ManpowerGroup (MAN) came out with quarterly earnings of $0.44 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.38%. A quarter ago, it was expected that this staffing company would post earnings of $0.99 per share when it actually produced earnings of $1.02, delivering a surprise of 3.03%.Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $4.1 billion, down 5% year-over-year in constant currency [12] - Reported EBITDA for the quarter was $36 million, while adjusted EBITDA was $52 million, representing a decrease of 32% in constant currency year-over-year [12][19] - Adjusted earnings per share decreased 51% year-over-year in constant currency, with reported EPS at $0.12 and adjusted EPS at $0.44 [13][20] Business Line Data and Key Metrics Changes - On an organic constant currency basis, the Manpower brand declined 2%, the Experience brand declined 5%, and the Talent Solutions brand declined 2% [22] - The RPO business within Talent Solutions experienced a slight revenue decrease, while the MSP business recorded a strong double-digit revenue increase [22] - Gross profit margin was 17.1%, with staffing margin contributing to a 10 basis point reduction due to mixed shifts and lower bench utilization [23] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 5% increase year-over-year in constant currency [28] - Southern Europe revenue was $1.8 billion, reflecting a 5% decrease in constant currency [33] - Northern Europe segment revenue decreased 14% in constant currency, with the UK market experiencing a 16% decline [37][39] Company Strategy and Development Direction - The company is focused on diversifying, digitizing, and innovating, with plans to showcase technology advancements at VivaTech in Paris [51] - Emphasis on building tailored solutions with a focus on candidate experience and data privacy [52] - The company aims to manage costs effectively while driving profitable revenue growth through organizational alignment [54] Management's Comments on Operating Environment and Future Outlook - Management noted increased uncertainty due to recent trade policy announcements, leading clients to adopt a wait-and-see approach [9][10] - Despite challenges, there is optimism for growth in specific markets like LATAM and APME, with a focus on skills development as AI adoption accelerates [16] - The forecast for Q2 2025 anticipates continued challenges in Europe and North America, with EPS expected to be in the range of $0.65 to $0.75 [46][47] Other Important Information - Free cash flow represented an outflow of $167 million compared to an inflow of $104 million in the prior year, influenced by timing of payables [43] - The company ended the quarter with cash of $395 million and total debt of $1.07 billion, resulting in a net debt of $677 million [45] Q&A Session Summary Question: Impact of pending tariffs on future performance - Management indicated that a resolution of U.S. tariffs could lead to a quick turnaround in employer confidence and demand [60][65] Question: Signs of layoffs and hiring freezes - Management noted that while there is caution among employers, they are not significantly letting go of workforces, focusing instead on specialized skills [69][71] Question: Client mindset regarding tariff policy - Clients are adopting a wait-and-see approach, anticipating a negotiated settlement rather than a permanent change [82][86] Question: Restructuring actions in Northern Europe - Management discussed restructuring charges and expected payback periods, indicating a focus on improving profitability in challenging markets [91][95] Question: Impact of immigration policy on business - Management stated that current immigration policies have not significantly impacted business performance [135]

Revenue Performance - Revenues from Services for Q1 2024 were $4,403.3 million, a decrease of 7.3% compared to $4,752.3 million in Q1 2023[3] - In Q1 2024, the United States segment reported revenues of $680.4 million, an 8.3% decline from $741.6 million in Q1 2023[3] - Southern Europe revenues for Q1 2024 totaled $1,981.3 million, a decrease of 4.2% from $2,067.9 million in Q1 2023[3] - For Q2 2024, revenues from Services were $4,520.7 million, down 6.9% from $4,856.1 million in Q2 2023[4] - The United States segment in Q2 2024 reported revenues of $697.0 million, a slight decline of 1.7% from $709.1 million in Q2 2023[4] - In Q2 2024, the Other Americas segment saw revenues of $367.4 million, down 5.7% from $389.6 million in Q2 2023[4] - Revenues from Services for the three months ended September 30, 2024, were $4,530.2 million, a decrease of 3.1% compared to $4,675.6 million in the same period of 2023[5] - The United States revenue for the three months ended September 30, 2024, was $697.4 million, a decline of 4.5% from $730.2 million in 2023[5] - France's revenue for the three months ended September 30, 2024, was $1,156.8 million, a decrease of 2.9% compared to $1,191.0 million in 2023[5] - Northern Europe reported a revenue of $828.3 million for the three months ended September 30, 2024, down 9.4% from $914.2 million in 2023[5] - The total revenue from Southern Europe for the three months ended September 30, 2024, was $2,095.6 million, a slight decline of 0.6% from $2,108.7 million in 2023[5] - Revenues from Services for the year ended December 31, 2024, were $18,914.5 million, a decrease of 5.6% compared to $20,000.4 million in 2023[6] Operating Profit - Operating profit for Q1 2024 was $65.9 million, down 44.1% from $117.9 million in Q1 2023[3] - Operating profit for Q2 2024 was $101.1 million, a decrease of 6.1% compared to $107.6 million in Q2 2023[4] - Operating profit for the nine months ended September 30, 2024, was $237.8 million, down 19.5% from $295.3 million in the same period of 2023[5] - Operating Unit Profit for the United States for the three months ended September 30, 2024, was $22.3 million, a decrease of 9.0% from $24.5 million in 2023[5] - Operating profit for the year ended December 31, 2024, was $306.0 million, an increase of 19.6% from $255.8 million in 2023[6] Earnings Before Income Taxes - Earnings before income taxes for Q1 2024 were $57.5 million, compared to $110.4 million in Q1 2023[3] - Earnings before income taxes for Q2 2024 were $92.4 million, slightly down from $95.8 million in Q2 2023[4] - Earnings before income taxes for the three months ended September 30, 2024, were $59.2 million, an increase from $54.7 million in 2023[5]

Core Insights - Cybersecurity is the top concern for 41% of Chief Information Officers (CIOs), yet 77% are increasing security budgets, 68% are expanding cloud infrastructure, and 67% are accelerating AI capabilities [1][6] - CIOs are blending security and innovation to create competitive advantages, embedding resilience into digital foundations while deploying advanced technologies [2][5] Key Findings - A cautious approach to AI adoption is observed, with only 37% of CIOs viewing generative AI as valuable today, while 33% are uncertain about its business impact; however, 60% are either exploring or implementing AI technologies [4][6] - Regional variations in technology leadership are significant, with 67% of tech leaders in the Netherlands focusing on sustainability, while 86% of Italian CIOs are enthusiastic about AI adoption alongside increased cybersecurity investments [5][6] - The study categorizes organizations into five maturity levels, with "Front Runners" (24%) demonstrating strong customer-centric strategies, while "Snoozers" (14%) show skepticism towards AI and face internal resistance to change [5][6] Additional Insights - 76% of IT employers report difficulty in finding skilled tech talent, and 52% of tech leaders are embedding AI skills into existing roles rather than creating new positions [6] - The relationship with the Chief Operating Officer (COO) is deemed the most important C-suite partnership outside of IT, with 56% of IT leaders indicating that senior leadership lacks sufficient knowledge about the CIO role [6]

Core Viewpoint - ManpowerGroup is investing in technology to enhance its global infrastructure, but it has not seen a significant recovery in 2024 due to high competition and a sluggish hiring environment [1][8]. Financial Performance - In Q4 2024, ManpowerGroup reported adjusted EPS of $1.02, exceeding the Zacks Consensus Estimate by 3% and showing a year-over-year increase of 1.5% [2]. - Revenues for the quarter were $4.4 billion, slightly missing consensus expectations and reflecting a 5% decline from the previous year [2]. Business Operations - ManpowerGroup operates as a comprehensive workforce solution partner, providing recruitment, training, outsourcing, and consulting services, which helps mitigate concentration risks and create steady revenue channels [3]. - The company is focusing on significant investments in technology to boost productivity and efficiency, including front office systems and cloud-based applications [4]. Shareholder Returns - The company has demonstrated a commitment to shareholder returns, repurchasing shares worth $210 million, $270 million, $179.8 million, and $140 million from 2021 to 2024, respectively [5]. - Dividend payments during the same period were $139.9 million, $136.6 million, $144.3 million, and $145.8 million, appealing to dividend-seeking investors [5]. Market Conditions - The economic outlook is expected to improve with potential interest rate cuts from the Fed and the European Central Bank, which may lead to increased hiring and bolster ManpowerGroup's income [7]. - However, the company has not seen a meaningful recovery in 2024, particularly in Europe and North America, where hiring remains sluggish due to a challenging macroeconomic environment [8]. Competitive Landscape - ManpowerGroup faces intense competition in the employment services industry, characterized by low entry barriers and numerous players with substantial marketing and financial resources [9]. - The company may experience pricing pressure from competitors and a trend of clients developing in-house workforce resources, compounded by the rise of AI tools that could replace its services [10].

Company Announcement - ManpowerGroup plans to release its 1st quarter earnings results on April 17, 2025, before the market opens [1] - Management will discuss the results in a live webcast at 7:30 a.m. Central Time on the same day [1] Webcast Information - The webcast will be available for replay starting at 10:30 a.m. Central Time on April 17, 2025, and will remain accessible for 30 days [2] - Supplemental financial information and the press release will be available on the company's website after the live discussion [2] Company Overview - ManpowerGroup is a leading global workforce solutions company, providing talent sourcing, assessment, development, and management services [3] - The company operates in over 70 countries and territories, serving hundreds of thousands of organizations and millions of job seekers [3] - ManpowerGroup has been recognized for its commitment to diversity and was named one of the World's Most Ethical Companies in 2025 [3]

Core Viewpoint - ManpowerGroup is launching the 2025 Viva Technology Startup Challenge focused on "AI, Tech, & huManpower" to innovate how people connect with meaningful careers in a rapidly changing job market driven by artificial intelligence [1][2]. Group 1: Challenge Overview - The challenge aims to identify innovative solutions that transform the job search and career development processes, enhancing the human experience through technology [2][4]. - ManpowerGroup is a Platinum Partner of VivaTech 2025, Europe's largest startup and tech event, scheduled for June 11-14 in Paris [1][4]. Group 2: Focus Areas - The challenge emphasizes three critical areas for technology's role in hiring: personalized job search experiences, seamless transitions, and continuous engagement throughout the career journey [2]. - AI will be leveraged to redeploy loyal associates more efficiently, reducing hiring time and costs while improving experiences for both employers and job seekers [3]. Group 3: Innovation and Ecosystem - France is highlighted as a hub for global innovation, with VivaTech bringing together startups and visionaries to develop solutions for sustainable careers [4]. - Submissions for the challenge are open until April 21, 2025, with finalists showcasing their solutions at the VivaTech event in June [4]. Group 4: Company Background - ManpowerGroup is a leading global workforce solutions company, recognized for its commitment to diversity and ethical practices, providing skilled talent across more than 70 countries for over 75 years [5].

Core Insights - ManpowerGroup has been recognized as one of the World's Most Ethical Companies® for the 16th time, highlighting its commitment to ethical business practices and positive societal impact [1][2][4] Company Overview - ManpowerGroup is a leading global workforce solutions company that helps organizations adapt to the changing work environment by sourcing, assessing, developing, and managing talent [5] - The company operates under three global brands: Manpower, Experis, and Talent Solutions, and has been providing value for over 75 years across more than 70 countries [5] Ethical Practices - The recognition from Ethisphere is based on a rigorous assessment using the Ethics Quotient®, which evaluates over 240 proof points related to ethics, compliance, governance, and social impact [3] - In 2025, a total of 136 companies were honored across 19 countries and 44 industries, showcasing a diverse range of ethical practices [4] Leadership Statements - The CEO of ManpowerGroup emphasized the importance of putting people at the center of the future of work, focusing on upskilling and ethical AI to create sustainable employment [2] - The Chief Marketing and Sustainability Officer highlighted the company's commitment to improving employability and partnering with like-minded organizations to drive positive change [2]

Core Insights - Global hiring intentions remain stable with a Net Employment Outlook (NEO) of 25% for the third consecutive quarter, reflecting a modest year-over-year increase of three percentage points [2][3] - Employers are cautious in hiring, focusing on retaining skilled workers while selectively hiring new talent, particularly in-demand skill areas [3] Q2 Key Findings - The Asia Pacific region reports the strongest hiring outlook at 30%, a 3-percentage point increase from both the previous quarter and year-over-year [5] - The Americas maintain an Outlook of 29%, unchanged from the previous quarter but up 3% compared to the same period last year [6] - Europe and the Middle East have the lowest hiring expectations at 20%, though this has improved by one point since Q1 2025 and four points year-over-year [7] Sector Insights - The Information Technology sector leads with the strongest hiring outlook at 35%, followed by Financials & Real Estate at 32%, and Health Care & Life Sciences at 28% [8] - Mid-size companies (250+ employees) show the most robust hiring intentions, while the largest enterprises (5,000+ employees) exhibit more caution with an outlook of 25% [8] Regional Highlights - India leads global hiring confidence with an Outlook of 43%, driven by tech advancements, followed by Taiwan at 39% and the USA at 34% [9] - Argentina reports the lowest global Outlook at 0%, indicating ongoing economic challenges [9]

Revenue Sources - In 2024, 90% of revenues in the Americas segment were derived from staffing/interim services, with 4% from permanent recruitment services, 2% from outcome-based solutions and consulting, and 4% from other services[32]. - In Southern Europe, 91% of revenues in France were from staffing/interim services, while in Italy, this figure was 93%[34][35]. - In Northern Europe, 85% of revenues were generated from staffing/interim services, with 4% from permanent recruitment services and 8% from outcome-based solutions and consulting[38]. - In the APME region, 81% of revenues came from staffing/interim services, while 15% were from outcome-based solutions and consulting[39]. - Approximately 60% of the company's revenues in 2024 came from large national and multinational clients[42]. - In 2024, approximately 85% of the company's revenues were generated outside of the United States, primarily in Europe[114]. Company Operations - As of December 31, 2024, the Americas segment had 416 branch and 137 franchise offices, with 65% of the segment's revenue coming from the United States[30]. - The company operates through a network of 2,100 offices in approximately 75 countries and territories, providing workforce solutions to millions of people annually[12]. - The company has been in business since 1948 and has been listed on the New York Stock Exchange since 1967[18]. - The company leverages its integrated HR tech stack, PowerSuite, to deliver workforce solutions across multiple countries at scale[16]. - The company opened a Global Business Services center in Porto, Portugal, as part of its strategy to standardize and centralize finance service delivery[105]. - The company is focused on deploying PowerSuite, a global cloud-based platform, to enhance service delivery and financial administration[105]. Financial Performance - Revenues from services decreased by 5.6% in 2024 compared to 2023, with a constant currency decrease of 3.4% and an organic constant currency decrease of 3.0%[167]. - The gross profit margin decreased by 50 basis points to 17.3% in 2024, primarily due to declines in the permanent recruitment business and lower staffing/interim margins[172]. - Operating profit increased by 19.6% in 2024, with an operating profit margin of 1.7%, attributed to reduced selling and administrative expenses[173]. - Net earnings rose to $145.1 million in 2024, a 63.5% increase compared to $88.8 million in 2023, resulting in diluted net earnings per share of $3.01[176]. - The effective tax rate for 2024 was 43.5%, lower than 56.9% in 2023, primarily due to a higher level of pre-tax earnings[181]. - Cash provided by operating activities was $309.2 million in 2024, a decrease from $348.2 million in 2023[204]. Employee Engagement and Development - In 2024, the company achieved an 80% response rate in a global employee survey with over 22,000 staff participating, indicating strong employee engagement[64]. - The company has trained over 4,500 developers through its Experis Academy, bridging skills gaps for more than 170 tech companies across approximately 20 countries[56]. - The company is focused on enhancing its culture and diversity, with specific programs aimed at supporting gender diversity at leadership levels and fostering an inclusive environment[60]. - The company has invested in leadership development programs, with 110 employees completing the Future Leaders Program in 2024, totaling 955 since its inception[61]. Risks and Challenges - The company faces risks from volatile economic conditions, particularly in Europe, which could adversely affect demand for its staffing services[78]. - The employment services industry is highly competitive, with significant pressure on pricing, which could adversely affect the company's market share and profitability[83]. - The company faces risks related to cybersecurity, including potential liabilities and reputational damage from data breaches, which could lead to significant financial losses[84]. - Compliance with evolving data privacy regulations, such as GDPR and CPRA, could impose substantial operational burdens and financial penalties, potentially up to 4% of global revenue for GDPR violations[88]. - The company faces challenges in attracting and retaining qualified personnel due to a tight labor market and increasing demands for better employment conditions[97]. - The company faces potential litigation and legal claims that could materially adversely affect its financial condition and results of operations[133]. Debt and Capitalization - As of December 31, 2024, the company had total debt of $952.8 million, with $928.4 million related to Euro-denominated notes[114][118]. - The company’s ability to service its debt is dependent on the performance of its subsidiaries and their ability to distribute cash[121]. - The company had a net Debt-to-EBITDA ratio of 1.97 to 1, well below the maximum allowable ratio of 3.5 to 1[225]. - Total capitalization as of December 31, 2024, was $3,079.7 million, with debt comprising 31% of total capitalization[212]. Market Conditions - The company reported that 64% of its revenue comes from European markets, which are particularly susceptible to geopolitical events and economic conditions[77]. - The company expects continued challenges in the business environment, impacting operations in future periods[167]. - The company faces risks related to foreign currency fluctuations, which could adversely affect its reported financial results[113]. Stock and Dividends - The company's common stock price fluctuated significantly in 2024, ranging from a high of $79.12 to a low of $56.82[126]. - The company authorized the repurchase of 5.0 million shares of common stock in August 2023, with 2.6 million shares remaining authorized for repurchase as of December 31, 2024[156]. - The company expects to continue paying semi-annual dividends, subject to review and change at the discretion of the Board of Directors[155]. - Total cash dividends declared were $3.08 per share in 2024, resulting in total payments of $145.8 million[209].