ManpowerGroup(MAN) - 2025 Q2 - Quarterly Results

ManpowerGroup Q2 2025 Earnings Release This section provides an overview of ManpowerGroup's second quarter 2025 financial performance, including key highlights and the CEO's strategic commentary Financial Highlights 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][4][5] - Excluding special charges, adjusted diluted EPS for Q2 was $0.78, representing a 43% decrease in constant currency from the prior year[3] | 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 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] - 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] - 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] Consolidated Financial Statements 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 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] - 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] Results of Operations (Income Statement) 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][22] Operating Unit Results (Segment Performance) 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][24] Consolidated Balance Sheet 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] Consolidated Statement of Cash Flows 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] - 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]