Hays (HAS) Q2 2026 TU earnings summary

Executive summary

• Group net fees declined by 10% year-on-year in Q2 2026, with TEMP and contracting down 8% and PERM down 14%.

• Consultant net fee productivity grew 6% year-on-year, with headcount reduced by 1% in the quarter and 15% year-on-year; non-consultant headcount down 5% year-on-year.

• Strong consultant net fee productivity growth and cost discipline offset lower net fees, resulting in expected pre-exceptional operating profit of around GBP 20 million for H1, in line with consensus.

• Structural cost savings of circa GBP 18 million per annum targeted by FY 2029, with GBP 15 million annualized savings secured in H1 2026.

• Net cash position of around GBP 40 million at quarter-end, reversing a net debt position from September 2025.

Financial highlights

• Group net fees down 10% year-on-year; TEMP and contracting down 8%, PERM down 14%.

• Pre-exceptional operating profit expected at circa GBP 20 million for H1, down GBP 5 million year-on-year.

• Net cash position around GBP 40 million, reflecting seasonal inflows and month-end payments.

• Dividends paid of GBP 4.6 million and GBP 1.2 million in share purchases for employee incentives.

• Exceptional restructuring charge of approximately GBP 10 million expected in H1 26.

Outlook and guidance

• Consultant headcount expected to remain broadly stable in Q3, with continued focus on cost base reduction and investment in high-performing business lines.

• No material working day impacts anticipated in Q3 and Q4.

• Recovery timing remains uncertain, but confidence in benefiting materially when markets recover.

• Second half profit expected to improve, contingent on return to work trends and PERM activity.

• Ongoing macroeconomic uncertainty and reduced average hours worked in Germany expected to impact near-term performance.