ManpowerGroup(US:MAN)2026-01-29 12:30Financial Performance - Net earnings for Q4 2025 were $30.2 million, or $0.64 per diluted share, compared to $22.5 million, or $0.47 per diluted share in Q4 2024, representing a 34.3% increase in net earnings [2][12]. - Revenues for Q4 2025 were $4.7 billion, a 7% increase from the prior year period, with a 1% increase on a constant currency basis and a 2% increase on an organic constant currency basis [5][6]. - Full year revenues for 2025 were $18.0 billion, representing a 1% increase compared to the prior year, or a 2% decrease in constant currency [7]. - Revenues from services for the year ended December 31, 2025, were $17,957.1 million, a slight increase of 0.6% compared to $17,853.9 million in 2024 [18]. - Gross profit margin for the quarter was 16.3%, reflecting softer than expected permanent recruitment activity in Europe [5]. - Gross profit decreased by 2.9% to $2,997.6 million in 2025 from $3,086.8 million in 2024 [18]. - Operating profit fell significantly by 50.9% to $150.1 million in 2025, down from $306.0 million in 2024 [18]. - Net loss for the year was $13.3 million, a drastic decline from net earnings of $145.1 million in 2024, representing a 109.2% decrease [18]. - Earnings before income taxes dropped by 63.6% to $93.4 million in 2025 from $256.8 million in 2024 [18]. Cash Flow and Assets - Cash provided by operating activities was $179 million, with free cash flow of $168 million for the quarter [3]. - Total current assets increased to $5,790.4 million in 2025, up from $4,970.3 million in 2024 [25]. - Cash and cash equivalents rose to $871.0 million in 2025, compared to $509.4 million in 2024 [25]. - Accounts receivable increased to $4,770.3 million in 2025 from $4,297.2 million in 2024 [25]. - Cash used in operating activities amounted to $104.1 million, compared to cash provided of $309.2 million in the previous year [27]. - Capital expenditures for the year were $57.3 million, an increase from $51.1 million in 2024 [27]. - Cash used in investing activities totaled $59.2 million, down from $68.2 million in 2024 [27]. - Cash provided by financing activities was $485.5 million, a turnaround from cash used of $282.4 million in the previous year [27]. - Cash and cash equivalents at the end of the period increased to $871.0 million, up from $509.4 million at the beginning of the period [27]. - The company reported a depreciation and amortization expense of $86.0 million, slightly down from $86.6 million in 2024 [27]. Impairments and Charges - The company recorded impairment charges of $88.7 million in 2025 related to investments in Switzerland and the United Kingdom [19]. - The company incurred non-cash goodwill and other impairment charges of $88.7 million during the year [27]. Future Outlook - The company anticipates diluted earnings per share for Q1 2026 to be between $0.45 and $0.55, including an estimated favorable currency impact of $0.06 [7]. - The company executed restructuring actions that contributed to a sequential improvement in year-over-year SG&A expenses [5]. - Market-leading growth was observed in Italy, with ongoing stabilization in North America and Europe, particularly in France [5][7]. - The company plans to capitalize on improving market demand and progress technology initiatives to diversify capabilities and increase market share [7]. Dividends - Dividends paid decreased to $66.7 million from $145.8 million in the previous year [27].