Fourth Quarter Results January 29, 2026 FORWARD-LOOKING STATEMENT This presentation contains statements, including statements regarding economic and geopolitical uncertainty, including uncertainty regarding trade policy developments, trends in labor demand and the future strengthening of such demand, the impact of AI on labor markets, the Company's financial outlook, outlook for our business in the regions in which we operate as well as key countries within those regions, the Company's strategic initiatives ...

Financial Performance - Net earnings for Q4 2025 were $30.2 million, or $0.64 per diluted share, compared to $22.5 million, or $0.47 per diluted share in Q4 2024, representing a 34.3% increase in net earnings [2][12]. - Revenues for Q4 2025 were $4.7 billion, a 7% increase from the prior year period, with a 1% increase on a constant currency basis and a 2% increase on an organic constant currency basis [5][6]. - Full year revenues for 2025 were $18.0 billion, representing a 1% increase compared to the prior year, or a 2% decrease in constant currency [7]. - Revenues from services for the year ended December 31, 2025, were $17,957.1 million, a slight increase of 0.6% compared to $17,853.9 million in 2024 [18]. - Gross profit margin for the quarter was 16.3%, reflecting softer than expected permanent recruitment activity in Europe [5]. - Gross profit decreased by 2.9% to $2,997.6 million in 2025 from $3,086.8 million in 2024 [18]. - Operating profit fell significantly by 50.9% to $150.1 million in 2025, down from $306.0 million in 2024 [18]. - Net loss for the year was $13.3 million, a drastic decline from net earnings of $145.1 million in 2024, representing a 109.2% decrease [18]. - Earnings before income taxes dropped by 63.6% to $93.4 million in 2025 from $256.8 million in 2024 [18]. Cash Flow and Assets - Cash provided by operating activities was $179 million, with free cash flow of $168 million for the quarter [3]. - Total current assets increased to $5,790.4 million in 2025, up from $4,970.3 million in 2024 [25]. - Cash and cash equivalents rose to $871.0 million in 2025, compared to $509.4 million in 2024 [25]. - Accounts receivable increased to $4,770.3 million in 2025 from $4,297.2 million in 2024 [25]. - Cash used in operating activities amounted to $104.1 million, compared to cash provided of $309.2 million in the previous year [27]. - Capital expenditures for the year were $57.3 million, an increase from $51.1 million in 2024 [27]. - Cash used in investing activities totaled $59.2 million, down from $68.2 million in 2024 [27]. - Cash provided by financing activities was $485.5 million, a turnaround from cash used of $282.4 million in the previous year [27]. - Cash and cash equivalents at the end of the period increased to $871.0 million, up from $509.4 million at the beginning of the period [27]. - The company reported a depreciation and amortization expense of $86.0 million, slightly down from $86.6 million in 2024 [27]. Impairments and Charges - The company recorded impairment charges of $88.7 million in 2025 related to investments in Switzerland and the United Kingdom [19]. - The company incurred non-cash goodwill and other impairment charges of $88.7 million during the year [27]. Future Outlook - The company anticipates diluted earnings per share for Q1 2026 to be between $0.45 and $0.55, including an estimated favorable currency impact of $0.06 [7]. - The company executed restructuring actions that contributed to a sequential improvement in year-over-year SG&A expenses [5]. - Market-leading growth was observed in Italy, with ongoing stabilization in North America and Europe, particularly in France [5][7]. - The company plans to capitalize on improving market demand and progress technology initiatives to diversify capabilities and increase market share [7]. Dividends - Dividends paid decreased to $66.7 million from $145.8 million in the previous year [27].

Core Insights - ManpowerGroup reported a net earnings increase to $0.64 per diluted share for Q4 2025, up from $0.47 in the same period last year, with total net earnings of $30.2 million compared to $22.5 million a year earlier [1] - The company's revenues for Q4 reached $4.7 billion, reflecting a 7% increase year-over-year [1] - Excluding restructuring costs and other charges, adjusted earnings per share was $0.92, representing a 17% decrease in constant currency [2] Financial Performance - The financial results were affected by the U.S. dollar's performance against foreign currencies, with a 1% revenue increase on a constant currency basis and a 2% increase on an organic constant currency basis [3] - For the full year 2025, revenues totaled $18.0 billion, a 1% increase compared to the previous year, but a 2% decrease in constant currency [4] - The company experienced net losses of $13.3 million for the year, translating to a loss of $0.29 per basic share, compared to net earnings of $145.1 million or $3.01 per diluted share in the prior year [4] Market Trends and Outlook - CEO Jonas Prising expressed optimism about the fourth quarter results, indicating stabilization in market trends and successful execution of cost optimization strategies [4] - The company anticipates diluted earnings per share for Q1 2026 to be between $0.45 and $0.55, factoring in a favorable currency impact of 6 cents [4] - ManpowerGroup noted ongoing stabilization across North America and Europe, with improvements in France and strong performance in Italy, while facing challenges in RPO and permanent recruitment [6] Operational Highlights - The gross profit margin for the quarter was 16.3%, impacted by lower-than-expected permanent recruitment activity in Europe [6] - The company reported strong cash flow from operating activities of $179 million, with free cash flow of $168 million for the quarter [9] - ManpowerGroup refinanced a €500 million Euro Note and reset its revolving credit facility for a new five-year period [6]

Core Insights - ManpowerGroup's (MAN) revenue growth is driven by its specialized workforce solutions and services globally, supported by a strong pricing and cost control strategy [1][3] - The company faces challenges from a sluggish macroeconomic environment in Europe and North America, as well as risks from foreign currency exchange rate fluctuations [2][8] Financial Performance - In Q3 2025, MAN reported earnings of $0.83 per share, exceeding the Zacks Consensus Estimate by 1.2%, although this represents a 35.7% decrease from the same quarter last year [3][12] - Total revenues for the same period were $4.63 billion, slightly beating consensus estimates and reflecting a year-over-year increase of 2.3% [3][12] Business Strategy - MAN's diversified business model, which includes recruitment, training, outsourcing, and consulting services, helps mitigate concentration risks and enhances global outreach [4] - The company is investing significantly in technology and digitalization, improving productivity through cloud-based applications and enhanced technology infrastructure [5] Shareholder Returns - MAN has consistently paid dividends over the past four years, with amounts of $145.8 million in 2024, $144.3 million in 2023, $136.6 million in 2022, and $144.3 million in 2021, alongside share repurchases totaling $140 million in 2024 [6] Liquidity and Financial Health - As of Q3 2025, MAN's current ratio was 1, indicating an improvement from the previous quarter's 0.98, although it remains below the industry average of 1.33 [7] Market Challenges - The company anticipates a 0.6% decline in organic revenues for 2025 due to a hesitant hiring environment in Europe and North America, exacerbated by France's political uncertainties [8] - MAN is also facing significant competition in the staffing industry, which pressures profitability and innovation, as clients increasingly develop in-house manpower resources using AI tools [10]

Core Insights - Rapid AI adoption is occurring globally, with regular usage increasing by 13% to 45% of workers, yet confidence in using technology has dropped by 18%, marking the first decline in overall worker confidence in three years, resulting in a Global Talent Barometer score of 67% [1][2][6] Group 1: AI Adoption and Worker Sentiment - The "honeymoon phase" of AI adoption is over, with employers needing to invest in employee development alongside technology to enhance productivity and retain workforce [5] - While 89% of workers feel confident in their current skills, 43% fear job automation within two years, an increase of 5% from 2025, leading to a trend of "job hugging" where 64% plan to stay with their current employer for stability [2][6] Group 2: Training and Development Gaps - A significant training void exists, with 56% of the global workforce reporting no recent training and 57% lacking mentorship opportunities, raising concerns about skills readiness as AI use accelerates [6] - The decline in technology confidence is particularly pronounced among older generations, with Baby Boomers experiencing a 35% drop and Gen X a 25% drop in tech confidence [6] Group 3: Well-Being and Job Satisfaction - Burnout affects nearly two-thirds (63%) of workers, primarily due to stress (28%) and heavy workloads (24%), with job satisfaction currently at 62% [6] - The Well-Being Index remains steady at 67% but continues to be a significant pressure point for workers amid ongoing changes [6] Group 4: Financial Pressures and Regional Variations - Financial pressures drive "job hugging," with 50% of all workers supplementing their primary income, rising to 68% among Gen Z [6] - Worker sentiment varies by geography, with India leading in overall sentiment (77%) and AI adoption (77%), while Japan has the lowest overall score at 48% [6]

Core Insights - The article emphasizes the urgent need for workforce training as 70% of job skills are expected to change by 2030, while 55% of employees report no training in the past year [1][3] Group 1: ManpowerGroup's Role at Davos - ManpowerGroup will participate in the World Economic Forum's Annual Meeting in Davos from January 19-23, 2026, to share insights on workforce challenges and solutions [2] - The company aims to keep humans at the center of AI integration, focusing on augmenting human capabilities rather than replacing them [3] Group 2: Key Events and Discussions - A discussion titled "Preventing Jobless Growth" will feature leaders discussing how to ensure AI-driven productivity benefits everyone, scheduled for January 21, 2026 [4] - The "Closing the Manufacturing Talent Gap" event will launch SmartStart USA, aiming to equip 1 million young people with skills for advanced manufacturing by 2035 [5] - A session on "Leadership for the Next Decade" will address building resilient workforces amid technological and demographic changes [6] - The "Human Edge" session will explore how organizations can adapt their workforce as AI becomes integrated into teams [7] - A panel on "Shaping the Future" will discuss driving inclusive growth in an AI-first world [8] Group 3: Research and Findings - ManpowerGroup will release "The Human Edge: Global Future of Work Trends," identifying 16 trends affecting the workforce, based on surveys of over 12,000 workers and 40,000 employers [9] - The 2026 Global Talent Barometer indicates that 64% of workers plan to stay with their current employer due to uncertainty about future opportunities, with a noted decline in worker confidence [10] - The forthcoming 2026 Talent Shortage Survey reveals that 72% of employers struggle to find skilled talent, highlighting a persistent talent scarcity issue [11]

Core Insights - There is a tendency to overinterpret the Q3 2025 results of ManpowerGroup Inc. and assume the company is on an upward trajectory [1] Company Analysis - ManpowerGroup Inc. has shown signs of improvement, but caution is advised in interpreting these results as a definitive turnaround [1] Analyst Background - The analysis is conducted by a financial analyst with a background in petroleum and gas engineering, focusing on tech, infrastructure, and internet services [1]

Core Viewpoint - ManpowerGroup plans to release its fourth quarter earnings results on January 29, 2026, before the market opens, followed by a live webcast discussion of the results [1]. Group 1: Earnings Announcement - The earnings results will be available before the market opens on January 29, 2026 [1]. - Management will discuss the results in a live webcast at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) on the same day [1]. - A replay of the webcast will be accessible starting at 10:30 a.m. Central Time (11:30 a.m. Eastern Time) on January 29, 2026, and will remain available for 30 days [1]. Group 2: Company Overview - ManpowerGroup is a leading global workforce solutions company that helps organizations adapt to the changing work environment by sourcing and managing talent [2]. - The company operates under several brands, including Manpower, Experis, and Talent Solutions, providing value to clients and candidates across more than 70 countries for over 75 years [2]. - ManpowerGroup has been recognized for its commitment to diversity and was named one of the World's Most Ethical Companies for the 16th time in 2025 [2].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Stock Performance - Robert Half Inc (NYSE:RHI) has a dividend yield of 8.55%. Barclays analyst Manav Patnaik maintained an Equal-Weight rating and reduced the price target from $45 to $36 on October 23, 2025, with an accuracy rate of 73%. Truist Securities analyst Tobey Sommer maintained a Buy rating and cut the price target from $55 to $50 on October 13, 2025, with an accuracy rate of 70%. Recent news indicates that Robert Half posted weaker-than-expected quarterly results on October 22 [3][6] - ManpowerGroup Inc (NYSE:MAN) has a dividend yield of 4.87%. Barclays analyst Manav Patnaik maintained an Equal-Weight rating and lowered the price target from $50 to $42 on October 17, 2025, with an accuracy rate of 73%. Truist Securities analyst Tobey Sommer maintained a Hold rating and reduced the price target from $48 to $44 on October 13, 2025, with an accuracy rate of 70%. Recent news includes Maharah Human Resources signing a brand license agreement with ManpowerGroup to operate in Saudi Arabia on November 20 [4][6] - MSC Industrial Direct Co Inc (NYSE:MSM) has a dividend yield of 4.06%. Loop Capital analyst Chris Dankert maintained a Hold rating and raised the price target from $74 to $84 on July 2, 2025, with an accuracy rate of 72%. Baird analyst David Manthey maintained a Neutral rating and increased the price target from $84 to $95 on July 2, 2025, with an accuracy rate of 76%. Recent news shows that MSC Industrial Direct posted upbeat quarterly earnings on October 23 [5][6]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Stock Performance - Robert Half Inc (NYSE:RHI) has a dividend yield of 8.55%. Barclays analyst Manav Patnaik maintained an Equal-Weight rating and reduced the price target from $45 to $36 on October 23, 2025, with an accuracy rate of 73%. Truist Securities analyst Tobey Sommer maintained a Buy rating and cut the price target from $55 to $50 on October 13, 2025, with an accuracy rate of 70%. Recent news indicates that Robert Half posted weaker-than-expected quarterly results [6] - ManpowerGroup Inc (NYSE:MAN) has a dividend yield of 4.87%. Barclays analyst Manav Patnaik maintained an Equal-Weight rating and lowered the price target from $50 to $42 on October 17, 2025, with an accuracy rate of 73%. Truist Securities analyst Tobey Sommer maintained a Hold rating and reduced the price target from $48 to $44 on October 13, 2025, with an accuracy rate of 70%. Recent news includes Maharah Human Resources signing a brand license agreement with ManpowerGroup to operate in Saudi Arabia [6] - MSC Industrial Direct Co Inc (NYSE:MSM) has a dividend yield of 4.06%. Loop Capital analyst Chris Dankert maintained a Hold rating and raised the price target from $74 to $84 on July 2, 2025, with an accuracy rate of 72%. Baird analyst David Manthey maintained a Neutral rating and increased the price target from $84 to $95 on July 2, 2025, with an accuracy rate of 76%. Recent news shows that MSC Industrial Direct posted upbeat quarterly earnings [6]