Workflow
Specialty talent solutions
icon
Search documents
Kelly Reports First-Quarter 2025 Earnings
Globenewswire· 2025-05-08 11:30
Core Insights - Kelly Services reported organic revenue growth in Q1 2025 that met expectations and outperformed the market, driven by strength in the Education sector and demand for higher-margin solutions in semiconductor and renewables [2][8] - The company is focused on efficiency and effectiveness to navigate the evolving macroeconomic environment and is positioned to capitalize on demand rebounds [2] Financial Performance - Q1 2025 revenue reached $1.16 billion, an increase of 11.5% year-over-year, primarily due to the acquisition of Motion Recruitment Partners, LLC, with organic growth at 0.2% [8][9] - Operating earnings for Q1 were $10.8 million, down from $26.8 million in the same period last year, while adjusted earnings were $22.1 million, a slight decrease from $23.1 million [9][12] - Adjusted EBITDA for Q1 was $34.9 million, up 4.8% year-over-year, with an adjusted EBITDA margin of 3.0%, down 20 basis points [8][9] Segment Performance - The Education segment saw a revenue increase of 6.3%, contributing to overall growth, while the Science, Engineering & Technology segment experienced a 39.2% revenue increase [9][19] - Enterprise Talent Management revenue was $534.0 million, with a gross profit of $108.0 million, while the Science, Engineering & Technology segment generated $322.4 million in revenue [19][27] Cash Dividend - The board of directors declared a quarterly cash dividend of $0.075 per share, payable on June 3, 2025, to stockholders of record as of May 19, 2025 [5] Future Outlook - The company anticipates year-over-year revenue growth of 6.0% to 7.0% in Q2 2025, with expected adjusted EBITDA margin decline of 20 to 30 basis points, but anticipates margin expansion in Q3 and Q4 [8][9]