European Investor
18 Apr 2025, 09:40
ManpowerGroup Reports First Quarter 2025 Results
ManpowerGroup (NYSE: MAN) reported first quarter 2025 revenues of $4.1 billion, a decrease of 7% as reported, 5% in constant currency, and 2% on an organic constant currency basis. Net earnings were $5.6 million or $0.12 per diluted share, compared to $39.7 million or $0.81 per diluted share in the same period last year.
Excluding $0.32 per share in restructuring and tax-related charges, adjusted earnings were $0.44 per diluted share, a 51% decline in constant currency compared to the prior year’s adjusted result. The company cited challenging market conditions in Europe and North America, while noting better demand trends in Latin America and Asia Pacific.
Key figures:
- Gross profit margin was 17.1%, supported by stable staffing margins but affected by weaker permanent recruitment
- SG&A expenses declined year over year
- $25 million of common stock was repurchased during the quarter
- Operating profit was $28.2 million, down 57%
- Effective tax rate increased, impacting net earnings
Regional performance:
- Americas revenues grew 2% as reported and 5.3% in constant currency
- Southern Europe revenues declined 7.4% as reported and 4.8% in constant currency
- Northern Europe revenues declined 16% as reported and 14.3% in constant currency
- Asia Pacific Middle East (APME) revenues declined 11% as reported and 9.2% in constant currency
Operating profit was down across most regions, including a loss of $18.3 million in Northern Europe. Southern Europe profit fell 28%, while APME remained relatively stable.
Outlook:
For the second quarter of 2025, ManpowerGroup expects diluted earnings per share to be between $0.65 and $0.75, including a favorable currency impact of $0.03 and an effective tax rate of 46.5%.
Balance sheet as of March 31, 2025:
- Cash and cash equivalents: $395.0 million, down from $509.4 million at December 31, 2024
- Total assets: $8.0 billion
- Shareholders' equity: $2.1 billion
Cash flow for the quarter:
- Net cash used in operating activities: $153.2 million
- Net cash used in investing activities: $14.6 million
- Net cash provided by financing activities: $45.7 million
ManpowerGroup (NYSE: MAN) reported first quarter 2025 revenues of $4.1 billion, a decrease of 7% as reported, 5% in constant currency, and 2% on an organic constant currency basis. Net earnings were $5.6 million or $0.12 per diluted share, compared to $39.7 million or $0.81 per diluted share in the same period last year.
Excluding $0.32 per share in restructuring and tax-related charges, adjusted earnings were $0.44 per diluted share, a 51% decline in constant currency compared to the prior year’s adjusted result. The company cited challenging market conditions in Europe and North America, while noting better demand trends in Latin America and Asia Pacific.
Key figures:
- Gross profit margin was 17.1%, supported by stable staffing margins but affected by weaker permanent recruitment
- SG&A expenses declined year over year
- $25 million of common stock was repurchased during the quarter
- Operating profit was $28.2 million, down 57%
- Effective tax rate increased, impacting net earnings
Regional performance:
- Americas revenues grew 2% as reported and 5.3% in constant currency
- Southern Europe revenues declined 7.4% as reported and 4.8% in constant currency
- Northern Europe revenues declined 16% as reported and 14.3% in constant currency
- Asia Pacific Middle East (APME) revenues declined 11% as reported and 9.2% in constant currency
Operating profit was down across most regions, including a loss of $18.3 million in Northern Europe. Southern Europe profit fell 28%, while APME remained relatively stable.
Outlook:
For the second quarter of 2025, ManpowerGroup expects diluted earnings per share to be between $0.65 and $0.75, including a favorable currency impact of $0.03 and an effective tax rate of 46.5%.
Balance sheet as of March 31, 2025:
- Cash and cash equivalents: $395.0 million, down from $509.4 million at December 31, 2024
- Total assets: $8.0 billion
- Shareholders' equity: $2.1 billion
Cash flow for the quarter:
- Net cash used in operating activities: $153.2 million
- Net cash used in investing activities: $14.6 million
- Net cash provided by financing activities: $45.7 million
