Adecco Group (ADEN) Q4 2025 earnings summary

Executive summary

• Achieved 1.3% year-on-year revenue growth for FY25, with Q4 revenues up 3.9% and market share gains of 245 bps for the year and 395 bps in Q4, outpacing key competitors for the third consecutive year.

• Delivered industry-leading 19.2% gross margin, stable gross profit, and strong cost discipline, including EUR 23 million G&A savings and a 3% productivity increase.

• Improved leverage with net debt/EBITDA at 2.4x, down 0.2x year-over-year, and maintained robust cash generation and a 102% cash conversion ratio.

• Outperformed competitors in relative growth, with three consecutive quarters of revenue growth and stable margins.

• Proposed dividend of CHF 1.00 per share (46% payout ratio), with an option for cash or scrip dividend.

Financial highlights

• FY25 revenues reached EUR 23 billion, with Q4 revenues at EUR 6 billion; FY25 gross profit was EUR 4,422 million (19.2% margin), and Q4 gross profit was EUR 1,141 million (19.1% margin).

• FY25 EBITDA/EBITA was EUR 693 million (3.0% margin); Q4 EBITDA/EBITA was EUR 225 million (3.8% margin), up 20% year-on-year.

• Adjusted EPS for FY25 was EUR 2.37; Q4 adjusted EPS was EUR 0.76.

• Operating cash flow for FY25 was EUR 613 million; free cash flow was EUR 483 million; cash conversion ratio was 102%.

• Net debt reduced by EUR 186 million to EUR 2.29 billion; leverage ratio improved to 2.4x net debt/EBITDA.

Outlook and guidance

• Q1 2026 expected to see broadly stable gross margin and SG&A expenses sequentially, with continued positive volume momentum.

• Committed to reducing net debt/EBITDA to 1.5x or below by end of 2027, barring major disruptions.

• Focus remains on market share gains, disciplined cost and capacity management, and profitable growth.

• Operating costs guided to remain stable, supported by productivity gains and cost discipline.