Randstad (RAND) Q1 2025 earnings summary

Executive summary

• Q1 2025 featured operational agility and cost control, with EBITDA/EBITA at EUR 167 million and a 3% margin, despite a 4.2% revenue decline year-over-year.

• Growth was seen in Spain, Italy, and Japan, while North America stabilized and Northern Europe and France faced challenges, especially in automotive.

• Cost management led to a 6% year-over-year reduction in operating expenses.

Financial highlights

• Organic revenue declined 4.2% year-over-year to €5,656 million; gross profit fell 6% to €1,092 million.

• EBITDA/EBITA margin held at 3.0%, with adjusted net income at EUR 103 million, down 16% year-over-year.

• Free cash flow improved to EUR 59 million from EUR -42 million in Q1 2024, supported by working capital management and tax refunds.

• Leverage ratio stable at 1.6; net debt (excluding leases) at €1,250 million, up due to acquisitions.

• DSO at 55 days, up slightly sequentially.

Outlook and guidance

• Q2 2025 expected to be seasonally light in Europe due to fewer working days; gross margin anticipated to be modestly down sequentially, with stable operating expenses.

• Macroeconomic and geopolitical uncertainty is increasing, limiting visibility; scenario planning in place.

• Tax rate guidance raised to 28%-30% for 2025, reflecting changes in France and profit mix.