Adecco Group AG (AHEXF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News

Fri, May 9, 2025, 12:04 AM 3 min read

• Revenue: EUR5.6 billion, 2% little twelvemonth connected twelvemonth connected an integrated trading days adjusted basis, 3% higher sequentially.

• Gross Margin: 19.4%, 40 ground points little twelvemonth connected year.

• EBITA: EUR132 million, borderline of 2.4%, 40 ground points little twelvemonth connected year.

• Adjusted EPS: $0.48, 20% little twelvemonth connected year.

• Cash Flow from Operating Activities: Minus EUR144 million.

• Cash Conversion Ratio: 105%.

• Net Debt: EUR2.7 billion.

• Net Debt to EBITDA Ratio: 3.2 times.

• Adecco Revenues: EUR4.4 billion, 1% little twelvemonth connected year, 3% higher sequentially.

• Adecco EBITA Margin: 3.1%, up 10 ground points twelvemonth connected year.

• Adecco Americas Revenues: 4% higher, with North America 2% little and Latin America 14% higher.

• Adecco APAC Revenues: Up 11%.

• Akkodis Revenues: 8% little twelvemonth connected year.

• LHH Revenues: 5% little twelvemonth connected year.

• Warning! GuruFocus has detected 6 Warning Signs with AHEXF.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Adecco Group AG (AHEXF) gained further marketplace stock with coagulated borderline performance, outperforming cardinal competitors by 130 ground points.

• The institution saw a instrumentality to maturation successful the Adecco US segment, with revenues improving sequentially.

• Adecco Group AG (AHEXF) is adopting AI solutions to accelerate growth, including pre-screening agents successful the UK and caller AI capabilities successful Germany.

• The company's currency conversion ratio was beardown astatine 105%, indicating businesslike currency management.

• Adecco Group AG (AHEXF) has a robust fiscal operation with beardown liquidity resources, including an undrawn EUR750 cardinal revolving recognition facility.

• Revenues were EUR5.6 billion, 2% little twelvemonth connected twelvemonth connected an integrated trading days adjusted basis.

• Adjusted EPS was $0.48, 20% little twelvemonth connected year, chiefly owed to little concern income.

• Cash travel from operating activities was antagonistic astatine minus EUR144 million.

• The EBITA margin, excluding one-offs, was 2.4%, 40 ground points little twelvemonth connected year.

• Akkodis Germany faced important pressure, with revenues 15% little owed to weaker request successful the automotive sector.

Q: Can you supply much colour connected the trends by antithetic GBUs and whether Adecco has reached a break-even connected maturation imaginable successful Q2? A: Coram Williams, CFO: The illustration shows humble affirmative momentum done Q1, continuing into Q2. This is broad-based crossed large territories, with North America returning to growth. We are adjacent to break-even connected volumes, indicating affirmative momentum. Other concern volumes vary, with vocation modulation showing bully momentum, portion imperishable placements look pressure.