MAN - Earnings call transcript Q4 2024

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Operator

Welcome to ManpowerGroup's Fourth Quarter Earnings Results Conference Call. [Operator Instructions]. This call is being recorded. [Operator Instructions]. I would now like to turn the call over to ManpowerGroup's Chairman and CEO, Jonas Prising. begin. may you Sir,

Jonas Prising

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

share Financial guidance Jack our Chief website XXXX. some your the year, Our of through Officer, Relations we at Q&A convenience, the results safe And then and me Investor of go by we I for manpowergroup.com. I today. before the will and have of fourth harbor going of quarter will for highlights concluding included Jack full first section prepared start the start within McGinnis remarks session. our and is through with now the quarter thoughts Jack language. some will cover quarter our will the the

John McGinnis

statements. statements to geopolitical which results from are or Good in morning, everyone. might and This known based expectations of the materially of forward-looking conference uncertainties. our to We actual differ information X statements presentation cause identifies further including and economic are that on statements. uncertainty, concerning call release made These reconciliation subject may materially beliefs. Actual update any risks differ forward-looking statements, includes and forward-looking to factors assume regarding our or known current this earnings statements projected management's non-GAAP Slide call revise measures. and results those forward-looking no in and obligation

Jonas Prising

Economic government the Meeting in to thought Annual connect business. gathering and and involved the Davos, Forum opportunity business various leaders from areas Thanks, leaders World Jack. countries attended relevant policymakers week, Last This of offered our CEOs, I in to Switzerland. an

have for harnessing economic a among specifically the and geopolitical theme. economic evident the within on of focused among growth AI. global pace more urgent with China. Since Northern that outlook to trending Europe was back Europe. with keeps The meeting for a industry sentiment own reflected of An getting the urgency the that outlook and unpredictable especially to year's pleased themes: and this from competitiveness an and and along of of at insights staffing organizations. In gap has across this leaders the over The concerns in we've and economic in to business interest participants and priority of in appears addressing in weakness the improved, and become policymakers regions direction economic potential U.S. reduces U.S. main growth EU broadly, were European the regards right contrast, our global rates with the region. the economic noting seen action outlook the in and growth plan business by presented, key lower was the helpful U.S. Europe or this alignment we're backdrop important gap inflation Our continued X imperative

belief AI theme that and continued main generate companies growth other for opportunities optimism can broad the of adoption was significant The the and nations.

half potential business impact focus is optimistically between significant leaders critical people to promise an and to Gen transition of in a realize be the have of investments adopting business revenue year's discussions believing our area the translate Ensuring approximately enterprises, on on tech continues XX% of during to maximize and see roles. AI across enhancement last employers long year growth is are While clear to adoption business this AI regard. on of of fearful will year's of how AI. This impact a and own growth. and gains. We leaders this AI tension employees workers their their the skills to workforce for the translate productivity bring and With to productivity this centered

opportunity and challenges. creator be requiring fill they specialist will their staffing reskilling candidates address different exploit We them XX% found and current to to and are of our solutions and clients believe as this Experis roles job training AI to workforce many increasingly Our upskilling providing employers outlook Tech strive skills. by aim tech talent to a of

Turning current to the environment.

Our Employers report intentions and the X many yet most the hiring supports for of to recent ManpowerGroup attraction adjust adaptable cautious Employment skills. with for the with specialized of months ahead steady XX,XXX requirements. Outlook mindset an prioritizing Survey employers retention evolving workers to need

we are data among on unlock to intentions, encouraging we hope remain previous employers post-pandemic, demand skills larger economic geopolitical high some from our stability Second out and hoarding, focus convinced organizations, that that are Europe. To affected hiring downturn, hesitancy early soft coupled performance enable we we growing business. point skills of Consistent parts particularly businesses particularly across will see industries, recovery. But growth. to the ways that and and still America are to due continue point, at the manage various business productivity into traditional industry both industry North to time remain our on labor uncertain XX-year some throughout prolonged stages, And to we are dynamics like our we and economic the XXXX. Based navigating play with over and in constantly we history, trend this in our be to experienced the able see new in in positioning periods seeing this, cycles. although landscape, in to accelerate seeing compared

the monitoring also period. important leading globally in the recovery, Solutions to closely as forward similarly, And crossed in U.S. these over edge move and half XXXX. into our Manpower which be growth same business XXXX. will typically Specifically, has be brand, of we is step, second time next of Talent the has our on Sustaining trends will the to growth evolution we an over crossed

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

diluted special per earnings share quarter EBITDA the constant currency and diluted million, on environment challenging which in for the in was geographic review, a EBITDA Lat decreased the other services adjusting for for saw staffing the From was Am financial basis and remain on solid million, APME was reported per X.X% America representing was margin the a X.X%. Earnings we'll $XX remained was challenging items, and share of costs was quarter. decrease EBITDA our reported $XX in demand an in year-over-year. adjusted during XX% cover margins fourth earnings restructuring North Reported environment. and per margins Our a $X.XX EBITDA constant share gross in profit Adjusted basis. $X.XX a Europe continuation year-over-year a good. we on adjusted of quarter, XX% perspective, currency. In in while

a $X.XX. Turning the for was year to results the full year per share earnings moments. for few Reported

EBITDA I constant As currency and over to for of Jack constant the adjusted, currency turn which decreased XX%. earnings to reported represented $XXX share take it $XXX And million. in will currency now was X% you was a as XX% per EBITDA adjusted, and year-over-year. million, constant the detail. year decrease $XX.X to was results represented billion Revenues through a decrease in $X.XX more

John McGinnis

Jonas. Thanks,

Going back in dollar. for And Revenues in guidance the after came to came slightly impacts, low in profit end our U.S. constant of results adjusting quarter Slide quarterly the fourth significantly were the on in Gross our strength at margin midpoint range. the currency impacted guidance of above range. the X. by currency

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

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

favorable decreased in X% which on of constant a trend drove days currency to in addition decrease the was our revenue to decrease of a dollar Foreign X.X% currency currency impact Organic the unfavorable adjusted X% U.S. the same quarter the reported guidance revenue translation X%. to constant basis.

midpoint of represented EPS guidance the due our $X.XX. positive EPS Walking lower $X.XX lower and currency $X.XX our rate, a net in of impact results of range. a from impact to average reported impact slightly to EPS earnings and bridge. of the operational had was count $X.XX, Adjusted worse $X.XX, weighted resulting per the $X.XX. costs other of in to performance a and our very the which was quarter, share our share included positive guidance. and in Reported Turning a repurchases a guidance which was that lower share close $X.XX came $X.XX, slightly Restructuring midpoint than tax had foreign $X.XX, items

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

to Our compared MSP recorded increase the business year. double-digit prior revenue strong a

Right While the slow. year-over-year revenue a decline quarter in Management began activity experienced as to outplacement

gross our profit in at Looking margin detail.

resulted reduction XX volumes, point while margin Our the at countries volumes. reduction lowered Other pricing gross XX.X% XX XX contributed increase. in to Staffing contributed due Services came point due remained basis shifts mix [indiscernible] margin items basis point a stable. select lower margin Experis basis lower and in for December a to quarter. in

line. business by profit gross our to on Moving

the brand XX% During quarter, Manpower gross the of comprised profit.

Solutions Professional and business XX% comprised Experis Talent Our XX%. comprised

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

quarter, decreases are to represented million recorded basis to Americas the compared largely Adjusted Our the was constant basis. million. Underlying of an down the improved of Revenue gross at decrease well on although decrease organic represented decreased fourth quarter currency of MSP the growth long-term compared prior quarter. Gross $X quarter representing the brand sale in and from currency in costs also year organic the the revenue in increase increased constant SG&A profit adjusted of in third on restructuring of slight was million. The profit from in in the with transformation slight decrease quarter. X% $X X% year-over-year, a decrease. $XXX year-over-year our a a as of costs the an XX% Manpower SG&A efficiencies. Currency profit year-over-year currency SG&A Gross a on fourth Austria of year-over-year the percentage $XX consolidated gross expenses in comprised X% in an previous XX% changes X%. RPO business the increase in brand lower currency third continue constant slightly. Reported declined revenue. quarter. X% to in organic while currency progressing and currency back-office to X% on million. XX% Right contributed growth, segment down profit spend, year-over-year loss billion, in The constant constant SG&A Management Adjustments Experis improvement and these third saw of representing related XX% costs $XX our organic X% medium- include reported decline pace a from a a ongoing expected in programs million basis. Solutions and operational constant a in reductions currency Talent profit $X.X as to constant period year-over-year, our of corporate quarter SG&A slightly and consisted gross expense was quarter

quarter, represented largely U.S. As was OUP in $XX in of margin million Americas largest adjusted decline [indiscernible] in country the third $XXX the represents million decline and from U.S. and This days growth the adjusted, million the the offset in Restructuring U.S. X.X%. to charges Manpower as was year. and segment, representing a Revenue compared decrease was prior the the Canada. The $X X% revenues. during partially Solutions the OUP an of XX% Talent X% a improvement Experis. quarter segment is

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

Solutions activity days U.S., the quarter, the improvement the in U.S. U.S., for double-digit on the increase during X% increased decline of XX% in comprised adjusted contributed a of outplacement Manpower the U.S. decreased skills the slowed. In XX% first in from Experis revenue well [indiscernible] Experis profit increase quarter third approximately quarter. days Revenue a during XX% activity improvement comprise our gross an XX% U.S. U.S. business rate was revenue the slightly from profit the which in business of improvement in well, the an revenue basis Experis quarter, of The overall brand the the increases from reflecting on posting gross the as profit than decline quarter adjusted activity similar in revenues. in in within down client quarter, the brand executed and the expect the Manpower XX% quarter. select the decline experienced from the Within revenue in an for year-over-year a RPO further gross increases quarter, in brand X% as our U.S. of U.S. fourth revenue Right in to outplacement The quarter. Within trend XX% of business. IT quarter. Talent the the third U.S., while during was Management XXXX, strong MSP programs. double-digit increased the the range the increase quarter. comprised X% of XX% third basis saw we during the

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

quarter business $X adjusted, basis. the in for in Italy. segment of margin a Spain actions Southern the was quarter our and adjusted and the primarily revenue $XX days As and on Southern of OUP XX% million X% comprised represented Europe was OUP charges million X.X%. Restructuring Europe France currency in constant decreased

adjusted, OUP and improved Italy a slight experienced $XX slightly date of fourth have our in compared OUP to trend. in in As a than million Italy fourth trend reflecting the million in currencies. OUP cautiously the in the business X.X%. Revenue $XX estimate the quarter quarter similar $XXX was are that we X.X%. Activity was adjusted fourth X% a adjusted lower margin decrease on to and reflect the quarter the revenue to first was trends for margin first equaled France to quarter, from equaled million OUP the quarter, January is in quarter. estimating fourth will a trend further days constant decline We quarter,

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

operational of $XX was economic in bench low other restructuring our is $X higher loss. challenged rates the the in charges U.K. growth with subject a and the markets. The modest of see we financial As many markets part majority million This charges million to and recorded a Sweden creates the additional Netherlands, Germany, was adjusted, than of most in with operating pressures business which model OUP

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

Germany, similar decreased decline quarter rate the to currency the market basis. conditions been compared the to the in we are revenues similar first fourth U.K. decline continues quarter, quarter adjusted quarter. adjusted currency on to a to During U.K. manufacturing XX% to quarter. continued the driving expecting XX% in experience The constant trends year-over-year Germany of adjusted basis compared on XX% challenging, continue difficult very the quarter. In consequence further and a decreased revenues to we declines. have quarter, days a constant the in first market the be very fourth be weak In expect revenue days revenues Nordics trend. The with days and revenue decreasing

limits adjustment East segment of Nordics, Sweden of the and declines million In as a quarter. The new temporary is discussed Pacific an completed based representing the last of constant company Within which quarter, experiencing environment South to increase the largest incorporating Asia in Korea XX% the revenue. the November equaled total on organic $XXX weak expected Middle worker manufacturing after X% revenues X. currency our sale and on business, franchising comprises

charges business. The of on represented actions pleased consistent days year first a Japan $XXX was cash continued the performance to full our year in million $XX XX% the we decreased segment a of cash In As strong remain taken segment year, to revenue just days. prior flow $XXX [ the finish Japan compared $XX end, to $X our Revenue to We the about XXXX, million was and constant currency in free represented balance In now basis. the by revenues X.X%. year. At we very in fourth XX equaled in the free grew in and million of to the in quarter, year. drove X% the million OUP outstanding and market sales in adjusted, expect flow quarter. I'll prior and flow compares turn sheet. and cash under days days million strong $XXX X growth with ] the Restructuring Caledonia margin related quarter. to largest adjusted business, million which Japan, new OUP is APME

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

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

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

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

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

presentation. and arrangements the in displayed appendix debt credit facility of Our are the

drive be prior earnings an tax the first current the impact expected on to the more aligned year these effective the quarter. level full is of to lowest the the period tax bottom Four, that quarter range first first guidance is in are sequential the Next, typically the meaningful Europe. our a in days following the quarter first lower from benefited note less quarter revenue unique year rate. Because Based quarter year, per share calendar quarter's guidance the $X.XX. forecasting currency quarter estimates unusually it January challenging in foreign continue in the date, Two, impact. decrease the Three, for per fourth in is quarter our the in be that the earnings there driven quarter, by cautious created first I'll quarters. than considerations, low significant unfavorable forecast and earnings the disclosed have in and first there rate prior rate The would more earnings share the guidance a impacts When and first $X.XX for considering at XXXX, of translation our said, will foreign first the activity we U.S. trends review the foreign from and currency also per significant range for our on an also in negative strength is anticipates translation of guidance slide. the impacts the is which $X.XX always XXXX. case year-over-year. One, currency the important share rate a seasonal of fourth other and includes leap year. dollars outlook of to impact to the are are to of quarter With year earnings working the year-over-year to

the is X%, decrease. at and between Considering X% of working currency number to basis dispositions, lower down quarter at organic of decrease constant tax of the rate geographies We for lower adjusted allowances compared will a be midpoint quarter projected lower rate the as a the the estimate at the markets as impact represents well XX the effective and tax that mix when that the impact earnings for certain year. environment a margin our of X% is of the overall effective slightly constant full the markets first our Our in days future be reflects those in estimate from and guidance revenue as tax reverse the well. year to decrease effect range in days rebound. revenue We valuation XX% points midpoint will currency first which point. EBITDA X% is XX%, prior current for the

As the we changes, government in taxes of our any of increase proposed any has France guidance. have previously tax their not enacted corporate corporate France incorporated not into

Jonas. In not weighted made does average share back turn we addition, now charges to repurchases be and will additional shares or it our guidance to million. usual, as our I $XX.X restructuring incorporate

Jonas Prising

Thank we respond talent. In could persists we late that new acceleration, you, were to specialist today. This be and a we context XXXX, demand Jack. structural needed and that to tech talent environment refreshed operating a increasing strategy for to continue scarcity recognized in successful,

decades above need clear by needle come. Diversity up to to ago latest grow Solutions, talent or to across in informing Our win increasing market shortage we find at of successful, companies of Manpower, distinct specialist success. We in talent innovation where of need EBITDA, many enabled the higher remain more includes diversification, for with skilled move our Experis employers XX% to shortages position us us the data-driven very be revenues the and objectives: survey position brands: strength our strategy, struggling XX% introduced of margin a [indiscernible] for they insights, and our offerings market. and X DDI decade to with weighting successful to Talent each XX,XXX and our overall strong digitization company from the high,

to with expect Our sourced insight and consumer see expertise estate, even the opportunities life real the and our the to us to providing with data to win our closely, our insights innovation, variances, the for health to track more including for a growth our financials greater we drive platforms, reducing specialist sales equipped greater data provide and and is our that tells vertical data industries, goods, this across analytics will agility from market prioritizing structures in our us enable to while dashboards segments. This, where business AI deeper greatest the and candidates and organizational have new and tech create recruiter enabling team's industry opportunities and improve pursue to by and impact. Digitization we journey. candidate care can targeted value with teams evolved key that time leveraging industry pleased productivity productivity trends area. sciences, progress priority on AI-enabled industrial volatility combined in talented even enabler clients and with offerings create We're

high-quality the progress our candidates enabling talent data progress interact platform, to XXXX, us unlocking coaching up most strategies well setting and their good activities technology markets, they make in ages on us focus the will beyond. many and time potential conditions industry-leading we where millions with of Our challenging for market our focus mentoring, harness made competed PowerSuite our DDI and continued rich, enables with year. Despite AI impact, and executing into guiding we each to candidate on XXXX in our the global to together recruiters and

to to work and each approach investment our in the to environment and to teams need costs, connect many all in technology markets us and continue our current managing day Q&A. the for the talent retaining workforce a laser-focused do like career we you and people performance. Thank line candidates take improved I'd to meaningful now competitive the adjusting maintaining to world their to partners. clients for as open trusting more even We and to they for our digitization to while around

Operator

Instructions]. [Operator

from first JPMorgan. with Steinerman question Our Andrew comes

Andrew Steinerman

to quarter first guided But reported just quarter guiding gave remarks? us the what midpoint if and going walk [indiscernible] and the just $XX you're know and like the has between was that be for a seasonally the the from then you first bridge effect naturally EPS I'm on ask revenue I that just that $X.XX the cents skinny bigger declines million normal seasonal to so the through in adjusted factors for repeat you quarter. really revenue a of layer effect. more first you would could $X.XX, an quarter prepared we

John McGinnis

I'd is And I start question, when we all that we we the what sequentially as by. it referenced Andrew. for the QX you start is explaining walk driven to to some Thanks in like QX, as as through the margin, year guess from the with look prepared EBITDA from in my remarks, considerations of which and ended the year.

effectively sequentially say moving is basis the just down X.X% year. we're guide end we the that And But XX X.X%. to points traditionally we've posted from in what year we the the with and of start that seen I'd as line

go And take If X to if go QX, time. back of the bps we sequentially you at QX the XX out been pandemic to years, back about pre-pandemic down you were down from mix. bps the XXX years last we've

that's sequential is more cautious bit on coming. And driven say It's the did we I'd EBITDA there's say we're margin levels all generally down of we Where kind what's what bottom now call in happening. you when where our across perhaps is talked put on through going are in say QX. into line with America. couple currently. But a underlying what together, So of we of markets in driving by out the Europe large line. just the EBITDA that stable a it depends North that did areas a and I'd little drop We are really dollars, lot France a pressure

on out net the revenue significantly think I the impacted we by revenue laid is I side, disposition. think also

we in So expectations would have as were been at just terms that QX. we for disposition as announced Austria previous looking of Korea. talked what in not And in part our about then of -- well our people

So now have that's we less days. being introduced and

talked And about we've so that well. as

which And half the had a Solutions, in on I basis, revenue what in consider second reset be seeing encouraging as sequentially. when of an the together, organic mention of start contracts. A put the we on seasonality into the Am you those of we is see from an of into of our you down select -- revenues quarter adjusted is sector traditional a RPO Canada some QX trend seeing but Experis lack We the a think and of that the that's Lat of those I as days relatively range of about pullback good that, on as the and to first you off, So about think APME government had fourth in programs Talent as the in think don't work can based the again quarterly particularly a as quarter that the in and U.S. is Manpower all going U.S. that the of reset well. And year contracts we drove runs a lot seasonal impact on one some it bit QX, another and seasonality side. year an lot well. bit would much, strong move public we spend, that on traditional X%

So bottom those earnings. are line revenues and think drivers main the about when I'd say we

Operator

Our next question comes from Manav Patnaik Barclays. with

Princy Thomas

Manav. for on Thomas Princy is This

what take to macros. do So decide rightsize? will they when manpower I wanted dig they to as that? typically bad And stay you are, If actions into the

John McGinnis

I'd in Princy. actions QX. saw question, the say for took some you Thanks additional we that

question, we And of As at I'd what terms we've actions And to we're the where been Northern [indiscernible]. of significant. most say markets when pressure look environment pretty the the and Europe. in follow clearly, seeing at much in seeing are we taking, look you're certain your they lot the that's in a

reductions, and FTEs look XX%. down in we fourth Northern the at is as quarter So Europe cost

seeing to more Europe, percentage to So say to aligned in But in we've capacity then we're you'd for we're I'd which same When on spend did on In very continuing U.S., sales bottom enough see encouraging. talk Manpower to France seeing U.S. sure the continuing much at with line trends. what that the so in is mid-single-digit what elsewhere. And declines the we been certain possible. time, revenue the degree in to we're markets kind actions have take ready really line we're in we progress similar the seeing greatest Southern the transformation program. there and preserve of And about in making also our uptick. it begins,

consistent So very we've that been as on well.

spend continues So ongoing even our for continued those we XXXX. you and but focus that other will to that rate, to continue the us make we sure an in be capacity corporate in continue programs, pulled is though to transformation back can during areas in have that to rate, see run run and on

in see take for while the when in we're that comes positioned you'll sure we very actions the when the we'll I share market that preserving making you that impacted So back. together, that sales most, we're demand taking think put well be markets all markets to believe are capacity

Princy Thomas

Got then more to any switching seeing being cases there's use in I over about tech, but And been wanted leading an competitive within the know also the enabler GenAI space? any and if Manpower for you're Man's it. to in threats transition. that

Jonas Prising

offers can very for combination because still to scale. a putting right they our automating best to of that the models sales in significant and to identifying productivity, the right investing is this what data growth, to candidates And there. But We makes we're of and meeting capabilities right take the keep theme it growth investing productivity advantage likelihood exciting our the companies data-driven decisions few point-to-point on I take would of remarks, platforms with And very judgment well that was for is And why have ago. as that question, recruiters, the to amongst a for it's the inform weeks say Thanks go that's leverage attended much our tools in in to see Princy. Ultimately, able the to to reviewing this is prepared traditionally experience the preparing tools we have about mentioned those instinct. we and the in from can global in or I beginning may talent mile impact our believe the and are -- yet where tremendous honing and revenue many actions and a we're our skills orders kind talent And which meaningful at beginning, of indications make that of do of that opportunities, generate the greater and though, delivery we big at of resumes, to with companies technology AI. evolution. and in do fully we're candidates, infrastructure a last in lot the They also see perspective, the evolution are that has a different at good that what those they And the we opportunity GenAI. And any ahead driving experienced drive all human we just the difference. what for those the would the to and that the have so identifying we've been process. But this very already fit them I on and from that be are rich agents excited recruiters much faster our placed pleased opportunity. evolution. focus parts extremely from say generate the feed technology would we're and if solutions seen we adapt done to job this were perspective, with but help both be insights some they

we're it of we encouraged. right continues. early where I placed of in evolution So and very we're days, terms It's being to well take want think this be to very advantage as

Operator

Mark from Baird. Marcon comes question next with Our

Mark Marcon

regards increasing surveys. mentioned actually any indication -- this to certainly in as of clients, discussions give just seen increase anything you With the of well Experis? tone Manpower you any there to is us when an that I'm we've seen that order you brand lines, as it's terms the level volume, along U.S., that those with in translating with and both wondering, just confidence regards is to in postelection of for orders? Can certain sense have an

Jonas Prising

Mark. translate has meaningful employer changed and we Yes, it in hope has in is of yet anything to Thanks, palpable tone change our behavior. in as prepared the level of but optimism remarks, or said the into terms

but are we the And confidence in So effect see over too given sentiment, yet. this an in it's employer early that any to of demand translates overall it's employer increased hopeful about confidence. time, that really all increase

is business is we encouraged half think We're closer year, getting you in we're to see to the to out, second of which turned that As PMI XX, to the positive U.S. which aspect. positive. point another that Manpower see growth our pleased is

that tends there clients. experience environment way starting relates a the is it to the we cyclical are demand It as say could and we're it's still enterprise from in can challenging industry some rebound really of to perspective, levels. a the an brand not move. Manpower at seeing change demand. signals be And indicators any to lower in see stable from of So leading terms cycle. terms

holding it's relates Although ahead better, say, better. looking low Experis, the optimism little environment our U.S. Manpower convenience up They're a both are demand faring and shall we're seeing it to a as still we some of, for degree but clients bit

Mark Marcon

with it's difficult Europe, regards been obviously, then for multiple And years. to

what we Davos just And commentary seeing of France, inflection, I'd up there before long of of some catalysts macro. Obviously, perspective, were easier underlying actually in for? that an And again the -- terms your regards tax sense any increased the French up from mentioned terms will was given easier commentary in to in against But improvement regards comps. their to we're the in be prospects would You particularly I there going mean -- deficits? particularly we start that fiscal any urgency. any like more interested to look of go getting how an should rate? and increasingly comments with with the be some

Jonas Prising

are which in have be say in many Europe Europe, operate is the factors the there well. Italy Europe. countries growing And and Well, and yet shifted growth, maintaining call Southern Okay. Europe Europe for exactly a even of it's growing I Europe, the Europe really course, as more performance, trailing tracking we're number Europe of the is model. our particular, that which now, well between Northern is And business profitability been impacting bench of you'll Northern struggling looking actually to it's and as back, that, be a because seeing behind. see Mark, you somewhat Northern always this, at for on us, whole opposite, Southern are of the and and to Europe would surprised it Northern of many used of what Spain precisely in Northern difficult significantly. engine right was makes course, and stepping others

is undergoing U.S. is go of Europe that it's years and our costing base volumes lot But transition, of of continued another us down, mitigate of so when It's been environmental past difficult then, to course, impact China, war, factor. disrupting So significant over causing of with has adjust in cost couple industry quickly troubles a energy a high. And hit the drop nations, other cost the of economic for money which terms against in can that slippage the we the being which Ukraine demand.

are Mark. The interest of length -- would which that at growth in starts follow later the if produce be a these of in the declines really positive, to clearly our of delay. Ukraine, underlying growth hostilities the it positive. a distribute estimated a along terms as industrial the point, ECB today, terms bit trends continued that seen Northern rates in in announced elements be used from after to some and aside engine positive, the growth, of post-war does, reduction the in I will say cessation to of And and some would reduction time. probably that normally But continued way especially effect this, on be be So weighing, will leads beneficial in will on U.S. are ending has Europe, Europe particular, Germany, decline longest of inflation by on decline be a of the

reduce supposed politically still voted the the and it's to a slightly way then all think know we in is do as political what estimate, changes the structurally France very be approval downturn, that would we cyclical a action It's deregulate but see downturn. And would are challenging about it that less Northern can a -- say as Europe, trying occur environment that very various hard in was aggressive the and has we well France from and Mark, we are And timing sure be. But a no a a to don't that and time very, in and positive after and an they budget Europe, ensure that this clarity difficult their outcome I in that coming that of upskill really I terms from advent lasted has June. gets The steps finally, becoming particular, on easier the March. And the of as of this tell. a presenting So in reskill AI, we to the turbulent for the is in and deficit. well. And business predicting short find been really and all they cyclical important as difficult broken aggressive make the before lastly, in anything these very heard budget to plan Europe really view workforce urgency to think, parties in in new green prepare budget parties still to would terms only see government elections this taken France. to on that and the support that to perspective. government sense the prior transition could make in green invest

maybe to guess would aspect forward. And -- carefully been how could to employers in guess it in XXXX, subdued an just and would in confidence that the all my elsewhere, and U.S. it France move very trends it that growth forecast because still months I X the France that So the going passes, we But likelihood in is important pass economic situation it's March. it be we employer monitor continue we by are as to in be are come more of anticipating ago. an impacted have that than although about are seeing the will

terms a to in to this thinking growth payrolls. question be your adding very economy, And their taxes, Jack. I'll they on are over hesitant is it they're of to switch last going So still but into

John McGinnis

Yes.

fall into there at would for this tax large implement the would is do we is We bucket. early the that There it stage. Mark, budget. too On rate tax a part higher to rate, a of that know companies, really updated that as component tell in

a really of components discussions it the But on of happening there's -- budget. lot

So what going to that it's hard really to say is be.

the something not guide, adjust is does get rate enacted tax French -- forecast. mentioned, my change tax of As changes as I for coming enacted, part changes in. If any through France -- to the of we in in our current the as Any beginning rate mentioned of factored it's rate budget. our in rates out Jonas tax any March, not corporate will effective new

Mark Marcon

Any just cons more one now those we've Just in? dispositions? -- and of dispositions I anticipated Can sneak had and Austria. Korea, the more discuss the on you pros can

Jonas Prising

promising. stability country strong affecting -- it's the but that the terms would value legislation the where outlook of Well, looking where in was portfolio or our maybe happen can rate, creation. with setup different of we what beneficial a think that a our in business, always estimation geographic subsidiaries that Mike, was more for Korea And where of growth have a own country of is of less we're in be present industry our we terms we're at terms our is

has many such those we've And country, that geo with been market in that a as for each exited a compete opportunity is we that is a be been process in had markets. have been of of you a way, as invasion. doing to ahead in can of footprint to footprint at markets. And very about seen And they optimizing better And have of could past we, how we're circumstances at some is been XX number in looking that so And that this our we've imagine, franchise very the most very creation timely maximize to operations. we where over that countries with something good years, going this local other able move looking our really we've value progress, partner cases, we this evolved. Russia, years, transitioned the just number good there those pleased and actually

and of as any make of view of we portfolio. everyone when creation in geo to continue that informed that balanced we also changes value markets. make assessment a keep will opportunity, And take as we well So risk course, to we other will,

Operator

Trevor Romeo Our question comes with Blair. next from William

Trevor Romeo

was growth into back to I thing wanted year-over-year it's brand. second Solutions Talent dig to consecutive the for the think One quarter the now. And I

at in still trends MSP. time, sounds the positive nice RPO and like some the got challenged. are businesses It staffing but same You

how kind if difference talk in the about of RPO reconcile you driving there? staffing versus in improvement just the and and MSP you could what's trends wondering So the business

John McGinnis

talked is we Talent happy to Jack. within the that Solutions. MSP trends going be I in when Maybe this through Yes, Trevor, terms were of to talk I'd with to some brands. of starting the

actually year. every And actually, has MSP from stronger flattish. we growing So the been the closer quarter we've about, gotten talked entire that as has steadily forward. And started year to then point

than quarter, strong double-digit the the really growth the fourth in level quarter. higher third growth So in

fourth so very the the very, market. our in crossed perform growth through globally been we've it's And that to quarter certainly just of business well MSP, continues us. over seeing. RPO to in for in coming the leader view the and trends as We ourselves

good the So crossed a the market growth after and we to to in some business. RPO work through very very in decline mention had over our had our QX We seasonal some half declines clients reflected which been remarks, in ramp-up we has quarter. U.S. particularly select in some prepared then moved the did that fourth actually the year, first modest strong, of significant in QX. And

about talking are still bright with bit the pretty of in earlier. So volumes did that that. And year, that in say, and X a fourth first by the been we'll the seeing broad-based soften months to strong spot, what to outplacement then continue we have a lastly, line not Management growing are we quite was the quarter. in of was hiring start the monitor increases, after consistently programs side select encouraged Jonas see Solutions, Right broader on more But of I'd Talent

reflecting hopefully, early to our we've a indicator been activity side. what progression flat the But was on move really outplacement for, dollar to which very what from driven we see. That's by but decline referring seeing has a closer to staffing reduce, businesses. that's that an [indiscernible] that's -- U.S. we'll did So Jonas earlier, slight Solutions the overall in started into And Talent revenue perspective, just year-over-year. GP an on

overall half of really that take and that into good growth of been the in to year, beginning it's So the see XXXX. second we the

Trevor Romeo

then follow-up, And for I helpful. That's Great. my one APME. had just on

currency X% you up the down I up organic guiding in QX. X% you're think did constant of kind versus in X% to

kind outlook pretty just you It to speak could solid. sounded like your So still there? of Japan is

we How there that? bit something just headwind So should little think of about that else a is QX? that's is in a Or a conservatism?

John McGinnis

slower APME for I we indicating. to It's Yes. QX just perform think about the seasonal continues in well. a good as trends. in us, it's No, Japan really you feel were start extremely exactly

in said, parts with We North in first They Japan talking the expect we seasonality resets we of good good unlike in growth start in quarter. And were does being some terms did see region steady as of see Europe what -- in QX, but the America. contracts which about that up.

really we're So that's any not directional really seeing big changes. --

that great a bottom I take very Korea, strong think good, line steady future grow. progress. that India performing really, South about really we We've [ well. market to talked Jonas market. And franchisee the continues done margins as a on job ] but in into

very We on franchise strong the will with fee growing that a as into that future well. business from benefit

more it's resetting So in APME just ramping just up and contracts no, quarter. and good first feel really the we about

Operator

Our Northcoast next with question comes from Research. Kartik Mehta

Kartik Mehta

to try to Jack, a you cuts trying maintain about and talked the you've talked out a and capacity capacity which figure in here European about in maybe Jonas, -- of to as bit the there cost you've countries standpoint some Is what's going just capacity future. happen are little countries bench both at the you look where where for are a way you? and then U.S. to from

Jonas Prising

an significantly we Well, of to we've to we're we're manage of way that we firepower in so have improved perspective, drive in very the you our And a and able our see space and not line our cycles evolve, important costs costs associates preserving and that focused I to careful demand. reducing strength think -- believe we've this been sales candidates clients so maintain and intentionally, from we the that our Europe a the evolution both months. Kartik, It's environment and these demand and take market how advantage reduction in been actually GP. And ample pipeline. improving U.S. very because in on an know And done the grown market, in SG&A of can advantage with very stay take very managing last it's XX we the pleased and pipeline strong course, with in over we've of

good those deals, Now longer maybe really, don't into take environment foundation this, in performance. for then accelerate becomes pipeline when an revenue turns, quickly. like smaller they and translate the in markets wins that to that close. some But They a strong as really market

maintaining So market the strength very of bottom we've our also line. the in mindful yet been protecting

is and to every where markets about finding being balance we're all challenging of environments. seeing talk that we operating for day So -- what we're those

Kartik Mehta

would you the a as just or would point, if follow-up, the this then like. like the wondering as pricing pricing And in of competition environment? aren't good you've as change increased lot maybe just even though up the seen I to know industry environment. And not a there's any fundamentals been I'm

Jonas Prising

a same It pricing always competitive remains the been but rational. at environment, it's time,

that mix. both margin to as us our with structural was we're well a low seeing you the the in as in say talent heard I this in has decline -- to saw that prepared the increasingly As and slight unemployment Europe. related shortage U.S. GP we in remarks, lot think do And margin

seeing quality expense So the finding talent high, is skills we point. And that the think that therefore, difference bring terms at of that industry at I them. least this an importance of -- to and a that bit and of of specialized talent indication talent cycles stability prior remains of the demand we're really clients price of is compared to and a the the the the this difficulty talent appreciate in and

Operator

Securities. comes from Our next Truist Tobey question with Sommer

Tobey Sommer

you relevant us to could to additional there that for Manpower? specific I on worker European catalyst or changes latch growth was changes wondering economic a temporary at gap be something and more would if in the comments that really be some rules to give regards with growth. in you competitive close could Are on

Jonas Prising

will following at that pillar the at can to and for are as that they them say transition, speed [indiscernible] continued imperative. is which together of XX-country would the emphasizing Union Europe it's industries, economic perspective, of to us means then energy. Also, to plan, that perspective, our this right heard the the upskill to is was is collection getting but XX about never that, the defining European compete competitiveness. really workforce scale our this a compete opportunity, to we've right and which the from be the how a our with cheaper having Europe as blueprint sure the multipolar world to I making the finding of European cases, from positioning, a skilled a very in you've block, and plan and talks XXX course, changing the is many a citizens. It X-pillar in innovation regain still And of place better large of importance investment Europe's a so-called how eventually is that acting really, of countries business, course, And million a And and big about access presented the strategy reskill say workforce Europe challenge and growth a time in the the good for the in geopolitical before. really making idea green relates, available. fifth past finding done it's

focus will as today that brand the perfectly companies own for So MyPath say regulation we're Experis a as Academy, same and I of in developing far skills course, are of that towards skilled as I the looking our a increasingly specialized, would across are on seeing strong of with and Europe. our and moving flexibility restrictive reskilling look would time, into form developing so our programs clients strategies upskilling future. At labor is very our still form that more is, concerned for aligned a our level Manpower, program, say the workforce such higher Manpower

regulatory Europe workers -- on employment Our as the training. that going We're making when it being things point, changing Europe. environment would we're flexibility for positive not providing talking to at in happens. were we're across of we responsible in also that say, business-friendly industry. that would about only industry. of as more think detrimental frankly, see be any X-point subject course, to an forward, deregulation to is this that our business country legislation. But of that as point, form millions anything our for to paying we're any changes Europe seeing is and across We But are of regulations. plan don't And can I since the We

Tobey Sommer

restructuring to And flow to of countries improve your kind then my need for follow-up, through? in demand position levels? the such level Germany, that profitability company current sort as of you be demand of be at and Or to efforts actions bench profitable to do

Jonas Prising

challenges. Proservia moving we and out Germany And the countries of how business, talk structurally good made our about good in spoken has you heard about, the a we've very market we to compete feel resources still German we've time, slump. addressing we progress. been in Germany. one in the we're making Last about which and significant our The year, us where industrial have it's of this lowest sure environment. we PMI change countries, significant go where and in in we the efforts that where PMI is we market. And way country a declining long all the longest our is win focus post-war major can have areas big of a European

that we in making fine-tune effective in market. we as and in Germany as this efficient, you operations make country our for we competing as ourselves. well well demand sledding drive need for tough We sure and well our need to look it's that the -- sure as the more become are to quarter, at, to it industry been now just saw do more as to what it's and continue is So right

So more do. to work

Operator

Our next from comes with question Josh UBS. Chan

Joshua Chan

Just X me. quick ones for

So first portfolio one, circling question. back to the

in So order Manpower? is think to viability certain structurally, what global you you as serve feel that to change in kind steepening about certain of base? do And countries for have experienced losses, countries that be then like I country's guess, client you your

Jonas Prising

me of question your part first. the start with second let Well,

markets, that beneficial needs and by have Sometimes, then fees better market able at and complexity to require our we terms a the -- own need do of opportunities the The client estimated we're political of different to risk sometimes and formulas of forward. in a market, to to size resources and few different more going business the and it going we but the to general lens what the subsidiaries it's creation growth finding our complexity such we regulations resources. able meet see value Manpower focus that in help our really after environment terms franchising stability, is things, countries the look say and the franchise the as proceed. And that Jack different as of the continue I'd country said, on way. And that collect directing being in the in to

the win best of So balance items. And growth. one we we in make that to compete is service our of talked and possible we just to way a be generate to sure Germany better, we to do and seen the in in as able profitable it's many we what about feel various evaluating and being the significant that where and And candidates need you've we in countries it market actions really them. taken clients past, we've can need keep

can we to as this us on to a expect environment. navigate that So challenging and you basis, we that's continuous do through do continue something so

Joshua Chan

corporate on And is then my expense. second one

Jack sustainability I kind to mentioned you do forward? quarters. in that's the to the trend corporate been how expect this about I of of think expense, couple going last of of curtailed level that lower just wanted ask

John McGinnis

that. Josh, Yes. I'd happy be talk to to

that you elsewhere. did XXXX have is back invest through us say, programs. we areas bit That transformation the back pull to help with that's we pulling corporate. our to the seen in to investments think as the I in And into we could I'd the where of But coming fund spend other going spend. environment, transformation game we a by be -- in the continue be balancing name in continue current -- So go

on Year-end, would we year, pullback. some last about year. in benefited lower talked I items what was into a corporate next we as were to go bit saw see you -- that expect quarter, levels our as would there QX. based it I consistent this expect with one-off

lot a big a have on transformation. We the -- push

XXXX. talked through of we've which in in lot happening lot great, back As But there's moving position really, about countries XXXX. well us to going is transformation really office, is of work before, a a of

which you with the So the QX, talked we I'd last saw in part, the exception low year, most with levels was quarter. reasons corporate this for expect about line of what for abnormally

Operator

question comes George Sachs. with Tong Goldman from last Our

Keen Fai Tong

could describe revenue experience U.S? U.S., trend. the worsen fourth quarter you Can decline could seeing the you the further mentioned cause that than quarter a what to in that trends you're first In

John McGinnis

really George, considerations of that. couple a there's around

I think that the we strong in talked a that was the A U.S. I the RPO about seasonal. lot fact to year of very had finish

that's to going roll so the And first as still off we those start consideration. one We That's have quarter. clients.

from first again, would doesn't strong the we quarter. but in will seasonal work anticipate -- We it fall them

So that's part of it.

through. that The comes saw little is we other is and in talked last bumpier ] exactly quarter. first health care, the in of to demand we when there. the terms that was IT through a came do about lot part year I'd bit harder of a strongly was the say that a what particularly that it last and That Experis pent-up side year some on we very [ go-lives forecast

and care work out Manpower. another have at seeing relatively last the we not be But on We think by the consideration. progress underlying as encouraged of It when said, stable take that good this to I the activity health as Jonas will very -- continue IT quarter. same mix, are you we first is may exact underlying, level That's year. be

on a reset happens ramp-up that a said, being quarter. get of there's a with bit as the So first of into that contracts, those we causes a lot it

as good in about you'll earlier. sequentially. step a being all back bit we U.S. stability with discussed feel we think I seasonally, said, see that So that But the

Keen Fai Tong

whether helpful. conditions? to may most in your actions the what's then That's in you you more based Can restructured it. on And quarter were Northern and think hiring Got Europe. charges date necessary discuss restructuring of be prevailing been

John McGinnis

Yes.

that are the been I restructuring said, where about taken As most have we've that talking George, in think the we've been I challenged. the markets

list. QX look those the the we the say to of in looked other talked the we've top and Sweden, at markets Germany, in continue about So Nordics markets. and as Norway at we that were declines I'd Netherlands base the cost and and QX

other that The so our course, U.K. of significantly down in the really profitability market, U.K. job in nice as is taken one, done But with a we've the the improving business. additional we've well. of quarter U.K., fourth demand actions

is there to And really going go It's hard say it's evolve. us how good that to about George, as changes so we've going preserve made on profitability. And to help point. continue think the markets we depend we I at feel those to this forward,

the the environment it feel out we've short that's would so I in very how expect a position play we're and that help think to if in little to If us should really profitability markets. going But on changes, markets drift then term. And we to maximize good I really doesn't which and improve, continue changes hard based look those continue things will those to taken it. far to we're then down about the that you current environment. efficiently, back bit, run the starts if hold going

investing heavily remaining really in areas market. Italy We're in us. good well. the a about well. very we great Japan a continues to We market investing be investing markets. is as as about think I feel It did for We're talk strong we're Italy.

we a is of continuing balance, are to in our it So all conditions markets. and monitor major

Operator

for call question-and-answer Prising, Jonas closing concludes I'd over remarks. session. to That to the back like the turn

Jonas Prising

your of our for then, today's call. all look as and soon. number for forward months We now. thanks results we forward a first you look everyone, of to all earnings Until participating again with discuss seeing from Thanks, to and in again you speaking questions

Operator

have conclude participation. a and your program, Everyone, day. Thank you does you This for disconnect. great now may the

ManpowerGroup (MAN) 30 Jan 252024 Q4 Earnings call transcript