Company Strategy and Leadership - Frankiewicz will lead the company's strategy, focusing on innovation, commercial strategy, and AI integration across the global enterprise [1] - Doyle will oversee operations of all ManpowerGroup brands in the United States and Canada, succeeding Frankiewicz [1] - The company aims to leverage technology advancements to create more value for clients and candidates [2] Industry Position and Future Outlook - ManpowerGroup is positioned to lead in shaping the future of the Human Capital industry [2] - The company plans to accelerate growth by infusing AI and Agentic AI across its global enterprise [2] - ManpowerGroup has a strong market presence in over 70 countries and territories, providing skilled talent and sustainable employment [3] Brand Recognition and Values - ManpowerGroup has been recognized for its diversity and was named one of the World's Most Ethical Companies for the 16th time in 2025 [3] - The company has a family of brands, including Manpower, Experis, and Talent Solutions, which create substantial value for candidates and clients [3]

Core Insights - ManpowerGroup has launched a new AI HR Hub in Paris, emphasizing its commitment to human-first, AI-powered solutions for clients and candidates [1][3] - The initiative aligns with a €200 million investment in innovation projects and training in France over the next three years, supporting the country's economic and innovation attractiveness [2] - The AI HR Hub will serve as a Regional Center of Excellence, focusing on developing home-grown innovations and scaling advanced capabilities across ManpowerGroup's global brands [3][4] Investment and Job Creation - ManpowerGroup is creating more than 30 branches and over 200 high-skilled jobs across France as part of its investment strategy [2] - The company aims to enhance the talent pool in France, supporting the growth of AI development through ethical and inclusive practices [4][5] AI HR Hub Focus Areas - Enhanced Candidate Journeys: Utilizing GenAI for personalized career guidance, skills assessments, and real-time job matching [8] - Smarter Client Solutions: Leveraging AI and predictive analytics for improved workforce planning and hiring processes [8] - Empowered HR Agents: Implementing agentic AI tools to support recruiters and talent advisors, enhancing personalization in line with labor market demand [8]

Core Insights - ManpowerGroup has launched the Work Intelligence Lab to assist organizations in adapting to the impact of AI and automation on jobs, with 53% of employers already using AI tools in hiring and onboarding processes [1][2][3] Group 1: Work Intelligence Lab Overview - The Work Intelligence Lab utilizes real-time workforce data from over 70 countries, providing insights into hiring trends, consumer perspectives, and employer demand [2][4] - The lab aims to analyze workforce trends and develop innovative, data-driven solutions to address labor market challenges [3][4] Group 2: Unique Features and Data Utilization - The lab is distinguished by its real-time data ecosystem, powered by more than 22 billion data points, allowing for a dynamic understanding of the global labor market [4] - It employs a co-creation model that integrates clients into the innovation process, aligning employer needs with worker expectations [4] Group 3: Company Background - ManpowerGroup is a leading global workforce solutions company, recognized for its commitment to diversity and ethical practices, having been named one of the World's Most Ethical Companies for the 16th time in 2025 [5]

Core Insights - Manpower is expanding its educational offerings by introducing bachelor's degree programs in Nursing and Education through its MyPath Program in collaboration with the University of Phoenix, aimed at providing accessible career advancement opportunities for healthcare professionals [1][3] Group 1: Educational Initiatives - The new full-tuition college programs allow eligible Manpower associates to pursue education at no cost, supporting career growth and enhancing job opportunities while increasing earning potential [2] - The initiative is designed to meet the growing demand for qualified healthcare professionals, thereby developing a more skilled and versatile workforce for Manpower's healthcare clients [2][4] Group 2: Industry Context - The launch of the Nursing Degree Program coincides with National Nurses Week, highlighting the increasing need for healthcare professionals and the importance of strengthening the industry's talent pipeline [3] - Manpower's recent acquisition of a franchise in Ann Arbor, Michigan, which has been successfully placing talent in healthcare roles for over 20 years, supports its expansion into healthcare staffing [3] Group 3: Commitment to Workforce Development - The partnership with the University of Phoenix not only focuses on healthcare management but also opens opportunities in high-demand fields such as Nursing and Health Administration, equipping individuals with necessary skills for a rapidly evolving job market [4]

Financial Performance - Revenues from services decreased to $4,090.3 million in Q1 2025, down 7.1% from $4,403.3 million in Q1 2024[15] - Gross profit for Q1 2025 was $698.3 million, a decline of 8.5% compared to $763.7 million in Q1 2024[15] - Net earnings fell significantly to $5.6 million in Q1 2025, down 85.9% from $39.7 million in Q1 2024[15] - Basic net earnings per share decreased to $0.12 in Q1 2025, compared to $0.82 in Q1 2024[15] - Total revenue for the three months ended March 31, 2025, was $4,090.3 million, compared to $4,403.3 million for the same period in 2024, reflecting a decrease of approximately 7.1%[39] - Operating profit for the three months ended March 31, 2025, was $28.2 million, down from $65.9 million in the prior year, representing a decline of 57.2%[15] - The company reported a comprehensive income of $1.5 million for the three months ended March 31, 2025, compared to $10.2 million in the same period of 2024[16] - The company reported a comprehensive loss of $4.1 million for the first quarter of 2025, compared to a comprehensive loss of $29.5 million for the same period in 2024[19] Assets and Liabilities - Total assets as of March 31, 2025, were $8,037.2 million, a decrease from $8,201.0 million as of December 31, 2024[13] - Total current liabilities decreased to $4,238.7 million as of March 31, 2025, from $4,437.1 million as of December 31, 2024[13] - Cash and cash equivalents decreased to $395.0 million at the end of Q1 2025, down from $509.4 million at the end of Q4 2024[11] - The balance of retained earnings as of March 31, 2025, was $3,817.9 million, up from $3,813.0 million as of December 31, 2023, indicating a slight increase of approximately 0.1%[19] - As of March 31, 2025, ManpowerGroup reported total shareholders' equity of $2,104.9 million, a decrease from $2,234.1 million as of December 31, 2023, reflecting a decline of approximately 5.8%[19] Cash Flow and Operating Activities - Cash used in operating activities was $(153.2) million in Q1 2025, compared to cash provided of $116.0 million in Q1 2024[18] - Cash and cash equivalents at the end of the period were $395.0 million, down from $604.8 million at the end of the same period in 2024, indicating a decrease of 34.5%[18] - The company incurred selling and administrative expenses of $670.1 million for the three months ended March 31, 2025, compared to $697.8 million in 2024, a reduction of 4.0%[15] Segment Performance - The Americas segment generated $1,056.7 million in revenue for Q1 2025, up from $1,036.4 million in Q1 2024, representing an increase of 1.3%[41] - Southern Europe revenue decreased from $1,981.3 million in Q1 2024 to $1,834.0 million in Q1 2025, a decline of about 7.4%[41] - The company reported total segment revenues of $4,090.3 million for the three months ended March 31, 2025, compared to $3,392.0 million in 2024, reflecting a significant increase[84] - The operating unit profit (OUP) for total segments was $77.4 million for the three months ended March 31, 2025[84] Shareholder Actions - The Board of Directors declared a semi-annual dividend of $0.72 per share for 2025, down from $1.54 per share in 2024[13] - During Q1 2025, the company repurchased 0.4 million shares at a cost of $25.0 million, compared to 0.7 million shares repurchased for $50.0 million in Q1 2024[14] - The company issued 288,938 shares under equity plans during the first quarter of 2025, resulting in a share-based compensation expense of $7.6 million[19] - The total number of common shares issued increased from 118,853,620 as of December 31, 2024, to 119,142,558 as of March 31, 2025, reflecting an increase of 288,938 shares[19] Tax and Regulatory Matters - The effective income tax rate for Q1 2025 was 66.8%, significantly higher than the 31.0% rate in Q1 2024, primarily due to restructuring costs and a one-time French corporate income tax surcharge[48] - Gross unrecognized tax benefits as of March 31, 2025, totaled $36.8 million, an increase from $36.1 million as of December 31, 2024[49] Restructuring and Expenses - Restructuring costs recorded in Q1 2025 amounted to $15.8 million, while no restructuring costs were recorded in Q1 2024[45] - Share-based compensation expense for Q1 2025 was $7.6 million, slightly up from $7.5 million in Q1 2024[42] - Interest expense for the three months ended March 31, 2025, was $22.5 million, compared to $20.4 million in the same period of 2024[12] Future Expectations and Accounting Changes - Management is assessing the impact of new accounting standards on financial statement disclosures, with the new guidance on disaggregation of income statement expenses effective for 2027[32] - The company expects total consolidated amortization expense related to intangible assets to be $22.7 million for the remainder of 2025, with annual expenses projected for the next five years ranging from $26.1 million to $27.5 million[10]

Core Viewpoint - ManpowerGroup has declared a semi-annual dividend of $0.72 per share, reflecting a year-over-year reduction due to the current earnings environment and related payout and yield ratios [1] Company Overview - ManpowerGroup is a leading global workforce solutions company that assists organizations in adapting to the evolving work environment by sourcing, assessing, developing, and managing talent [3] - The company operates under several brands, including Manpower, Experis, and Talent Solutions, providing value to candidates and clients across more than 70 countries and territories for 75 years [3] - ManpowerGroup has been recognized for its commitment to diversity and was named one of the World's Most Ethical Companies in 2025 for the 16th time [3]

Core Insights - ManpowerGroup, Inc. reported mixed first-quarter 2025 results with earnings missing estimates while revenues exceeded expectations [1] - Adjusted EPS was 44 cents, missing the Zacks Consensus Estimate by 15.4% and down 53.2% year over year [1] - Revenues totaled $4.1 billion, surpassing the consensus mark by 3.6% but decreased 7.1% from the previous year [1] Revenue Breakdown - Revenues from America were $1.1 billion, down 2% year over year but up 5.3% at constant currency [2] - U.S. revenues reached $688.8 million, exceeding estimates and rising 1.2% year over year [2] - Southern Europe revenues were $1.83 billion, declining 7.4% on a reported basis and 4.8% at constant currency [3] - Northern Europe revenues fell 16% on a reported basis to $730.8 million [4] - APME revenues totaled $476.4 million, down 11% on a reported basis [4] Operating Performance - The company reported an operating profit of $28.2 million, down 57.2% year over year [5] - Operating profit margin was 0.69% [5] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of the quarter were $395 million, down from $604.8 million a year ago [6] - Long-term debt was $971.4 million, slightly up from $968.9 million [6] - The company used $153.2 million in cash from operating activities [6] Q2 Guidance - Management guided second-quarter EPS in the range of 65-75 cents per share, below the current Zacks Consensus Estimate of $1 [7] - The guidance includes an estimated favorable currency impact of 3 cents and a 46.5% effective tax rate [7]

Core Insights - Talent Solutions Right Management has launched a strategic brand evolution called "The Right Way," focusing on a human-centered, data-backed framework to align business strategy with workforce development for sustained organizational success [1][3]. Brand Strategy - The updated brand strategy emphasizes a commitment to transforming organizations through people-focused career development, featuring a distinctive design element known as "The Right Way loop" that symbolizes purpose and identity [2][3]. - The brand evolution aims to refine the company's story, messaging, and market presence, showcasing its leadership in the industry [3]. Approach and Solutions - Right Management's evolved approach is built on three foundational pillars that support comprehensive solution areas, addressing the changing needs of today's employees who seek meaningful career journeys and alignment with organizational values [4][6]. - The brand evolution enhances market positioning while delivering a distinctive experience for clients, candidates, and partners, with implementation across global markets starting this month [4]. Service Offerings - Right Management provides data-driven insights, career-focused coaching, and measurable outcomes to strengthen the bond between people and organizations [6]. - Key services include assessment and analytics, executive and leadership coaching, and career transition and outplacement support for employees at all levels [6].

Group 1 - The previous investment outlook for ManpowerGroup (NYSE: MAN) was a sell rating due to a belief that the business's near-term outlook was structurally impaired, with the stock trading at 12.5x, indicating potential downside [1] - The investment strategy focuses on long-term investments while incorporating short-term shorts to uncover 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]

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