ManpowerGroup (MAN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $4.1B, down 7% as reported and 5% in constant currency year-over-year, with growth in Latin America and Asia-Pacific but continued challenges in Europe and North America.

• Net earnings fell 86% to $5.6M, and diluted EPS dropped to $0.12 from $0.81, impacted by $15.8M restructuring costs and a one-time French tax surcharge; adjusted EPS was $0.44, down 51% in constant currency.

• Staffing margins remained solid, but permanent recruitment and outplacement volumes softened, impacting overall margins.

• Clients are cautious due to recent U.S. trade policy announcements, leading to a wait-and-see approach globally.

• Named World's Most Ethical Company for the 16th time.

Financial highlights

• System-wide revenues, including franchise offices, totaled $4.5B for the quarter.

• Gross profit margin was 17.1%, with consolidated gross profit down 6% year-over-year in constant currency.

• Adjusted EBITDA was $52M, down 32% year-over-year; EBITA margin at 1.3% as adjusted.

• Free cash flow was an outflow of $167M, compared to an inflow of $104M in the prior year, mainly due to timing of payables.

• Net debt at quarter end was $677M; net debt-to-EBITDA ratio at 2.68x.

Outlook and guidance

• Q2 2025 guidance anticipates continued challenges in Europe and North America, with EPS forecasted at $0.65–$0.75 and a 46.5% effective tax rate due to a French tax increase.

• Constant currency revenue guidance for Q2 is a decrease of 3% to 7% year-over-year; organic days-adjusted revenue decrease of 2% at midpoint.

• Q2 EBITDA margin projected to be down 60 bps year-over-year; gross profit margin forecasted at 17.0–17.2%.

• Management expects continued challenging business conditions, especially in Europe and North America, with employers remaining cautious on hiring.

• Foreign currency headwinds are expected to persist, impacting reported results.