[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1 Financial Statements (unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q2 2025 reveal a significant downturn, reporting a net loss primarily due to substantial non-cash impairment charges [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to **$8.51 billion** as of June 30, 2025, while rising liabilities led to a decline in shareholders' equity Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$8,505.3** | **$8,201.0** | | Cash and cash equivalents | $289.8 | $509.4 | | Accounts receivable, net | $4,641.3 | $4,297.2 | | Goodwill | $1,549.0 | $1,563.4 | | **Total Liabilities** | **$6,510.1** | **$6,074.1** | | Short-term borrowings and current maturities of long-term debt | $815.4 | $23.4 | | Long-term debt | $470.3 | $929.4 | | **Total Shareholders' Equity** | **$1,995.2** | **$2,126.9** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $67.1 million** for Q2 2025, primarily due to an **$88.7 million** impairment charge Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues from services | $4,519.3 | $4,520.7 | | Gross profit | $763.7 | $785.9 | | Impairment charges | $88.7 | $— | | Operating (loss) profit | $(25.3) | $101.1 | | Net (loss) earnings | $(67.1) | $60.1 | | Net (loss) earnings per share – diluted | $(1.44) | $1.24 | Six Months 2025 vs 2024 Performance (in millions) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Revenues from services | $8,609.6 | $8,924.0 | | Gross profit | $1,462.0 | $1,549.6 | | Impairment charges | $88.7 | $— | | Operating profit | $2.9 | $167.0 | | Net (loss) earnings | $(61.5) | $99.8 | | Net (loss) earnings per share – diluted | $(1.32) | $2.05 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) **Cash used in operating activities** significantly increased to **$342.8 million** for H1 2025, driven by working capital needs Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(342.8) | $(21.9) | | Cash used in investing activities | $(34.0) | $(21.6) | | Cash provided by (used in) financing activities | $124.0 | $(38.6) | | **Change in cash and cash equivalents** | **$(219.6)** | **$(112.4)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail significant **goodwill and intangible asset impairments**, **restructuring costs**, and a negative effective tax rate - Recognized a non-cash **goodwill impairment loss** of **$33.4 million** for the United Kingdom reporting unit and **$24.7 million** for the Switzerland reporting unit[30](index=30&type=chunk) - Recognized a full **impairment** of **$30.6 million** related to the reacquired franchise right associated with the Switzerland business[31](index=31&type=chunk) - Recorded **$30.2 million** in **restructuring costs** during the six months ended June 30, 2025, primarily for severance and office closures[52](index=52&type=chunk) - The **effective tax rate** for Q2 2025 was **-60.2%**, driven by non-deductible **impairment charges** and losses on disposals[55](index=55&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes challenging Q2 2025 results to macroeconomic uncertainties, leading to an operating loss from impairments and restructuring costs [Business Overview and Operating Results](index=26&type=section&id=Business%20Overview%20and%20Operating%20Results) The business environment remains mixed, with Q2 2025 revenues flat but a **net loss** primarily due to **impairment and restructuring costs** - The business environment is mixed, with employers remaining cautious in their workforce strategies due to macroeconomic and geopolitical uncertainties[112](index=112&type=chunk) Q2 2025 Key Financial Metrics (in millions) | Metric | 2025 | 2024 | Variance | Constant Currency Variance | | :--- | :--- | :--- | :--- | :--- | | Revenues from services | $4,519.3 | $4,520.7 | 0.0% | (3.5)% | | Operating (loss) profit | $(25.3) | $101.1 | (125.0)% | (127.9)% | | Net (loss) earnings | $(67.1) | $60.1 | (211.6)% | (208.2)% | | Net (loss) earnings per share – diluted | $(1.44) | $1.24 | (216.3)% | (212.8)% | - The decrease in operating profit was primarily driven by goodwill and intangible asset **impairment charges** of **$88.7 million** and **restructuring costs** of **$14.4 million**[120](index=120&type=chunk) [Segment Operating Results](index=32&type=section&id=Segment%20Operating%20Results) Q2 2025 segment performance varied, with Americas and Southern Europe mixed, while Northern Europe and APME saw declines - **Americas:** Q2 revenue decreased **0.4%** (**+2.0%** constant currency) U.S. revenue fell **3.3%** due to lower demand for Experis interim services OUP margin decreased from **4.2%** to **3.4%**[133](index=133&type=chunk)[139](index=139&type=chunk) - **Southern Europe:** Q2 revenue increased **2.4%** (**-2.8%** constant currency) France revenue decreased **1.3%**, while Italy grew **9.4%** OUP margin decreased from **4.0%** to **3.4%**[141](index=141&type=chunk)[147](index=147&type=chunk) - **Northern Europe:** Q2 revenue decreased **5.1%** (**-10.4%** constant currency), with declines in the UK (**-9.0%**) and Germany (**-18.5%**) The segment reported an OUP loss, with the margin declining to **-1.1%** from **-0.3%**[149](index=149&type=chunk)[154](index=154&type=chunk) - **APME:** Q2 revenue decreased **3.0%** (**-8.0%** constant currency), impacted by the Korea disposition Japan revenue grew **15.7%** OUP margin improved from **4.6%** to **5.0%**[156](index=156&type=chunk)[162](index=162&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity despite decreased cash and increased debt, with significant cash used in operating activities Liquidity and Capital Structure (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $289.8 | $509.4 | | Available liquidity | $853.4 | $1,259.0 | | Total debt | $1,285.7 | $952.8 | | Total shareholders' equity | $1,994.4 | $2,125.2 | | Debt to capitalization | 39.2% | 31.0% | - **Cash used in operating activities** was **$342.8 million** for the first six months of 2025, compared to **$21.9 million** in the prior year, mainly due to timing of collections and payments[172](index=172&type=chunk) - The company **repurchased 0.7 million shares** for **$37.0 million** during the six months ended June 30, 2025[184](index=184&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk disclosures have occurred since the 2024 Annual Report on Form 10-K - There have been **no material changes** to the company's market risk disclosures since the 2024 Annual Report on Form 10-K[193](index=193&type=chunk) [Item 4 Controls and Procedures](index=40&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the company's **disclosure controls and procedures were effective** at a reasonable assurance level[194](index=194&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[195](index=195&type=chunk) [PART II OTHER INFORMATION](index=41&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1A Risk Factors](index=41&type=section&id=Item%201A%20Risk%20Factors) The company's operations remain subject to previously disclosed risk factors, with no new significant risks identified - The company's operations continue to be subject to the **risk factors disclosed** in the 2024 Annual Report on Form 10-K[196](index=196&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company **repurchased 233,073 shares** at **$52.03** per share, with **1.9 million** remaining authorized Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2025 | 230,241 | $52.03 | | May 1 - 31, 2025 | 1,685 | — | | June 1 - 30, 2025 | 1,147 | — | | **Total** | **233,073** | **$52.03** | - As of June 30, 2025, **1.9 million shares** remained authorized for repurchase under the 2023 authorization[197](index=197&type=chunk) [Item 5 Other Information](index=41&type=section&id=Item%205%20Other%20Information) The Audit Committee approved various non-audit services from Deloitte & Touche LLP, and no Rule 10b5-1 trading plans were adopted or terminated - The Audit Committee approved **non-audit services** from Deloitte & Touche LLP related to tax returns, transfer pricing, and sustainability program advice[199](index=199&type=chunk)[200](index=200&type=chunk) - **No director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements** during the quarter ended June 30, 2025[199](index=199&type=chunk) [Item 6 Exhibits](index=42&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a credit agreement amendment, CEO/CFO certifications, and XBRL data - **Exhibits filed include** Amendment No. 2 to the Credit Agreement, CEO/CFO certifications, and Inline XBRL documents[202](index=202&type=chunk)

Core Insights - ManpowerGroup has appointed Valerie Beaulieu-James as its first Chief Growth Officer, effective August 1, 2025, to lead the company's commercial strategy and accelerate growth [1][2]. Company Overview - ManpowerGroup is a leading global workforce solutions company that has been providing innovative talent solutions for over 75 years, operating in more than 70 countries and territories [6]. - The company is recognized for its commitment to diversity and has been named one of the World's Most Ethical Companies for the 16th time in 2025 [6]. Leadership and Strategy - Beaulieu-James will report to President & Chief Strategy Officer Becky Frankiewicz and will be responsible for shaping and executing ManpowerGroup's Integrated Commercial Strategy across its brands: Manpower, Experis, and Talent Solutions [3]. - The new Chief Growth Officer aims to leverage data, market intelligence, and AI-driven capabilities to enhance market share, deepen stakeholder engagement, and strengthen brand equity globally [3][4]. Vision and Goals - Beaulieu-James expressed her commitment to transforming the world of work by focusing on human-centered solutions while utilizing insights and AI to improve client and candidate experiences [5]. - The company aims to accelerate its growth agenda and create more personalized connections to meaningful work for candidates [4][5].

Core Insights - ManpowerGroup, Inc. reported strong second-quarter 2025 results with earnings and revenues exceeding Zacks Consensus Estimates, although the market reaction was muted [1] - The stock has seen a 5% increase since the earnings release on July 15 [1] Financial Performance - Adjusted EPS for the quarter was 78 cents, beating the Zacks Consensus Estimate by 13% but down 40% year over year [2] - Total revenues reached $4 billion, surpassing the consensus estimate by 1.6% and increasing by 4.2% year over year [2] - Over the past year, ManpowerGroup shares have declined by 38.1%, compared to a 29.3% drop in the industry and a 13.6% rise in the Zacks S&P 500 composite [2] Revenue Breakdown - Revenues from America totaled $1.06 billion, slightly down 0.4% year over year but up 2% at constant currency [3] - U.S. revenues were $674.1 million, exceeding estimates but down 3.3% year over year [3] - Southern Europe revenues were $2.2 billion, up 2.4% on a reported basis but down 2.8% at constant currency [4] - Northern Europe revenues declined by 5.1% on a reported basis and 10.4% at constant currency to $794.4 million [5] Operating Performance - The company reported an operating loss of $25.3 million, reflecting a significant decline year over year [6] Balance Sheet and Cash Flow - ManpowerGroup ended the quarter with cash and cash equivalents of $395 million, up from $289.8 million in the previous year [7] - Long-term debt decreased to $470.3 million from $929.4 million year over year [7] - The company reported a cash outflow of $342.8 million from operating activities and capital expenditures of $31.3 million [7] Guidance - Management provided guidance for second-quarter EPS in the range of 77-87 cents, aligning with the current Zacks Consensus Estimate [8] - The guidance includes an estimated favorable currency impact and a 48% effective tax rate [8]

Core Insights - ManpowerGroup Talent Solutions has partnered with Carv to enhance its Recruitment Process Outsourcing (RPO) operations through the integration of Carv's agentic AI technology [1][5] - The collaboration aims to automate routine tasks, speed up hiring processes, and improve the overall candidate experience [1][2] Company Overview - ManpowerGroup is a leading global workforce solutions company, recognized for its innovative solutions and commitment to diversity and ethical practices [6] - The company operates through various brands, including Manpower, Experis, and Talent Solutions, providing services across more than 70 countries [6][8] Technology Integration - ManpowerGroup has developed a digital core, PowerSuite, which processes 90% of front office revenues and serves as the foundational tech stack for integrating Carv's AI [3] - Carv's AI technology is designed to adapt to recruiters' workflows, enhancing productivity and enabling a more strategic approach to talent matching [4][5] Expected Outcomes - The deployment of Carv's AI is anticipated to significantly reduce time-to-hire and improve recruiter productivity, leading to better outcomes for candidates globally [5]

Group 1 - The previous investment stance on ManpowerGroup (NYSE: MAN) was a strong sell due to worsening demand conditions and an anticipated acceleration in revenue decline, leading to negative earnings revisions [1] - The current investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities, emphasizing a bottom-up analysis of individual companies' fundamental strengths and weaknesses [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - The general sentiment around ManpowerGroup Inc. (NYSE: MAN) has been bearish over the last year, with multiple articles published on Seeking Alpha reflecting this outlook [1] - The focus of the analysis is on how businesses grow, market reactions, and the narrative behind data, particularly in sectors like tech, infrastructure, and internet services [1] Group 2 - The analyst holds FMVA® and BIDA® certifications and emphasizes the importance of strong fundamentals paired with real potential in investment opportunities [1] - The article aims to provide thoughtful breakdowns and investment ideas, fostering a community of investors interested in long-term returns [1]

Core Insights - ManpowerGroup reported $4.52 billion in revenue for the quarter ended June 2025, showing no year-over-year change, with an EPS of $0.78 compared to $1.30 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $4.35 billion by +3.78%, while the EPS surpassed the consensus estimate of $0.69 by +13.04% [1] Revenue Breakdown - Revenues from Services- Americas: $1.06 billion, exceeding the average estimate of $1.03 billion, with a year-over-year change of -0.4% [4] - Revenues from Services- APME: $525.3 million, above the average estimate of $507.62 million, representing a -3% year-over-year change [4] - Revenues from Services- Southern Europe: $2.15 billion, surpassing the average estimate of $2.06 billion, with a +2.5% year-over-year change [4] - Revenues from Services- Northern Europe: $794.4 million, exceeding the average estimate of $761.32 million, showing a -5.1% year-over-year change [4] - Revenues from Services- Southern Europe- Other Southern Europe: $524.1 million, above the average estimate of $488.79 million, with a +9.6% year-over-year change [4] - Revenues from Services- Southern Europe- France: $1.15 billion, slightly above the average estimate of $1.12 billion, with a -3% year-over-year change [4] - Revenues from Services- Americas- United States: $674.1 million, exceeding the average estimate of $671.45 million, with a -3.3% year-over-year change [4] - Revenues from Services- Americas- Other Americas: $385.9 million, above the average estimate of $357.07 million, with a +5% year-over-year change [4] - Revenues from Services- Southern Europe- Italy: $475.9 million, exceeding the average estimate of $448.47 million, with a +9.4% year-over-year change [4] Profitability Metrics - Operating Unit Profit- Corporate expenses: reported at $-55.1 million, compared to the average estimate of $-40.68 million [4] Stock Performance - Manpower shares have returned +8.3% over the past month, outperforming the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - ManpowerGroup reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, but down from $1.3 per share a year ago, representing an earnings surprise of +13.04% [1] - The company posted revenues of $4.52 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.78%, with year-ago revenues also at $4.52 billion [2] - Over the last four quarters, Manpower has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Manpower shares have declined approximately 25.3% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $4.36 billion, and for the current fiscal year, it is $2.66 on revenues of $17.28 billion [7] Group 3: Industry Context - The Staffing Firms industry, to which Manpower belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, Insperity, Inc., is expected to report quarterly earnings of $0.41 per share, reflecting a year-over-year decline of -52.3% [9]

Financial Data and Key Metrics Changes - System-wide revenue for the quarter was $4.9 billion, with reported revenue at $4.5 billion, down 3% year over year in constant currency [9][12] - Reported EBITDA for the quarter was $72 million, while adjusted EBITDA was $89 million, representing a decrease of 25% in constant currency year over year [9][10] - Adjusted earnings per share decreased 43% year over year in constant currency, with reported losses per share at $1.44 and adjusted EPS at $0.78 [10][14] Business Line Data and Key Metrics Changes - On an organic constant currency basis, the Manpower brand had growth of 1%, while the Experis brand declined by 9% and the Talent Solutions brand grew by 1% [14][15] - The Manpower brand comprised 62% of gross profit, with the Experis brand at 22% and Talent Solutions at 16% [16] - Consolidated gross profit decreased by 5% on an organic constant currency basis year over year, with the Manpower brand reporting flat organic constant currency gross profit year over year [16][17] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 2% year-over-year increase on a constant currency basis [19] - Revenue in Southern Europe was $2.1 billion, reflecting a 2% decrease in organic constant currency [23] - Revenue in Northern Europe was $794 million, representing a 10% decline in constant currency [26] Company Strategy and Development Direction - The company is focused on market share gains by targeting faster-growing industry verticals and leveraging AI for sales targeting [42][43] - The strategy includes moving certain businesses to franchise models to enhance local market growth [46] - The company continues to invest in digital transformation and AI capabilities to support evolving client needs and drive productivity [35][38] Management's Comments on Operating Environment and Future Outlook - Management noted a stabilization in the U.S. and parts of Europe, with a cautious outlook in Northern Europe due to economic and geopolitical headwinds [9][60] - The company anticipates ongoing stability in most markets and forecasts earnings per share for Q3 to be in the range of $0.77 to $0.87 [32] - Management highlighted the potential for improved market conditions in Northern Europe if economic uncertainties subside [60][62] Other Important Information - The company received multiple accolades, including being named Forbes America's number one temp staffing firm and recognized for sustainability [39] - Free cash flow represented an outflow of $7 million compared to an outflow of $150 million in the prior year, with expectations for strong free cash flow in the second half of the year [30] Q&A Session Summary Question: Market share gains strategy - The company is targeting faster-growing industry verticals and using AI to enhance sales targeting, resulting in improved revenue performance [42][43] Question: Franchise model expansion - The company is exploring additional markets for the franchise model to enhance local growth and brand deployment [46] Question: U.S. trends and organic growth outlook - The U.S. business saw a 3% decline overall, but the Manpower brand grew by 9%, indicating strong market performance [48][49] Question: Northern Europe revenue trends - Management indicated that Northern Europe is facing challenges due to economic conditions, but expects improvements as the economic environment stabilizes [60][62] Question: Impact of defense spending on industrial sectors - The company anticipates that increased defense and infrastructure spending in Europe will positively impact broader economic conditions and manufacturing sectors [95][96]

Financial Data and Key Metrics Changes - System-wide revenue for the quarter was $4.9 billion, with reported revenue at $4.5 billion, down 3% year over year in constant currency [6][10] - Reported EBITDA for the quarter was $72 million, while adjusted EBITDA was $89 million, representing a decrease of 25% in constant currency year over year [6][11] - Adjusted earnings per share decreased 43% year over year in constant currency, with reported losses per share at $1.44 and adjusted EPS at $0.78 [7][12] Business Line Data and Key Metrics Changes - The Manpower brand had growth of 1% year over year in organic constant currency, while the Experis brand declined by 9% [12][14] - Talent Solutions brand experienced growth of 1%, with the MSP business recording strong revenue increases compared to the prior year [12][14] - Consolidated gross profit decreased by 5% on an organic constant currency basis year over year, with the Manpower brand comprising 62% of gross profit [14][15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 2% year-over-year increase in constant currency [17] - Southern Europe revenue was $2.1 billion, reflecting a 2% decrease in organic constant currency [21] - Revenue in Northern Europe was $794 million, representing a 10% decline in constant currency [23][24] - Asia Pacific Middle East segment revenues increased by 8% in organic constant currency, with Japan growing by 7% [25][26] Company Strategy and Development Direction - The company is focused on market share gains, utilizing AI to enhance sales targeting and identify high-revenue leads [40][41] - There is an ongoing strategy to transition certain businesses to a franchise model to better serve local markets [43][44] - The company continues to invest in digital transformation and AI capabilities to support evolving client needs and drive productivity [34][36] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic conditions remain challenging, there are signs of stabilization in the US and parts of Europe [6][30] - The company anticipates ongoing stability in most markets, with a forecast for third-quarter earnings per share in the range of $0.77 to $0.87 [30][31] - Management highlighted the importance of geopolitical factors and economic conditions in Northern Europe, which are impacting performance [56][58] Other Important Information - Free cash flow represented an outflow of $7 million compared to an outflow of $150 million in the prior year [28] - The company ended the quarter with cash of $290 million and total debt of $1.29 billion, with net debt levels peaking at June 30 [29][30] - The company received multiple accolades, including being named Forbes America's number one temp staffing firm [37] Q&A Session Summary Question: Who is the company gaining market share from and what is the strategy? - The company is targeting faster-growing industry verticals using data to identify growth opportunities and deploying AI to enhance sales targeting [40][41] Question: Are there plans to move more businesses to a franchise model? - The company is continuously evaluating markets for potential franchise opportunities to better serve clients [43][44] Question: What are the underlying organic growth trends in the US? - The US business saw a decline of 3% for the quarter, with the Manpower brand performing strongly at a 9% increase [46][47] Question: What is the outlook for Northern Europe? - Northern Europe is facing economic challenges, but management believes demand will eventually return as geopolitical uncertainties subside [56][58] Question: How is the company addressing cost structures in Northern Europe? - The company has taken significant restructuring actions to align costs with current demand and is preparing for future growth [58][60] Question: What is the impact of defense spending in Europe? - Increased defense and infrastructure spending in Europe is expected to positively impact the broader economy and manufacturing sectors [90][92] Question: How is the company positioned for reshoring in the US? - Clients are increasingly considering expanding manufacturing in the US, which could benefit the company's operations [94][96]