Release Date: July 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ManpowerGroup Inc (MAN, Financial) reported a return to revenue growth in its Manpower and Talent Solutions brands this quarter.
- The company saw encouraging signs of stabilization in the US and parts of Europe.
- ManpowerGroup Inc (MAN) is leveraging its proprietary data to identify and act on growth opportunities, particularly in consumer goods and aerospace and defense sectors.
- The company is executing its Diversification, Digitization, and Innovation strategy, focusing on accelerating the adoption of new technologies.
- ManpowerGroup Inc (MAN) received multiple global accolades, including Forbes America's number one rating as the Best Temp Staffing Firm.
Negative Points
- Reported revenue was down 3% year over year in constant currency.
- Adjusted EBITA decreased by 25% in constant currency year over year.
- Earnings per basic share was a negative $1.44 on a reported basis.
- The Northern Europe segment experienced a 10% decline in constant currency revenue.
- Free cash flow represented an outflow of $207 million in the second quarter.
Q & A Highlights
Q: You mentioned focusing on market share gains. Who are you gaining share from, and what is your strategy?
A: Jonas Prising, CEO: We are pleased with our progress in competing and have built a strong pipeline. By using data, we can target faster-growing industry verticals more precisely. Our AI sales targeting engine helps identify leads likely to generate higher revenue, augmenting human capabilities. We are competing well in major markets, as reflected in our second-quarter performance.
Q: Are you considering moving more businesses to a franchise model?
A: Jonas Prising, CEO: We have been working on this for years. In some markets, a local approach might be beneficial for growth. We have moved out of smaller markets this quarter and are constantly evaluating existing and new markets where this model could help deploy our brands and serve clients better.
Q: Can you discuss US trends and the outlook for organic growth?
A: John McGinnis, CFO: The US business came in at minus 3% for the quarter, slightly better than expected. The Manpower brand performed strongly at plus 9%. The Experis business was down 14% due to nonrecurrence of healthcare technology projects. Talent Solutions saw double-digit growth. We anticipate slight improvement in the third quarter.
Q: What will it take to see improvement in Northern Europe's revenue trends and profitability?
A: Jonas Prising, CEO: Northern Europe faces tough economic conditions, notably in Germany. Improvement depends on economic recovery and geopolitical stability. We have taken significant restructuring actions to rightsize the business. Long-term, we believe Northern Europe can return to profitability in line with company averages when growth resumes.
Q: How are you progressing with back-office and front-office system changes?
A: John McGinnis, CFO: We are tracking well. About 65% of revenues go through our PowerSuite back office, enabling progress in shared service centers. We have 90% of revenues running through the PowerSuite front office. We are on track to see improvements in cost and efficiency by 2026.
Q: What impact could AI have on your business, and what percentage of revenue might be affected?
A: Jonas Prising, CEO: AI is augmenting human capabilities, improving sales targeting and candidate screening. We see productivity improvements but are in early stages of process transformation. AI's impact on revenue is still early, but we are leveraging data for better client outcomes and see promising opportunities.
Q: How did perm activity trend during the quarter, and what are your expectations for the third quarter?
A: John McGinnis, CFO: Perm activity was stable, with slight growth in the US. We expect stability at current levels into the third quarter, with perm comprising about 15.5% of gross profit.
Q: How do you reconcile feeling better about business trajectory with macro uncertainty?
A: Jonas Prising, CEO: We sense stabilization based on client confidence and market signals. Clients are looking through noise and focusing on underlying trends. We see positive indicators in the US and strong performance in Southern Europe and Asia-Pacific, suggesting potential for future growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
