Randstad (RAND) investor relations material

Executive summary

• Achieved 0.4% organic growth in Q1 2026, reversing a prior decline, with 63% of business segments in growth and digital marketplaces live in nine markets.

• Revenue reached €5.5 billion, reflecting positive momentum and strategic progress, with underlying EBITA at €146 million and a 2.7% margin.

• Strong performance in the U.S., Southern Europe, and APAC, with stabilization in Northwest Europe and robust results in Italy and Iberia.

• Digital marketplace rollout and AI adoption are driving operational efficiency, with 80% of staff AI-trained and 1.45 million self-scheduled shifts, up 2.5x year-over-year.

• The Partner for Talent strategy and continued investment in growth segments supported operational improvements and talent placement.

Financial highlights

• Q1 2026 revenues reached €5.5 billion; underlying EBITA was €146 million, down 12% year-over-year, with a 2.7% margin.

• Gross margin declined 80 bps year-over-year to 18.5%, mainly due to temp margin, business mix, and FX impacts.

• Adjusted net income was €91 million; reported net income was €64 million, both down year-over-year.

• Free cash flow was negative €98 million, impacted by seasonal working capital, lower EBITDA, and higher taxes.

• Net debt (excluding leases) was €1,119 million, down from €1,250 million a year ago; leverage ratio at 1.5.

Outlook and guidance

• Positive volume trends from February and March continued into April, supporting confidence for Q2.

• Q2 gross margin expected to be slightly down sequentially due to seasonality and client mix; operating expenses anticipated to rise slightly.

• Effective tax rate for FY 2026 expected at the higher end of 29–31%.

• Finance costs expected to remain at Q1 levels for the rest of the year as net debt trends down.

• 0.1 additional working days anticipated in Q2 2026.