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 [8][11] - 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 in organic constant currency, while Experis declined by 7% and Talent Solutions declined by 8% [13] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing to a 40 basis point reduction due to a shift towards enterprise accounts [14][15] - 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 [19] - 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 to improve efficiency and reduce costs [28][30] - The implementation of AI, particularly the Sophy AI platform, is expected to enhance client outcomes and drive revenue growth [30][31] - The company aims to balance cost containment with strategic investments to strengthen capabilities and expand margins [9][30] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious hiring environment with geopolitical tensions and economic uncertainty impacting labor markets [4][5] - There are signs of stabilization in demand, particularly in North America and Europe, with expectations for gradual improvement [9][46] - The outlook for 2026 is cautiously optimistic, with expectations for improved economic conditions 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 if employer confidence returns, it could lead to better growth in the Manpower brand and other segments [34][36] 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 prior large RPO volumes [40][42] Question: Are there any price pressures or mix issues impacting gross profit? - Management confirmed that the primary driver of margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [43][44] Question: How is political turmoil in France impacting business sentiment? - Management acknowledged that while political uncertainty is not helpful, companies 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 slower investment in traditional IT projects affecting Experis [80][82]

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 [10] - 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 [10][14] - Adjusted earnings per share decreased 39% year over year in constant currency, with reported earnings per diluted share at $0.38 and adjusted earnings per diluted share at $0.83 [10][11] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth in organic constant currency year over year, while the Experis brand declined by 7% and Talent Solutions declined by 8% [16] - 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 [17][18] - The consolidated gross profit decreased by 4% on an organic constant currency basis year over year, showing slight improvement from a 5% decline in the second quarter [18] 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 [21] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [26] - The Asia Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [32] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations to improve efficiency and reduce costs [38] - The introduction of the AI platform, SoFi AI, is expected to enhance capabilities and client outcomes, with approximately 30% of new client revenue derived from AI-rated probability [40][41] - The leadership team is committed to managing current challenges while positioning the business for future growth through cost containment and strategic initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions and economic softening continue to impact hiring, but there are signs of stabilization in demand [6][7] - The outlook for the fourth quarter anticipates ongoing stability in most markets, with earnings per share projected to be in the range of $0.78 to $0.88 [35] - Management expressed cautious optimism about future growth, particularly in Europe and North America, as economic conditions are expected to improve [58][59] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, but positive cash flow is expected to continue [33] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [34] Q&A Session Summary Question: Expectations for flexible staffing volumes with improved business confidence - Management noted 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 [44][46] Question: Trends observed in the quarter and any volatility due to economic conditions - Management indicated that there was an improvement in trends during the third quarter, particularly in France and Italy, while the U.S. market remained stable [49][51] Question: Insights on gross margin pressures and pricing - Management explained that the primary driver of gross margin pressure is a mix shift towards enterprise clients, with no significant pricing changes observed [54][56] Question: Indicators of demand stabilization across regions - Management highlighted that demand is stabilizing in Europe and North America, with growth opportunities emerging in sectors like financial services and logistics [62][63] Question: Impact of political turmoil in France on business sentiment - Management acknowledged that political uncertainty in France is not helpful, but clients are navigating through the environment pragmatically [88][92]

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 [6][7] - 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% [13][15] - Gross profit margin for the quarter was 16.6%, with the Manpower brand contributing 63% of gross profit, Experis 21%, and Talent Solutions 16% [14][15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% increase year over year on a constant currency basis [17] - Southern Europe revenue was $2.2 billion, down 1% in organic constant currency, with France revenue decreasing by 5% [19][20] - The Asia-Pacific Middle East segment saw revenues of $521 million, an increase of 8% 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 Sophy AI platform, is expected to enhance operational efficiency and client outcomes [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious yet stable hiring environment, with gradual signs of stabilization in demand across various markets [4][5] - The outlook for 2026 is cautiously optimistic, with expectations for improved economic conditions in Europe and North America [44][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, will there be an early cycle pickup in flexible staffing volumes? - Management indicated that if employer confidence returns, it could lead to better growth in the Manpower brand and other segments [34][35] 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 year-over-year comparisons [38][39] Question: Are there any price pressures or mix issues impacting gross profit margins? - Management confirmed that the primary driver of margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [41][42] 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 [64][66]

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]