Kelly Reports Second-Quarter 2025 Earnings

Core Viewpoint - Kelly Services reported a mixed financial performance for Q2 2025, with revenue growth driven by acquisitions but organic revenue decline due to reduced demand in certain sectors [3][6][9]. Financial Performance - Q2 2025 revenue reached $1.1 billion, a 4.2% increase year-over-year, primarily due to the acquisition of Motion Recruitment Partners, LLC [3][9]. - On an organic basis, revenue decreased by 3.3%, with a notable decline in demand for U.S. federal government contractors [3][6]. - Operating earnings for Q2 2025 were $22.2 million, up from $12.2 million in Q2 2024, while adjusted earnings were $24.6 million compared to $28.1 million in the prior year [4][5][9]. - Adjusted EBITDA for Q2 2025 was $37.0 million, down 8.7% from the previous year, with an adjusted EBITDA margin of 3.4%, a decrease of 40 basis points [4][9]. Earnings Per Share - Earnings per share (EPS) for Q2 2025 were $0.52, significantly higher than $0.12 in Q2 2024. Adjusted EPS was $0.54, down from $0.71 year-over-year [5][9]. Year-to-Date Performance - For the 26-week period ending June 29, 2025, revenue totaled $2.3 billion, a 7.8% increase compared to the same period in 2024, again driven by the MRP acquisition [6][8]. - Year-to-date operating earnings were $33.0 million, down from $39.0 million in 2024, with adjusted earnings of $46.7 million compared to $51.2 million in the prior year [7][8]. Segment Performance - The Education segment showed growth of 5.6% in Q2 2025, while the Science, Engineering & Technology segment reported a 19.4% increase in revenue [21][22]. - The Enterprise Talent Management segment experienced a revenue decline of 3.9% in Q2 2025 compared to the previous year [21][22]. Dividend Declaration - The board of directors declared a quarterly cash dividend of $0.075 per share, payable on September 3, 2025 [11]. Leadership Transition - Kelly announced the appointment of Nick Zuhlke as the new Chief Accounting Officer, effective August 11, 2025, succeeding Laura Lockhart [13].