ManpowerGroup Inc.

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, (each a "forward-looking statement"). Statements made in this quarterly report that are not statements of historical fact are forward-looking statements. In addition, from time to time, we and our representatives may make statements that are forward-looking. Forward-looking statements are based on management’s current assumptions and expectations and are subject to risks and uncertainties that are beyond our control and may cause actual results to differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “may,” “believe,” “seek,” “estimate,” and other similar expressions. Important factors that could cause our actual results to differ materially from those contained in the forward-looking statements include, among others, the risk factors discussed in Item 1A – Risk Factors in our annual report on Form 10-K for the year-ended December 31, 2023, which information is incorporated herein by reference. Such risks and uncertainties include, but are not limited to, volatile, negative or uncertain economic conditions, particularly in Europe, including inflation, geopolitical risk and uncertainty; changes in labor and tax legislation in places we do business; failure to implement strategic transformation initiatives and technology investments; and other factors that may be disclosed from time to time in our SEC filings or otherwise. We caution that any forward-looking statement reflects only our belief at the time the statement is made. We undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, (each a "forward-looking statement"). Statements made in this quarterly report that are not statements of historical fact are forward-looking statements. In addition, from time to time, we and our representatives may make statements that are forward-looking. Forward-looking statements are based on management’s current assumptions and expectations and are subject to risks and uncertainties that are beyond our control and may cause actual results to differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “may,” “believe,” “seek,” “estimate,” and other similar expressions. Important factors that could cause our actual results to differ materially from those contained in the forward-looking statements include, among others, the risk factors discussed in Item 1A – Risk Factors in our annual report on Form 10-K for the year-ended December 31, 2024, which information is incorporated herein by reference. Such risks and uncertainties include, but are not limited to, volatile, negative or uncertain economic conditions, particularly in Europe and the United States, including inflation, global trade policies, geopolitical risk and uncertainty; changes in labor and tax legislation in places we do business; failure to implement strategic transformation initiatives and technology investments; and other factors that may be disclosed from time to time in our SEC filings or otherwise. We caution that any forward-looking statement reflects only our belief at the time the statement is made. We undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

Previous wording

Our business is cyclical in nature and is sensitive to macroeconomic conditions generally. Client demand for workforce solutions and services is dependent on the overall strength of the labor market and secular trends toward greater workforce flexibility within each of the segments where we operate. Improving economic growth typically results in increasing demand for labor, resulting in greater demand for our staffing services while demand for our outplacement services typically declines. During periods of decreased demand, as we continued to experience in the third quarter of 2024, our operating profit is generally impacted unfavorably as we experience a deleveraging of selling and administrative expenses, which may not decline at the same pace as revenues. By contrast, during periods of increased demand, we are generally able to improve our profitability and operating leverage as our cost base can support some increase in business without a similar increase in selling and administrative expenses.

Current wording

Our business is cyclical in nature and is sensitive to macroeconomic conditions generally. Client demand for workforce solutions and services is dependent on the overall strength of the labor market and secular trends toward greater workforce flexibility within each of the segments where we operate. Improving economic growth typically results in increasing demand for labor, resulting in greater demand for our staffing services while demand for our outplacement services typically declines. During periods of decreased demand, as we continued to experience in the first quarter of 2025, our operating profit is generally impacted unfavorably as we experience a deleveraging of selling and administrative expenses, which may not decline at the same pace as revenues. By contrast, during periods of increased demand, we are generally able to improve our profitability and operating leverage as our cost base can support some increase in business without a similar increase in selling and administrative expenses.

Previous wording

In the third quarter of 2024, we continued to observe decreased demand for staffing services and permanent recruitment services primarily due to continued economic uncertainty, and we expect this trend to continue. The economic uncertainty is particularly high in Europe and the United States. Inflation has eased in Europe and the United States resulting in both markets reducing interest rates during the quarter. However, employers are continuing their cautious approach with many employers retaining their current workforce, delaying hiring decisions or reducing their demand for contingent labor as they remain focused on managing the macro-economic and geopolitical challenges impacting their businesses. Many employers are still hesitant to increase their spend and expand their workforce until they perceive a significant improvement in economic outlook. As a result of these factors, we expect the business environment will continue to be challenging, which could further negatively impact our operations in future periods.

Current wording

In the first quarter of 2025, we observed the continuation of a challenging environment in Europe and North America, while demand for our services in Latin America and Asia Pacific increased during the quarter. Employers are continuing their cautious approach with many employers retaining their current workforce, delaying hiring decisions or reducing their demand for contingent labor as they remain focused on managing the macro-economic and geopolitical challenges impacting their businesses, including the impact of recent tariff announcements. We believe many employers are still hesitant to increase their spend and expand their workforce until they perceive a significant improvement in economic outlook and greater certainty in trade policy. As a result of these factors, we expect the business environment will continue to be challenging, which could further negatively impact our operations in future periods.

Previous wording

During the third quarter of 2024, the United States dollar was generally stable, on average, relative to the currencies in most of our markets, and overall had a slight unfavorable impact on our reported results. The changes in the foreign currency exchange rates had a -1.3% unfavorable impact on revenues from services and an approximately $0.03 per share unfavorable impact on net earnings per share – diluted in the quarter. Substantially all of our subsidiaries derive revenues from services and incur expenses within the same local currency and generally do not have cross-currency transactions, and therefore, changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated. To understand the performance of our underlying business, we utilize constant currency or organic constant currency variances for our consolidated and segment results.

Current wording

During the first quarter of 2025, the United States dollar strengthened, on average, relative to the currencies in most of our markets, and overall had an unfavorable impact on our reported results. The changes in the foreign currency exchange rates had a -2.5% unfavorable impact on revenues from services and an approximately $0.01 per share unfavorable impact on net earnings per share – diluted in the quarter. Substantially all of our subsidiaries derive revenues from services and incur expenses within the same local currency and generally do not have cross-currency transactions, and therefore, changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated. To understand the performance of our underlying business, we utilize constant currency or organic constant currency variances for our consolidated and segment results.

Previous wording

During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -5.5% revenue decrease in the Americas, primarily driven by the unfavorable impact of currency exchange rates and decreased demand for our Experis interim services, partially offset by increased demand for our Manpower staffing services and increased demand for Talent Based Outsourcing (TBO). During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -0.6% revenue decrease in Southern Europe, primarily due to decreased demand for our Manpower staffing services and decreased demand for our permanent recruitment services, partially offset by the favorable impact of currency exchange rates and increased demand for our Talent Solutions outplacement services. During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -9.4% revenue decrease in Northern Europe, primarily due to a decreased demand for our Manpower and Experis staffing/interim services, decreased demand for our Experis Solutions services, and decreased demand for our permanent recruitment services, partially offset by the favorable impact of currency exchange rates and increased demand for our Talent Solutions outplacement services. We experienced a -0.3% revenue decrease in APME in the third quarter of 2024 compared to the third quarter of 2023 primarily due to the unfavorable impact of currency exchange rates and decreased demand for TBO and decreased demand for our permanent recruitment services, partially offset by increased demand for our Manpower staffing services.

Current wording

During the first quarter of 2025 compared to the first quarter of 2024, we experienced a 2.0% revenue increase in the Americas, primarily driven by an increase in demand for our Manpower staffing services and an increase in demand for Talent Based Outsourcing (TBO), partially offset by the unfavorable impact of currency exchange rates and a decrease in demand for our Experis interim services. During the first quarter of 2025 compared to the first quarter of 2024, we experienced a -7.4% revenue decrease in Southern Europe, primarily due to a decrease in demand for our Manpower and Experis staffing/interim services, the unfavorable impact of currency exchange rates and a decrease in demand for our permanent recruitment services. During the first quarter of 2025 compared to the first quarter of 2024, we experienced a -16.0% revenue decrease in Northern Europe, primarily due to a decrease in demand for our Manpower and Experis staffing/interim services, the unfavorable impact of currency exchange rates, a decrease in demand for our Experis solutions services and a decrease in demand for our permanent recruitment services. We experienced an -11.0% revenue decrease in APME in the first quarter of 2025 compared to the first quarter of 2024 primarily due to the disposition of our Korea business in 2024 which contributed to the decrease in revenue for our Manpower staffing and TBO services and the unfavorable impact of currency exchange rates.

Previous wording

From a brand perspective, we experienced revenue decreases in Manpower and Experis and a revenue increase in Talent Solutions in the third quarter of 2024 compared to the third quarter of 2023. In our Manpower brand, the revenue decrease was primarily due to decreased demand for staffing services and our permanent recruitment services. The revenue decrease in our Experis brand was primarily due to decreased demand for interim services, our Experis Solutions services and our permanent recruitment services. On an overall basis, the revenue increase in our Talent Solutions brand, which includes RPO, MSP and our Right Management offerings, was primarily due an increase in demand for our Right Management outplacement services and our MSP business, partially offset by decreased demand for our RPO permanent recruitment offerings.

Current wording

From a brand perspective, we experienced revenue decreases in Manpower, Experis and Talent Solutions in the first quarter of 2025 compared to the first quarter of 2024. In our Manpower brand, the revenue decrease was primarily due to decreased demand for staffing services. The revenue decrease in our Experis brand was primarily due to decreased demand for interim services, our Experis solutions services and our permanent recruitment services. On an overall basis, the revenue decrease in our Talent Solutions brand, which includes RPO, MSP and our Right Management offerings, was primarily due to a decrease in demand for our Right Management outplacement services.

Previous wording

The year-over-year decrease in revenues from services of -3.1% (-1.8% in constant currency and -1.7% in organic constant currency) was attributed to:

Current wording

The year-over-year decrease in revenues from services of -7.1% (-4.6% in constant currency and -2.4% in organic constant currency) was attributed to:

Previous wording

a revenue decrease in the Americas of -5.5% (increase of 1.5% in constant currency) primarily driven by the $77.8 million unfavorable impact of currency exchange rates and a $45.8 million decrease in demand for our Experis interim services, partially offset by a $66.0 million increase in demand for our Manpower staffing services and a $7.7 million increase in demand for TBO. The United States, our largest market in the Americas, experienced a revenue decrease of -4.5% primarily driven by a $33.4 million decrease in demand for our Experis interim services;

Current wording

a revenue increase in the Americas of 2.0% (5.3% in constant currency) primarily driven by a $70.5 increase in demand for our Manpower staffing services and a $4.4 increase in demand for TBO, partially offset by the $34.6 unfavorable impact of currency exchange rates and a $15.2 decrease in demand for our Experis interim services. The United States, our largest market in the Americas, experienced a revenue increase of 1.2% primarily driven by an $11.7 increase in demand for our Manpower and Experis staffing/interim services, partially offset by a $3.1 decrease in demand for our Right Management outplacement services.

Previous wording

a revenue decrease in Southern Europe of -0.6% (-1.3% in constant currency) primarily driven by a $24.6 million decrease in demand for our Manpower staffing services and a $5.4 million decrease in demand for our permanent recruitment services, partially offset by the $14.7 million favorable impact of currency exchange rates and a $6.1 million increase in demand for our Talent Solutions outplacement services. France, the largest market in Southern Europe, experienced a revenue decrease of -2.5% (-3.3% in constant currency) primarily driven by a $44.9 million decrease in demand for our Manpower staffing services, partially offset by the $9.6 million favorable impact of currency exchange rates and a $5.3 million increase in demand for our Talent Solutions outplacement services. Italy, our second-largest market in Southern Europe, experienced a revenue increase of 1.3% (0.5% in constant currency) primarily driven by the $3.5 million favorable impact of currency exchange rates and a $1.3 million increase in demand for TBO, partially offset by a $1.7 million decrease in demand for our permanent recruitment services;

Current wording

a revenue decrease in Southern Europe of -7.4% (-4.8% in constant currency and -4.0% in organic constant currency) primarily driven by a $97.5 decrease in demand for our Manpower and Experis staffing/interim services, the $52.1 unfavorable impact of currency exchange rates and a $4.2 decrease in demand for our permanent recruitment services. France, the largest market in Southern Europe, experienced a revenue decrease of -12.2% (-9.5% in constant currency) primarily driven by a $99.9 decrease in demand for our Manpower staffing services, the $29.5 unfavorable impact of currency exchange rates and a $3.2 decrease in demand for our permanent recruitment services. Italy, our second-largest market in Southern Europe, experienced a revenue decrease of -1.6% (increase of 1.4% in constant currency) primarily driven by the $12.1 unfavorable impact of currency exchange rates, partially offset by a $3.5 increase in demand for our Manpower and Experis consulting services and a $1.6 increase in demand for our Manpower and Experis staffing/interim services;

Previous wording

The year-over-year 30 basis point decrease in gross profit margin was primarily attributed to:

Current wording

The year-over-year 20 basis point decrease in gross profit margin was primarily attributed to:

Previous wording

a 20 basis point unfavorable impact from decreases to permanent recruitment, including Talent Solutions RPO, as permanent hiring demand continued to soften and experienced reduced levels;

Current wording

a 10 basis point unfavorable impact from decreases in permanent recruitment, including Talent Solutions RPO, as permanent hiring activity in the first quarter decreased year over year;

Previous wording

a 10 basis point unfavorable impact from the decrease in staffing/interim margins due to mix shifts and lower volumes while pricing remained stable; and

Current wording

a 10 basis point unfavorable impact from the decrease in staffing/interim margins, mix shifts and lower bench utilization in select countries while pricing remained stable;

Previous wording

a 10 basis point unfavorable impact due to the effects of currency exchange rates; partially offset by

Current wording

a 10 basis point unfavorable impact due to decreases in our TBO business; partially offset by

Previous wording

a $16.1 million, or -3.3% decrease (-2.1% in constant currency) in personnel costs primarily due to an $8.0 million decrease in bonuses and sales commission costs and a $4.9 million decrease in salaries as we saw the effects of restructuring actions taken in 2023;

Current wording

a $19.3, or -6.5% decrease (-4.2% in constant currency and -3.2% in organic constant currency) in personnel costs primarily due to a $7.9 decrease in bonuses and sales commission costs and a $6.3 decrease in salaries as we saw the effects of restructuring actions taken in 2024 and 2023;

Previous wording

a $7.5 million, or -1.2% decrease due to the impact of changes in currency exchange rates; and

Current wording

a $14.8, or -1.2% decrease due to the impact of changes in currency exchange rates; and

Previous wording

Selling and administrative expenses as a percent of revenues decreased 40 basis points in the third quarter of 2024 compared to the third quarter of 2023 due primarily to:

Current wording

Selling and administrative expenses as a percent of revenues increased 50 basis points in the first quarter of 2025 compared to the first quarter of 2024 due primarily to:

Previous wording

a 10 basis point favorable impact as a result of the decrease in restructuring costs incurred in the third quarter of 2024 compared to the third quarter of 2023.

Current wording

a 40 basis point unfavorable impact as a result of the increase in restructuring costs incurred in the first quarter of 2025 compared to the first quarter of 2024; and

Previous wording

a 30 basis point favorable impact as non-personnel costs decreased as a percent of revenues primarily due to percent of revenue decreases in office leases and other office costs; and

Current wording

a 10 basis point unfavorable impact as personnel costs increased as a percent of revenues primarily due to salaries.

Previous wording

Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $16.9 million in the third quarter of 2024 compared to $13.0 million in the third quarter of 2023 primarily due to increased revolver and other short-term borrowings during the period. Foreign exchange loss, net was $1.0 million in the third quarter of 2024 compared to $6.0 million in the third quarter of 2023 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $6.3 million in the third quarter of 2024 compared to $3.9 million in the third quarter of 2023.

Current wording

Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $15.6 in the first quarter of 2025 compared to $12.3 in the first quarter of 2024 primarily due to increased revolver and other short-term borrowings during the period. Foreign exchange loss, net was $0.9 in the first quarter of 2025 compared to $2.4 in the first quarter of 2024 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $5.0 in the first quarter of 2025 compared to $6.3 in the first quarter of 2024.

Previous wording

We recorded income tax expense at an effective rate of 61.5% for the three months ended September 30, 2024, as compared to an effective rate of 44.7% for the three months ended September 30, 2023. The 2024 rate was unfavorably impacted by the lower level and overall mix of earnings, a discrete valuation allowance recorded against deferred tax assets in Sweden, and a 2023 rate that included benefits from the effective settlement of an income tax audit. The higher 2024 rate was partially offset by the scheduled reduction in the French business tax rate from 0.38% to 0.28% effective January 1, 2024. The 61.5% effective tax rate for the third quarter of 2024 was higher than the United States Federal statutory rate of 21% primarily due to tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowance, the French business tax, and the overall mix of earnings.

Current wording

We recorded income tax expense at an effective rate of 66.8% for the three months ended March 31, 2025, as compared to an effective rate of 31.0% for the three months ended March 31, 2024. The 2025 rate was unfavorably impacted by the lower level and overall mix of earnings, restructuring costs recorded in the quarter, and the 2025 enacted one-time French exceptional corporate income tax surcharge. The 66.8% effective tax rate for the three months ended March 31, 2025 was higher than the United States Federal statutory rate of 21% primarily due to the overall mix of earnings, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, the French exceptional corporate income tax surcharge, and the French business tax.

Previous wording

Net earnings per share - diluted was $0.47 in the third quarter of 2024 compared to $0.60 in the third quarter of 2023. Restructuring costs recorded in the third quarter of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.82, net of tax, in the third quarter of 2024. Restructuring costs recorded in the third quarter of 2023 unfavorably impacted net earnings per share - diluted by approximately $0.68, net of tax, in the third quarter of 2023.

Current wording

Net earnings per share - diluted was $0.12 in the first quarter of 2025 compared to $0.81 in the first quarter of 2024. Restructuring costs unfavorably impacted net earnings per share - diluted by approximately $0.26, net of tax, in the first quarter of 2025. The 2025 enacted one-time French exceptional corporate income tax surcharge and overall mix of earnings unfavorably impacted net earnings per share - diluted by $0.04 and $0.02, respectively, in the first quarter of 2025.

Previous wording

Weighted average shares - diluted decreased to 48.1 million in the third quarter of 2024 from 50.1 million in the third quarter of 2023. This decrease was due to the impact of share repurchases completed since the third quarter of 2023, partially offset by grants of share-based awards.

Current wording

Weighted average shares - diluted decreased to 47.3 million in the first quarter of 2025 from 48.9 million in the first quarter of 2024. This decrease was due to the impact of share repurchases completed since the first quarter of 2024, partially offset by grants of share-based awards.

Previous wording

In the Americas, revenues from services decreased -5.5% (increase of 1.5% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023. In the United States (which represents 66% of the Americas' revenues), revenues from services decreased -4.5% in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by a $33.4 million decrease in demand for our Experis interim services. In Other Americas, revenues from services decreased -7.3% (increase of 13.1% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the $77.8 million unfavorable impact of foreign currency exchange rates, partially offset by a $41.1 million increase in demand for our Manpower and Experis staffing/interim services and a $7.9 million increase in demand for TBO. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced decreases in Argentina, Canada and Mexico of $14.7 million, or -32.7%, $10.7 million, or -12.2% and $5.8 million, or -9.5%, respectively (+105.2%, -10.7% and +0.4%, respectively, in constant currency).

Current wording

In the Americas, revenues from services increased 2.0% (5.3% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024. In the United States (which represents 65% of the Americas' revenues), revenues from services increased 1.2% in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by a $16.0 increase in demand for our Manpower staffing services, partially offset by a $3.1 decrease in demand for our Right Management outplacement services. In Other Americas, revenues from services increased 3.3% (13.1% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by a $47.0 increase in demand for our Manpower and Experis staffing/interim services and a $4.4 increase in demand for TBO, partially offset by the $34.6 unfavorable impact of foreign currency exchange rates. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced an increase in Argentina of $9.3, or 33.9% (69.5% in constant currency), partially offset by decreases in Canada and Mexico of $11.3, or -14.6%, and $11.6, or -17.6%, respectively (-9.2% and -0.9%, respectively, in constant currency).

Previous wording

Gross profit margin decreased 40 basis points in the first nine months of 2024 compared to the first nine months of 2023. This decrease was primarily due to decreased activity in our higher margin Manpower staffing services, which contributed 20 basis points to the decrease, decreased activity in our permanent recruitment services, which contributed 20 basis points to the decrease and decreased activity in our Experis solutions services, which contributed 10 basis points to the decrease. These contributions were partially offset by increased demand in our higher-margin Right Management outplacement business which had a 10 basis point impact.

Current wording

Gross profit margin decreased 160 basis points in the first quarter of 2025 compared to the first quarter of 2024. This decrease was primarily due to decreased margins in our Experis interim services, which contributed 110 basis points to the decrease, decreased activity in our Right Management outplacement business, which contributed 30 basis points to the decrease, and decreased activity in our permanent recruitment business, which contributed 20 basis points to the decrease.

Previous wording

Operating Unit Profit (“OUP”) decreased -4.6% (-2.7% in constant currency) in the third quarter of 2024, which represents a 3.4% OUP margin, remaining flat from 3.4% in the third quarter of 2023. This OUP decrease was primarily due to decreased profitability in our United States business of $2.2 million, which experienced decreased demand in our higher-margin Experis interim services, as noted above. In the United States, OUP margin decreased to 3.2% in the third quarter of 2024 from 3.4% in the third quarter of 2023 primarily due to decreased activity and margins in our staffing/interim business, partially offset by a decrease in our selling and administrative expenses as a percent of revenue. Other Americas OUP margin increased to 3.9% in the third quarter of 2024 from 3.5% in the third quarter of 2023 primarily due to a decrease in our selling and administrative expenses as a percent of revenue, partially offset by decreased activity in our higher margin permanent recruitment business.

Current wording

Operating Unit Profit (“OUP”) decreased -2.4% (increase of 2.0% in constant currency) in the first quarter of 2025, which represents a 2.4% OUP margin, a decrease from 2.5% in the first quarter of 2024. This OUP decrease was primarily due to decreased profitability in our United States business of $0.6, which experienced decreased demand in our higher-margin Experis interim services. In the United States, OUP margin decreased to 1.6% in the first quarter of 2025 from 1.8% in the first quarter of 2024 primarily due to decreased margins in our staffing/interim business, partially offset by a decrease in our selling and administrative expenses as a percent of revenue. Other Americas OUP margin decreased to 3.9% in the first quarter of 2025 from 4.0% in the first quarter of 2024 primarily due to a decrease in our selling and administrative expenses as a percent of revenue, partially offset by decreased activity in our higher-margin permanent recruitment business.

Previous wording

In Southern Europe, revenues from services decreased -0.6% ( -1.3% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023. In France (which represents 56% of Southern Europe’s revenues), revenues from services decreased -2.5% (-3.3% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by a $44.9 million decrease in demand for our Manpower staffing services, partially offset by the $9.6 million favorable impact of currency exchange rates and a $5.3 million increase in demand for our Talent Solutions outplacement services. In Italy (which represents 20% of Southern Europe’s revenues), revenues from services increased 1.3% (0.5% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the $3.5 million favorable impact of currency exchange rates and a $1.3 million increase in demand for TBO, partially offset by a $1.7 million decrease in demand for our permanent recruitment services. In Other Southern Europe, revenues from services increased 2.4% (2.1% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily due to a $9.3 million increase in demand for our Manpower and Experis staffing/interim services, partially offset by a $2.2 million decrease in demand for our permanent recruitment services. Within our Other Southern Europe segment, we experienced a revenue increase in Spain of $13.6 million, or 10.9% (9.9% in constant currency), partially offset by a revenue decrease in Switzerland of $12.8 million, or -10.3% (-12.1% in constant currency).

Current wording

In Southern Europe, revenues from services decreased -7.4% ( -4.8% in constant currency and -4.0% in organic constant currency) in the first quarter of 2025 compared to the first quarter of 2024. In France (which represents 53% of Southern Europe’s revenues), revenues from services decreased -12.2% (-9.5% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by a $99.9 decrease in demand for our Manpower staffing services, the $29.5 unfavorable impact of currency exchange rates and a $3.2 decrease in demand for our permanent recruitment services. In Italy (which represents 22% of Southern Europe’s revenues), revenues from services decreased -1.6% (increase of 1.4% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by the $12.1 unfavorable impact of currency exchange rates, partially offset by a $3.5 increase in demand for our Manpower and Experis consulting services, and a $1.6 increase in demand for our Manpower and Experis staffing/interim services. In Other Southern Europe, revenues from services decreased -1.5% (increase of 0.7% in constant currency and 4.1% in organic constant currency) in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the $10.4 unfavorable impact of currency exchange rates and a $2.5 decrease in demand for our Experis interim services, partially offset by a $4.4 increase in demand for our Manpower staffing services. Within our Other Southern Europe segment, we experienced a revenue increase in Spain of $12.8, or 11.6% (15.1% in constant currency), partially offset by a revenue decrease in Switzerland of $20.8, or -19.3% (-17.1% in constant currency).

Previous wording

Gross profit margin decreased 40 basis points in the third quarter of 2024 compared to the third quarter of 2023. This decrease was primarily due to decreased activity in our higher margin Manpower staffing services, which contributed 30 basis points to the decrease, a decrease of activity in our permanent recruitment services, which contributed 20 basis points to the decrease and decreases across our Experis solutions services, which contributed 10 basis points to the decrease. These contributions were partially offset by increased demand in our higher-margin Right Management outplacement business which had a 20 basis point impact.

Current wording

Gross profit margin decreased 20 basis points in the first quarter of 2025 compared to the first quarter of 2024. This decrease was primarily due to decreased activity in our higher margin Experis interim services, which contributed 20 basis points to the decrease, and a decrease of activity in our permanent recruitment services, which contributed 10 basis points to the decrease. These decreases were partially offset by increased demand in our higher-margin Manpower consulting services, which had a 10 basis point impact.

Previous wording

Selling and administrative expenses decreased -0.9% (-1.9% in constant currency) during the third quarter of 2024 compared to the third quarter of 2023, primarily due to a $2.6 million decrease in bonuses and sales commissions and a $2.2 million decrease in salary-related costs, partially offset by the $2.2 million unfavorable impact of currency exchange rates.

Current wording

Selling and administrative expenses decreased -2.7% (increase of 0.1% in constant currency and 1.1% in organic constant currency) during the first quarter of 2025 compared to the first quarter of 2024, primarily due to the $6.2 favorable impact of currency exchange rates and a decrease of $4.7 to bonuses and sales commissions and other personnel costs, partially offset by the $3.5 of restructuring costs incurred in the first quarter of 2025.

Previous wording

OUP decreased -14.2% (-14.1% in constant currency) in the first nine months of 2024, which represents a 3.7% OUP margin, a decrease from 4.2% in the first nine months of 2023. This OUP decrease was primarily due to decreased profitability in the France reporting unit of $27.2 million. In France, the OUP margin decreased to 3.3% for the first nine months of 2024 compared to 3.9% for the first nine months of 2023 primarily driven by an increase in selling and administrative expenses as a percent of revenue and a decrease in our higher-margin permanent recruitment business. In Italy, the OUP margin decreased to 7.1% for the first nine months of 2024 from 7.3% for the first nine months of 2023 primarily driven by an increase in selling and administrative expenses as a percent of revenue. In Other Southern Europe, the OUP margin decreased to 1.7% for the first nine months of 2024 from 2.1% for the first nine months of 2023 primarily due to a decrease in gross profit margin as we saw decreased activity in higher-margin Experis solutions services, as noted above, partially offset by a decrease in selling and administrative expenses as a percent of revenue.

Current wording

OUP decreased -28.2% (-26.4% in constant currency and -26.9% in organic constant currency), in the first quarter of 2025, which represents a 2.7% OUP margin, a decrease from 3.5% in the first quarter of 2024. This OUP decrease was primarily due to decreased profitability in the France reporting unit of $11.7. In France, the OUP margin decreased to 2.2% for the first quarter of 2025 compared to 3.0% for the first quarter of 2024, primarily driven by increases to selling and administrative expenses as a percent of revenue. In Italy, the OUP margin decreased to 6.2% for the first quarter of 2025 compared to 6.8% for the first quarter of 2024 primarily due to a decrease in gross profit margin as we saw decreased activity in our higher-margin permanent recruitment services. In Other Southern Europe, the OUP margin decreased to 1.0% for the first quarter of 2025 from 2.1% for the first quarter of 2024 primarily due to decreased activity in higher-margin permanent recruitment services, as noted above, and an increase in our selling and administrative expenses as a percent of revenue.

Previous wording

In Northern Europe, the largest country operations include the United Kingdom, the Nordics, Germany, the Netherlands and Belgium (comprising 35%, 20%, 14%, 11% and 9%, respectively, of Northern Europe’s revenues). In the Northern Europe region, revenues from services decreased -9.4% (-11.0% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by an $81.6 million decrease in demand for our Manpower and Experis staffing/interim services, a $21.0 million decrease in demand for our Experis solutions services and an $8.5 million decrease in demand for our permanent recruitment services, partially offset by the $15.0 million favorable impact of currency exchange rates. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $25.7 million, the Nordics of $31.8 million, Germany of $19.6 million and Belgium of $6.0 million, which represented revenue decreases of -8.1%, -20.0%, -14.0% and -6.9%, respectively (-10.5%, -19.0%, -14.8% and -7.9%, respectively, in constant currency). These decreases were partially offset by a revenue increase in the Netherlands of $0.5 million, which represented a revenue increase of 0.6% (-0.4% in constant currency).

Current wording

In Northern Europe, the largest country operations include the United Kingdom, the Nordics, Germany, the Netherlands and Belgium (comprising 35%, 19%, 13%, 12% and 9%, respectively, of Northern Europe’s revenues). In the Northern Europe region, revenues from services decreased -16.0% (-14.3% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by a $109.5 decrease in demand for our Manpower and Experis staffing/interim services, the $15.1 unfavorable impact of currency exchange rates, a $9.6 decrease in demand for our Experis solutions services and a $6.6 decrease in demand for our permanent recruitment services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $49.9, the Nordics of $28.8, Germany of $40.2, the Netherlands of $10.2 and Belgium of $5.9, which represented revenue decreases of -16.4%, -17.1%, -30.3%, -10.7% and -7.9%, respectively (-16.0%, -14.0%, -28.2%, -7.9% and -5.1%, respectively, in constant currency)

Previous wording

Gross profit margin increased by 80 basis points in the third quarter of 2024 compared to the third quarter of 2023. The increase was primarily due to a shift in business mix towards our higher-margin Talent Solutions outplacement and MSP services, which contributed 90 basis points to the increase, an improvement in our staffing/interim margins, which contributed 30 basis points to the increase, and the favorable impact of currency exchange rates, which contributed 10 basis points to the increase. These contributions were partially offset by decreased activity in our higher-margin permanent recruitment business, which had a 50 basis point impact.

Current wording

Gross profit margin increased by 10 basis points in the first quarter of 2025 compared to the first quarter of 2024. The increase was primarily due to a shift in business mix towards our higher-margin Right Management outplacement and MSP services, which contributed 50 basis points to the increase and increased margins in our Experis solutions services, which contributed 30 basis points to the increase. These contributions were partially offset by a decrease in our staffing/interim margins, which had a 50 basis point impact and decreased activity in our higher-margin permanent recruitment business, which had a 20 basis point impact.

Previous wording

Selling and administrative expenses decreased -7.2% (-9.2% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023. The decrease is primarily driven by a $7.4 million decrease in salary-related costs as we experience the impacts of significant restructuring action taken in 2023 and $24.2 million in restructuring costs incurred in the third quarter of 2024 compared to $27.4 million in third quarter of 2023.

Current wording

Selling and administrative expenses decreased -3.5% (-1.5% in constant currency) in the first quarter of 2025 compared to the first quarter of 2024. The decrease is primarily driven by a $7.9 decrease in salary-related costs as we experience the impacts of significant restructuring actions taken in 2024 and 2023. This decrease was partially offset by $12.3 in restructuring costs incurred in the first quarter of 2025.

Previous wording

OUP in APME decreased -5.5% (-1.9% in constant currency and -0.2% in organic constant currency) in the third quarter of 2024, which represents a 4.1% OUP margin, a decrease from 4.3% in the third quarter of 2023. This OUP decrease was primarily driven by an increase in selling and administrative expenses, as noted above, partially offset by increased activity and gross profit margin improvements in our staffing services, as noted above.

Current wording

OUP in APME increased 1.0% (2.9% in constant currency and 14.1% in organic constant currency) in the first quarter of 2025, which represents a 4.2% OUP margin, an increase from 3.7% in the first quarter of 2024. This OUP margin increase was primarily driven by increased activity and gross profit margin improvements in our staffing/interim services, as noted above, partially offset by an increase in selling and administrative expenses as percent of revenue.

Previous wording

Cash used to fund our operations is primarily generated through operating activities and provided by our existing credit facilities. We believe our available cash and existing credit facilities are sufficient to cover our cash needs for the foreseeable future. We assess and monitor our liquidity and capital resources globally. We use a global cash pooling arrangement, intercompany borrowing, and some local credit lines to meet funding needs and allocate our capital resources among our various entities. As of September 30, 2024, we had $345.1 million of cash held by foreign subsidiaries. We have historically made and anticipate future cash repatriations to the United States from certain foreign subsidiaries to fund domestic operations.

Current wording

Cash used to fund our operations is primarily generated through operating activities and provided by our existing credit facilities. We believe our available cash and existing credit facilities are sufficient to cover our cash needs for the foreseeable future. We assess and monitor our liquidity and capital resources globally. We use a global cash pooling arrangement, intercompany borrowing, and some local credit lines to meet funding needs and allocate our capital resources among our various entities. As of March 31, 2025, we had $295.8 of cash held by foreign subsidiaries. We have historically made and anticipate future cash repatriations to the United States from certain foreign subsidiaries to fund domestic operations.

Previous wording

Cash provided by operating activities was $61.6 million during the nine months ended September 30, 2024, as compared to $234.5 million during the nine months ended September 30, 2023. Changes in operating assets and liabilities utilized $155.8 million of cash during the nine months ended September 30, 2024 compared to $42.1 million utilized during the nine months ended September 30, 2023. These changes were primarily attributable to the timing of collections and payments. Accounts receivable decreased to $4,592.8 million as of September 30, 2024 from $4,830.0 million as of December 31, 2023 primarily due to the revenue decline and the impact of changes in currency exchange rates. Days Sales Outstanding ("DSO") increased by three days from December 31, 2023 to 57 days as of September 30, 2024.

Current wording

Cash used in operating activities was $153.2 during the three months ended March 31, 2025, as compared to $116.0 provided during the three months ended March 31, 2024. Changes in operating assets and liabilities utilized $196.4 of cash during the three months ended March 31, 2025 and generated $37.1 of cash during the three months ended March 31, 2024. These changes were primarily attributable to the timing of collections and payments. Accounts receivable decreased to $4,168.8 as of March 31, 2025 from $4,297.2 as of December 31, 2024 primarily due to the revenue decline and the impact of changes in currency exchange rates. Days Sales Outstanding ("DSO") increased by two days from December 31, 2024 to 54 days as of March 31, 2025.

Previous wording

Capital expenditures were $39.8 million for the nine months ended September 30, 2024 compared to $55.1 million for the nine months ended September 30, 2023. These expenditures were primarily comprised of purchases of computer equipment, office furniture and other costs related to office openings and refurbishments, as well as capitalized software costs. The lower expenditures in 2024 compared to 2023 are primarily due to the timing of the expenditures.

Current wording

Cash used in investing activities was $14.6 and $9.7 for the three months ended March 31, 2025, and 2024, respectively. Capital expenditures were $13.7 for the three months ended March 31, 2025 compared to $11.8 for the three months ended March 31, 2024. These expenditures were primarily comprised of purchases of computer equipment, office furniture and other costs related to office openings and refurbishments, as well as capitalized software costs. From time to time, we acquire and invest in companies throughout the world, including franchises. Total cash consideration paid for acquisitions, net of cash acquired, was $1.0 and $1.1 for the three months ended March 31, 2025 and 2024, respectively.

Previous wording

Our €500.0 million notes and €400.0 million notes are due June 2026 and June 2027, respectively. When those notes mature, we plan to either repay the amounts with available cash or borrowings under our $600.0 million revolving credit facility or a new borrowing. The credit terms, including interest rate and facility fees, of any replacement borrowings will be dependent upon the condition of the credit markets at that time. We currently do not anticipate any problems accessing the credit markets for replacement of those notes.

Current wording

Our €500.0 notes and €400.0 notes are due June 2026 and June 2027, respectively. When those notes mature, we plan to either repay the amounts with available cash or borrowings under our $600.0 revolving credit facility or a new borrowing. The credit terms, including interest rate and facility fees, of any replacement borrowings will be dependent upon the condition of the credit markets at that time. We currently do not anticipate any problems accessing the credit markets for replacement of those notes.

Previous wording

Our $600.0 million revolving credit agreement requires that we comply with a leverage ratio (Net Debt-to-Net Earnings before interest and other expenses, provision for income taxes, intangible asset amortization expense, depreciation and amortization expense ("EBITDA")) of not greater than 3.5 to 1 and a fixed charge coverage ratio of not less than 1.5 to 1. As defined in the agreement, we had a Net Debt-to-EBITDA ratio of 2.48 to 1 and a fixed charge coverage ratio of 3.21 to 1 as of September 30, 2024. Based on our current forecast, we expect to be in compliance with our financial covenants for the next 12 months.

Current wording

Our $600.0 revolving credit agreement requires that we comply with a leverage ratio (Net Debt-to-Net Earnings before interest and other expenses, provision for income taxes, intangible asset amortization expense, depreciation and amortization expense ("EBITDA")) of not greater than 3.5 to 1 and a fixed charge coverage ratio of not less than 1.5 to 1. As defined in the agreement, we had a Net Debt-to-EBITDA ratio of 2.68 to 1 and a fixed charge coverage ratio of 3.05 to 1 as of March 31, 2025. Based on our current forecast, we expect to be in compliance with our financial covenants for the next 12 months.

Previous wording

As of September 30, 2024, we had letters of credit of $0.4 million issued under our $600.0 million revolving credit facility, as well as $9.0 million drawn under our uncommitted credit facility. We made those borrowings in order to fund our working capital needs. Additional borrowings of $599.6 million were available to us under our $600.0 million revolving credit facility as of September 30, 2024.

Current wording

As of March 31, 2025, we had letters of credit of $0.4 issued under our $600.0 revolving credit facility, as well as $45.0 drawn under our $150.0 uncommitted credit facilities. Additional borrowings of $599.6 and $105.0 were available to us under our $600.0 revolving credit facility and $150.0 uncommitted credit facilities, respectively, as of March 31, 2025.

Previous wording

In addition to the previously mentioned facilities, we maintain separate bank credit lines with financial institutions to meet the working capital needs of our subsidiary operations. As of September 30, 2024, such uncommitted credit lines totaled $312.1 million, of which $294.8 million was unused. Under the revolving credit agreement, total subsidiary borrowings cannot exceed $300.0 million in the first, second and fourth quarters, and $600.0 million in the third quarter of each year.

Current wording

In addition to the previously mentioned facilities, we maintain separate bank credit lines with financial institutions to meet the working capital needs of our subsidiary operations. As of March 31, 2025, such uncommitted credit lines totaled $298.6, of which $268.2 was unused. Under the revolving credit agreement, total subsidiary borrowings cannot exceed $300.0 in the first, second and fourth quarters, and $600.0 in the third quarter of each year.