ManpowerGroup (MAN) Q1 2026 earnings summary

Executive summary

• Q1 2026 reported revenues were $4.5 billion (system-wide $5 billion), up 3% in constant currency, with strong growth in select markets and stabilization elsewhere despite headwinds in professional and permanent hiring.

• Adjusted EBITDA margin reached 1.4%, reflecting improved demand and operational leverage, while SG&A as adjusted was reduced by 4% in constant currency.

• Net earnings were $2.5 million ($0.05 per share), down from $5.6 million in Q1 2025, impacted by $0.46 per share in restructuring and transformation charges.

• Launched a global transformation initiative targeting $200 million in permanent cost savings by 2028, driven by automation, AI, and process redesign.

• AI initiatives delivered $200 million incremental revenue in France, improved candidate experience, and are scaling globally.

Financial highlights

• Q1 adjusted EBITDA was $61 million, up 5% in constant currency year-over-year; EBITA margin as adjusted was 1.4%.

• Adjusted EPS was $0.51, above guidance midpoint; reported EPS was $0.05, reflecting restructuring and transformation charges.

• Gross profit margin was 16%, with a 3% year-over-year decline in consolidated gross profit on an organic constant currency basis.

• Free cash flow was an outflow of $135 million, improved from $167 million outflow in the prior year.

• Net debt at quarter end was $953 million; gross debt to trailing 12 months adjusted EBITDA was 2.86.

Outlook and guidance

• Q2 2026 guidance: EPS of $0.91–$1.10, constant currency revenue growth of 1–5%, and EBITDA margin up 10 basis points year-over-year.

• Gross profit margin projected at 16.1–16.3%; EBITA margin 2.0–2.2%.

• Free cash flow expected to be negative in H1, offset by strong H2 performance.

• Americas and Southern Europe forecasted to lead growth; Northern Europe and APME expected to be flat to slightly down.

• U.S. business expected to return to low single-digit revenue growth in Q2; Italy and Japan to see continued solid growth.