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)

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]