MAN - Earnings call transcript Q3 2024

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Operator

Welcome to ManpowerGroup's Third 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 third Welcome,

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

will your of quarter, our quarter our for included share Investor For thoughts through the some then will have third remarks highlights going XXXX. Jack we the of the before will the within through the start our by guidance Relations then concluding at fourth results start website prepared of I and of quarter manpowergroup.com. and I some section we convenience, session. go Q&A

now language. the will Jack cover safe harbor

John McGinnis

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

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

Jonas Prising

managers markets. including of from Jack. clients across Europe, Thanks, our with with CEOs spending speaks from them And key country teams X leaders. returned with our as in market days each and I visits recently experts, business and

environment broader central ground. what we're and So from the hearing clients our economic discussions the to our on was

their in over Asia with we've America, they're past hesitant employer the Pacific. of change and Most conversations hasn't yet continuation are in without focused cautious their remain a having in approach economic been are to not maintaining They certain, spend in North timing see the and the time, improvement businesses. largely been employers about significant and tone conditions a we workforce significant there good essence, improving, impacting still Latin XX expand managing situation challenges outlook. for while now, cautious and step particularly workforce. of optimistic, months. any current Since is change been talking their we've Right market the Europe In the macroeconomic their geopolitical the they and is America on about increase some a

broadly, spoke at the the industry leading the Looking with top we year, first and relatively going and impact downturn we little resilient side. benefit last on line improving to in markets about of being In earnings to trends, many feel labor to steady first into unemployment our edge, outlooks call continue see from our indication holding widespread layoffs. at QX places the the other

not we're improvements, we're While seeing environment ahead. signals signs of also weaker significantly significant seeing not of

workers of attracting steady Outlook evolving for yet requirements. most We well. ManpowerGroup and demand Our hiring with employers September, and many flexible with serve flexible found to will ahead, this to sets and skills XX,XXX believe prioritizing specialized specialized skill Employment recent adaptable mindset retaining report intentions us published in growing Survey us for adjust cautious, employers, the

Companies are lower mobility as Labor the transform skills. and persist. of to of organization, particularly soft and new their ways deeper as and in seeking advances remain markets at within places. remaining as in own historically hiring increase supply as and value tight new increase Tight AI talent pools demand talent well levels export mismatches reskill many skill roles

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

per margin share $X.XX. margin Reported while year-over-year $XXX a was Adjusted adjusted diluted was million. for per increase X.X%. basis, EBITA $XX per on an earnings currency. reported in earnings quarter currency diluted the representing share reported was X% Earnings was decreased $X.XX constant adjusted share X% in year-over-year. was restructuring, EBITA constant was Adjusting and X.X% Our EBITA EBITA of for million,

sector, on to geographic broadly maximizing client The when focused of Regardless of deliver being positioned we capitalize vertical today, our while us serving experiencing And assessments, IT consumer services mix the enabling improve. well. to we and data our the headwinds from diversity environment to is real-time us health conditions and well more by public goods life provide in, sciences, and opportunity market is industry market. are which find to care industrials, ourselves are tailwinds and

sciences sales detail. both accordingly. care the through currently pipeline We number from within size healtch We're of a sales in activity XXXX. I'll opportunities up to grown also turn to in Jack encouraging industrials manpower who it pockets over signs you seeing see take now our pipeline life and for the results and stepping are improvement and has throughout select more the

John McGinnis

Revenues Jonas. profit Gross our range. in of quarter the at range. constant currency in our the the came margin guidance guidance of at end third Thanks, in low came midpoint

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

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

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

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

guidance, charge was rate positive represented and Turning the guidance impact resulting $X.XX, included net costs in share had results Adjusted Walking a performance $X.XX, a tax discrete $X.XX of to range. share reported foreign midpoint operational a midpoint tax stronger impact $X.XX, impact of and guidance repurchases close to a a to had EPS and the count due other country weighted negative mix, our a in of of $X.XX, the from our the EPS a $X.XX. $X.XX. which bridge. interest Restructuring came of impact negative of was average $X.XX, quarter, Reported share very earnings in $X.XX, our lower had higher $X.XX. which expenses better of per was EPS the and on currency that

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

business more the I'll revenue Management MSP gross cover trends. year. Our on volumes the quarter. year-over-year outplacement color give increased prior in when experienced the on growth Right I the revenues compared to quarter higher trends previous from profit

reduction RPO, transition XX XX-basis-point decrease. basis margin quarter. points GP lower shifts Right at Solutions gross the improvement in items the solid. contributed activity our in volumes, permanent solid mix within Talent a came in and Solutions reduction. including as at while in hiring for Permanent pricing decreased profit Looking contributed margin our margin gross margin detail, Staffing XX-basis-point Talent The contributed remained career XX.X% third in year-over-year. activity the a of was margin third Other outplacement XX-basis-point resulted quarter. quarter Management in recruitment,

On line. profit to by business gross our

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

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

professional X% the Gross Our decline currency in Manpower brand from organic decrease continuation profit XX% the Experis brand currency quarter, an second reported an reflecting of constant the constant staffing environment. organic X% in second decreased in decline the the in decrease quarter. our profit year-over-year, of year-over-year, a a from in challenging gross improvement X%

volumes constant decrease the increased increased as Gross previous U.K. currency to year-over-year, Solutions France compared PO also Solutions quarter, the and profit X% quarter Right were slightly the Talent sequentially, the second higher Management improvement MSP increased quarter XX%. by within profit in the All organic in and volumes activity representing third in in achieved quarter driven an growth from of gross in Talent brands and

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

basis. a year-over-year of year-over-year SG&A of was reductions decreases largely down operational $XX Excluding currency million. as restructuring The costs, constant SG&A in adjusted costs X% on consisted

decrease. Restructuring quarter medium- a $XX SG&A a also and During well our in health in are these percentage the constant and Adjusted third and run Currency were include and quarter. to quarter. return would costs costs corporate back-office currency XX.X% Underlying expenses revenue as totaled programs efficiencies. expenses other trends of to quarter progressing corporate the transformation cost million. trends, to incentives for with corporate contributed prior we expect to $X certain represented spend, long-term changes rate the in million continue next reduced quarter, expected plan

segment of X% Americas increase representing revenue. consolidated to of compared XX% comprised in The Revenue prior period an $X.X billion, the on year was currency the quarter basis. constant a

of U.S., with was OUP million adjusted, in $XX the Argentina amounts actions Restructuring and modest As and the million Canada. included in margin was X.X%. largest OUP charges $X

as comprising U.S. the in the quarter, quarter the the Experis from projects. million a days country adjusted represents the compared XX% was partially This representing decrease X% a of year. X% revenues. the prior Solutions slight The the IT and decline the largest nonrecurrence Americas during $XXX decrease second in in additional is Revenue offset U.S. Talent of Healthcare segment, to segment Manpower

for OUP U.S. adjusted, million the in was quarter. As our $XX business

As adjusted, margin was OUP X.X%.

Within comprised step U.S., the up during U.S. gross was the the The revenues. from comprised in the during XX% IT back crossed U.S., profit over XX% quarter. gross X% quarter. the Experis of second XX% Revenue days quarter. the growth, in the slight brand Experis quarter, Within of skills of the decline brand approximately in to the Manpower the a adjusted profit comprised Manpower brand for which increasing in in U.S. the

of crossed XX%, decline growth in of decline adjusted XX% the during quarter second U.S. basis projects quarter. quarter decreased the quarter. the quarter in Talent the the Solutions to contributed the nonrecurrence due days improvement also Experis from X% during and second over in expected care U.S. revenue of profit revenue the to with X% the on to the increase third a a go-live IT in health an gross compared XX%

increased our trend Right posting U.S. revenue reflecting placement business the MSP In of executed to leveled RPO activity the of expect revenue fourth within be the overall quarter revenue third we activity the Management the well XXXX, quarter strong client in our select U.S. during business business. year-over-year. quarter, to off increased The for rate in increases, similar U.S., programs. allowed

consolidated in billion, representing in constant a was Southern in currency. XX% X% comprised revenue of Europe Europe quarter. Revenue revenue the $X.X decrease Southern

for Southern Spain OUP France, million margin in and business adjusted, actions the was quarter our As regional in Restructuring OUP office. and Europe million our represented X.X%. head of charges $XX $X was

adjusted XX% constant on France basis. days X% quarter revenue currency Southern of decreased Europe the a comprised in segment and the

adjusted, in quarter. to quarter a reflect date the slight are Activity in the activity is largely estimating third the and in trends quarter the decline September, consistent further margin experienced second in boost to As $XX trend activity September quarter, French experienced our and OUP the was a decrease provided business was million the slight quarter. the middle Olympics further in of X.X%. of for The month with OUP in we line in levels fourth modest Adjusted with October a a trend. from

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

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

adjusted, our other a flat. part creates operational business, the which with Netherlands, in rates the charges the $X U.K., subject Belgium operating represented to in the in financial pressures higher was markets with head of challenged in $XX than million the of As and The and see OUP This growth was most bench model, economic we many lowest charges Germany, million regional $XX markets. restructuring additional million office. modest Nordics,

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

U.K. in revenue expect continues U.K. on we market public adjusted compared holiday be the basis. adjusted Germany quarter, weak, the currency very to and demand. revenues of the days decreased manufacturing decreased fourth quarter. decline Germany, XX% constant quarter days further driving to lower trends currency based XX% a reduced the the sector revenues third declines. to in worsen During The In in and have rate on challenging, been seasonal quarter constant

experience revenues The are in a expecting the with to year-over-year decreasing slightly revenue third Nordics worse quarter, difficult to to XX% trend. In adjusted conditions, quarter. market very constant compared continue the we decline the days similar currency quarter in fourth

manufacturing many weak also the is worker The than we limits new beginning on converted auto market October by Swedish Nordics, was Within Manpower term experiencing where introduction largest environment. XXXX, clients of temporary adjustments of in ahead a Sweden the in markets normalize our other of payrolls more expected declines based impacted European the in the worker similar limits temporary instituted their staff temporary impacts permanent believe it to X change. term the to have that from in quarters We shortened many ahead years this past. the as demand has and will

XX% the revenue. our an representing total Pacific revenues company comprises of currency. In organic increase $XXX The in of million, constant quarter, X% equaled segment Asia Middle East

was OUP As Australia Restructuring adjusted, $XX to X.X%. our of million in relate OUP margin taken charges was and $X business. actions million

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

As and recently our the which agreed a our Manpower franchise geo our Korea ongoing to optimize part mix of South as in businesses strategy sell to have footprint, will we future. business, of operate

quarter. of be expect October, which in the guidance will fourth for my We this at the to reflected transaction end close

$XXX flow free and $XX in on prior the the million XXXX. to balance our year. In cash Germany Onetime to compares third wind of quarter, business free cash the turn Proservia decreased and restructuring-related cash our represented now down during payments flow million I'll sheet. flow

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

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

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

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

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

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

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

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

to Within extended Europe, the and Northern conditions, year-end most challenging closures. we plant experience holiday continues and seasonal activity anticipate Europe lower

Korea of of sale to provided And and variances revenue close end mentioned, trends. As Korea like-for-like show reflects the our business month South guidance operations. we expect South accordingly, we at X have to October, I our the only of organic

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

is and is X% the South revenue there one constant is guidance at decrease. the currency a impact decrease, Our the of X% and range and between is of The decrease X% a of day more midpoint about disposition in about X% quarter. Korea working the fourth

our at of the future from basis allowances projected represents the valuation summary, the organic rate to rebound. year. well X% tax points will environment lower adjusted those days decrease quarter midpoint earnings constant basis. reverse effect quarter slight effective the for decrease the In third down which overall the XX.X%, the revenue the same tax when XX quarter estimate This margin to to the markets, on which impact as in midpoint. EBITA markets prior in of as a represents fourth is will lower current certain trend the compared the We compared currency at for the fourth reflects be geographies mix be in

government very The XXXX. preliminary the of published budget recently France for

possible wait with provisions appropriate stakeholders review Although budget rate French will government in increase provisions includes the budget further XXXX, XXXX by along until we temporarily potential that other preliminary France all this currently impact, tax quantify the is our would to the along. the corporate in in and

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

of in quarter Korea results. gain business separately loss We our on the will South the impact our fourth sale carve out

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

I now to will Jonas. turn it back

Jonas Prising

Jack. you, Thank

steadfast term. building are execution data, and Manpower, mind with Talent strong teams talent our the clients of across our Solutions, a Experis for We partners loyalty a their being and experts insight, and earn front brands, long in specialist to our trust relationships, solutions and with and distinct and seamless deep of

with quarter-on-quarter with our as our clients, outcomes that expanded and our associates Data insights building continue we We for our We showing this reveals, strong clients And and are analysis visibility know drive loyalty. year-on-year we client touch virtual have data improving increases. year, rates in-person points and candidates. becomes better win

We are data-centric is the in are to convinced commercial positioning building muscle we win market. us the

focus from for clients on the the that create sourced dashboards, AI-enabled value our most team's platform, global data ensure our and prospects. our our activities

segments, surgical client laser-focused we strive As innovation that you've manage actions to signals being optimize have verticals profitability, We while on also ensure platforms demand seen we digital across to to in analyzing we've our growth. capture costs. and talent, and we're a quarter, taken this our how approach the

Digitization and remain ways strategy committed Diversification, to find and our Innovation for to value creating We new and clients our our candidates.

on and stands throughout is history skills Our to opportunities future, build brand an choice, and our by of side their we're Manpop offer and strengthening their positioning for as our employer candidates journey. our intent career great

of That's where across and Walmart talent down seekers and several meet breaking to with to U.S., industry and how recently ways exceptional led this priorities the our in and why seekers. offering for to our they candidates is job the create barriers We're one-stop U.S. continuously proud job opportunities model delighted employers. we opened for are. convenience both We're have to improve locations hubs new finding attract one local top job have

talent U.S. strategic in both U.K. professionals contingent strategic recognitions including IT, Manpower leader Peak as as and Talent workforce the Experis solutions have named global talent leader business and honored U.K., leader management contingent solutions. being year. contingent assessments, again multiple XXth and for XXXX been with and delighted as the Solutions in and also in a in consecutive a to a leadership Matrix in We're Everest Group's

in company employees, the In of candidates New are planet. in to closing, to We're for stakeholders, And annual emerging tracking a tomorrow. and to takes our in September, committed progress greener workforce technologies and we of shareholder Change we Climate creating operate. Working clients, a to proud innovation building communities fourth better, and our leverage global building commitment York at World by value all ongoing we people Week that skilled of sustainable report, a our the care which released our

to workers transition. of on employers many global place with green We this clients guiding know Experis moment developing workers or been named the and report shares This cannot transformation, underestimate our World's ] and gaps training ways taking in-demand address changes we're skills our and to partnerships the work impact the people, building Forbes pools and transformative talent in academy talent Manpower Employer, [ recognizing the this energizes our with a commitment to work development. pleased through We we're and AI Best programs. have both of MyPath

by and like of would efforts I teams us their to candidates for on considerable thanking for clients world to close around journey. trusting work build to this their the to and our our guide future be the

line open Q&A. the please for Operator,

Operator

comes [Operator from Mehta question Instructions] Kartik Our first with Northcoast Research.

Kartik Mehta

there just month? Jack, maybe month the October in looked talked the what quarter, some change for just business? least even that saw And the maybe you I'm wondering September you of was at into any and about are little happening, -- trends I the if in know your as entire you by geographies. a at

John McGinnis

we during middle that question, of did quarter. with the course saw the I'd as prepared in in I'd to see quarter. the maybe about the we remarks, talk Olympics boost the starting about the be for the from say, Kartik. of Thanks what we France, France, Yes, talked happy

results a their that. flattered bit, we that and anticipated So

we did rates, in As very weekly see early here well. we morning saw similar moved October, this we into step And them as just last down. a the have September,

basically, so minus about as at from And have trend. them ended we a X% -- we about revenue

activity in incorporated into at both the this with fourth October September for quarter So and for what we've in recent that's the guide line stage. France

was with I there you And well I'd U.S., an of basis, the terms we mentioned, a I'd course in pretty U.S., percentage in And our line say posted it kind expectations. as on of performed, go even to over for what from very most part, quarter say, declines. if of the mid-single-digit the we overall as perspective the saw

good in And to to it some and the was helped Solutions the the continue that Manpower Talent U.S. offset see side. on see pressure professional really of actually we

that overall of was on course say over an I'd even basis the the U.S. So the quarter pretty in

-- And say then, Italy, most quarter a of from anticipated. the And better the quarter. slightly came the quarter. the course at that into quarter, during the sequential improvement second I'd also in than say, similar previous you was of Italy I'd look ran story. if we pace the third And in

was that August I I'd coming a days think into say very on better with Italy adjusted, basis. a all, little quarter the continue We adjusted trend flat slight minus to bit anticipate all days improvement. in close X% that Italy But in year-over-year. will at fourth

the has into resilient is markets been of and QX. Europe, Italy in that more our part of So one certainly outlook

the of lastly, maybe just countries, in U.K. the terms And bigger

we some As seeing the among said, the for And we the Northern and quarterly some about the countries. pretty pressure close constant XX% significant that over U.K. quarter, at our pretty talked September. pressure. certainly, very was most most seeing entire minus entire quarter about That talked the of entire running difficult July, was we Europe largest average August constant to of that way,

in we based at I fourth expect quarter, to to we month always the we December, transportation the And be step that sensitive look said, logistics as pulling the expect which bit back a the softer that public bit a side, as a a on fact quarter. sector further well little as demand more is on down when fourth

bit the the that's a and biggest takes from markets. puts of So

Kartik Mehta

processes now, like the it to and going to in you've put you've and of the stands where think you're place? managing they cost, the just incremental even manage good were, of what will you costs other done compared But to been some it margins some the forward efficiency be going further. job able considering in do a And SG&A business the sounds as

John McGinnis

Kartik. adjustments. Thanks, right. say previously, I'd been we we've We -- making you're as said

in us out. adjustments of this certainly the first softer XXXX, some make anticipated be year. That to on that predicated year end of and was saw You half last what pretty we at significantly a played

with we continuing, leaned so here quarter. and are in adjustments half And And right? second conditions we made in year now this we the of additional this

You preserve that charges, can all in current see margin in environment, and the that's is to bottom line restructuring which this continuing.

PowerSuite good our efficiency. I remarks. back-office us that is what with migrations. So think making made those on going margin talked same That the here office, the complete about will the progress in the -- currently. thing preserve progress say office. news prepared agenda. on real and for the we appetite in will the we our demand front is really more side, that as as doing help us help I that's But more of see would meaningfully that we're drive transformation the recruiter environment side, leverage, with go continues when forward, implementation We've will PowerSuite very the in front in come and progress with we through have savings back And we're office good to we we the as operational advancing good That

forward. transformations the we in in and range back-office to as side, will margin complete So EBITA on through get as I through expect XX I've move be that efficiencies those points our improvement would the talked and the come in in of as basis about that past, we

back to operational course, we'd from transformation. on add then top When back then that in business we leverage EBITA to more rebound, margin get those we of the markets that the see to to start we'll and savings start level the ranges of when get historical

Operator

Trevor comes Our Blair. from Romeo with William next question

Trevor Romeo

The between brand two. first maybe flat in down, the in of was seeing one bit looked growing like I kind divergence a just of Manpower It on the a Manpower kind of Experis I had performance year-over-year. XX% was little think, globally was quarter. versus Experis,

and between call now. is It's there? the of timing you'd in factors in there the to difference two? Or a are out of would fundamental the different one when at trends just each Just you one question point cycle decline attribute a what demand of started other kind each

Jonas Prising

Trevor, great question.

So other within increases if a during you there tech the it bubble hiring. professional but the back resources, hiring was broad would especially say, IT and I pandemic, of big in was think sector, pretty

environment their than and where many manage clearly, the business. headwinds, looking we Manpower been professional headwinds side workforces based on significant we've costs seen to Manpower the held with organizations very are maintain now And as seeing resourcing an at And headwinds economic that the in are the we've is looking had, up. has they how more pleased

afterwards Frankly, the the in cyclicality anomalies case, think then our professional And IT the companies very skills, they resources during they Experis. be solutions of investments the we for we were for what every need, is I will we're resourcing Everything be their as both and to medium the long skills, post-pandemic the to think Having the by strong can explained into, though, and saw about, leading that seeing today, adjusting to we outlook that payrolls. said in everything provide to that continue make organization the projects, they with space. talks that that, term. need in over do need about can read need that you digital

think Experis We how good and think between able it's you us and of progressing. there is in see outlook can it do a can now, a temporary. that right what being bit gap pun for but I of to our is see Manpower intended. how terms No is Experis we So very perform,

Trevor Romeo

to just divestiture. why be then helpful. That about received And And sell a transition I say South was impact financial the was would anything -- helpful. business that the and the curious just could you quick franchise with of or model? decided proceeds the sale the kind follow-up Korea on you from to the

Jonas Prising

at the the ability and about model geographies over they portfolio. rate strategic of could franchise we managed directly a higher take seen us They growth asked lower-margin markets our stature suitable within market and in at feel past a wholly-owned to look faster better more risk tend years, And you at have for as faster terms to with Trevor to that served Well, around our their be profile areas maybe complex, drive than manage certain a where are of rate. be company markets, is a a share subsidiaries. we think

share we pruning more a markets of also our those the perspective, faster consistent successful unleash to operating in financial more terms into portfolio and and have successful being at which make targets with ManpowerGroup their we've margins holder but we pace gaining transitioning So the will franchise a perspective. make and a able than from from maybe of us abilities, franchise with geographies would margin operations greater those lower be been that models, think

John McGinnis

in the we'll the after close details, terms your Trevor, on And disclose transaction. Yes. we that question financial of

I we to next have it at to close As that in expect and quarter. of beginning say more this of on month, the very end said, month, the fourth we'll

for modeling think million quarter. But it I purposes, of generally would running a say as about $XX

impact pretty have month in you I said, revenue perspective, you October, So that X a idea. good the we as the the think and guide of as from give a month about trend for would

impact And after for the punchline X transaction. on in the EPS. a that the of more line I our fourth terms months it loss have doesn't talk the significant those main of bottom quarter think close about we'll we is

Operator

question next comes with Marcon from Mark Baird. Our

Mark Marcon

we gotten -- they've look your Northern changed like a take much. cited of changed, aren't look, particularly really commentary, changing beginning And you have well, the worse. things that when doesn't Europe, conditions that at it they've Jonas, but at

improvement Northern I'm additional that you thinking soon, in are environment, think wondering improve come are do And would how And come doesn't but the long would be there? catalyst it economic take take how profitability to to lead if that the overall in what anytime about about about? to specifically steps we could Europe? you level the there to

Jonas Prising

actions has most seen, Thanks, mentioned the you've and Europe some region And is in is write Mark. business and time. most the quite remarks, adjust my market I Yes, for Northern world. significant what as we've across conditions been prepared the as challenging to challenged our taken

economy weakest and Germany, really the is of course, in And economic that in industry the our well. that's region company Nordics the Europe. in of The the both performance is, to for bear. If it growth and significant reflected for everybody the as outlook in seeing pressures are that specifically, you look pressures seeing macroeconomic is something economic mostly coming our at that headwinds,

Having They payroll. we a and some harder are turns said are markets and are where these to market the part our places of models, to downturn these manage we operate. are be in are because at have confident be also the us happen associates for primarily that, bench important to great that, point, markets permanent to when they back,

So and some it takes us the time drops. demand the to the to rightsize actions take when make business required

what further the out adjust environment. but we to markets terms any we maintain to rule of that in never conditions, market normalized to actions would also in we what want good are So a we sure we to do more need think the make in strength

second their the for ECB, interest Mark, down the morning, you rates to again, maybe saw XX once X lowered by As weeks, basis in points. X.XX% time this

that So to to be going from I invest start encouraging to think businesses more. positive is

you think And look we as monitor as at, this the down inflation I year. rate And come has last continue to well.

wind puts decision Germany is in our specifically take and as for us important action heard very position us, good business, in which improve. an I those markets You Proservia us which down think a

Mark Marcon

impact expect Northern positively from growth mean the -- in are aside not-too-distant coming there I down, any in you're other Europe? rates see that Great. to would future that you things the would that

Jonas Prising

lot a circumstances. it, of think I the depends macroeconomic on Mark,

we've our positive, we pipeline. that where Of as our we our increases increased in course, industry the seeing verticals are remarks, prepared sales are activities, talked in about

manage everything increase structure and do, as earlier some expect get on investing demand transformation on and digital we that do frontline and you our pressure think and to try good well from us a to Jack to back-office being demand doing that efficiency going kind the as perspective of a on is the very we're keep that from productivity focused our both cost out recruiter of improve then So into mentioned results and perspective. our that,

the are where Europe needs are we it and make to determined we that very, Northern can to that on, back working those be. are that to So control get sure things very we we

see is well. a us is tough This but point from markets as as a industry and certainly We can being for everyone also an pressure for it for a the company, in pressure us point mostly perspective. our industry

Mark Marcon

you one the Yes. as all about can and out suggest if what's last interested the out? We're squeeze rates look as likely scenarios? rulings you final comment. want proposals, been question, the just parties certainly we to how tax seen the think come based I But a that. One in. until And French Jack, know investors I how press, And to on tax at look would most defer out about in we take think the

John McGinnis

Mark, the question. Thanks, Yes. for

still a it particularly think where I'm government the hesitant very to is and about little yes, preliminary, right it's talk now. you when because So to

bit see is to in that's discussions. gets it's adjusted that of along lightly one it So parliament how the advances And this budget within very parliament a very various preliminary as unprecedented. a the usually we'll factions far We're used through finalized.

proposed. the to is think That's rate investors they're the specific what's it your it on But way increase at. should has rate, question on government talked tax the way temporary the looking think about is what is about a the tax I

they're it's it would it's be rate a it would the to them that bucket, And French is and this largest down, course, is for be -- this But companies. fall place, committed put of size XXXX. And took still their business, a have measure the that in really and that of to would on they We -- only applied shore help long-term deficit they our everything into tax their but it based being just temporary we XXXX to and that up understand reform measure. today.

terms advances the just see to year. And last more through of the year-end. think a 'XX we'll So XXXX be and say lot way say is, this would at would end the harder it's have drafted, again, 'XX to I thing on hit the more we'll how here it's that about year-end. in at And we'll a that the have bit increase of XXXX. and be a lesser increase. -- And

committed say were. competitive longer-term to more reform and back But still tax to corporates making main temporary getting for is France the again, I'd their where and and they takeaway

Operator

comes George Our next from with question Sachs. Tong Goldman

Keen Fai Tong

temp cycles. behavioral among hiring managers to this about perm are hiring in trends. space and changes It are I'm perm hiring? cycle this you're temp if the that seems compared Can like prior to employers going you seeing cycle wondering lagging bypassing talk straight time trends staffing

Jonas Prising

say the out months, holding have workforce the important and this, the have seen that play their we out in would have for as with now on XX to for I than headwinds we economic difference, it's, is playing With been it Looking out in much past. would expect roughly as we to last at play one and longer past. that employers seen it

over comes hiring. we in the And we being or I think the are at experience difference that very surgical temporary hiring don't And preferring of from pandemic this talent. difficulty their in behavior any of see this really can hiring permanent see But finding employers stage.

RPO. better Manpower well doing within temporary our the as than recruitment of and Talent as our Experis is, Solutions in both business staffing much fact, In is permanent brands

the fully industries read in to in exception with invest new we their recruitment we've we into come the and as them also workforces, see those any to of I -- strong they of are economic workforce to behavior, wouldn't degree we better are difference to their be in revert respective So don't employer that as outcome but course, would improve perspective expect saw back any in as or expect different temporary resources they as tapping a in seen the contingent from the economic on back past. times, not holding conditions ready I to to

business satisfy needs and and once much our part the within important come and brands that our permanent of business. to way improve much, a back as Manpower, Talent Solutions to very it's same and a recruitment become Experis And ability expect as conditions our in of Because really certainly, stronger, we'd well.

Keen Fai Tong

talked helpful. cost concentrated? you elaborate little you Got more on extended taking duration a environment. And based it. earlier actions of are That's these on the Can current the additional where actions operating cost about bit

John McGinnis

that. happy to do be I'd George,

had the with line of in in Europe. Europe, think it we is just on discussion Northern biggest I the Northern part

So had was million Norway that of in was the million. much $X have about about $X.X Sweden a bit was the we did U.S., well, as as about took $XX.X $X $X total modest. more million, We million, France also about restructuring just Germany the well. million, And we of in

bigger pieces. it. the So we I'd moving about talked say way But think those of the were some it about

kind we the taken the demand now of we've right the but some I is pressure follows haven't of think some way year. where that restructuring countries where the up in anticipating earlier were pick the originally seen most also we in bench of

of office, we've sales say, functions, adjust rightsizing overhead, offices. trying We've more head to been the to back So that. done strength. very the Jonas And heard some as focused you on preserve the the regional

been as prepared surgical, in we've heard very on based So you've careful our comments.

Operator

comes Manav next Barclays. question with Patnaik Our from

Princy Thomas

Manav. saying you great. seeing were on be the Or just -- see for new improvements wanted you on clients? could to mainly that? sales your This that that you that where I pipeline, Manpower where with is wanted Princy would you're is color remarks provide just Any in to ask prepared if around I can expand

Jonas Prising

increasing. on see that some we increased be and pleased but the over to growth is our time our we leveraging that see we that focused XX base, of that on nice very that for for we both is why that to forward. we're can new Yes, last implemented on this business sure us in results new result spend primarily being activities that improvements and really And fruitful that's demand-generating verticals, our industry client better so think our we're pipeline technologies make yield our we we've very that faster the our And the pipeline, and think the increasing can are opportunities the existing the are customer focus months base. going

deals speed winning to the increasing the environment pipeline of to tends in Manpower conversion to short rate, revenue like means conditions start to market the the greater this, tends well an to and term these an us of full regardless monetization to deals because the be also and of and extended be deals smaller going term, deals, as the is monetization come In those the timing in and amounts for having more is Talent slower. having to But full size the medium Experis of for monetization whilst and but the be growth and won that, certainly beneficial that potential rates we're their long as improve when generate Solutions.

Princy Thomas

to what seeing And you little terms a you're in Great. speak bit dynamics? can competitive of

Jonas Prising

competitive, Our industry mentioned remarks, as But our also is has we always prepared in rational. industry. competitive pricing but a been

see levels, by changes, are our as profit The can saw driven quarter-over-quarter gross mix mix from we stable. business changes are that primarily by geo you margins, pricing the not pricing pressure. So and

industry. always strong, demand talent and our -- dynamics right to the is skilled the at that to of think it's it's we're customers still rational. our be solid The being this skills. find the going a with and I industry. is know competitive behavior But reflected that people for in seeing stage, And we're pricing difficult seeing But

Operator

Our with Josh Chan UBS. comes question from next

Joshua Chan

the conversations with about ask your you're to having wanted I customers.

progressing, of that are are to global cautious ECB because interest heard as I mentioned, But to cut customers rates and the being we've has Elections elections. has rates. you high Fed cut now, while a The guess, started for think globally. rates. I started

being of all though of kind expect quarters? how catalyzed kind in as to are you the these do persist Or you play this some demand do transpiring? sluggishness resolution? these you some Do even upcoming expect see of out, events of So continued

Jonas Prising

environment year, full that, the now you that this into outlook, for our continue we from have Well, of seen certainly QX. almost we kind as heard frankly, will think

we'll any have those of if needle. that again the started to year-end, you mentioned at when move items together So we're see

worst first, start been in for. that planning and looking investments that ahead, good the some believe show start improvement which flexible little starting those The do greater that contingent over, will bit kind developments we the for needle, to being give the done, elements exactly the the accelerate still the they've demand that will turn confidence move means workforce activate should they maybe uncertain that of is a digital are environment resources. they've us and Ultimately, to projects to employers Experis

then. didn't that we we The are are So be change is anything And when. don't we're into see that third and of see is we going the to materially taken the we question see and changed clearly actions changed improving. anything quarter. then if view quarter. about is where talk the in to -- We has anything we'll expect our again think And together materially when end fourth saying at that we when results, get being update the what year-end

actions provide seeing of demand, getting the certainty more to lower that kind and lower environment. things that exactly But kinds past a dynamic to budgets for and of solidify on business of banks interest create rates, inflation, like in and greater stimulate we're countries, -- actions think, the by I central are the to elections many

Joshua Chan

sense. sequential QX, than you that typically, down margins Could guidance, talk your as QX normal. decline. to I is QX your are but slower, you margin going I to QX driving relatively makes to progression That this what's a and QX bigger according what think think certainly from step about be guess, there about seems margin

John McGinnis

is I'd Josh, to this happy that. to yes, Jack. talk be

that rate this in and quarters talk of run think plan-related -- corporate had corporate. I did in favorable the QX I sequentially we SG&A, we previous some favorability with -- the I on return about expect health the we that out, that for talked our being the of saw were that charges And carved QX more to takeaway main the is I quarter. fact in our results care in will and incentives in some about kind that we costs

of So part sequentially. it that's

is reason of the being was of say a I our And terms that's of than really quarter. better fourth to QX. what slightly part the But referring on month sensitive in EBITA for of the part the I'd December we're guide midpoint other in kind

we closures be anticipating then don't a holiday-related in if closures activity stronger and moment. could really strong extended the with And see that you not December typically plant so it like environment, December at see -- volumes, a we're but -- plant and is softer environment,

a December, and continuation there. an decide That IT paused we've they probably out of so for some you normally week for kind get week holidays may than a some So seen when to close think anticipating we're the means extra be would, or of or of around to so. plants extra I will caution the projects an

means, be by So do a as permanent We step the a December at. but will softer. bit we we're anticipate main see looking any likely that's don't it really item change that

unique level seeing on you're said, this of to way us seeing it's stage. a that's able not So hold at like the I same sequentially, the But think year, margin. I bit we're based December this why just

Operator

next Capital Markets. with from comes BMO Our Silber Jeff question

Unknown Analyst

This is Ryan on for Jeff.

it give of you like pretty Just change XQ, Solutions Talent But a Talent just called of any and the year-over-year had the notable management a wondering business, out basis. looking some at the between diverging more right it from the some on I know Solutions on other strength. driving looks color in the business you MSP I trends was if lines. could

John McGinnis

have is think trends. -- really all are real GP see was seeing the Thanks I for I It three Ryan. question, on growth that, what offerings the in think we some improving very great quarter. Yes, to quickly

So that's good. step in That's a direction. nice the right

U.S. trend seeing basis, actually select grew. the RPO is as quarter. last an on the from talked good said we activity. we sequentially are in we as programs overall about in some an seeing RPO, improve And And

start. broad-based it's yet, but So not a it's

and see we nice but the and be wait somewhat encouraging, programs. it's quarter whether So other that whether going see that spread fourth a into trend continues to we'll into

for quarter. grow seen said, in strong we progress U.K., driver and right well, has as we really big that really actually the the been And the the strong executing we've higher like that very to was has so in very and through That there. business very, and year. us, rates MSP very nice was growth been continue at France

Talent It's we the a go to So direction, wrap-up the right I'd continue say that that's kind good we'll on as in Solutions. of forward. step, and monitor

Unknown Analyst

what Just And Walmart talk you rationale what about Understood. more And partnership? little the you there? the hub? from can expect then business job that bit a

Jonas Prising

very we're that. innovation. It's excited about No, Ryan. nice a Sure,

ways a in about in think our new more as candidate-restrained places. and that candidates meet we As market part is different initiatives, want innovation to of and we

but by also the digital Of of And be is enabled encounters why those think going to that's for course, a a spaces. this in Walmart platforms, we lot very exciting with very, in to be going opportunity. new they're us physical U.S. partnership are

sure see We'll as how that we're world. markets that we're but as costs employment across and taking initiatives maintaining U.S. excite evolves and innovations and we're we kind navigating access it sure and to create still makes therefore, invest making products customers kind environment, strength it's demand, and investments appropriately, time, other of the the continue the that in that into it in but as our part meaningful drive as the over our candidates And innovation of making how many sales this progresses manage with our easier as purpose. excite how well and sustainable of and for this aligned in well them this monitor see to we

Operator

comes question Truist. next Our from with Sommer Tobey

Tobey Sommer

more Because we sort prior ask hasn't might to get and envision capacity a aren't wanted recession of different, this the and being those if industry or more And GDP How digits retaining the line. telltale been recovery and you top I is a recruiting? industry that periods, of scenario. than perhaps that grown you do have of the rebound in industry. is are a at idiosyncratic could into to the obvious some the yourselves, company sort following kind achieve In growth your double talent typical? this there's customers to what grown signs given recoveries, have Manpower permanent different other or that generally headed

Jonas Prising

as a Tobey, starts from I the perspective, as of if. question And shape quite our of think, the recovery of it's is the predict. recovery hard concerned, question to actually to when Well, that's don't It's happen. far a

of The America the we when Now economic felt terms X headwinds to effects in in continued really industry this an very cycle where you Latin where in this economic about back cycles. the and world, perform indicates Pacific growth, that economic effects low in cycle is in clearly well. is Asia Eurozone the past are growth economic likely feeling the our economic think

to be I and the you look are that very So And then at might think we we come visible the the U.S., to referring U.S. is anomaly here.

operating of yet a the our good been have economic part better years. industry has it as if We growth, was X really for recession

cost driven feel about think X headwinds, and that where starting we very way those of of adjusting, cuts the The monitoring to companies pandemic first it is came least that they're by to it need for relates the their our workforce were brand at carefully, years cost industry. anomalies they're into came year as

play we're seeing XX a the we've last way seen is what in economy, cooling playing But our dynamics over cooling past. months industry the the a industry out really the really of it labor market and out the

growth U.S., look you look it the in shows good really our we some the that opportunities have really of rate here us ahead. If penetration at we industry as

be XX below are XX, and has year in be, brief this a what months for of to in seeing kind going below at is again. PMI the we XX question The economic with U.S.? of blip the The XX out confidence going then manufacturing been to of sector the beginning

at hiring, true -- employment more and of that in and public the labor going important market is seeing particular, then -- sector market And I is also a Europe. private it and of the hiring very same in of driven in U.S., care labor that here Private strength care public lagging perspective the seen the important. realize employment hiring. is but that health for being So be think most we've growth to in it's health versions manufacturing the the by also look U.S., is in sector to that be turnaround sector from the

care is big and spending a employment government big factor. factor. So is a Health driven

the industry. has other you U.S., been But many in traditionally the to and and in as Manpower the been are those and predict. then and are growth difficult in that's that at And far to Experis we And leisure, for in driving that services employment you industry from look them at demand our restaurant manufacturing the as expect workforce. hospitality, verticals the some growth if for spend, where very look demand that timing weak and the for have Solutions, Talent to of curve, But that's as growth would time, shape quite concerned, rebound. we're sectors

Tobey Sommer

-- on exposure in and more some IT -- in may of managed exposure extent color offer have could the consulting-related differences Within larger you to project more the you work? and services you speak the and tech customers sort some convenience and to business be the seeing the your U.S., Experis between and

Jonas Prising

well a low and those very presence Experis demand projects. projects strong in we terms users basis, of from demand on those for No, still scale in continue a what IT pretty customers relatively And projects. clients. headwinds They are Sure. the opportunities services, on into to pausing the reallocating is have of strong. we small in see spend, big solutions. a the and But most and resources volume as traditional as for larger IT of are where enterprise resourcing AI needle our on enterprise strong are spend, cyber larger that's moves They're

solutions So very strong we side. are on the

But bit you we back coming as mentioned of what's in back, notes, in business means prepared to in thinking that plans and we demand for large bit transformation being convenience does. well today, coming their about executing doing starting you of is take a projects. happening back the on Companies feel timing terms and investments seeing of about with uncertain, a that more but little headwinds from terms about digital and good can terms they business of in our see performance there are of really when the small, corporations, all little the as from it it the back outlook, of all are strong, very are market Experis, and that, we As in our coming positioned a the advantage that cautious think smaller and better the but more of terms side well. are you companies step

participating Thanks, week. speaking forward Have when we months. our the to call, few earnings you for great in and rest with in look QX again year-end of everyone, discuss everyone. a we the a results Thanks,

Operator

your for participation. you Thank

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

ManpowerGroup (MAN) 17 Oct 242024 Q3 Earnings call transcript