Randstad (RAND) investor relations material

Executive summary

• Q3 revenue was €6.115bn, up 3.9% organically per working day and 5% reported; underlying EBITA rose 10% YoY to €211m, with a 3.5% margin.

• 75% of business was in growth; activity and talent at work improved through Q3, with further improvement in early October.

• Operational demand, strategy execution, productivity gains and cost discipline supported profitability.

Financial highlights

• Underlying gross profit rose 1% organically to €1.089bn; underlying gross margin declined 60 bps YoY to 17.8% from 18.4%.

• Operating expenses were €878m, flat YoY reported and down 1% organically; EBITA was €196m after €15m of integration costs and one-offs.

• Reported net income rose 33% to €110m; adjusted net income increased 11% to €133m.

• Free cash flow was €250m, up 2% YoY, while EBITDA increased 17% to €250m.

Outlook and guidance

• Q4 gross margin is expected to be broadly stable sequentially; operating expenses are expected to rise slightly QoQ, with underlying costs expected flat.

• Activity and volumes improved during Q3 and further in early October; Q4 has 0.3 additional working days and a ~100 bps easier comparison base.

• FY2026 effective tax rate is expected toward the higher end of the 30%-32% range; a stronger 2027 is expected in the Netherlands.

• Management aims to enter 2027 with OpEx controlled and growth converting at higher operational leverage.