SThree (STEM) Q2 2026 TU earnings summary

Executive summary

• Group net fees declined 7% year-over-year for H1 2026, with the rate of decline moderating through the half, supported by strong growth in the USA.

• Contract new business activity was stable year-over-year and improved quarter-on-quarter.

• Productivity gains per head were achieved, underpinned by the successful delivery of the Technology Improvement Programme.

• The contractor order book rose 3% year-over-year to £157 million, representing about five months' net fees.

• Share buyback programme of up to £20 million launched, with £7.8 million purchased by mid-June 2026.

Financial highlights

• H1 2026 group net fees were £147.7 million, down from £159.1 million in H1 2025.

• Contract net fees declined 8% year-over-year to £124.9 million; Permanent net fees declined 5% to £22.8 million.

• Net cash position at 31 May 2026 was £43 million, compared to £48 million a year earlier.

• FY26 profit before tax is expected to be around £10 million, in line with previous guidance.

Outlook and guidance

• FY26 performance is expected to align with previously announced guidance of approximately £10 million profit before tax.

• Cost optimisation programme is on track, with savings weighted to the second half of the year.

• Management expresses cautious optimism, citing improved trading momentum and evolving client needs.