ManpowerGroup(US:MAN)2025-10-31 20:31Revenue Performance - Total revenues from services for Q3 2025 were $4,634.4 million, an increase from $4,530.2 million in Q3 2024, representing a growth of 2.3%[13] - Total revenue for the three months ended September 30, 2025, was $4,634.4 million, compared to $4,530.2 million for the same period in 2024, representing an increase of 2.3%[44] - For the nine months ended September 30, 2025, total revenue was $13,244.0 million, a slight decrease from $13,454.2 million in 2024, reflecting a decline of 1.6%[46] - The United States generated $690.8 million in revenue for Q3 2025, a decrease from $697.4 million in Q3 2024, indicating a decline of 1.0%[44] - The Americas segment generated revenue of $1,098.7 million for the three months ended September 30, 2025, compared to $1,050.5 million in 2024, marking a growth of 4.5%[98] - Southern Europe segment revenue for the three months ended September 30, 2025, was $2,205.5 million, an increase from $2,095.6 million in 2024, representing a growth of 5.2%[98] - The Americas segment reported total revenue of $3,215.4 million for the nine months ended September 30, 2025, compared to $3,151.3 million in 2024, reflecting an increase of approximately 2.0%[46] - The APME segment generated $1,522.2 million in revenue for the nine months ended September 30, 2025, a decrease from $1,639.3 million in 2024, indicating a decline of about 7.1%[46] Profitability - Net earnings for Q3 2025 were $18.0 million, compared to $22.8 million in Q3 2024, indicating a decline of 21.1%[13] - Operating profit for the nine months ended September 30, 2025, was $69.5 million, down from $237.8 million in the same period of 2024, a decrease of 70.8%[13] - The company reported a net loss of $43.5 million for the nine months ended September 30, 2025, contrasting with net earnings of $122.6 million in the same period of 2024[16] - Operating profit for the three months ended September 30, 2025, was $66.6 million, compared to $70.8 million in 2024, showing a decrease of 3.0%[98] - Earnings before income taxes for the three months ended September 30, 2025, were $52.9 million, up from $59.2 million in 2024, reflecting a decline of 10.5%[98] Cash Flow and Liquidity - Cash and cash equivalents decreased to $274.6 million as of September 30, 2025, down from $509.4 million at the end of 2024, a decline of 46.0%[9] - Cash flows from operating activities for the nine months ended September 30, 2025, were negative at $(283.0) million, contrasting with positive cash flows of $61.6 million in the same period of 2024[16] - The company reported a net cash provided by financing activities of $59.5 million, a recovery from a net cash used of $178.8 million in the previous year[16] - Cash paid for amounts included in the measurement of liabilities for the nine months ended September 30, 2025, was $99.4 million, up from $91.3 million in 2024, reflecting a 9.0% increase[93] Debt and Liabilities - Total current liabilities increased to $5,123.9 million as of September 30, 2025, compared to $4,437.1 million at the end of 2024, an increase of 15.5%[11] - The company’s long-term debt decreased to $468.3 million as of September 30, 2025, from $929.4 million at the end of 2024, a reduction of 49.7%[11] - The restructuring reserve balance as of September 30, 2025, was $43.7 million, down from $46.5 million at the end of 2024[52] Impairment and Losses - The company incurred impairment charges of $88.7 million for the nine months ended September 30, 2025, compared to none in the same period of 2024[16] - The company recognized a partial non-cash goodwill impairment loss of $33.4 million for the United Kingdom reporting unit and $24.7 million for the Switzerland reporting unit due to macroeconomic deterioration and financial performance below expectations[30] - The company recognized a full impairment of $30.6 million related to the reacquired franchise right associated with its Switzerland business[31] Shareholder Equity and Dividends - The total shareholders' equity as of September 30, 2025, was $2,011.4 million, reflecting a decrease from $2,126.9 million at the end of the previous fiscal year[17] - The company declared dividends totaling $33.3 million during the quarter ending March 31, 2025[17] - The company declared a semi-annual dividend of $0.72 per share in May 2025, compared to $1.54 per share in May 2024[68] Taxation - The effective income tax rate for Q3 2025 was 66.0%, up from 61.5% in Q3 2024, primarily due to lower earnings and a new corporate income tax surcharge in France[54] - For the nine months ended September 30, 2025, the effective tax rate soared to 256.2%, compared to 41.4% in the same period of 2024, impacted by non-deductible impairment charges and restructuring costs[55] - The gross unrecognized tax benefits as of September 30, 2025, amounted to $39.5 million, an increase from $36.1 million at the end of 2024[56] Assets and Intangibles - Total assets as of September 30, 2025, were $8,446.9 million, up from $8,201.0 million at the end of 2024, representing a growth of 3.0%[11] - Total intangible assets as of September 30, 2025, were $1,008.8 million, with a net value of finite-lived intangible assets at $286.4 million after accumulated amortization of $571.8 million[9] - The company recorded a foreign exchange loss of $2.4 million in Q3 2025, compared to a loss of $1.0 million in Q3 2024[70] Restructuring and Costs - The company recorded $51.6 million in restructuring costs during the nine months ended September 30, 2025, compared to $37.6 million in the same period of 2024, an increase of 37.9%[51] - Selling and administrative expenses for the nine months ended September 30, 2024, totaled $2,161.4 million, an increase of 3.2% from $2,093.9 million in the previous year[13] Miscellaneous - The company recognized a one-time net loss of $1.4 million from the disposal of its New Caledonia business in Q3 2025[49] - The company repurchased 0.7 million shares at a cost of $37.0 million during the nine months ended September 30, 2025, with 1.9 million shares remaining authorized for repurchase[69] - The company entered into a new cross-currency swap with a notional amount of $413.8 million, consisting of three tranches with staggered maturities from September 2026 to September 2028[74]