Loading...
01/11 17:18
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several challenges: a revenue decline, decreased EBITDA, and lower EPS, compounded by geopolitical risks and regulatory changes. Despite a share repurchase program, the negative financial metrics and cautious market outlook weigh heavily. The Q&A section reflects uncertainty in market conditions and management's cautious stance. The guidance of declining revenue and margins further exacerbates concerns. The market cap suggests moderate volatility, but overall, the sentiment leans negative due to the combination of financial underperformance and external uncertainties.
Revenue $4.1 billion, down 5% year-over-year in constant currency.
Reported EBITDA $36 million, a decrease of 32% in constant currency year-over-year.
Adjusted EBITDA $52 million, a decrease of 32% in constant currency year-over-year.
Reported EBITDA Margin 0.9%, down from the previous year.
Adjusted EBITDA Margin 1.3%, down 50 basis points year-over-year.
Earnings per Share (EPS) - Reported $0.12, below expectations.
Earnings per Share (EPS) - Adjusted $0.44, a decrease of 51% year-over-year in constant currency.
Gross Profit Margin 17.1%, driven by weaker permanent recruitment.
SG&A Expense $670 million, down 4% year-over-year on a constant currency basis.
Free Cash Flow Outflow of $167 million, compared to an inflow of $104 million in the prior year.
Cash at Quarter End $395 million.
Total Debt $1.07 billion.
Net Debt $677 million.
Days Sales Outstanding 54 days, decreased by about half a day.
Capital Expenditures $14 million.
Share Repurchase 433,000 shares for $25 million.
AI and Agentic AI Implementation: ManpowerGroup is preparing to showcase its technology roadmap, including the implementation of AI and Agentic AI at the VivaTech conference in Paris in May.
Market Performance in Asia Pacific and Latin America: Demand for services in Latin America and Asia Pacific Middle East (APME) remains good, with APME segment revenues increasing by 7% in organic constant currency.
U.S. Market Performance: Revenue in the U.S. was $689 million, representing a 2% days-adjusted increase compared to the prior year, with strong performance from the Manpower and Talent Solutions brands.
Southern Europe Revenue Trends: Southern Europe revenue was $1.8 billion, reflecting a 5% decrease in constant currency, with France experiencing an 8% decline.
Northern Europe Challenges: Northern Europe segment revenue decreased by 14% in constant currency, with the U.K. and Germany facing significant declines.
Cost Management: ManpowerGroup took further cost actions to mitigate trends impacting margins and will continue to adjust as needed.
SG&A Expense Management: Reported SG&A expense was $670 million, with adjusted SG&A down 4% year-over-year on a constant currency basis.
Diversification and Digitization Strategy: ManpowerGroup is focused on diversifying, digitizing, and innovating, with an emphasis on process convergence across global operations.
Organizational Structure Evolution: The company has evolved its organizational structures to align global brands and drive profitable revenue growth.
Economic and Geopolitical Uncertainty: The company faces risks related to economic and geopolitical uncertainty, which may impact demand for services globally. Recent trade policy announcements in the U.S. have created a more cautious environment among clients.
Tariff Policy Impact: The uncertainty surrounding tariff policies may dampen demand for services, leading to a cautious hiring approach from employers.
Market Conditions in Europe and North America: Challenging market conditions in Europe and North America are expected to continue, with revenue declines noted in key markets such as the U.K. and Germany.
Regulatory Changes: Increased tax charges in France due to a law change for 2025 are expected to negatively impact earnings per share.
Supply Chain Challenges: The company is experiencing volatility related to tariff announcements, which may affect supply chain dynamics and operational costs.
Permanent Recruitment Decline: A continued decline in permanent recruitment and reduced outplacement volumes are impacting margins and overall profitability.
Foreign Currency Translation: Foreign currency translation has negatively impacted reported revenues, contributing to a decrease in earnings.
Free Cash Flow Outflow: The company reported a free cash flow outflow of $167 million, indicating potential liquidity challenges.
Strategic Plan: ManpowerGroup is confident in its strategic plan to diversify, digitize, and innovate, with a focus on implementing AI and Agentic AI.
Technology Roadmap: The company plans to showcase its technology roadmap at VivaTech in Paris, emphasizing partnerships with best-in-class platforms.
Organizational Structure: ManpowerGroup has evolved its organizational structures to align its global brands and drive profitable revenue growth.
Cost Management: The company is focused on managing costs centrally to benefit its brands and countries.
Ethical Recognition: ManpowerGroup has been named a world's most ethical company for the 16th time, which is significant for attracting talent.
Q2 2025 EPS Guidance: Earnings per share for Q2 2025 is forecasted to be in the range of $0.65 to $0.75.
Revenue Guidance: Constant currency revenue guidance for Q2 2025 is expected to decrease between 3% and 7%, with a midpoint of a 5% decrease.
EBITDA Margin Guidance: EBITDA margin for Q2 2025 is projected to be down 60 basis points compared to the prior year.
Effective Tax Rate Guidance: The effective tax rate for Q2 2025 is estimated to be 46.5% due to increased French tax and lower earnings from certain geographies.
Share Repurchase Program: During the first quarter, the company repurchased 433,000 shares of stock for $25 million. As of March 31, 2025, there are 2.2 million shares remaining for repurchase under the share program approved in August 2023.
The earnings call summary and Q&A reveal several concerns: declining EBITDA margins, slightly negative revenue guidance, political and economic uncertainties in key markets like France and the U.S., and restructuring efforts in Northern Europe. Despite AI advancements and stable free cash flow expectations, these negative factors overshadow potential positives. The company's market cap suggests it may react moderately, leading to a likely negative stock movement of -2% to -8% over the next two weeks.
Despite some positive elements, such as growth in the U.S. Manpower brand and AI advancements, the overall sentiment is negative due to weak financial guidance, including a projected revenue decline and decreased EBITDA margins. Additionally, high tax rates and geopolitical uncertainties in Northern Europe contribute to a negative outlook. The Q&A session highlighted concerns about economic conditions and restructuring, which further dampen sentiment.
The earnings call reveals several challenges: a revenue decline, decreased EBITDA, and lower EPS, compounded by geopolitical risks and regulatory changes. Despite a share repurchase program, the negative financial metrics and cautious market outlook weigh heavily. The Q&A section reflects uncertainty in market conditions and management's cautious stance. The guidance of declining revenue and margins further exacerbates concerns. The market cap suggests moderate volatility, but overall, the sentiment leans negative due to the combination of financial underperformance and external uncertainties.
The earnings call summary shows mixed financial performance with revenue and EBITDA declines, increased tax risks, and cash flow volatility. The Q&A section highlights uncertainties due to tariffs and economic challenges in key markets, while management's vague responses add to concerns. Although share repurchases are positive, weak financial guidance and declining margins weigh heavily. Considering the company's small cap, these factors suggest a negative stock price movement of -2% to -8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
