ManpowerGroup Q4 Earnings Call Highlights

ManpowerGroup (NYSE:MAN) executives said fourth-quarter results reflected a “clear shift to stabilization” as enterprise demand improved and the company continued to push cost optimization and technology-driven productivity initiatives. On the company’s fourth-quarter 2025 earnings call, Chair and CEO Jonas Prising said trends strengthened in several key markets late in the year, though the company is “not yet calling a broad-based recovery.”

Fourth-quarter results show stabilization and sequential improvement

ManpowerGroup reported fourth-quarter revenue of $4.7 billion, representing organic constant currency growth of 2%. System-wide revenue, which includes franchise revenue, was $5.1 billion. Adjusted EBITDA was $100 million, and adjusted EBITDA margin was 2.1%, equal to the prior year and at the midpoint of guidance.

Prising said engagement levels have remained steady even as clients stay “deliberate” on hiring amid a mixed macro backdrop. He highlighted sequential improvement in demand indicators, including associate levels on assignment in key markets such as the U.S. and France. He also cited Italy as a standout market on both growth and margin, while noting that the recovery could play out differently by geography, with some markets inflecting earlier and others requiring longer stabilization.

Brand performance: staffing strength offsets slower professional and perm demand

CFO Jack McGinnis said gross profit margin was 16.3% in the quarter, coming in just below guidance due primarily to lower-than-expected permanent recruitment activity in Europe. The staffing margin performed as expected and was consistent with the prior quarter’s year-over-year trend.

By business line in the quarter, on an organic constant currency basis:

• Manpower revenue grew 5%, improving from 3% growth in the third quarter.
• Experis revenue declined 6%, an improvement from a 7% decline in the third quarter.
• Talent Solutions revenue declined 4%, improving from an 8% decline in the third quarter.

Management said Talent Solutions’ MSP business continued to grow, and Right Management posted slight growth, while RPO demand remained lower, including in select ongoing U.S. client programs. Permanent recruitment across brands was described as challenging, and McGinnis said perm levels are “at historically low levels” as a percentage of total gross profit, weighing on gross margin. He added that a perm rebound and a recovery in higher-margin businesses would provide a tailwind to gross margin over time.

Cost discipline and transformation initiatives remain central

Executives emphasized ongoing structural cost actions. Prising said the company delivered a 4% constant currency reduction in SG&A in the fourth quarter while generating organic growth, attributing the result to structural reductions and tighter discretionary spending. He also noted that Northern Europe generated positive operating profit for the first time in five quarters, which he tied to right-sizing efforts.

McGinnis said SG&A, as adjusted, was down 4% on a constant currency basis in the quarter, with reductions in operational costs contributing meaningfully. He also said corporate costs increased sequentially due to incremental investments in transformation initiatives. Those include back-office transformation programs and planning for a front-office transformation program in North America. McGinnis said he plans to “carve out” incremental expenses associated with the new front-office program.

Regional trends: Italy outperforms; France improves; Germany remains difficult

In the Americas segment, revenue rose 5% in constant currency to $1.1 billion and adjusted operating unit profit (OUP) was $39 million. U.S. revenue was $682 million, down 1% on a days-adjusted basis, which McGinnis said was stronger than anticipated and supported by Experis and Talent Solutions MSP. Within the U.S., Manpower revenue increased 7% days-adjusted, while Experis revenue fell 10% and Talent Solutions revenue rose 2%.

In Southern Europe, revenue of $2.2 billion increased 1% in constant currency, marking a return to growth after 13 consecutive quarters of declines. France revenue decreased 3% on a days-adjusted constant currency basis, though management emphasized a steady improvement through the quarter. McGinnis provided monthly detail for France, saying days-adjusted trends improved from -4% in September to -3% in November and -2% in December, with continued progress indicated in January. Italy revenue rose 7% days-adjusted constant currency, and Italy OUP margin was 6.7%.

Northern Europe revenue declined 1% in constant currency to $819 million, with adjusted OUP of $5 million. The U.K. declined 3% days-adjusted but showed “significant sequential improvement,” while the Nordics returned to growth at 2%. Germany fell 22% days-adjusted, and McGinnis called it “a very difficult market,” though the company expects the rate of decline to improve in the first quarter.

Asia-Pacific Middle East (APME) revenue grew 6% in organic constant currency to $520 million, with OUP margin of 5.3%. Japan grew 7% days-adjusted constant currency, and management said it expects continued strong growth there.

AI, PowerSuite, and margin aspirations

Executives repeatedly pointed to digitization and AI as key enablers of productivity and differentiation. Prising said PowerSuite operates across nearly 90% of the business, spanning more than 70 countries. He said an integrated AI Recruiter Toolkit has scaled to more than 12 markets and is helping improve recruiter productivity and candidate matching, contributing to a 7% increase in placement rates. He also cited the use of “agentic AI coding assistants” within Experis in the U.S. to deliver faster and more cost-efficient solutions.

President and Chief Strategy Officer Becky Frankiewicz said strategy work and market research are surfacing two macro themes shaping client and candidate engagement: flexibility in work arrangements and questions from clients about how AI will change workforce composition. She said clients are increasingly seeking advisory capabilities on “new ways to get work done” that include combinations of temporary, permanent, gig/freelance, and AI-enabled models.

In Q&A, McGinnis said the company remains committed to a longer-term adjusted EBITDA margin target of 4.5% to 5% “over time,” noting that cost structure improvements and mix recovery in higher-margin offerings would support margin expansion. He also said that even in a modest recovery scenario, investors should expect year-over-year EBITDA margin improvement over the next four years as efficiency programs progress.

For the first quarter of 2026, the company guided to earnings per share of $0.45 to $0.55, with a constant currency revenue outlook ranging from a 1% decline to 3% growth (1% growth at the midpoint). McGinnis also discussed tax assumptions, including an estimated 45% full-year global tax rate that reflects a proposed extension of France’s corporate tax surcharge into 2026 and excludes any benefit from the U.S. Workers’ Opportunity Tax Credit, which had not been renewed at the time of the call.

About ManpowerGroup (NYSE:MAN)

ManpowerGroup (NYSE: MAN) is a global leader in workforce solutions, offering a broad spectrum of staffing and talent management services. Founded in 1948 and headquartered in Milwaukee, Wisconsin, the company has grown from a temporary staffing firm to a diversified provider of workforce consultancy, recruitment, and outsourcing services. ManpowerGroup is publicly traded on the New York Stock Exchange under the ticker MAN.

The company’s service offerings are organized into four principal brands.