Q1 2026 Adecco Group AG Earnings Call Transcript
Key Points
- Adecco Group AG (AHEXF) reported a strong start to 2026 with a 5.3% year-on-year organic revenue growth, outperforming key competitors by 365 basis points.
- The company achieved a market-leading gross margin of 18.8% and a 24% year-on-year increase in EBITA, excluding one-offs, on an organic constant currency basis.
- Adecco Group AG (AHEXF) has made significant progress with its AI agenda, capturing productivity and growth benefits, including a 20% time savings for recruiters.
- The company reported strong growth across all regions, with notable revenue increases in the Americas (15%), APAC (8%), and EMEA excluding France (7%).
- Adecco Group AG (AHEXF) successfully issued a EUR450 million hybrid bond with an attractive coupon of 4.875%, strengthening its financial structure and liquidity resources.
- Permanent placement revenues remained soft, declining 7% in the quarter, reflecting continued market headwinds.
- The company's gross margin was impacted by an unusually large FX headwind of 20 basis points and a 30-basis point impact from flexible placement.
- Despite strong revenue growth, the EBITA margin was still below 3%, at 2.6%, indicating room for improvement in operational efficiency.
- The German market, particularly in the autos sector, continues to face headwinds, impacting Akkodis' overall performance.
- SG&A expenses are expected to be marginally higher sequentially in Q2, reflecting continued investment in growth and capacity.
Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Adecco Group Q1 2026 results. (Operator Instructions)
I would now like to turn the call over to Benita Barretto, Head of Investor Relations and External Communications. Please go ahead.
Good morning, and thank you for joining the Adecco Group's conference call today. I'm Benita Barretto, the Group's Head of Investor Relations. And with me are the Adecco Group CEO, Denis Machuel; and CFO, Valentina Ficaio.
Before we begin, please take note of the disclaimer on slide 2. Today's presentation will reference both GAAP and non-GAAP financial results and operating metrics. This conference call will include forward-looking statements, which are based on current assumptions and, as always, present opportunities as well as risks and uncertainties.
With that, I will now hand over to Denis.
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