Adecco Group (ADEN) Q1 2025 earnings summary

Executive summary

• Achieved a 130 basis point market share gain in Q1 2025, with strong growth in APAC (+11%) and Americas (+4%), while Europe and Akkodis Germany faced ongoing pressure.

• Revenues were €5.573 billion, down 2% year-on-year (organic, trading days adjusted), but up 3% sequentially; Adecco US returned to growth.

• Gross margin was 19.4%, down 40 basis points year-on-year, with EBITA margin at 2.4%, reflecting cost discipline and favorable FESCO JV income timing.

• Adjusted EPS was €0.48, down 20% year-on-year; net income attributable to shareholders was €60 million, down 19%.

• Operating cash flow was -€144 million, with a strong LTM cash conversion ratio of 105%.

Financial highlights

• Group revenues reached €5.573 billion, down 2% year-on-year organically, with sequential growth of 3% from Q4 2024.

• Gross profit was €1,084 million (19.4% margin), down 5% organically; EBITA (excluding one-offs) was €132 million (2.4% margin), down 18% organically.

• Net debt at €2,701 million; net debt/EBITDA (excluding one-offs) was 3.2x.

• LTM cash conversion was 105%, and DSO improved to 52.5 days.

• Free cash flow was -€165 million, compared to -€93 million prior year.

Outlook and guidance

• Modest positive momentum in volumes continues into Q2 2025, with gross margin expected to be lower sequentially due to seasonality.

• SG&A expenses (excluding one-offs) expected to be modestly lower sequentially.

• Management remains committed to a 3% EBITDA margin floor annually and aims to reduce net debt/EBITDA to 1.5x or below by end of 2027.

• Focus remains on agile capacity management, productivity, and G&A savings.