ManpowerGroup(MAN) - 2025 Q1 - Quarterly Report

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]