Core Insights - ManpowerGroup Talent Solutions has partnered with Carv to enhance its Recruitment Process Outsourcing (RPO) operations through the integration of Carv's agentic AI technology [1][5] - The collaboration aims to automate routine tasks, speed up hiring processes, and improve the overall candidate experience [1][2] Company Overview - ManpowerGroup is a leading global workforce solutions company, recognized for its innovative solutions and commitment to diversity and ethical practices [6] - The company operates through various brands, including Manpower, Experis, and Talent Solutions, providing services across more than 70 countries [6][8] Technology Integration - ManpowerGroup has developed a digital core, PowerSuite, which processes 90% of front office revenues and serves as the foundational tech stack for integrating Carv's AI [3] - Carv's AI technology is designed to adapt to recruiters' workflows, enhancing productivity and enabling a more strategic approach to talent matching [4][5] Expected Outcomes - The deployment of Carv's AI is anticipated to significantly reduce time-to-hire and improve recruiter productivity, leading to better outcomes for candidates globally [5]

Financial Data and Key Metrics Changes - System-wide revenue for the quarter was $4.9 billion, with reported revenue at $4.5 billion, down 3% year over year in constant currency [9][12] - Reported EBITDA for the quarter was $72 million, while adjusted EBITDA was $89 million, representing a decrease of 25% in constant currency year over year [9][10] - Adjusted earnings per share decreased 43% year over year in constant currency, with reported losses per share at $1.44 and adjusted EPS at $0.78 [10][14] Business Line Data and Key Metrics Changes - On an organic constant currency basis, the Manpower brand had growth of 1%, while the Experis brand declined by 9% and the Talent Solutions brand grew by 1% [14][15] - The Manpower brand comprised 62% of gross profit, with the Experis brand at 22% and Talent Solutions at 16% [16] - Consolidated gross profit decreased by 5% on an organic constant currency basis year over year, with the Manpower brand reporting flat organic constant currency gross profit year over year [16][17] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 2% year-over-year increase on a constant currency basis [19] - Revenue in Southern Europe was $2.1 billion, reflecting a 2% decrease in organic constant currency [23] - Revenue in Northern Europe was $794 million, representing a 10% decline in constant currency [26] Company Strategy and Development Direction - The company is focused on market share gains by targeting faster-growing industry verticals and leveraging AI for sales targeting [42][43] - The strategy includes moving certain businesses to franchise models to enhance local market growth [46] - The company continues to invest in digital transformation and AI capabilities to support evolving client needs and drive productivity [35][38] Management's Comments on Operating Environment and Future Outlook - Management noted a stabilization in the U.S. and parts of Europe, with a cautious outlook in Northern Europe due to economic and geopolitical headwinds [9][60] - The company anticipates ongoing stability in most markets and forecasts earnings per share for Q3 to be in the range of $0.77 to $0.87 [32] - Management highlighted the potential for improved market conditions in Northern Europe if economic uncertainties subside [60][62] Other Important Information - The company received multiple accolades, including being named Forbes America's number one temp staffing firm and recognized for sustainability [39] - Free cash flow represented an outflow of $7 million compared to an outflow of $150 million in the prior year, with expectations for strong free cash flow in the second half of the year [30] Q&A Session Summary Question: Market share gains strategy - The company is targeting faster-growing industry verticals and using AI to enhance sales targeting, resulting in improved revenue performance [42][43] Question: Franchise model expansion - The company is exploring additional markets for the franchise model to enhance local growth and brand deployment [46] Question: U.S. trends and organic growth outlook - The U.S. business saw a 3% decline overall, but the Manpower brand grew by 9%, indicating strong market performance [48][49] Question: Northern Europe revenue trends - Management indicated that Northern Europe is facing challenges due to economic conditions, but expects improvements as the economic environment stabilizes [60][62] Question: Impact of defense spending on industrial sectors - The company anticipates that increased defense and infrastructure spending in Europe will positively impact broader economic conditions and manufacturing sectors [95][96]

Financial Data and Key Metrics Changes - System-wide revenue for the quarter was $4.9 billion, with reported revenue at $4.5 billion, down 3% year over year in constant currency [6][10] - Reported EBITDA for the quarter was $72 million, while adjusted EBITDA was $89 million, representing a decrease of 25% in constant currency year over year [6][11] - Adjusted earnings per share decreased 43% year over year in constant currency, with reported losses per share at $1.44 and adjusted EPS at $0.78 [7][12] Business Line Data and Key Metrics Changes - The Manpower brand had growth of 1% year over year in organic constant currency, while the Experis brand declined by 9% [12][14] - Talent Solutions brand experienced growth of 1%, with the MSP business recording strong revenue increases compared to the prior year [12][14] - Consolidated gross profit decreased by 5% on an organic constant currency basis year over year, with the Manpower brand comprising 62% of gross profit [14][15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 2% year-over-year increase in constant currency [17] - Southern Europe revenue was $2.1 billion, reflecting a 2% decrease in organic constant currency [21] - Revenue in Northern Europe was $794 million, representing a 10% decline in constant currency [23][24] - Asia Pacific Middle East segment revenues increased by 8% in organic constant currency, with Japan growing by 7% [25][26] Company Strategy and Development Direction - The company is focused on market share gains, utilizing AI to enhance sales targeting and identify high-revenue leads [40][41] - There is an ongoing strategy to transition certain businesses to a franchise model to better serve local markets [43][44] - The company continues to invest in digital transformation and AI capabilities to support evolving client needs and drive productivity [34][36] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic conditions remain challenging, there are signs of stabilization in the US and parts of Europe [6][30] - The company anticipates ongoing stability in most markets, with a forecast for third-quarter earnings per share in the range of $0.77 to $0.87 [30][31] - Management highlighted the importance of geopolitical factors and economic conditions in Northern Europe, which are impacting performance [56][58] Other Important Information - Free cash flow represented an outflow of $7 million compared to an outflow of $150 million in the prior year [28] - The company ended the quarter with cash of $290 million and total debt of $1.29 billion, with net debt levels peaking at June 30 [29][30] - The company received multiple accolades, including being named Forbes America's number one temp staffing firm [37] Q&A Session Summary Question: Who is the company gaining market share from and what is the strategy? - The company is targeting faster-growing industry verticals using data to identify growth opportunities and deploying AI to enhance sales targeting [40][41] Question: Are there plans to move more businesses to a franchise model? - The company is continuously evaluating markets for potential franchise opportunities to better serve clients [43][44] Question: What are the underlying organic growth trends in the US? - The US business saw a decline of 3% for the quarter, with the Manpower brand performing strongly at a 9% increase [46][47] Question: What is the outlook for Northern Europe? - Northern Europe is facing economic challenges, but management believes demand will eventually return as geopolitical uncertainties subside [56][58] Question: How is the company addressing cost structures in Northern Europe? - The company has taken significant restructuring actions to align costs with current demand and is preparing for future growth [58][60] Question: What is the impact of defense spending in Europe? - Increased defense and infrastructure spending in Europe is expected to positively impact the broader economy and manufacturing sectors [90][92] Question: How is the company positioned for reshoring in the US? - Clients are increasingly considering expanding manufacturing in the US, which could benefit the company's operations [94][96]