Hays (HAS) Q4 2025 TU earnings summary

Executive summary

• Q4 net fees expected to decline 9% year-on-year, mainly due to broad-based weakness in permanent hiring activity amid macroeconomic uncertainty, while temp and contracting remain more resilient.

• Consultant headcount expected to decrease by 4% in the quarter, with a 5% year-on-year improvement in average consultant net fee productivity.

• Strategic initiatives for structural savings and efficiency are progressing, targeting £30 million annual savings by FY 2027.

• Pre-exceptional operating profit for FY25 expected at £45 million, reflecting challenging conditions in permanent recruitment markets.

Financial highlights

• FY25 pre-exceptional operating profit expected at £45 million, with a pre-exceptional tax rate of 35%.

• Group like-for-like net fees projected to decline 9% year-over-year in Q4, with permanent down 14% and temp & contracting down 5%.

• Cost base improved to £75 million per period from £76 million in Q3, but high drop-through of lower net fees impacted profitability.

• Cash performance in Q4 remains in line with normal seasonal trends; guidance for a modest net cash position at year-end reiterated.

Outlook and guidance

• Challenging market conditions expected to persist into FY26.

• No full-year guidance for FY26 provided due to ongoing macroeconomic uncertainty.

• Focus remains on improving net fee productivity and back office efficiency to drive medium-term profit recovery.