SThree (STEM) H2 2025 earnings summary

Executive summary

• Celebrated 40th anniversary, highlighting resilience and expertise in STEM and flexible talent.

• FY25 performance was in line with expectations, with sequential improvement in Net Fee decline and disciplined cost management amid challenging market conditions.

• Strategic focus on long-term STEM demand and flexible workforce solutions, with contract roles making up 84% of business.

• Achieved growth in the USA and Japan, despite challenging global talent markets.

• Completed global rollout of the TIP digital platform, enhancing operational efficiency and client experience.

Financial highlights

• Net fees declined 12% year-on-year on a constant currency basis, with sequential improvement through the year; revenue was £1,302.2m, also down 12%.

• Operating profit was £26.1m, down 60% year-on-year; profit before tax was £25.5m, down 62%.

• EPS decreased to 13.7p, reflecting lower profits and higher effective tax rate.

• Full-year dividend maintained at 14.3p per share; new £20m share buyback program announced.

• Net cash at year-end was £68.0m, broadly flat after a £20m share buyback.

Outlook and guidance

• Confident in delivering full-year expectations for the next fiscal year.

• FY26 profit before tax is expected to be around £10m, underpinned by improved year-end new business activity.

• Profitability phasing will differ due to first-half weighted costs for the FY26 efficiency program.

• Continued investment in digital infrastructure expected to drive sustainable productivity gains.