Kelly Services Inc (FRA:KYSA)

Q2 2026 Kelly Services Inc Earnings Call Transcript

Aug 6, 2026 / 01:00 PM GMT

Release Date Price: €13.3 (+2.31%)

Transcript 8-K

Key Points

Positve

Kelly Services Inc (KELYA) exceeded its guidance for both total company revenue and adjusted EBITDA margin in Q2 2026, with adjusted EBITDA margin returning to 3%.
Underlying revenue trends improved significantly, with ETM returning to growth (up 3.1% year-over-year) and Talent Solutions growing for the second consecutive quarter.
The company is seeing strong momentum in high-growth areas like semiconductor manufacturing, life sciences, and data center construction, driven by secular trends like industrial reshoring and AI investment.
Kelly Services Inc (KELYA) achieved a 100% renewal rate in its K-12 education staffing business and secured net new customer wins, positioning it for growth in the second half of the year.
The company is making significant progress on its technology modernization, including a successful cutover to a unified AI-powered CRM platform and scaling its proprietary AI platform, Grace, to drive efficiency and productivity.
Management raised its full-year outlook, expecting improved revenue trends and margin expansion in the second half of 2026, with Q4 revenue growth projected in the mid-to-upper single digits.
Kelly Services Inc (KELYA) continues to strengthen its leadership team and board, adding experienced executives to drive technology, product, and digital innovation.

Negative

Total company revenue declined 5.8% year-over-year in Q2 2026, reflecting continued softness in the overall demand environment.
The company is still facing headwinds from reduced demand from the federal government and three large ETM customers, which are expected to persist until Q4 2026.
The Education segment continues to struggle, with revenue declining 4.4% year-over-year due to enrollment declines and delayed contract decisions in key markets.
Adjusted earnings per share declined to $0.37 in Q2 2026 from $0.54 in the prior year, impacted by lower profitability and a more normalized tax rate.
The company expects Q3 2026 to be a seasonally weak quarter, with lower revenue and margins due to the education business being out of session, resulting in a sequential decline from Q2.
Adjusted SG&A expenses, while declining, still reflect ongoing investments in technology and growth initiatives, which could pressure near-term profitability.
The company continues to incur restructuring, integration, and realignment charges as it advances its technology modernization and optimization efforts.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KELYA.OQ - Kelly Services Inc
Q2 2026 Kelly Services Inc Earnings Call
Aug 06, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to Kelly Services Call.

Parties will be on listen-only until the question-and-answer portion of the presentation.

Today's call is being recorded at the request of Kelly Services.

If anyone has any objections, you may disconnect at this time.

I would now like to turn the meeting over to your host, Mr.

Scott Thomas.

Kelly's head of investor relations, please go ahead.

Good morning and welcome to Kelly's second quarter conference call.

With me today are Kelly's Chief Executive Officer, Chris Layden, and our Chief Financial Officer, Troy Anderson.

Before we begin, I'll remind you that the comments made during today's call,

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