SThree (STEM) Q3 2026 TU earnings summary

Executive summary

• Sequential improvement in Q3 performance, with net fees down 2% year-on-year and positive new business activity.

• Contract net fees, representing 84% of total, were broadly flat or down 1% year-on-year, while permanent net fees declined 8%.

• Contractor order book increased 5% year-on-year to £148 million, providing about five months of future net fees visibility.

• Strategic investments and operational model changes, including technology and proprietary AI, are driving efficiency and productivity gains.

• Market conditions remain mixed, but signs of stabilization and recovery are evident, especially in the U.S.A.

Financial highlights

• Q3 2026 group net fees: £79.2 million, down 2% year-on-year at constant currency.

• Contract net fees: £66.9 million (-1% YoY); Permanent net fees: £12.3 million (-8% YoY).

• Contractor order book increased 5% year-on-year, providing about five months of future net fees visibility.

• Net cash position of £36 million at August end (vs. £42 million a year earlier).

• Share buyback programme of up to £20 million, with £10.5 million purchased by 21 September 2026.

Outlook and guidance

• FY 2026 profit before tax now expected to be at least £12 million, up from previous guidance of £10 million.

• Upward revision reflects working capital efficiencies and one-off benefits not expected to recur.

• Cost optimisation programme on track, with savings weighted towards the second half of FY 2026.

• Continued confidence in improving business trajectory and scalable growth.