Financial Data and Key Metrics Changes - Reported revenue for the quarter was $4.6 billion, down 2% year-over-year in constant currency, while system-wide revenue was $4.9 billion [7][11] - Reported EBITDA for the quarter was $74 million, with adjusted EBITDA at $96 million, representing a decrease of 22% in constant currency year-over-year [7][8] - Adjusted earnings per share decreased by 39% year-over-year in constant currency, with reported EPS at $0.38 and adjusted EPS at $0.83 [8][12] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth year-over-year on an organic constant currency basis, while Experis declined by 7% and Talent Solutions declined by 8% [14] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing a 40 basis point reduction due to a shift towards enterprise accounts [14][16] - The consolidated gross profit decreased by 4% on an organic constant currency basis year-over-year, with Manpower brand reporting flat gross profit [15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% year-over-year increase on a constant currency basis [17] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [20] - The Asia-Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [23] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations, with significant progress in global business services initiatives [28][29] - The implementation of AI, particularly the Sophie AI platform, is expected to enhance operational efficiency and client outcomes [30][56] - The company aims to balance cost containment with strategic investments to strengthen capabilities and expand margins [9][29] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious hiring environment with stabilization signs, particularly in North America and Europe, despite geopolitical tensions [4][9] - The outlook for the fourth quarter anticipates ongoing stability in most markets, with EPS guidance in the range of $0.78 - $0.88 [26] - There is cautious optimism for improved economic conditions in 2026, particularly in Europe and North America [46] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, with capital expenditures at $15 million [24][25] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [25] Q&A Session Summary Question: When business confidence improves, would there be an early cycle pickup in flexible staffing volumes? - Management indicated that the current labor market is "frozen," with little hiring or workforce reductions, but there are signs of stabilization and potential growth if employer confidence returns [33][34] Question: Can you discuss the trends seen in the quarter and any volatility due to economic conditions? - Management noted improvements in France and Italy, with stable performance in the U.S., although some volatility was observed due to previous large RPO volumes [38][40] Question: Are there any price pressures or mix issues impacting gross profit? - Management confirmed that the primary driver of staffing margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [42][43] Question: How is political turmoil in France impacting business sentiment? - Management acknowledged that while political uncertainty is not helpful, clients are navigating the environment pragmatically and focusing on talent investments [71][73] Question: What are the drivers of blue-collar staffing outperforming white-collar staffing? - Management attributed the outperformance of the Manpower brand to improving PMI and employer resilience, while noting that the Experis brand is impacted by slower traditional IT project investments [79][81]

Core Insights - ManpowerGroup reported a net earnings per diluted share of $0.38 for Q3 2025, down from $0.47 in the same period last year, with net earnings of $18.0 million compared to $22.8 million a year earlier [1][2] - Revenues for the third quarter reached $4.6 billion, reflecting a 2% increase from the prior year [1][12] - The company faced restructuring costs and currency translation losses due to hyperinflation in Argentina, which significantly impacted earnings per share [2][5] Financial Performance - The third quarter's earnings per share, excluding restructuring costs and currency losses, was $0.83, indicating a 39% decrease in constant currency [2] - On a constant currency basis, revenues decreased by 2%, while organic constant currency revenues increased by 1% compared to the prior year [3][12] - For the nine months ended September 30, 2025, net losses were $43.5 million, or $0.93 per basic share, compared to net earnings of $122.6 million, or $2.53 per diluted share in the prior year [5][16] Operational Highlights - The company experienced stabilization in demand in North America and Europe, contributing to improved revenue trends after 11 consecutive quarters of declines [4] - The gross profit margin for Q3 was 16.6%, affected by lower recruitment activity and a shift in business mix [12] - Selling and administrative expenses decreased year-over-year due to additional restructuring actions taken during the quarter [12] Future Outlook - ManpowerGroup anticipates diluted earnings per share for Q4 2025 to be between $0.78 and $0.88, factoring in an estimated favorable currency impact of 8 cents [5] - The company is focused on increasing market share and driving efficiency through structural cost removal initiatives [4]

Core Insights - Companies that are heavily investing in AI technology are also significantly investing in their workforce, indicating a dual focus on technology and human potential [1][2] - A majority of employers (85%) are utilizing AI in hiring, yet many acknowledge its limitations, particularly in areas requiring ethical judgment and customer service [2] - The research suggests that while AI will not replace human workers, those who can effectively leverage AI will hold greater value in the workforce [2][4] Workforce Sentiment - According to the Global Talent Barometer 2025, worker confidence has increased by 2 percentage points since 2024, attributed to better access to career development and a belief in adaptability [3] - This trend highlights that human adaptability is a critical asset in an AI-driven work environment [3] Organizational Strategy - Successful integration of AI is centered around enhancing uniquely human traits such as ethical judgment, creativity, empathy, and strategic thinking [4] - The "Humans First, Digital Always" approach is emphasized as essential for success in the AI era [4] Events and Discussions - ManpowerGroup will host various sessions at VivaTech, including discussions on the implications of AI on talent acquisition and the evolving skills ecosystem [5][6][7] - Exclusive "Table Talks" will focus on the challenges and opportunities in human-AI collaboration, led by industry experts [8] Startup Challenge - ManpowerGroup's 2025 VivaTech Startup Challenge featured five finalists selected for their innovative technologies aimed at enhancing the human experience at work through AI [10][14] - The finalists will present their solutions live, with one expected to collaborate on a proof of concept within a ManpowerGroup market [11]