Randstad (RAND) Q1 2025 earnings summary

Executive summary

• Q1 2025 featured solid execution and operational agility, with profitability protected through cost control and strategic investments despite a 4.2% revenue decline year-over-year.

• EBITDA/EBITA margin held steady at 3.0%, with EBITDA/EBITA at EUR 167 million.

• Growth in Spain, Italy, Japan, and stabilization in North America offset challenges in Northern Europe and France, especially in automotive.

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

• Continued investments in digital, skilled trades, and healthcare segments are yielding results.

Financial highlights

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

• Underlying EBITA/EBITDA was €167 million, down year-over-year, with a stable 3.0% margin.

• Adjusted net income was €103 million, a 16% decrease year-over-year.

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

• Gross margin declined 90 basis points year-over-year, mainly due to business mix and idle time.

Outlook and guidance

• Q2 2025 gross margin expected to be modestly lower sequentially due to seasonality and mix; operating expenses to remain broadly stable.

• Early April activity trends are stable with Q1; macroeconomic and geopolitical uncertainty limits visibility.

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

• Scenario planning and cost flexibility in place to protect margins if conditions worsen.

• Q2 2025 expected to have 0.5 fewer working days, impacting results.