ManpowerGroup Inc. Q2 FY2025 earnings call

• Market Trends: Heightened uncertainty earlier eased, global hiring outlook steady with mixed regional performance; Latin America and Asia Pacific doing well, North America cooling but resilient, Europe cautious especially Northern Europe. • Revenue Performance: System-wide revenue $4.9 billion, reported revenue $4.5 billion (-3% Y/Y constant currency). Reported EBITDA $72 million, adjusted EBITDA $89 million (-25% constant currency Y/Y). • Brand Performance: Manpower and Talent Solutions brands saw return to revenue growth. • Segment Details: Americas segment revenue $1.1B (+2% constant currency); Southern Europe revenue $2.1B (-2% organic constant currency); Northern Europe revenue $794M (-10% constant currency); Asia Pacific Middle East revenue $525M (+8% organic constant currency). • Cost Actions: Adjusted SG&A expenses as % of revenue 15.2% constant currency; ongoing back-office transformation and cost efficiencies. • Technology Initiatives: Leveraging PowerSuite and Sophie AI for sales targeting, candidate screening, and productivity improvements.

The Americas segment comprised 23% of consolidated revenue. Revenue in the quarter was $1.1 billion, an increase of 2% year-over-year on a constant currency basis. Southern Europe comprised 47% of consolidated revenue, with revenue of $2.1 billion, a 2% decrease in organic constant currency. Northern Europe comprised 18% of consolidated revenue, with revenue of $794 million, a 10% decline in constant currency. The Asia Pacific Middle East segment comprised 12% of total company revenue, with revenues of $525 million, an increase of 8% in organic constant currency. By business line, on an organic constant currency basis, the Manpower brand had growth of 1% in the quarter, the Experis brand declined by 9%, and the Talent Solutions brand had growth of 1%.

• Third quarter 2025 EPS guidance: $0.77 to $0.87. • Constant currency revenue guidance: Flat to 4% decrease, midpoint 2% decrease. • EBITDA margin: Projected down 50 basis points midpoint compared to prior year. • Effective tax rate: Full year adjusted 46.5%, third quarter 48% due to French tax change. • Weighted average shares estimated at 47 million.

• Economic and geopolitical uncertainty continuing to impact hiring intentions and market performance. • Northern Europe facing tough environment due to economic and geopolitical headwinds, including energy costs and Ukraine war impact. • Impact of regulatory models in some regions affecting profitability and business performance.

Q: Who is ManpowerGroup gaining share from and what's the share gain strategy?

A: Jonas Prising said they've built a strong pipeline, use data to target faster-growing industry verticals, deploy AI in sales targeting engine to identify leads likely to generate higher revenue.

Q: Thoughts on U.S. trends and outlook?

A: Jack McGinnis said U.S. business came in at -3% for the quarter, better than expected, Manpower brand +9% growth, Talent Solutions had good growth, expecting sequential improvement in third quarter.

Q: Northern Europe revenue trends and profitability?

A: Jonas Prising said Northern Europe facing tough headwinds, expects improvement when economic environment and geopolitical uncertainties subside; Jack McGinnis added restructuring actions taken and anticipating improved profitability in third quarter.

Q: Competitive dynamics in France and progress on transformation?

A: John Thomas McGinnis said France's constant currency revenue trends stabilized, expecting sequential improvement; progress on back-office transformation with 65% of revenues through PowerSuite platform, tracking to cross over in second half of 2026.