EHS Nominates New Directors to Reverse TrueBlue's Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
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Source: Newsfilter
- Board Change Necessity: EHS Investments plans to nominate new directors at the 2026 Annual Meeting to address TrueBlue's ongoing operational and financial deterioration, with the stock price nearing all-time lows, highlighting the urgent need for substantive change at the board level to enhance shareholder value.
- Poor Financial Performance: Although TrueBlue's Q3 report indicated a $49 million revenue increase, gross profit fell by $2 million due to cost pass-through accounting, revealing a continued decline in core operations, particularly with PeopleSolutions experiencing an 11% year-over-year revenue drop.
- Cash Flow Crisis: TrueBlue burned $17 million in free cash flow this quarter and $40 million year-to-date, with liquidity dropping to $95 million, a multi-year low that severely limits the company's ability to repurchase shares at its current depressed valuation.
- Strategic Review Proposal: EHS proposes a comprehensive strategic and operational reassessment to ensure the board can effectively evaluate the company's future direction and leadership, addressing current challenges and improving governance standards.
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Analyst Views on TBI
Wall Street analysts forecast TBI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TBI is 6.00 USD with a low forecast of 6.00 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 4.920
Low
6.00
Averages
6.00
High
6.00
Current: 4.920
Low
6.00
Averages
6.00
High
6.00
About TBI
TrueBlue, Inc. provides specialized workforce solutions. Its segments include PeopleReady, PeopleScout and PeopleManagement. The PeopleReady segment provides on-demand and skilled labor in a range of industries that include construction, transportation, manufacturing, retail, hospitality and energy. The PeopleScout segment provides permanent employee recruitment process outsourcing, employer branding services and management of outsourced labor service providers through the segments: PeopleScout recruitment process outsourcing (RPO), which outsourced recruitment of permanent employees on behalf of clients and employer branding services, and PeopleScout managed service provider (MSP), which manages multiple third-party staffing vendors on behalf of clients. PeopleManagement segment offers contingent, on-site industrial staffing and commercial driver services. Its Healthcare Staffing Professionals offer long-term and permanent staffing solutions primarily focused on healthcare positions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TrueBlue Executes Strategic Plan to Enhance Profitability
- Financial Performance Improvement: TrueBlue is executing a disciplined strategic plan that has strengthened performance in attractive markets, particularly in skilled sectors, thereby driving a return to sustainable profitable growth.
- Cost Structure Optimization: By streamlining its cost structure, the company has enhanced profitability and leverage, indicating a strengthened market position in the competitive staffing industry.
- Board Refreshment: After months of engaging with shareholders, TrueBlue appointed two new directors with extensive industry experience to enhance operational oversight and accelerate company transformation.
- Digital Leadership: The enterprise-wide enhancements to the company's technology platforms are driving faster, more precise, and transparent workforce solutions, further solidifying its digital leadership in the industry.
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EHS Management Nominates New Directors to Strengthen TrueBlue Board Expertise
- New Board Members: EHS Management welcomes the addition of two new directors to TrueBlue's board, which underscores broad recognition of the issues raised, yet further enhancements are necessary to improve board expertise and shareholder value.
- Experience Gaps: TrueBlue's board lacks seasoned independent staffing executives, digital platform leaders, and capital allocation expertise, which are critical for reversing the company's ongoing loss of market share.
- Shareholder Involvement: EHS Management believes shareholders should determine the level of board refreshment needed to ensure that new candidates' skills can enhance the board's capabilities and independence to better address the challenges facing the company.
- Nominated Candidates: EHS Management has nominated three candidates with extensive industry experience, focusing on staffing excellence, digital transformation, and disciplined capital allocation, aiming to fill the skills gaps on the board and drive long-term success for the company.
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