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 contract staffing (84% of group), providing resilient and profitable revenue.

• Completed global rollout of the TIP digital platform, modernizing operations and driving innovation.

• Positioned for long-term growth with a unified technology backbone and enhanced operational efficiency.

Financial highlights

• Net Fees for FY25 were £322.7m, down 12% year-on-year on a constant currency basis; 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 63% to 13.7p; profit after tax down 64% year-on-year.

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

• Final dividend of 9.2p per share, full-year dividend maintained at 14.3p per share, with a dividend cover of 1.0x.

Outlook and guidance

• Confident in delivering full-year expectations for FY26, with profitability phasing weighted to the first half due to efficiency program costs.

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

• Early signs of new business momentum, especially in the U.S.; contract renewal period on track.

• Continued investment in digital infrastructure, with focus shifting to optimization and scaling benefits.