ManpowerGroup (MAN) Q4 2025 earnings summary

Executive summary

• Fourth quarter results showed stabilization and sequential improvement in revenue and profitability, driven by enterprise demand, cost optimization, and digital transformation initiatives, with strong performance in core markets like France, Italy, and the US.

• Manpower business achieved three consecutive quarters of growth, with six in the US; Experis and Talent Solutions showed sequential improvement in revenue decline rates.

• AI and digital transformation initiatives, including PowerSuite and Sophie AI, enhanced productivity and recruiter precision, contributing to a 7% increase in placement rates and scaled commercial impact in the US.

• Ongoing cost-out initiatives led to a 4% constant currency year-over-year reduction in SG&A for the quarter, supporting improved operating leverage.

• 2026 is expected to mark an inflection point, with a clear path to sustainable organic revenue and margin growth.

Financial highlights

• Q4 reported revenue was $4.7 billion (system-wide $5.1 billion), up 7% as reported and 1% in constant currency year-over-year; organic constant currency growth was 2%.

• Adjusted EBITDA for Q4 was $100 million (2% decrease YoY), with an adjusted EBITDA margin of 2.1%, flat YoY; EBITA was $88 million ($100 million as adjusted), margin 1.9% (2.1% as adjusted).

• Q4 adjusted EPS was $0.92, $0.09 above guidance midpoint, and Q4 gross margin was 16.3%, reflecting softness in permanent recruitment in Europe.

• Full-year reported revenue was $18 billion (system-wide $19.5 billion), down 2% in constant currency; full-year adjusted EPS was $2.97 (down 38% YoY), reported EPS was -$0.29, and net loss was $13.3 million.

• Q4 free cash flow was $168 million; full-year free cash flow was -$161 million; year-end cash and equivalents rose to $871 million.

Outlook and guidance

• Q1 2026 EPS guidance is $0.45–$0.55, including a $0.06 favorable FX impact and a 43–45% effective tax rate.

• Q1 constant currency revenue guidance is -1% to +3% YoY, with midpoint at +1%; gross profit margin expected at 16.2–16.4%.

• Q1 EBITDA margin projected up 10 bps YoY; EBITA margin guidance for Q1 2026 is 1.3–1.5%.

• Americas revenue expected flat to up 4%, Southern Europe up 11–15%, Northern Europe up 4–8%, and APME up 3–7%.

• Committed to expanding EBITDA margin year-over-year, targeting 4.5–5% long-term.