MAN - Earnings call transcript Q2 2024

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Operator

Welcome to ManpowerGroup's Second Quarter Earnings Results Conference Call. [Operator Instructions] This call is being recorded.

If you care to drop off now, please do so.

I would now like to turn the call over to ManpowerGroup's Chairman and CEO, Mr. Jonas Prising. begin. may you Sir,

Jonas Prising

you call. us thank quarter our XXXX conference for and for joining second Welcome,

Financial Jack Chief Our Officer, me today. McGinnis is with

your website our Relations For included within we've Investor the prepared section manpowergroup.com. at remarks our of convenience,

will thoughts I'll Q&A of of quarter cover start share XXXX. now the quarter We'll and highlights for session. guidance concluding through the results go then by and harbor some before will the safe the our language. through second going Jack we of start Jack third the some quarter

John McGinnis

might Good update statements, uncertainties. morning, in projected to and or which includes beliefs. based to everyone. statements. differ known forward-looking This no conference statements. the obligation results current statements subject These revise including geopolitical assume materially call forward-looking management's from are and forward-looking economic statements or on concerning those risks any We are and unknown expectations uncertainty, Actual

release in actual factors identifies non-GAAP of further forward-looking our X measures. to differ made results may earnings that regarding materially and statements reconciliation Slide information and of presentation cause call this our

Jonas Prising

you, Thank Jack.

you on from calendar. speaking it with this one as Milwaukee, major on our today eyes political are our city week in global hosts the of Wisconsin. the We U.S. All events headquarters are

Just from were a a few to pleased days ago, ambassadors the around we world to welcome breakfast event.

as countries, During are in labor landscape. our discuss time political many of them particularly we in the markets shifts the together, undergoing

being leaders and economic pandemic. to worldwide, the changing that business advance is post continues still conversations Geopolitical rewritten book in these technology times. with is rule on persists, Based rapidly it we're uncertainty evident and

with layoff labor markets areas relatively unemployment low and remained activity. Still, in solid many

that economic and gradually this is survey XX,XXX continue employers Europe hiring inflation as to steady cooling to employers ago, lower a North employment of at uncertainty economies America recent and in with spring outlook most moderating. compared levels confidence give pause Our year holding over found are

core of the skills of it on industry. they workers hiring to At while realized, for yet the mind enterprise is skilled have. are clients the they businesses promise to holding AI need front for time, across every large Many prioritizing is be and same the

only We of it are capabilities when scale human augments will convinced the skills. realized and AI be at potential that

more developing recognize workforce this ever. talent. while retaining adjust current need workforce in companies specialized Many the attracting than This and flexible Priority is to are potential skills adaptable adding an workers their placed now development new and selectively to focus with evident to and on mindset on evolving the workplace. requirements is maximize

employer of operates business at priorities. the Our preferences worker intersection and

Our research plan tells performance us that in accordingly. a more boost impact business positive upskilling XX% machine XX believe will have and to efforts on than X AI learning and

surveys AI's and on tell also jobs of us workers about their negative Our impact or feel that neutral XX% futures.

and both an have employers opportunity We guide moment this workers through of transformation. to

our with Through for significant Experis the MyPath a is partnerships industries Manpower skills training this programs. our Academy across opportunity bridging and with talent skilled us, gaps believe and clients, we finding

the increased seeing seen and yet that America end several Europe strategy, right and our underlying our improvement, we specialized within early skills key the for continuing up in such We're with seen and verticals aerospace automotive, logistics. as and we point widespread though well. hold convinced focus demand trends inflection have Manpower in is have retention market staffing to we workforce demonstrate Asia stabilized business have growing focus a on development, skills While America North broadly of Latin mid-level in not and on demand soft results

year-over-year in $X.X was second currency. constant billion, to results. down the In Turning our quarter, X% revenue

currency a the Adjusting our EBITA Proservia year-over-year. in $XXX of business in million, final quarter for representing constant $XXX for was Our Germany, of charges million. reported EBITA was runoff X% decrease

$X.XX constant margin Reported currency. a in per margin adjusted reported decreased XX% was share EBITA X.X% while per basis $X.XX year-over-year was share Adjusted was diluted an earnings and diluted on X.X%. Earnings per EBITA on was share basis. adjusted earnings

environment challenging, are the and continues our business people our to Although be resilient.

business well. geographic and footprint Our are future mix for us are We're diversified positioning strategies that profitable confident as serving growth. well our

to workflows as we an productivity continue We reimagine goal our clients guide changing serve and ROI. processes our they as the to with enhance a and expert And to for our future environment. to adapt continue

through Jack results to more over in it turn to you detail. the now I'll take

John McGinnis

second came above in slightly range. constant midpoint guidance Jonas. Thanks, the Revenues in currency quarter the of our

permanent below guidance profit in gross lower-than-expected adjusted, our margin slightly range activity. on As recruitment slightly came

decrease $XXX adjusted, was to As period. compared currency prior EBITA in million, X% representing the constant year a

in EBITA margin XX came range, and at was representing adjusted, midpoint guidance our decline X.X% basis year-over-year. the points of of As

the During on currency foreign impact an had year-over-year results. quarter, movements our

adjusted a impact trend X%. Foreign revenue quarter, constant decreased the in currency revenue dollar to reported with guidance. in constant currency the our translation in U.S. drove days decrease of X.X% unfavorable currency line to X% the Organic addition

Turning share our report managed of to will am Proservia the services and not in pleased financial impact down the quarters. EPS of future Reported of the business is now net complete per our $X.XX, related in included Proservia business which earnings to runoff the impact to Germany $X.XX the results bridge. I wind was Germany.

above costs, the in slightly adjusted guidance of was EPS Excluding the range. and our runoff came Proservia midpoint $X.XX

$X.XX; on had positive a guidance; our worse country which had had and $X.XX; higher $X.XX. interest foreign in of rate mix, midpoint, guidance our negative expenses repurchases weighted share other of was $X.XX results our impact impact impact a due that of include: and shares $X.XX; tax from currency a a than the quarter, to stronger a operational Walking lower average positive which performance of impact

in was had a slight brand a which Talent revenues improvement Solutions, declined decline, the of experienced basis, our business quarter, Talent line. revenue revenue by brand trend business on a an Solutions let's from decline in Within review our the quarter. declined currency Experis constant first X%, Next, Manpower the organic by and X%. RPO brand year-over-year the by the X% Year-over-year, the

Our Right higher year-over-year to Management while the prior first MSP outplacement growth experienced quarter. volumes quarter on increased business revenues trend, the in sequential period, reflecting also improvement the compared year from revenue

Looking in at our detail. gross profit margin

quarter came shifts gross to basis as at margin point reduction lower XX.X% Solutions due year-over-year. volumes, XX in while reduction hiring including Staffing and second RPO, activity mix basis contributed the remained for margin Permanent XX margin quarter. Talent permanent contributed the in a a Our recruitment, point decreased GP pricing solid.

saw profit increase. basis as points Management resulted margin outplacement transition quarter. activity margin. items our Other improvement permanent contributed career contributing Europe, particularly to During higher Talent the slowing point to Solutions of slightly solid continued XX in the a quarter, XX we basis on gross Right recruitment, greater-than-expected in drag be in in a second within

on our business by profit Moving to line. gross

the brand Solutions During Talent Manpower and comprised of the XX% gross comprised profit, quarter, XX% XX%. comprised Experis our business Professional

on the consolidated decreased by X% first basis organic representing decline quarter. gross our from quarter, currency the profit year-over-year, During improvement an an X% constant in the

Manpower stable from XX% organic Experis quarter. Gross from X% Our quarter. decrease Gross decline in the of improvement brand constant in year-over-year, organic reported profit in our first a XX% the profit first an trend in decreased in the year-over-year, in the representing currency currency quarter. decreased Solutions Talent organic X% profit constant an first in from decrease currency an constant year-over-year, improvement gross brand the X%

in quarter, the lower delivered Although GP second growth quarter, were to first an MSP on the the Management trend volumes slightly quarter previous while achieved RPO solid outplacement compared Right activity. improved GP from

Reported in SG&A million. expense $XXX the quarter was

was a year-over-year business, Germany runoff earlier was of the organic on XX% average an to reflects an period. lower QX compared our SG&A constant that the Proservia during X% reduction basis. This Excluding currency year headcount

our digitization expenses our drive will functions this investment. expect cost strategy back-office efficiencies transforming We and reflect focused on corporate further

leveraging and The from long-term progressing leading largely SG&A year-over-year productivity $XX of nicely and are changes drive efficiency million. are investments of $XX functions costs and in to across service and finance our global strategic technology platforms. shared currency reductions operational decreases worldwide million technology of expected underlying consisted These enhancements and medium- centers

The quarter period and the a expense margin basis. Proservia was the to SG&A million Revenue percentage OUP segment Adjusted represented comprised $X.X final revenue constant XX% Americas million. runoff in Germany $X representing currency billion, consolidated expenses in compared as second increase year The $XX XX% X% represented the a was OUP of X.X%. currency of revenue. quarter. was constant prior on in of an

business U.S. year the was was is largest segment the of our Americas costs. in an country for increase U.S. in million $XXX representing to segment, a million OUP The minor year. the was U.S. quarter, prior comprising after XX% adjusted the compared XX% the X.X%. $XX margin Revenues OUP adjusting restructuring decrease prior of quarter, the for in the X% days representing during revenues.

the an health decreased decline the recur the decline XX% during profit U.S. profit experienced revenue the gross in Within the for quarter, business the decreased Experis go-live the quarter. an are approximately to not volumes Experis in of XX% Manpower U.S. from Revenue in the XX% of comprised in improvement quarter. Manpower during in the brand which the XX% the quarter. brand gross comprised brand the Experis was U.S. The quarter. U.S., Within the care of X% quarter skills project revenues. the U.S. IT from during that The in the IT first Experis third improvement U.S., the into comprise first days-adjusted significant quarter, X% in second quarter. X% expected

increase, of U.S. improvement decline outplacement X% the from U.S. a declines Management our second X% permanent MSP in the the stable hiring compared the quarter. gross the profit contributed Right in of reflected U.S. programs a business quarter, an revenue to the decline in softening Solutions in quarter, stable quarter. experienced of in the the revenue representing trends year-over-year. and first Talent first RPO revenue from accomplished activity XX% business within first solid experienced quarter while further

slightly IT XXXX, third the business, for decline U.S. decline quarter health of the in projects overall be second due to the we of the second largely go-live the our completion than higher quarter. revenue care expect quarter In to

a comprised revenue X%. Southern XX% quarter in in billion, million of OUP margin the currency. was Southern and Southern decrease our quarter. revenue $X.X was Revenue for in X% was constant $XX in business OUP representing Europe consolidated Europe Europe the

X.X%. France Europe the in in France was the $XX quarter, XX% quarter OUP was revenue in and million of representing currency decreased currency. decrease X% the comprised Southern XX% business basis. of constant constant a for margin a OUP segment on our days-adjusted

trends Activity largely with July to consistent second in XXXX quarter. in the date experienced is

year-over-year prior currency to in for rate quarter the trend estimating improvement period. the year step third in We from down second the slight decline reflect the and of the are a revenue trend quarter France on the constant based

revenue a the was margin trend OUP in also basis. X.X%. currency in Italy currency on have to Revenue quarter. $XXX will the second slightly equaled quarter decrease estimate a million third OUP We million quarter, of second Italy and compared the $XX reflecting improved constant days-adjusted in X% a equaled constant that

Northern XX% in Our segment XX% revenue Revenue consolidated of constant represented Europe comprised of decline currency. the $XXX million a quarter. in

million the OUP Germany X.X%. exclude OUP to and business, runoff adjusted As was Proservia margin $X was

Our segment U.K., the largest market segment which is Northern the the in quarter. revenues represented in XX% of Europe

XX% days-adjusted During basis. worsening a decreased constant in rate a the same of on reflects decline quarter slight the the quarter, currency on the U.K. first revenues This basis. from

the revenue expect quarter in We decline quarter. a second to of compared the slightly improved rate third

Germany, In quarter. in in days-adjusted constant XX% decreased the revenues currency

impacted the German second by the business plant sector select was in during trend Our automotive closures revenue quarter.

are wind Proservia we quarter. expecting business was revenue of completed reported, decline impact improved service the to in down year-over-year the In quarter. financial the during the managed previously an of third the our Germany quarter, second compared As

OUP Asia of company was in $XXX total X% constant Middle X.X%. revenues million, revenue. $XX a was comprises currency. In the equaled segment organic margin The OUP quarter, of and decrease East XX% million Pacific representing

very the the in constant growth strong in XX% Japan the revenues We market APME consistent of we revenue remain of the third Revenue basis. Japan Japan, grew on with represented largest currency a our performance Our which quarter. in business, segment and X% is continued segment in expect days-adjusted pleased quarter.

million during second million prior In compares dynamic, represented I'll year an $XXX cash now of the flow the balance in sheet. the similar of the seasonal outflow quarter. and free to It year. quarter, cash a cash $XXX to outflow to prior turn flow

within in outflow the As business. was payments timing large of our of the MSP year, by driven the payables prior timing and

by quarter days outstanding sales days. end, X days XX At decreased to about

$XX capital quarter, represented second the million. During expenditures

quarter, shares second XXX,XXX of for million. we During $XX stock the repurchased

have X.X in June under for remaining of share the we XXXX. program of XX, repurchase million approved As shares August

quarter $X.X the ended $XXX million sheet billion. of of and at quarter balance debt Our with debt Net $XXX equaled end. cash million total

XX%. and months of Our total debt X.X capitalization debt to end reflect gross EBITDA to ratios total at total at debt trailing quarter XX adjusted

and debt quarter arrangements the as unchanged appendix facility credit this Our displayed remain in of during presentation. the

continue our activity date, Based of our second outlook Europe. third and the that be July will forecast Next, the XXXX. challenging for quarter trends on anticipates quarter and the America North third to review in I'll to quarter in

low QX forecast anticipates for activity. levels also Our of recruitment ongoing permanent

quarter we impact are $X.XX that With are our currency third translation unfavorable said, in also guidance and to guidance $X.XX. currency the of foreign of includes to foreign earnings rate $X.XX forecasting The of the the be share the an share, estimates for range per range bottom slide. disclosed at per

and is currency decrease. is constant flat range between X% Our and at midpoint revenue a decrease the guidance X% a of

the currency improvement days at representing trend slight, This to slightly slight more year, on X% same to Although is are midpoint. second in organic decrease adjusted basis, third an constant the the contributing the impact additional compared of X% on a working a the this net basis. decrease quarter there represents dispositions days quarter

the for year. XX%, margin be lower geographies the current tax quarter to from flat reflects midpoint effect the third rate which mix quarter the at earnings projected effective estimate overall third environment. We tax to lower the EBITDA in compared that is will be of for the the prior

our we million. to guidance incorporate shares not does XX.X restructuring or our average and additional weighted repurchases, charges usual, As share be estimate

balance will does amount. our also report noncash and sheet-related meaningful is the of hyperinflationary it a separately we not if translation for guidance adjustment Our that Argentina impact include currency business

I will it turn Jonas. back now to

Jonas Prising

Jack. you, Thank

predict portfolio, investments will areas progress. the and our our strategy are diversification, digitization remain strategic We in adjusting costs We needle. we are committed in making shift and innovation confident making while to good managing

taking see streamline We're the recruiter produce we're efforts where In experience. digitization, and new GenAI scale" processes integrating to already progress in we and adapt potential pilots AI candidate for "learn, in workflows, these prompts improve and making platforms with the a approach. our

data are the future for of that Paris, evolve reskill and is to startup consolidate at this in building of data fit. the the better in XXX insights the heart will showcased value expertise global and area and step and our in the and know how human us for our a clients fuel rich is Our globally our foundation and candidates, our critical in age AI of we're doing work a future European May, we clients In turn our workers to the innovations Over VivaTech premier clients guidance. France AI conference. headquarters recruiting discuss ManpowerGroup to in visited transformation tech will capabilities at era. the how We work

strong our Talent innovation. Everest Group clients us the choose leaders. of our recognized continued know Experis Talent proven vision are global recruitment Manpower, We to XXth June, strong process a with year. by was strategy, for in named and leader investment quality Solutions because outsourcing Everest Solutions work recruiters and global and in brands, our In the

achieve were company World's recognized pushing of professional named by the our While consecutive for strength, Sustainable recognitions industry Magazine ourselves to are the in in to are the we Most services. to committed in prove consistent as Company, quality show Time delivery Recently, top only more. accolades our XX be and new services the that we and we

after is standards we more choose to sustainability, these Job us, slogan, which reporting result is a for partners for our because our trend about future marketing and global this a and planet, For successful business year. people worldwide our year the it's clients partnership us for data-driven seekers, sustainability shared be helping with values, is also a transparent and work of or our and prosperity. approach not strive caring recognition clients in vital while growing with higher champion's of as

placing and and for their investors and for people by With close that, dedicating us. us thanking like trust for in our time our skills clients, I'd their candidates to

open the Operator, please Q&A. line for

Operator

[Operator with Instructions] Capital Our first BMO Silber question Markets. comes from Jeff

Jeffrey Silber

start wanted I U.S. to focusing the first on

out, year-over-year I underlying the of get what cetera? the versus in quarter highlighted of a of some color least U.S. And go-live quarter. on saying, about we at Can the there, know Experis. project the take talked the in I a terms growth basis. be bit on if going you the customers flattish and are comparative your more that second just et like trends You in relatively kind will trends little what's looks the it third

Jonas Prising

broadly Jeff, point bit in in yes, second come we were we correctly in time But third positive, soft U.S. feel have Talent and and new in emphasizes are this that see market, we activities, movement continue. and as Solutions out, really to is that still Manpower quarter, markets also see because remains stabilization the we the U.S. Experis the quarter. -- we a to in and point. good as the able in We to stabilized inflection of expect U.S., demand had the pleased very although you don't the the opportunities the some seeing in better some that But an And as at we underlying stability the get into project stability.

Jeffrey Silber

right. to I perm. could just worldwide Great. shift over All If

the perm seeing little specifically And weakness going North You a there. some America? more on on Maybe are similar can of what's anything in Europe. get focused we color perm you in bit in

Jonas Prising

seeing would well. in also come in perm broadly, down America the in U.K. little North bit say, a as perm are more. We I But has and stabilization

think needed, slightly Manpower for the about hiring Employer additional So come it prioritize quarter will way fragile, the slightly, consultants dynamics confidence expect. the resources market having first means quarter. And will when second industry than was and is it's IT they still of the softer temporary from are or in it, playing Experis. out in you'd down that and and when it's in really you terms staffing

better across business staffing our brands than the that holding see perm. can up you So is

John McGinnis

that the I Jeff, would from -- perm. is just rest Jack. And of add to this Yes.

And development say quarter stronger soften the sequentially, I that Europe But more say have a did in saw as Jonas bit Europe, quarter, but Italy, our say As the perm. X softer. coming markets in we we I noticeably would particularly it Europe. ended where the said, during expectations I'd it saw think in out would a call and be larger line first I'd say I'd of bit X perm, terms our the of softer was we activities. was perm businesses we the would good in And with in was perm was second down I France where U.S.

Operator

Our next Mehta Research. Northcoast question comes from Kartik with

Kartik Mehta

about I environment. a the ask wanted little to pricing bit

still that that kind considering of you is if at pressure. pricing I on market you the stable. One, think you're any wondering seeing it's revenue? indicated are still also And put all permanent stable I'm side on the surprised pressure the that's

Jonas Prising

would think the remains solid stable pricing I we And is pricing that geographies It's say all the a markets underlying that Kartik, we where reason always rational. labor remain of operate. the environment. almost in competitive remains

still is So discipline. to able that and have attractiveness But to I moderation of pricing talent And it talent we've the across overall. as demand maintain restrained environment course, wage to means in degree. mentioned, pricing the of and some we access been our seen inflation And a geographies. rational a the is

that demand that most an the we the of as see of we Jack on It's weakness as and down. in -- also saw can side. effect weakness the came just price our side for out just mentioned, that the We placements perm in see Europe. demand fees that is reflected stability the both and on softening rationality perm And

candidate so from perspective, candidates less to open it seen are a also we've But changing.

candidates very what's opportunities. us takes degree the of cycle. phase it longer uncertainty So a of economic for a to of this and that's reflection really of also come, it's typical just about the into to kind And move

Kartik Mehta

those perspective on and an wondering those your impact a on Obviously, outlook on on bit France. a the little environment are your I'm change your impact Olympics. of And have there, then business things. going of if either business the then political the elections occurred because in just of to or the

Jonas Prising

Kartik, happening elections Well, have like time. to say, we first, all I'd the

with of track of a in course, we able lot various going in a color have politics we represented or being is the great record And eventually have whatever in Of of of year, the version parts world. this elections work government. to on

support right coalition left, Clearly, to see that going split right. is of left have a bit will or France interim as of already the as emerge. in an in mostly looking assembly, in government, that managing or from that's situation different, a is that little either center a the government broader for is is a extreme we some saw either perm reflected some And from uncertainty government somewhat well majority minority through the the we And And that hiring. because of extreme France. where be a causes area that France

then France. But that's by flexible we're options. also employers when other they what I for talent, token, need the look think same seeing will And more in

a country is understand know uncertainty new manageable. we And is France mostly So is We're they is an direction a bit then bit term, impact. an pursue, don't We have not, that is may better concerned which come. think the the Short we'll think legislation will short that it once on too the in ideas is then that term, In going established, think different. point, environment it's more. issue any we the a this little we to going. with policies at government this an

Greater I could region a and that bit bit little support French of to we Paris of bump weeks. Olympics, it Olympics remember, only, think are the And really for a as there it's impacting could for little But X a only the activity. expect our the be and

in we think to increase So limited. we could be it's expect relatively to whilst going activity, see an

Operator

Baird. comes question Marcon with Our from Mark next

Mark Marcon

of from to terms is this health mention of which by decline regards care Experis, the it did U.S. but we going X% down. see improvement was but driven you year-over-year With X%, project, in some to coming did in terms the big in

both trend? and big if And we Experis business, the project, health about what's that the strip underlying in out how are globally? care feeling So U.S. you

Jonas Prising

the and And of that in stability based course, enterprise markets underlying very seen we biggest feel the positioned. sector X especially is see Thanks, U.S., from positive of the about in notably and the XX seeing how last the we've on Experis XX months. as U.K. Mark. to we over in clients headwinds in that our Overall, good now

positioned, a better we convenience about up small demand We be a bit holding how good bit to so little with better feel especially and medium-sized they are to is companies, little clients, appear on the But look that market think we're pretty side. we overall, stable also at coming third as the QX, and demand projecting through stability into the situation, we that in it's and quarter.

in you So into Experis opportunities in U.S. the take projecting stabilized advantage And that significant well, quarter, as we've overall underlying declines stability is same with second saw year. stabilizing other that the the because the globally saw main U.K. that at of of QX. the us the and stability markets we we a think demand the stabilizing enterprise was also last seen driver level lower positive. with

positioned a a in take So and are demand. position little wait-and-see with clients very a bit to where pleased the are advantage where and of they we improvement have we our well in point employers we believe are an

John McGinnis

And Mark, down terms on X%, would just in add, about QX, trend I the the revenue -- had the for it you of mentioned rates, impact the in days-adjusted. trend Experis in

the in It down we basis. QX. was was a health underlying it It than expected. was in about probably QX. even think The stronger X% X% about was It trend. X% constant care of on was strong to rounded I IT currency better

anticipate would much were didn't take care we it because of as what you we out, line guiding if for with have IT. in that the been And health

a us. was benefit that So for

without care was it once of stable So underlying determining out, the lift as that further. that it of our at business if stable that. you take point. But has have been out, I would guide you helped terms this take kind But fairly helps anticipating I what Jonas Health think you trends. is in IT it said, think

Mark Marcon

as it sound then Where can -- a is in of perm have percentage particularly U.K., this about quarter? gross in you're you like thinking bit perm, the third lower. of profit. in? Great. I And Italy, little that always Because how does question with is a come a the for be Jack, changes seeing, that does you are terms this And the it what France, might

So if I just wondering was us there. could you help

John McGinnis

because Sure. XX.X%, of was that's about as we talked QX, point a higher staffing GP. is bit I just seasonal GP a XX.X% low there And percentage was always for Perm the a last above in first quarter, Mark. know XX.X%, that about quarter. last total It quarter, and

So it just in a higher. averages bit

I overall trended But QX, would our lower reasonable slightly about that But to stable of terms basis, range were say is trends in referring lower in expectations. an they as quarter. sequentially versus dollars Jonas based than of Europe XX.X% that XX.X% QX, I on a into bit think we on for a in perm think range was what third about the

going forward. So I would an use that as of expectation a bit

Mark Marcon

Proservia. we underlying wound at for stable think of How Europe? the least things Germany, Northern few say relatively think Europe And you've improvement remain terms next up -- down margins? about Northern Great. of we about wound should quarters. should you've then How that out the in OUP Let's lastly,

John McGinnis

areas we're the where moment. seeing at Mark, is the of Europe, you pressure most the know, one Northern as

is we bit say U.K. year-over-year, to the we're point on markets low pressure. current degree I'd well. a based an pressure those of indication be reported, of So I really continues as highest of be area the that a certainly think the seeing And continue of the you to one Nordics some as where saw the

gives the question, removed, of of consolidated here. million was quarter that to you bit Proservia an I talked in we drag results a about opportunity to But indication a your and that our to the your think $X about is first of point now that,

rate the the an drag segment run a from of Germany the of that drag basis. about on our think you impact If that on in of Northern Europe had our operations, perspective overall terms

a the We -- fairly pretty prospects business business. really feel going I well on the Germany. had drag I about it about seeing of today. about in of Germany, good Germany the sector overall, that think It's trends the our weakness. based industry significant Germany But is in performing opportunities good removes manufacturing and relative some feel we automotive So forward. I we overall the our for think in our think course, in terms --

we removes as a profitability in and continue to start we slump go of we're traditional see drag currently, we to and once manufacturing this more move so out pretty trends reemerge significant forth. it ease forward, that So Northern to and Europe for will back

And on profitability Northern able surpass where will the to go we we've as Europe forward. so be before been downturn

Operator

Patnaik with next comes Barclays. Our Manav from question

Princy Thomas

see This further is slowing that are the call if wanted you'd Princy specific in there's about specifically, out? if than any greater-than-expected talk Thomas you could on impacted more recruitment. I verticals what's for that to just driving others perm Manav. And

John McGinnis

Princy, question. straightforward. Really, the thanks for is pretty it

mentioned, I was QX softening more really say I'd pronounced Europe. the As perm in in Europe,

As was that QX, Europe to really started in second reverse ended in perm, the and stronger quarter. we

Italy. X edged perm, main the for sequentially, I be So bigger down were we saw markets would us, really and Those slightly say, France where would the drivers.

broader France, a perm. From Jonas I more a any bit isolated wouldn't saw in in specific a it's I like countries of to broadly, as pullback sector perspective, mentioned, think, say sector. we

bit a well. talked confidence, employer being he a of more election it's think about uncertainty I the dampener as and

say. So what would that's I

quarter. out main call any the from necessarily that's think change drivers. industry I last the an perspective wouldn't over specific I

Princy Thomas

sector And it. staffing around trends out? financial tech Got enterprise any call intra-quarter and you'd that

John McGinnis

part we of means What line in for the be quarter stability overall. from trends holding in terms of sector Princy, a solid. of to most think I I the that last that more things kind about trends continues think with perspective, is auto talked No, are scheme the generally, the in

the tech, would And an been is than point, rest ex manufacturing. of leveling overall. lower be demand stabilized, manufacturing holding Auto continues of continues enterprise very more say sector, bit, sluggish to but better off course, I -- auto running to it sluggish. it it much although has although still and up of stable to has auto be your the area levels levels, a at

we've ago half point, was last the services And of your Financial I seen the sector from financial a bit the XXXX Services, services in 'XX, first year to a think strength maybe back and a here pull one, perspective a towards of bit. end of financial a although

trending weaker. So bit been financial services has a

one strong mentioned IT, that much strength said, and is other we aerospace would the Maybe particularly. saw a as half has business care But I'd one I that in first in of this been say certainly that's that a Europe, U.S. we from area being pretty prepared With in has in our been perspective. year. think France, in the sector be health remarks, roundup one the

Operator

Our UBS. question Chan with Josh from next comes

Joshua Chan

you Europe. the could just was over in if I broadly speak trends wondering about

sounds maybe quarter, kind be some there incremental any in think the half. U.K., QX, in doesn't on seeing into second will Europe you're softening. some there I incremental like that in Italy, like going it concerns of seem softening were But the France, guidance your

So ground the just kind of on in you're kind of curious Europe. what seeing

Jonas Prising

it described you've well, think I Josh.

to and be you bit You slightly that turned have expected the a Nordics. saw -- have always Europe out especially weakness. be little a some We the had couple weaker, you is did France, We true, challenging, Italy continued better. but most which in that to Northern

But rates coming our at this stepping seeing ECB a level. steady. from rate activity you Europe first to now down. The inflation the it And of as hold are in stable Europe terms decided is we've decline the rate in seen lower back all, morning, a

X.X% inflation the underlying rate So at down, is is about U.S. coming X.X%.

to of sort is see this that happening out. would economic expect we cycle playing So in everything

and, a labor impact staffing cooling, of our in course, markets of the cooling though, is economy it markets bigger seeing we remain solid. And on demand temporary impact The permanent. are terms are for

economic these out we, the that of as this like playing before. dynamics would cycle. we see All frankly, have times it's an industry, an way navigated And challenging in to are expect

inflection us, it's the we sales beyond managing at time, of and manage to doubling market gives on not SG&A we're and it's this an point time. same investments the and do that upturn by in demand question see the above our really transformation. that point for hopeful when current And down the in we course, occurs. if, a environment our of is, And ready question the what resources So at stay a investing task although the to generate don't of inflection

front we digital properties some and going really us business for common office, candidate-facing global us a our during of across mobile And digitized will good and So driving and to effort and help technology the really the have client-facing -- going we implement be forward other it as a increased because think, back which means unique also we've GenAI and we're globally. infrastructure, processes excellent our such on side really office, transformation that, time, in we've progress making this as from the web. is innovation, course, as aspects well

Joshua Chan

That's then question QX. a margin good And color. for maybe

margin business be think to to seems year. has but from the QX that normally, this seasonal I uptick muted QX, more a going

curious causing offsets of Just the from margins to that's stable QX. are QX what going some the

John McGinnis

In right. bit think half generally last GP in I'd year, from that a second a year, down margin didn't of say, will be Josh, see to went happen. environments, yes, Last opportunity. QX. you I QX better normal margin the you're we

trends were part equation we that. the big course, Of of think as was And part of declining coming seeing I down. the right, perm,

say this I'd it's similar And year.

QX, not coming QX to down sequentially at I XX.X%. we're we're think holding that

So what off the of the terms mix we're stabilize is as total back in question the earlier to into starting seeing kind of to mix perm had we that GP. for expectations really perm means level going the

margin. happening what's with that's So GP

midpoint So that say our overall. guide QX, XX.X% I'd stable is for the so of

as GP start and And I in. opportunities Experis margin see would to as growth. see some and in Talent give of for to then, will expect start that again, we improving increases move trends, as mix back start back you'll perm Solutions pick to to up course, get starts to the us

and mix recovery improve will them larger hold. at average GP in the take well, percentages see margin the that starts when as the in, to You'll

of seeing stable. of dynamics means some is well, are -- QX But GP margin mix say seeing those fairly the overall. as in the I what and So that for and that's think and QX hold stable terms we're I'd the why trends margin really the really you're underlying more

Operator

Romeo next with Blair. Trevor from William question Our comes

Trevor Romeo

of up wanted I follow just to kind First one, on the U.S. a bit.

talked But X nice down down this the the Experis. about think I in last for I trend U.S., Manpower brand, quarter. think, on from quarter to the XX pretty revenue that, in we improvement

it's if seem there, or just out call bit client whether a anything a you're like of bit specific Or there see it to verticals performing signs you'd groups that was in broad little So curious does a of starting are particular better? improvement there?

John McGinnis

I'd overall QX thing Trevor, in weakest the year the decline. ago terms Manpower to was in for business, Experis the the point thanks Yes. question. to business say was mind with year-over-year of a very keep similar the

So minus of we're from that's that, the and We lapping minus X. equation. part did XX to go

So line on Jonas but I in think progress we've the stable in of in good was seen basis. business Manpower some what talking about an terms with in underlying so very U.S., the again,

is So been that trends we've making stable improved year-over-year. progress into walking

with I think we really Manpower for very about said, prospects the wins in business. feel U.S. being pipeline. are the And that that significant There's been good the some

think I that. always we're working wins this those when of it's a in environment, But question materialize. through

so And working been that. U.S. on has business pipeline. by encouraged The we're their very very hard

good prospects. we about think really the I feel So

into start down meaningful recommencing come we see that to trend. improved think when to I manifest some a employer going and itself to it's their before start behavior of programs they

expecting the in I more into underlying in volumes stability meantime, QX. we're think the

Trevor Romeo

on region. it countries in color. Belgium follow-up and bit the than And a That's up Europe, that just quick are Northern to Netherlands better Okay. like a helpful of hold other the then continuing maybe seems some

it's about the other specific if than is some to what of that countries there. little Manpower curious just better execute bit Just kind well something you're a is talk it doing market or of could there you environment seeing whether

Jonas Prising

very situation I think Netherlands in the challenging, underlying Belgium. the both markets remains remain and that

than testament sales there line. of but that made they trying growth investments over we've better position that to the a job. teams and sales a overall bit in is of and good pipeline, doing performing a still some time. challenged, market They're still market, to to Our are back building the the year-over-year a are holding really They're which is get

well. and a stability we're slight improvement But good teams the So I in are those also We markets. markets, doing quarter. projecting job the continue that teams would in those third and into stability say the doing are see

Operator

Moore comes with Stephanie question Jefferies. next from Our

Stephanie Benjamin Moore

made some to back remarks, go of about kind your early to comments specifically talking for that the kind prioritizing are were need. core skills your how wanted I they in of clients prepared hiring

with the made of attractive highlight a in innovations to AI priority and workers skills, the the onset point with specialized of flexible placed retaining and You an kind particularly technology and like.

of maybe into those kind So a bit more. little comments I'm dig just to trying

hiring employer this that employers, their they what the of by the change So they I'm in less are that in just hesitancy years lack technology are of environment rationalize to the and employees own you last with simply able I mindset skills also -- simply conversations of current we're the a expectations? with from hire now. could your get because trying few to confidence be economy and because just seeing structural right guess

great. any color there be would So

Jonas Prising

Sure.

major with prioritizing unemployment in strong spike is of talent existing think painful years great wage now X pandemic, pandemic. very have workforce in They huge inflation, and employers And workforce. so I the the the difficulties U.S. their Stephanie, retaining a a a right finding are following memory what dislocation very during the

high to And paid of lot so through people of people, they bring seen all those inflation. been the they've during hired And a the money a spike the lot in that you've wages economy, changes of of pandemic, in. at post-pandemic,

the their they priority retain and that is that So have workforce. to workforce develop

in a decide that in shortages many in they the of response saw have buildup Then to during you they inventories seen -- COVID. of cases, advance

to that the they built received be So the they're we that below and further from during a had here the significant Europe, pandemic. in below orders and in working off U.S. now manufacturing is inventory to XX PMI satisfy post able both pandemic up perspective and the

the working those inventories. are servicing have. markets client with markets that they They off they're the So staff their and in

from tough many because as growth economic consultants is we time. tough look environment. And current that at Of good, in a manufacturing our U.S. the and sectors, see various although Experis not to time other them have this if course, just industries has Manpower they staff well you you still a are and increasing just still can they're as they as maintaining degree, manage noticeable temporary any in seeing, are

consumers you would really still growth it's are cooling government, are economy. experiences in trading The purchasing in degree, expect than care, a to goods, strong because although more health some and are areas hospitality, just that still are the generating as down consumers in

Pacific, expect continued the evolution be look see So when permanent on Frankly, look it the other we are on doing I would just I of Latin regions would this out, we what would is not demand we structural as as Asia America kinds in and in across temporary and hiring. in cycle environment. economic good hiring and at in economic see those playing I world the change a where

Europe when U.S. stable play confidence stability little would also a more the see expect improve on on And longer, seen as staffing frankly, started we to returns other in just to of seeing as for environment, 'XX. the at on out same The economic perm bit play in well. but side, we're here bit a we manufacturing of a more our that has bit inflection point industry out pressure start a traditional and maybe dynamics seen the in And perm. downturn lag the the beginning really with a side employer now cycles, have overall we

in move Staffing staffing professional as or payrolls that and are added follows starting permanent a before perm basis perm then on be being commercial it after to the to staffing. whether in

as we a expect as structural the We dynamics as playing this So would don't them this to. really we see out step. shift see

I cooling ago a seen cooling a look had we've saw very months, market play that X the And dynamics think, out, almost the without last as And of long from you industry, we we, come The strong economic U.S. months growth. labor at growth. think and XX recession. an traditional particular, anomalies, I the in a fact a our industry period good a as in the downturn

we've cooling industry, and stabilization. some seen an As then

in we're stabilize to industry in here really motion playing of and direction economy So indicates a this dynamics and the elements in positive just this we for of us slow out economy all good for U.S., move underlying for feel start and traditional how positioned staffing the us. the about the is when that

Stephanie Benjamin Moore

of and employers of kind of macro makes your curious just when Got a actually -- kind I'm it. outlined, conversations their that underlying aggressive require they that about lot a is think would No, with very any give that improvements just have on your of hiring? clear. lot sense. indication them clear, or these everything I of a talk you what customers, That's they which more maybe did to level little of you bit that very be

some a this tenured lot recovery, if at wondering to we for sense. of -- I'm point, in we'll of employees strong think I are eventual pay They see to at people. see the are that a need pickup they demand kind sure in in which a -- these trying I'm positions. makes material how now of point, becoming even you there recovery a hire number those of more quite again, employees. be good have going had did to for to those kind to They're just

Jonas Prising

it's about. of we hard But points many would would kind to things. what think say can the say this, Well, curve I be different inflection I think

We have geopolitical uncertainties.

the parts We on various world. of have going elections in

has an started. expectation earlier, We U.S. interest as have declines in here ECB, The of I mentioned the rate

XXXX. since do decrease rate same. The expectations the are first Fed the the that course, Of would

off inventory that could that of a spoken perspective, to the these this accumulated it. manufacturing we've -- things be and other So of it to start from in after one put -- And during together that or they to out I excess kick clients really response of start the all many would orders the inventory say pandemic. came that of glut are working

we of to that us external the is very of XXXX. will but worked to something believe say we to no, and through have largely that of improvement, that that is improvement macro with And that talk we slope in combination And some the this the expect course makes hard predict. the clients indicators mentioned I many that that over see

seeing on in of think what opportunities. are much the it that in each terms of you're and depend will industries I those very industry

Operator

Steinerman question, JPMorgan. time comes with And that for Andrew and we from X last question have

Stephanie Yee

And this help U.S. This to kind payroll and of being question. temporary similar in disconnect I'm is same like, down But Stephanie your nonfarm GDP driver, Do seen in correct have you things biggest fully that Yee seeing stepping in me sounds that for dynamic Andrew. are hoarding. being last question U.S. improve? wrong, in also, the reverses the up I It maybe we if think that the full-time France? in you have hoarding a is opinion, between when labor

Jonas Prising

an normalization see anomalies as is I think this would we this X really frankly, No, we've explained, the trends a hiring we we that what just of think normalizing. really dynamics. months, for over seen Thanks shift that last don't question, the pandemic structural to is the in And as expect of a Stephanie. would we We effect expect. characterize

their major be appears But circumstances post-pandemic months. have, having won't think as with not in That maybe say, people have would the very a likely, to workforce. And we the that such and whatever our likelihood also, likely. becoming labor comment really likely terms not projects now, the less we'll landing look, of current what frankly, careful look to your seeing replace for even have recession makes them Even as hesitate we many -- it right is degree would we're employers I be not maybe softness comes when expenses, with the reason less out start transformation out to reduce the SG&A, course, tough soft more a recession does difficult and had any they just give aggressively hoarding like a shifts of fatigue do in of preceding and deeper or we'll would lighter that live to overall hire we them we in on is it explain levers now. XX to during as to so

and kick that. when expect that sustainable. the all improves, in -- said, could industry be their for to to think, traditional being the as they also, Talent Manpower, from it's of see we environment and some going back that of And feel industry perspective, once confident our I Solutions, that course, they're But -- an dynamics Experis we environment that's,

that for advantage profitable into sure the revenue second improved ready it inflection take hoping making over We're are going and for when growth. and really comes the that projecting can we the the third, been we seen some we've quarter. point we of that same so get We've are on stabilization

speaking our close Thanks Keep Until with a your enjoy brings you of all again coverage and the us our months We rest forward all that of for from you I'm the of everyone. in seeing, and call. various watching with interest forward summer. look the then, earnings Milwaukee now. And QX shine quarter in to of speaking we call again sure look to again second that Thanks, of in to number earnings soon. media you're questions. the

Operator

Thank your you participation. for

now may a have You Everyone, great disconnect. day.

ManpowerGroup (MAN) 18 Jul 242024 Q2 Earnings call transcript