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]

Financial Performance - Revenue reached $4.5 billion, with system-wide revenue at $4.9 billion[5] - Gross margin was 16.9%[5] - EBITA was $72 million, or $89 million as adjusted[5] - EPS was -$1.44, or -$0.78 as adjusted[5] Segment Performance - Americas revenue was $1.1 billion with OUP at $36 million and OUP margin at 3.4%[22] - Southern Europe revenue was $2.1 billion with OUP at $73 million and OUP margin at 3.4%[25] - Northern Europe revenue was $794 million with OUP at -$9 million and OUP margin at -1.1%[28] - APME revenue was $525 million with OUP at $26 million and OUP margin at 5.0%[31] Business Line Performance - Manpower organic CC revenue increased slightly from the Q1 trend of -2% year over year[12] - Experis organic CC revenue trend declined further from the Q1 trend of -5% year over year[12] - Talent Solutions organic CC revenues increased from the Q1 trend of -2% year over year[13] Outlook - Third quarter 2025 revenue is expected to be flat to up 4% (down 4% to flat CC)[40] - EPS is projected to be $0.77 to $0.87, including a favorable $0.03 currency impact[40] Debt - Total debt outstanding was $1.286 billion as of June 30, 2025[47]

[ManpowerGroup Q2 2025 Earnings Release](index=1&type=section&id=ManpowerGroup%20Q2%202025%20Earnings%20Release) This section provides an overview of ManpowerGroup's second quarter 2025 financial performance, including key highlights and the CEO's strategic commentary [Financial Highlights](index=1&type=section&id=Financial%20Highlights) ManpowerGroup reported a net loss of **$67.1 million** for Q2 2025, driven by a **$2.22 per share** negative impact from non-cash goodwill impairment and restructuring costs, with revenues flat at **$4.5 billion** | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $4.5 billion | $4.5 billion | | Net (Loss) Earnings | ($67.1 million) | $60.1 million | | Net (Loss) Earnings Per Share (Basic) | ($1.44) | $1.25 | - Q2 2025 results included significant charges, notably an **$89 million** non-cash goodwill and intangible asset impairment charge on Swiss and UK businesses, restructuring costs, and losses from business sales, which collectively reduced earnings per share by **$2.22**[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) - Excluding special charges, adjusted diluted EPS for Q2 was **$0.78**, representing a **43% decrease** in constant currency from the prior year[3](index=3&type=chunk) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenues | $8.6 billion | $8.9 billion | | Net (Loss) Earnings | ($61.5 million) | $99.8 million | | Net (Loss) Earnings Per Share (Basic) | ($1.32) | $2.07 | [CEO Commentary and Outlook](index=2&type=section&id=CEO%20Commentary%20and%20Outlook) CEO Jonas Prising highlighted progress in the 'Diversify, Digitize and Innovate' strategy, noting mixed global demand with signs of stabilization in the U.S. and parts of Europe, and projecting Q3 diluted EPS between **$0.77** and **$0.87** - The company is executing its 'Diversify, Digitize and Innovate' plan, focusing on becoming a strategic workforce partner and accelerating AI adoption[7](index=7&type=chunk) - Market demand is mixed, but signs of stabilization are emerging in the US and parts of Europe, as the company focuses on market share gains and cost base adjustments[7](index=7&type=chunk) - ManpowerGroup anticipates Q3 2025 diluted earnings per share to be in the range of **$0.77** to **$0.87**, including an estimated favorable currency impact of **3 cents** and a high effective tax rate of **48.0%**[7](index=7&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents ManpowerGroup's detailed consolidated financial statements, including income statement, segment performance, balance sheet, and cash flow statement, along with company information and forward-looking statements [Company Information and Forward-Looking Statements](index=3&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section provides a corporate overview of ManpowerGroup as a leading global workforce solutions company and includes a standard forward-looking statements disclaimer, cautioning that actual results may differ from projections due to various risks and uncertainties - ManpowerGroup is a global workforce solutions company that develops and delivers innovative solutions through its brands: Manpower, Experis, and Talent Solutions[12](index=12&type=chunk) - The press release contains forward-looking statements regarding economic trends, financial outlook, and strategic initiatives, which are subject to risks and uncertainties detailed in the company's SEC filings, such as the Form 10-K[13](index=13&type=chunk) [Results of Operations (Income Statement)](index=4&type=section&id=Results%20of%20Operations%20(Income%20Statement)) For Q2 2025, ManpowerGroup's revenues were flat at **$4.5 billion**, but an **$88.7 million** impairment charge resulted in an operating loss of **$25.3 million** and a net loss of **$67.1 million**, with six-month revenues declining **3.5%** to **$8.6 billion** | Three Months Ended June 30 | 2025 (in millions) | 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenues from services | $4,519.3 | $4,520.7 | 0.0% | | Gross profit | $763.7 | $785.9 | -2.8% | | Operating (loss) profit | $(25.3) | $101.1 | -125.0% | | Net (loss) earnings | $(67.1) | $60.1 | -211.6% | | Six Months Ended June 30 | 2025 (in millions) | 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenues from services | $8,609.6 | $8,924.0 | -3.5% | | Gross profit | $1,462.0 | $1,549.6 | -5.7% | | Operating profit | $2.9 | $167.0 | -98.3% | | Net (loss) earnings | $(61.5) | $99.8 | -161.6% | - A significant non-cash impairment charge of **$88.7 million** related to goodwill in Switzerland and the United Kingdom was recorded in Q2 2025, primarily driving the operating and net losses for both the three and six-month periods[16](index=16&type=chunk)[22](index=22&type=chunk) [Operating Unit Results (Segment Performance)](index=5&type=section&id=Operating%20Unit%20Results%20(Segment%20Performance)) Q2 2025 segment performance was mixed, with Southern Europe revenue growth of **2.4%** driven by Italy, while Americas remained flat, and Northern Europe and APME experienced revenue declines of **5.1%** and **3.0%** respectively, with Northern Europe recording an operating loss of **$9.0 million** | Q2 2025 Revenue by Segment | Revenue (in millions) | % Change (Reported) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | | Americas | $1,060.0 | -0.4% | +2.0% | | Southern Europe | $2,149.3 | +2.4% | -2.8% | | Northern Europe | $794.4 | -5.1% | -10.4% | | APME | $525.3 | -3.0% | -8.0% | | Q2 2025 Operating Profit by Segment | OUP (in millions) | % Change (Reported) | | :--- | :--- | :--- | | Americas | $36.1 | -19.9% | | Southern Europe | $73.3 | -11.9% | | Northern Europe | $(9.0) | -279.7% | | APME | $26.4 | +5.0% | - Effective January 1, 2025, the company realigned its segment reporting to include the Morocco business within Other Southern Europe, with all prior period results recast to conform to this new presentation[18](index=18&type=chunk)[24](index=24&type=chunk) [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, ManpowerGroup's total assets increased to **$8.51 billion**, while cash and cash equivalents decreased to **$289.8 million**, and short-term borrowings significantly increased to **$815.4 million**, leading to a decrease in total shareholders' equity to **$1.99 billion** | Balance Sheet Highlights (in millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $289.8 | $509.4 | | Total current assets | $5,143.1 | $4,970.3 | | Total assets | $8,505.3 | $8,201.0 | | Short-term borrowings and current maturities of long-term debt | $815.4 | $23.4 | | Total liabilities | $6,510.1 | $6,074.1 | | Total shareholders' equity | $1,995.2 | $2,126.9 | - Goodwill decreased slightly to **$1.55 billion**, while intangible assets, net, decreased to **$445.1 million** from **$486.1 million**, reflecting impairment and amortization[28](index=28&type=chunk) [Consolidated Statement of Cash Flows](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company experienced a net cash outflow, with cash and cash equivalents decreasing by **$219.6 million**, primarily due to **$342.8 million** cash used in operating activities, partially offset by **$124.0 million** cash provided by financing activities | Six Months Ended June 30 (in millions) | 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) | - The net loss of **$61.5 million** and a **$209.6 million** use of cash from accounts payable were major contributors to the negative operating cash flow, despite a non-cash impairment add-back of **$88.7 million**[30](index=30&type=chunk) - Financing activities included net proceeds from debt of **$203.1 million** (**$67.1 million** short-term + **$136.0 million** revolving), which funded **$38.2 million** in stock repurchases and **$33.3 million** in dividends[30](index=30&type=chunk)

Core Insights - ManpowerGroup reported a net loss of $67.1 million or $1.44 per basic share for Q2 2025, a significant decline from net earnings of $60.1 million or $1.24 per diluted share in the same period last year [1][2] - Revenues for the second quarter remained flat at $4.5 billion, but decreased by 3% on a constant currency basis [1][7] - The company faced a non-cash goodwill and intangible asset impairment charge of $89 million, restructuring costs, and losses from the sale of businesses, which collectively reduced earnings per share by $2.22 [2][8] Financial Performance - For the six months ended June 30, 2025, net losses were $61.5 million or $1.32 per basic share, compared to net earnings of $99.8 million or $2.05 per diluted share in the prior year [3][18] - Excluding impairment and restructuring charges, adjusted earnings per share for the six-month period was $1.22, reflecting a 47% decrease in constant currency [3][10] - Total revenues for the six-month period were $8.6 billion, a decrease of 4% compared to the previous year [3][18] Operational Insights - The company is focusing on diversifying, digitizing, and innovating to enhance its role as a strategic workforce partner amid mixed demand across global markets [3][5] - Positive signs of stabilization are noted in the U.S. and parts of Europe, although demand remains volatile due to economic and geopolitical factors [3][5] - The gross profit margin for Q2 2025 was 16.9%, slightly down from the previous quarter, influenced by changes in business mix [7][12] Segment Performance - The Americas region saw a slight revenue decline of 0.4%, with the U.S. specifically down by 3.3% [14][21] - Southern Europe reported a 2.4% increase in revenues, driven by growth in Italy, while Northern Europe experienced a 10.7% decline [14][21] - The Manpower and Talent Solutions brands returned to revenue growth, while Experis faced declines due to sluggish professional staffing demand [7][12] Future Outlook - The company anticipates diluted earnings per share for Q3 2025 to be between $0.77 and $0.87, factoring in a favorable currency impact [3][5] - Ongoing investments in digital capabilities and AI adoption are expected to position the company for future growth and enhanced client value [3][5]