Randstad (RAND) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was €5.8 billion, down 2.1% year-over-year, with underlying EBITA at €191 million and a margin of 3.3%; full year revenue was €23.1 billion, down 2% year-over-year, and full year EBITA was €720 million.

• Net income in Q4 2025 was €90 million, a significant improvement from a €149 million loss in Q4 2024; full year net income was €299 million.

• Over 50% of the business is now in growth segments, up from 25% at the end of 2024.

• Cost discipline led to over €100 million in structural savings and a recovery ratio of 71%.

• Free cash flow for the year was €598 million, supporting a proposed dividend of €1.62 per share.

Financial highlights

• Q4 2025 EBITA margin stable at 3.3% year-over-year; gross margin at 18.4%, down from 18.8% YoY.

• Free cash flow in Q4 2025 was €213 million, up 145% YoY; full year free cash flow was €598 million, up 77% YoY.

• Net debt at year-end was €1,006 million, down from €1,280 million YoY; leverage ratio improved to 1.3x.

• Adjusted net income for Q4 was €135 million, up from €40 million YoY.

• Integration, restructuring, and M&A costs for FY 2025 totaled €125 million.

Outlook and guidance

• Entered 2026 with stable volumes and a flat revenue trend in January; January 2026 revenue was down 0.4% YoY.

• Q1 2026 gross margin expected to remain broadly stable sequentially, with modestly lower operating expenses.

• Growth segments and digital marketplaces expected to drive further expansion, with new markets to be added in 2026.

• Effective tax rate for FY 2026 expected between 29% and 31%.