Q2 2025 Adecco Group AG Earnings Call Transcript
Key Points
- Adecco Group AG (AHEXF) increased market share by 205 basis points, outperforming key competitors.
- Revenue growth was led by Adecco Americas, up 14% year-on-year, and Adecco APAC, up 9% year-on-year.
- The company secured significant client wins, including a global OEM for EV battery production and a large-scale recruitment mandate from a global consulting firm.
- Operating cash flow was strong at EUR81 million, with a cash conversion rate of 98%.
- The company is executing a EUR40 million savings plan in Akkodis Germany, expected to improve profitability by year-end.
- Gross margin decreased by 50 basis points year-on-year, impacted by currency translation and lower volumes in certain segments.
- Akkodis revenues were 6% lower year-on-year, with significant pressure in Germany due to auto industry headwinds.
- Permanent Placement revenues were down 9%, reflecting ongoing challenges in the recruitment market.
- The EBITA margin was 2.5%, 60 basis points lower year-on-year, affected by organic gross margin developments and timing of FESCO JV income.
- Net debt-to-EBITDA ratio was high at 3.6 times, influenced by lower EBITDA and working capital absorption.
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 Q2 2025 results. (Operator Instructions)
I would now like to turn the call over to Benita Barretto, the Adecco Group Head of Investor Relations. Please go ahead.
Good morning, and thank you for joining the Adecco Group's Q2 results conference call. I'm Benita Barretto, the group's Head of Investor Relations. And with me are the Adecco Group's CEO, Denis Machuel; and CFO, Coram Williams.
Before we begin, we want to draw your attention to the disclaimer on slide 2. Today's presentation will reference GAAP and non-GAAP financial results and operating metrics. This conference call will include forward-looking statements. These statements are based on assumptions as of today and are therefore subject to risks and uncertainties.
Let me now hand over to Denis and the results report.
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