Adecco Group (ADEN) Q2 2025 earnings summary

Executive summary

• Group achieved a market share gain of 205 basis points, with Adecco up 130 basis points year-on-year and all GBUs improving sequentially.

• Revenues reached €5.8bn in Q2, up 0.4% year-on-year organically, with strong Americas (+14%) and APAC (+9%) growth, while Europe remained mixed.

• Gross profit was €1.1bn (18.9% margin), and EBITDA/EBITA excluding one-offs was €141mn (2.5% margin).

• Adjusted EPS was €0.46, with robust cash conversion at 98% and operating cash flow of €81mn.

• Strategic execution, digital expertise, and AI-driven solutions led to significant client wins in consulting, technical, and defense sectors.

Financial highlights

• Adecco revenues up 1.7% year-on-year (organic, trading days adjusted), Americas +14%, APAC +9%, with EBITDA margin at 1.7% in Americas and 4.6% in APAC.

• Akkodis revenues down 6% year-on-year, with Germany weak and APAC robust; EBITDA/EBITA margin at 1.6%.

• LHH revenues down 1% year-on-year, but up 4% sequentially; EBITDA/EBITA margin at 9.5%.

• Group EBITDA/EBITA margin (excluding one-offs) was 2.5%, down 60 basis points year-on-year.

• Net debt at quarter-end was €2,882mn, net debt/EBITDA at 3.6x, with cash conversion at 98%.

Outlook and guidance

• Q3 expected to see sequential gross margin improvement (20–30 bps) and modestly lower SG&A expenses.

• Profitability expected to improve in H2, with full-year EBITDA margin floor of 3% reaffirmed for 2025.

• Akkodis Germany turnaround plan to deliver margin improvement in Q3 and healthy run-rate profitability by year-end.

• FY25 gross interest expense guidance lowered to €75mn; targeting net debt/EBITDA ≤1.5x by end-2027.