PageGroup (PAGE) Q2 2025 TU earnings summary

Executive summary

• Q2 2025 gross profit was £194.8m, down 10.5% year-over-year, reflecting ongoing market uncertainty and subdued client and candidate confidence.

• Activity levels deteriorated in Continental Europe, especially France and Germany, but improved in Asia and the U.S.

• Temporary recruitment outperformed permanent, as clients preferred flexibility amid uncertainty.

• Investments in technology and innovation, including AI and automation, are supporting productivity and customer experience.

• The business model remains highly adaptable and diversified, with resource reallocation to markets showing long-term opportunities.

Financial highlights

• Q2 2025 gross profit: £194.8m, down 10.5% at constant currency; H1 2025: £389.3m, down 9.7%.

• Foreign exchange reduced reported gross profit growth by 2.6 percentage points (£5.9m).

• Net cash at 30 June 2025 was £10m, down from £54m in Q1 2025 and £57m in Q2 2024, after £7m share buyback and £37m dividend payout.

• CapEx expected to be £12–15m for the year, with most software now expensed as SaaS.

• Tax rate expected to be about 35%.

Outlook and guidance

• Full-year 2025 operating profit expected to be broadly in line with consensus of £22m.

• Restructuring charges of £12.5m in H1 and £2.5m in H2, with a £5m benefit from reduced wages in H2.

• Net cash forecasted to end the year between £60m and £70m.

• Market conditions remain uncertain, with cautious optimism for improvement in Asia and the U.S.

• Business remains focused on balancing near-term productivity with positioning for future market improvement.