Kelly Services (KELYA) Investor presentation summary

Strategic positioning and business transformation

• Focused on higher-margin, higher-growth specialties, resulting in gross margin expansion and improved profitability through 2025.

• Monetized nearly $500 million in non-core assets and redeployed capital to acquire seven specialty talent solutions companies.

• Enhanced operational efficiency, achieving over $100 million in SG&A savings and a refreshed board and management team.

• Shifted revenue mix toward education staffing and outcome-based solutions, with significant growth in these segments.

• Consolidated business units into three specialized, market-leading segments: ETM, SET, and EDU.

Financial performance and outlook

• 2025 revenue reached $4.3 billion, with an adjusted EBITDA margin of 2.6%, exceeding the recent historical average.

• Gross profit margin expanded to 20.1% in 2025, with adjusted EBITDA of $109.4 million.

• Free cash flow improved to $114 million in 2025, reflecting strong cash generation and disciplined capital allocation.

• 2026 outlook anticipates modest year-over-year revenue growth and measurable adjusted EBITDA margin expansion, assuming stable macroeconomic conditions.

• $70 million in share repurchases since 2022, with $30 million remaining under current authorization.

Segment highlights and market positioning

• ETM segment generated $2.2 billion in 2025 revenue, with a 19.6% gross profit margin and leadership in workforce solutions.

• SET segment delivered $1.2 billion in revenue and a 25.3% gross profit margin, ranking #2 in life science staffing and #4 in engineering staffing in the U.S.

• EDU segment achieved $1.0 billion in revenue and a 14.5% gross profit margin, serving over 8,700 schools and ranking #1 in U.S. education staffing.

• Placed 375,000 individuals in positions in 2025, maintaining top rankings in temporary staffing and professional recruiting.

• Recognized as a leader and star performer in multiple Everest Group PEAK Matrix categories and by Forbes and Staffing Industry Analysts.