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Revenue: 5.8 billion, up 3.4% year on year on an organic trading days adjusted basis.

Gross Profit: 1.1 billion with a gross margin of 19.2%.

Adjusted EPS: $0.67.

Cash Conversion: 110% with operating cash flow of 200 million, up 79 million from the prior year.

EBITA Margin: 3.4%, excluding one-offs, with a 10 basis point increase year on year.

Net Debt: 2,705 million, 220 million lower year on year.

Free Cash Flow: 170 million, an increase of 88 million compared to the prior year period.

Market Share Gain: Group gained 375 basis points, Adecco gained 300 basis points.

Adecco US Revenue Growth: 20% year on year.

EBITA Margin in Americas: 2.5%, increased 240 basis points year on year.

EBITA Margin in LHH: 9%, up 240 basis points year on year.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Adecco Group AG (AHEXY) gained significant market share in Q3, outperforming key competitors by 375 and 300 basis points respectively.

The company reported a 3.4% year-on-year increase in revenues on an organic trading days adjusted basis, reaching 5.8 billion.

Strong performance in the US market with a 20% year-on-year revenue increase, indicating successful turnaround efforts.

Cash conversion was robust at 110%, with operating cash flow increasing by 79 million from the prior year period.

The company is on track to achieve its full-year EBITDA margin commitment, demonstrating effective cost management and operational efficiency.

Gross margin saw a modest year-on-year decrease of 10 basis points on an organic basis, despite a sequential improvement.

Permanent placement revenues declined by 7%, reflecting ongoing challenges in recruitment markets.

Logistics sector faced challenges, impacting revenue growth in certain regions such as the UK and Ireland.

Revenues in Germany and Austria were flat year-on-year, indicating a demanding market environment.

The Akodis segment experienced a 3% year-on-year revenue decline, with particular pressure in the German market due to automotive sector headwinds.

Q: As you move into Q4, what are the incremental savings you expect to drive, and does that include turning around the 160 million loss in Akodis Germany into a positive? Also, does your guidance include currency headwinds for Q4? A: We are managing payment terms effectively despite client pressure, maintaining a best-in-class DSO at 53.6 days. Our Q3 cash flow was strong due to good working capital management. For Q4, we expect SG&A expenses to remain stable, indicating continued savings. Akodis Germany's restructuring is progressing well, with 36 million in run-rate savings achieved and plans to reach 50 million, ensuring healthy profitability by year-end.

Q: Looking at your outlook for stable growth, it seems like you're assuming a stabilization in organic growth. What makes you cautious compared to the sequential improvement seen over the last few quarters? A: We are pragmatic, observing flex volumes that are improving but remain cautious about overpromising. In the US, growth is broad-based, driven by a systematic turnaround and rigorous execution. We aim to maintain growth ahead of the market, focusing on branch profitability and cost management. At the upcoming Capital Markets Day, we will discuss transformative actions and strategic insights.

Q: Can you provide more color on perm trends and whether they are stabilizing at low levels? Also, were there any timing effects in Q3 working capital that might unwind in Q4? A: Perm trends reflect low visibility due to geopolitical uncertainties, affecting client confidence in permanent recruitment. We saw a slight pickup in September, particularly in the US. Regarding working capital, there were no material timing effects in Q3 that will unwind in Q4. Our cash flow reflects tight management of payables and maintaining best-in-class DSO.

Q: Could you elaborate on the gross margin contribution from training, upskilling, and reskilling, which improved by 15 basis points? A: The underlying growth in training, upskilling, and reskilling is strong at 28%, driven by Ezra and General Assembly. These businesses have high gross margins, contributing significantly to the group's overall margin improvement. The growth is supported by strong demand for AI-related offerings and scalable platform businesses.

Q: What is the growth outlook for career transition and training businesses after a strong quarter? A: Career transition grew by 9%, with a healthy pipeline and new client wins. We expect modest growth in the future, maintaining high revenue levels. Training and upskilling, particularly through General Assembly and Ezra, are experiencing strong double-digit growth, driven by demand for AI-related services.

Q: Regarding the US manufacturing sector, what type of activities are driving growth, and is this trend expected to continue? A: US manufacturing is growing at 11%, driven by a broad base of mid-sized and large manufacturers. While reshoring may contribute in the future, current growth is due to effective client engagement and filling job requisitions promptly. We expect continued support from increased US investments in manufacturing.

Q: With the CFO change, are there any expected changes in financial guidance or capital use? A: The CFO transition is smooth and well-prepared, ensuring continuity in financial strategy. We remain focused on cost management to secure gross margins and maintain competitiveness. Our G&A will stay below 3.5% of revenue, reflecting our commitment to disciplined financial management.

Q: Can you clarify the leverage target of 1.5 times by the end of 2027 and how the new hybrid definition affects this? A: The leverage target remains at or below 1.5 times net debt to EBITDA, aligning with our commitment to an investment-grade credit rating. The hybrid bond is treated as 50% equity, consistent with rating agency methodology. This approach ensures transparency and reflects our focus on maintaining an efficient capital structure.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.