• Revenue: $4.4 billion in Q4, down 3% year over year in constant currency.
• EBITA: Reported EBITA of $76 million; adjusted EBITA of $94 million, a 12% decrease in constant currency year over year.
• EBITA Margin: Reported margin of 1.7%; adjusted margin of 2.1%.
• Earnings Per Share (EPS): Reported EPS of $0.47; adjusted EPS of $1.02, a 27% decrease year over year in constant currency.
• Gross Profit Margin: 17.2% for the quarter.
• SG&A Expense: $687 million reported; adjusted SG&A down 4% year over year in constant currency.
• Free Cash Flow: $236 million in Q4; $258 million for the full year 2024.
• Net Debt: $443 million at quarter-end.
• Share Repurchases: 552,000 shares repurchased for $34 million in Q4.
• Segment Revenue: Americas $1.1 billion (+7% constant currency); Southern Europe $2 billion (-3% constant currency); Northern Europe $768 million (-16% constant currency); APME $522 million (+7% organic constant currency).

• Warning! GuruFocus has detected 5 Warning Signs with MAN.

Release Date: January 30, 2025

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

Positive Points

• ManpowerGroup Inc (NYSE:MAN) reported growth in its US Manpower brand and Talent Solutions business in the second half of 2024, indicating a positive trend in these areas.
• The company is optimistic about the potential of AI to generate significant growth opportunities, with 58% of employers believing AI will be a job creator.
• ManpowerGroup Inc (NYSE:MAN) is focusing on reskilling and upskilling solutions to address tech staffing challenges, aligning with the demand for specialized skills.
• The company has a strong cash flow, with free cash flow of $258 million for the full year 2024, and ended the year with a solid balance sheet.
• ManpowerGroup Inc (NYSE:MAN) is actively managing costs and investing in technology and digitization to improve competitive performance and productivity.

Negative Points

• ManpowerGroup Inc (NYSE:MAN) experienced a 3% year-over-year revenue decline in constant currency for the fourth quarter, with a 12% decrease in adjusted EBITA.
• The company faces challenges in Europe, particularly in Northern Europe, with a 16% revenue decline in constant currency and a $10 million loss in adjusted OUP.
• Adjusted earnings per share decreased 27% year over year in constant currency, reflecting a challenging financial environment.
• The company anticipates continued challenges in Europe for the first quarter of 2025, with a forecasted revenue decrease of 5% to 9% in constant currency.
• ManpowerGroup Inc (NYSE:MAN) is dealing with economic and geopolitical uncertainties, impacting employer confidence and hiring intentions.

Q & A Highlights

Q: Can you explain the bridge between the adjusted $1.02 EPS reported and the midpoint $0.52 EPS guided for the first quarter? A: John McGinnis, CFO, explained that the sequential drop from Q4 to Q1 is driven by a 60 basis point decrease in EBITA margin, which is typical for this period. The revenue trend is impacted by net dispositions, fewer working days, and traditional seasonality, particularly in APME and LatAm. The US also sees a reset of contracts, affecting revenue.

Q: If macroeconomic conditions remain challenging, what actions will Manpower take to rightsize? A: John McGinnis, CFO, stated that they have already taken actions, particularly in Northern Europe, where they have reduced FTEs and costs by 15%. They are aligning cost reductions with revenue trends while maintaining sales capacity for future growth.

Q: How is Manpower leveraging GenAI, and are there any competitive threats in this space? A: Jonas Prising, CEO, noted that while many companies are investing in AI, meaningful impact at scale is yet to be seen. Manpower is using AI to enhance recruiter productivity and identify growth opportunities, but the human element remains crucial. They are well-positioned to capitalize on AI advancements.

Q: Have you seen any increase in orders or changes in client discussions in the US post-election? A: Jonas Prising, CEO, mentioned that while there is increased optimism, it hasn't yet translated into significant changes in employer behavior. Manpower's US business has shown growth, and there are positive indicators like the US PMI nearing 50, but demand remains low.

Q: What are the prospects for improvement in Europe's macroeconomic environment, and how does it affect Manpower? A: Jonas Prising, CEO, highlighted that Northern Europe is struggling, while Southern Europe is performing better. Factors like high energy costs and the Ukraine war weigh on Northern Europe. However, declining interest rates and inflation, along with potential US growth, could positively impact Europe. France's fiscal policies remain uncertain, but no immediate regulatory changes are expected.

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