Group 1 - Employers are focusing on workforce retention rather than hiring, with a report from ManpowerGroup indicating a shift in talent outlook as organizations prepare for Q4 [3][4] - A significant number of employers are considering workforce reductions, with only a small percentage planning to hire more in Q4 2025 [4] - Career growth pathways are identified as the leading driver of employee retention, surpassing trust in senior leadership [4] Group 2 - A report from Workday highlights that top performers are leaving companies due to stalled career growth and a decline in internal promotions [5] - Despite potential backlash, large employers (84%) are more likely to maintain diversity and inclusion initiatives compared to smaller companies (67%), viewing them as stabilizing forces amid economic uncertainty [6] Group 3 - Employee retention and burnout are critical concerns for employers, with two-thirds of over 4,000 surveyed expressing worries about stress and burnout effects [8] - Only a quarter of employers provide mental health training for leaders, indicating a gap in support for managing workforce well-being [8] - A majority of employers (74%) plan to implement inclusion and diversity initiatives in 2025 to strengthen organizational culture and combat high turnover [8]

Core Insights - Talent Solutions RPO has been recognized as a top provider on HRO Today's 2025 Baker's Dozen list of Enterprise RPO Leaders, ranking ninth overall and achieving top 10 placements for Quality of Service (8) and Size of Deals (7) [1][2] Company Performance - The recognition on the Baker's Dozen list reflects the trust and partnership Talent Solutions RPO has built with clients globally, highlighting the company's commitment to delivering value and meeting evolving talent needs [2][3] - Talent Solutions RPO's ability to manage large-scale, complex RPO projects has been validated through consecutive recognition on the Baker's Dozen list, emphasizing its role as a trusted advisor and partner [2][3] Industry Context - The HRO Today Baker's Dozen Customer Satisfaction Ratings are based entirely on customer feedback, making it a respected benchmark in the RPO industry [3] - Talent Solutions RPO's client-centric approach leverages deep industry expertise, best-in-class technology, and workforce insights to deliver top talent and improved business results [2][3] Company Background - ManpowerGroup, the parent company of Talent Solutions RPO, is a leading global workforce solutions provider, recognized for its commitment to diversity and ethical practices [5][7] - Talent Solutions combines various offerings to address complex workforce needs, providing end-to-end, data-driven capabilities across the talent lifecycle [7]

Core Insights - ManpowerGroup released its 2024-2025 Sustainability Report titled "Working to Change the World: A Human-First, Just Transition," highlighting progress in sustainability across three pillars: Planet, People & Prosperity, and Principles of Governance [1][2]. Group 1: Planet - The company reduced direct (scope 1 & 2) emissions by 32% since 2019 and by 9% year-over-year [6]. - Renewable energy usage increased by 18% in 2024, with France and the U.S. jointly procuring almost 13,000 MWh in renewable electricity [6]. - An electric vehicle fleet expansion included the addition of 100 EVs while removing 200 gas-powered vehicles [6]. Group 2: People & Prosperity - The Manpower MyPath program scaled to over 301,000 associates, enhancing employability and providing career pathways [6]. - The company is on track to upskill 170,000 individuals through Experis Academy in Europe, focusing on AI skills and providing intensive training [6]. - Partnerships with clients enabled over 400,000 individuals globally to enhance their digital skills to meet new market demands [6]. Group 3: Principles of Governance - ManpowerGroup was recognized by Ethisphere for the 16th time as one of the World's Most Ethical Companies, the highest in the industry [6]. - A comprehensive Double Materiality Assessment (DMA) was completed to align with the EU Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS) [6]. - The company founded an AI New Projects Review Committee to create guidelines for ethical and responsible AI use [6].

Core Insights - The 2025 Internal Audit Priorities Survey by Jefferson Wells highlights that cybersecurity remains the top emerging risk for the fifth consecutive year, emphasizing the need for strong cyber defenses in a vulnerable technology landscape [2][4] - Generative AI has emerged as the second most pressing concern, influencing audit strategies and the necessary skillsets to manage these risks [2][4] - Economic uncertainty has become a significant factor for audit leaders, with 26% of respondents citing it as a concern, a notable increase from nearly zero in the previous year [2] Group 1: Key Trends - Cybersecurity is identified as the foremost risk, indicating a critical focus for internal audit functions [2][3] - The rise of generative AI is reshaping audit strategies and toolsets, necessitating new skills for audit teams [2][4] - Economic uncertainty is now a prominent concern, reflecting changing market conditions and their impact on audit priorities [2] Group 2: Challenges Faced - Internal audit departments are facing skill shortages in key areas such as cybersecurity, AI, IT audit, and data analytics [3] - Over 85% of audit leaders are relying on external partners to fill critical skill gaps within their teams [3][4] - The need for internal audit functions to adapt to rapid advancements in technology and economic conditions is underscored [4]

Core Insights - The report titled "The Career Equation: What Attracts Talent Isn't What Keeps Them" reveals a significant disconnect between what organizations believe attracts talent and what actually retains them [2][3] - It emphasizes the importance of cultural fit, career development, and purpose in retaining top talent, rather than just focusing on attraction strategies [3] Key Findings - A survey of 1,029 leaders and 2,402 employees across various regions indicates that 53% of leaders believe their employees are fully engaged, while only 37% of employees report the same [5] - In Latin America, 63% of leaders think their teams are fully engaged, contrasting with only 41% of employees [5] - Engagement levels in Europe and Asia-Pacific are critically low, with only 32% and 33% of employees fully engaged, respectively [5] - Employees prioritize cultural fit and career development as key drivers of engagement, yet only 24% of leaders recognize cultural fit as important, and less than 20% cite career development [5] - While pay and perks may attract talent, long-term retention is driven by intrinsic factors such as purpose, growth, and cultural alignment [5] Industry Implications - The findings suggest that organizations must shift their focus from merely attracting talent to implementing strategies that enhance employee engagement and retention [3] - The report serves as a wake-up call for business leaders to invest in employee skills, careers, and well-being to maintain productivity and profitability [3] - A follow-up report in the State of Careers series is expected to provide further insights and practical strategies for organizations [3]

Group 1 - Employers are becoming cautious in their hiring outlook, focusing more on retention rather than new hiring, with an emphasis on selective hiring to maintain organizational resilience [3][4] - Nearly half of employers surveyed identified attracting qualified applicants and retention as their biggest challenges, with AI talent remaining in demand despite hiring slowdowns in other areas [3] - Two-thirds of HR managers have implemented hiring freezes, and nearly half plan to pause recruitment for at least the next 12 months, leading to a focus on reskilling and internal mobility [4] Group 2 - The global hiring market is becoming more measured due to economic uncertainty, with 45% of employers intending to maintain current workforce levels in Q4 2025, the highest since early 2022 [6] - Less than 40% of employers plan to add staff in Q4, while 15% expect to reduce their workforce, indicating a cautious approach to hiring [6] - Employers that do intend to hire are focusing on specific capabilities, particularly in technological advancement [6]

Core Insights - Experis has been recognized as a Leader in Everest Group's U.S. IT Contingent Talent and Strategic Solutions PEAK Matrix® Assessment for the fourth consecutive year, highlighting its strong market position and service offerings [1][5]. Company Overview - Experis is a global leader in technology workforce solutions, part of the ManpowerGroup family, focusing on attracting, assessing, and placing specialized technology talent [6][9]. - The company provides extensive training and development programs through Experis Academy and operates Specialized Centers of Excellence (COEs) to enhance domain expertise [6][8]. Service Offerings - Experis delivers talent across various domains, including application, infrastructure, data, and automation services, serving key industries such as banking, financial services, insurance, manufacturing, wholesale and retail trade, and healthcare [3][4]. - The company emphasizes managed services and specialized practice areas, including tech transformation strategy, enterprise applications, cloud and infrastructure, digital workspace, and cybersecurity [3][4]. Strategic Focus - Experis has a significant focus on leveraging AI, analytics, and automation to improve client and candidate experiences, utilizing proprietary platforms like the Experis PowerSuite™ technology stack [4][7]. - The company has made strategic investments to strengthen its offerings and maintain resilience in a challenging staffing market [4][5]. Recognition and Assessment - The PEAK Matrix® Assessment evaluates contingent staffing providers based on market success, delivery capability, vision and strategy, innovation, investments, and delivery footprint, with Experis being one of only seven companies recognized as a Leader out of 30 assessed [5].

Core Insights - Manpower has been recognized by Everest Group as a Leader and Star Performer, reflecting its strong vision and commitment to addressing workforce challenges [2][9] - The company received high scores for value delivered, scope of services, and vision and strategy, highlighting its robust upskilling programs and investments in managed services and proprietary technology [1][4] Company Overview - Manpower, part of ManpowerGroup, is a global leader in contingent staffing and permanent resourcing, providing strategic and operational flexibility to companies [5] - The company utilizes data-driven insights for talent assessment and placement, and its PowerSuite tech platform aids in predicting performance potential [5] - Manpower's MyPath skilling program focuses on rapid skills development through on-the-job training and market-based certifications [5] Industry Recognition - Everest Group's PEAK Matrix® Assessment evaluates contingent staffing providers based on market success and delivery capability, classifying companies into Leaders, Major Contenders, or Aspirants [2] - The Star Performer distinction is awarded to organizations showing significant year-over-year improvements in market success and capability advancement [3] Strategic Initiatives - Manpower's focus on skilled trades and its Manufacturing Center of Excellence exemplify its commitment to elevating skilled trades [2][4] - Investments in proprietary platforms like Sophie and PowerSuite, along with data-driven tools such as Total Cost of Workforce (TCoW) and Client Stability Index (CSI), demonstrate innovation and operational efficiency [4]

Group 1: Industry Performance - The performance of human resource service providers in Europe and the US showed signs of stabilization in Q2 after a poor start to the year, with companies like ManpowerGroup, Robert Half, and Adecco reporting slight sequential profit growth as employers adapt to geopolitical and economic instability [1] - Adecco's Q2 earnings exceeded expectations due to a faster-than-expected increase in flexible positions, with the company anticipating better earnings in the second half of the year [4] - Robert Half's Q3 guidance fell below expectations, and the company reported a 16% decline in gross profit for the first half of the year due to weak recruitment activity in Europe [5] Group 2: Market Sentiment and Challenges - Despite some positive signs, the overall tone in the industry remains cautious, with companies warning of ongoing challenges ahead [4] - Analysts indicate that the job market is still sluggish, with manufacturing and professional services sectors experiencing slowed employment growth, which are key areas for ManpowerGroup and Robert Half [6] - In Europe, the job market is particularly dire, with the UK's unemployment rate reaching a four-year high and job vacancies falling below pre-pandemic levels, influenced by rising labor costs and government policies [6]

[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)