ManpowerGroup(MAN) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights ManpowerGroup reported mixed Q3 2025 results with revenue growth but adjusted EPS decline, while year-to-date performance showed significant losses due to charges Q3 2025 Financial Performance Q3 2025 net earnings were $0.38 per diluted share on $4.6 billion revenue, with adjusted EPS down 39% constant currency due to restructuring Q3 2025 Financial Performance Highlights | Metric | 2025 | 2024 | % Variance (Reported) | | :-------------------------- | :--- | :--- | :-------------------- | | Net earnings per diluted share | $0.38 | $0.47 | -18.8% | | Net earnings | $18.0 million | $22.8 million | -20.9% | | Revenues | $4.6 billion | $4.53 billion | 2.3% | - Adjusted EPS was $0.83 (excluding $0.45 charges), representing a decrease of 39% in constant currency[3] - Revenues increased 2% as reported, decreased 2% in constant currency, and increased 1% on an organic constant currency basis[2][3][5] - Gross profit margin was 16.6%, reflecting lower permanent recruitment activity, lower outplacement, and a business mix shift[5] - SG&A declined year over year with additional restructuring actions taken in the quarter[5] Year-to-Date 2025 Financial Performance Year-to-date 2025 saw a net loss of $43.5 million (or $0.93 per share), a significant decline due to charges reducing EPS by $2.98 Year-to-Date 2025 Financial Performance Highlights | Metric | 2025 | 2024 | % Variance (Reported) | | :-------------------------- | :--- | :--- | :-------------------- | | Net (loss) earnings | $(43.5) million | $122.6 million | -135.5% | | Net (loss) earnings per diluted share | $(0.93) | $2.53 | -136.9% | | Revenues | $13.2 billion | $13.45 billion | -1.6% | - The current year-to-date period included restructuring costs, net losses from the sale of businesses, a non-cash goodwill and intangible asset impairment charge, and Argentina hyperinflationary related non-cash currency translation losses, which reduced earnings per share by $2.98[7] - Excluding these charges, earnings per share for the nine-month period was $2.05 per diluted share, representing a decrease of 44% in constant currency[7] Q4 2025 Outlook ManpowerGroup anticipates diluted earnings per share for the fourth quarter to be between $0.78 and $0.88, including favorable currency impact and a 46.5% tax rate - Anticipated diluted earnings per share in the fourth quarter will be between $0.78 and $0.88[7] - The Q4 outlook includes an estimated favorable currency impact of 8 cents and a 46.5% effective tax rate[7] Strategic Initiatives & Business Commentary The company returned to organic constant currency revenue growth in Q3, driven by demand stabilization and a focus on market share and cost reduction - Crossed back over to organic constant currency revenue growth during the third quarter, after 11 consecutive quarters of declines[6] - Stabilization of demand in North America and Europe has been a key factor in revenue trend improvement[6] - Relentless focus on "Winning In The Market" to increase market share and accelerating initiatives to remove structural costs from the organization[6] - Compared to the previous quarter, year over year revenue growth in Manpower increased and the rate of revenue decline in Experis also improved. Talent Solutions experienced a revenue decline during the quarter on lower RPO activity and lower outplacement activity[5] Company Overview ManpowerGroup is a global workforce solutions leader, operating through multiple brands and consistently recognized for ethical practices and diversity About ManpowerGroup ManpowerGroup is a leading global workforce solutions company assisting organizations in talent sourcing, assessment, development, and management across over 70 countries - ManpowerGroup is a leading global workforce solutions company, helping organizations transform by sourcing, assessing, developing, and managing talent[10] - Operates through expert family of brands: Manpower, Experis, and Talent Solutions, across more than 70 countries and territories for over 75 years[10] - Recognized consistently for diversity (Women, Inclusion, Equality, Disability) and named one of the World's Most Ethical Companies for the 16th time in 2025[10] Forward-Looking Statements & Non-GAAP Measures This press release contains forward-looking statements subject to risks detailed in SEC filings and references non-GAAP financial measures with reconciliations available online - The press release contains forward-looking statements regarding global economic and geopolitical uncertainty, trends in labor demand, financial outlook, business outlook in various regions, and strategic initiatives[11] - Actual results may differ materially due to numerous factors, including those found under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[11] - Non-GAAP financial measures are referenced, with reconciliations available on the Investor Relations section of manpowergroup.com[12] Detailed Financial Results - Three Months Ended September 30, 2025 Q3 2025 saw revenues increase by 2.3% to $4.6 billion, but gross profit, operating profit, and net earnings all declined year-over-year Consolidated Results of Operations (Q3) For Q3 2025, revenues increased by 2.3% to $4,634.4 million, but gross profit, operating profit, and net earnings all declined Q3 2025 Consolidated Results of Operations | Metric | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :-------------------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Revenues from services | $4,634.4 | $4,530.2 | 2.3% | -1.5% | | Cost of services | $3,865.5 | $3,748.1 | 3.1% | -0.8% | | Gross profit | $768.9 | $782.1 | -1.7% | -5.0% | | Selling and administrative expenses | $702.3 | $711.3 | -1.3% | -5.1% | | Operating profit | $66.6 | $70.8 | -6.1% | -3.5% | | Net earnings | $18.0 | $22.8 | -20.9% | -21.7% | | Net earnings per share - diluted | $0.38 | $0.47 | -18.8% | -19.6% | Operating Unit Results (Q3) In Q3 2025, Americas and Southern Europe showed reported revenue growth, while Northern Europe and APME declined, with mixed operating profit results Q3 2025 Revenues from Services by Region | Region | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :---------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Americas | $1,098.7 | $1,050.5 | 4.6% | 5.5% | | Southern Europe | $2,205.5 | $2,095.6 | 5.2% | -1.3% | | Northern Europe | $816.8 | $828.3 | -1.4% | -6.7% | | APME | $520.5 | $562.8 | -7.5% | -8.0% | Q3 2025 Operating Unit Profit (Loss) by Region | Region | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :---------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Americas | $37.9 | $36.1 | 5.1% | 4.8% | | Southern Europe | $65.6 | $75.8 | -13.4% | -18.9% | | Northern Europe | $(14.9) | $(25.7) | 42.3% | 72.3% | | APME | $26.8 | $23.0 | 15.9% | 11.4% | - Effective January 1, 2025, segment reporting was realigned to include Morocco business within Other Southern Europe, and France is adjusted to exclude Morocco[16] Detailed Financial Results - Nine Months Ended September 30, 2025 Year-to-date Q3 2025 saw revenues decline by 1.6%, with significant drops in gross and operating profit, leading to a net loss of $43.5 million Consolidated Results of Operations (YTD) For the nine months ended September 30, 2025, revenues decreased by 1.6%, gross profit declined, and a net loss of $43.5 million was reported due to impairment charges YTD Q3 2025 Consolidated Results of Operations | Metric | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :-------------------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Revenues from services | $13,244.0 | $13,454.2 | -1.6% | -3.2% | | Gross profit | $2,230.9 | $2,331.7 | -4.3% | -5.7% | | Selling and administrative expenses | $2,161.4 | $2,093.9 | 3.2% | 1.7% | | Impairment charges | $88.7 | — | N/A | N/A | | Operating profit | $69.5 | $237.8 | -70.8% | -70.0% | | Net (loss) earnings | $(43.5) | $122.6 | -135.5% | -138.6% | | Net (loss) earnings per share - diluted | $(0.93) | $2.53 | -136.9% | -140.1% | - Impairment charges for the nine months ended September 30, 2025, consist of a goodwill impairment related to investments in Switzerland and the United Kingdom and an impairment of an indefinite-lived intangible asset in the Switzerland business[18] Operating Unit Results (YTD) Year-to-date Q3 2025 saw Americas revenues increase, Southern Europe flat, and Northern Europe/APME decline, with mixed operating profit trends across regions YTD Q3 2025 Revenues from Services by Region | Region | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :---------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Americas | $3,215.4 | $3,151.3 | 2.0% | 4.2% | | Southern Europe | $6,188.8 | $6,174.9 | 0.2% | -2.9% | | Northern Europe | $2,342.0 | $2,535.9 | -7.6% | -10.5% | | APME | $1,522.2 | $1,639.3 | -7.1% | -8.4% | YTD Q3 2025 Operating Unit Profit (Loss) by Region | Region | 2025 (Millions) | 2024 (Millions) | % Variance (Reported) | % Variance (Constant Currency) | | :---------------- | :-------------- | :-------------- | :-------------------- | :----------------------------- | | Americas | $99.5 | $107.3 | -7.2% | -5.5% | | Southern Europe | $189.1 | $228.9 | -17.4% | -20.2% | | Northern Europe | $(42.2) | $(28.1) | -50.2% | -44.4% | | APME | $73.2 | $67.9 | 7.5% | 4.4% | - Effective January 1, 2025, segment reporting was realigned to include Morocco business within Other Southern Europe, and France is adjusted to exclude Morocco[20] Financial Position & Cash Flows Total assets increased to $8.4 billion while shareholders' equity decreased, and operating cash flow shifted to a $283.0 million net use Consolidated Balance Sheets As of September 30, 2025, total assets increased to $8,446.9 million, total liabilities rose significantly, and shareholders' equity decreased Consolidated Balance Sheet Highlights | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | Change (Millions) | | :------------------------------------------ | :---------------------- | :---------------------- | :---------------- | | Total assets | $8,446.9 | $8,201.0 | $245.9 | | Cash and cash equivalents | $274.6 | $509.4 | $(234.8) | | Accounts receivable, net | $4,632.3 | $4,297.2 | $335.1 | | Total current liabilities | $5,123.9 | $4,437.1 | $686.8 | | Short-term borrowings & current maturities of long-term debt | $747.8 | $23.4 | $724.4 | | Long-term debt | $468.3 | $929.4 | $(461.1) | | Total shareholders' equity | $2,011.4 | $2,126.9 | $(115.5) | Consolidated Statements of Cash Flows For the nine months ended September 30, 2025, net cash used in operating activities was $(283.0) million, a significant shift from the prior year YTD Q3 2025 Cash Flow Highlights | Cash Flow Activity | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Net (loss) earnings | $(43.5) | $122.6 | | Net cash (used in) provided by operating activities | $(283.0) | $61.6 | | Net cash used in investing activities | $(48.7) | $(41.9) | | Net cash provided by (used in) financing activities | $59.5 | $(178.8) | | Change in cash and cash equivalents | $(234.8) | $(170.4) | | Cash and cash equivalents, end of period | $274.6 | $410.9 | - Net cash used in operating activities was $(283.0) million in 2025, compared to $61.6 million provided in 2024, primarily due to net loss and changes in accounts receivable and other liabilities[24] - Net cash provided by financing activities was $59.5 million, driven by net change in short-term borrowings ($65.7 million) and net proceeds from revolving debt facility ($73.0 million), partially offset by share repurchases ($38.2 million) and dividends paid ($33.3 million)[24]