities. Your line is open.

1h 6m 28s

1h 7m 7s

1h 8m 32s

1h 9m 41s

Thanks. If I could sneak in a follow-up, I know we're long on time. With respect to demand from your customers for upskilling What kind of occupations are they most focused on?

1h 9m 51s

In what you're hearing in customer conversations? Because that could inform us about where AI may be impacting the labor force.

1h 10m

1h 11m 38s

1h 12m 18s

1h 12m 57s

1h 14m 17s

1h 14m 35s

Great. Well, I'll leave it at that. Thank you so much.

1h 14m 41s

Thank you. Our next comes from George Tong with Goldman Sachs. Your line is open.

1h 14m 48s

1h 15m 12s

1h 16m 10s

1h 16m 31s

So I'd say in terms of our biggest markets and biggest countries, the punchline is really so far April's pretty stable with what we saw in the month of March.

1h 16m 42s

Got it.

1h 16m 42s

1h 17m 5s

1h 17m 58s

Makes sense. Thank you.

1h 18m

Thanks, George. Thank you. There are no further questions at this time. I'd like to turn the call back over to Jonas Prezin for closing remarks.

1h 18m 11s

Thanks, everyone. We look forward to speaking with you again in our second quarter earnings call later on in July. A good rest of the week.

1h 18m 22s

Thank you for your participation. This does conclude the program. You may now disconnect.

1h 18m 27s

Good day.

Key Insights

Q1 2025 revenue was $4.1B, down 5% YoY in constant currency; adjusted EBITDA was $52M (down 32% YoY), and adjusted EPS was $0.44 (down 51% YoY). Revenue came in above the high end of guidance, but gross profit margin and EBITDA margin were at or just below guidance due to weaker permanent recruitment.
The business environment remains challenging, especially in Europe and North America, with increased uncertainty due to recent US trade policy/tariff announcements. Clients are adopting a "wait and see" approach, particularly impacting permanent hiring, though demand for specialized and technical skills remains solid.
Regional performance was mixed: US revenue grew 2% (with Manpower brand up 7%), Italy grew 5%, Japan grew 9%, while France declined 8%, UK declined 16%, and Germany declined 26%. Southern Europe outperformed Northern Europe, which continues to face significant headwinds and restructuring.
Q2 2025 guidance anticipates continued challenges in Europe and North America, with constant currency revenue expected to decrease 3–7% (midpoint -5%) and adjusted EPS forecasted at $0.65–$0.75. Guidance does not include potential further impact from tariffs; effective tax rate is expected to be elevated at 46.5% due to a one-year French tax increase.
The company continues to invest in technology, digitization, and upskilling initiatives (e.g., Experis Academy, MyPath), with back office transformation expected to yield 40–50 bps margin improvement by 2026. Capital deployment remains focused on share repurchases and targeted M&A in IT and RPO when market conditions improve.

ManpowerGroup Inc. Price & Performance (MAN)

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