Kelly Services: Navigating Undervalued Sectors at the Crossroads of Green Tech, AI, and Manufacturing

The June 2025 investor conference circuit is shaping up to be a pivotal moment for companies positioned at the intersection of overlooked industries and transformative technologies. Among them is Kelly Services (NASDAQ: KELYA, KELYB), a global talent solutions leader whose participation in the Baird Global Consumer, Technology & Services Conference and the Noble Capital Emerging Growth Conference signals a compelling opportunity to capitalize on underappreciated sectors like green tech, AI-driven logistics, and niche manufacturing. These areas are primed for catalyst-driven growth, and Kelly’s strategic role in enabling them offers asymmetric value for investors.

The Catalysts Unfolding at Kelly’s Conferences

Kelly’s presence at these events underscores its unique vantage point as a supplier of specialized labor to industries undergoing rapid transformation. The company’s Q1 2025 results—$1.16 billion in revenue (up 11.5% year-over-year) and a $34.9 million adjusted EBITDA—highlight its resilience in sectors like education and renewable energy. But the real opportunity lies in its exposure to three overlooked industries that are set to benefit from regulatory tailwinds, technological breakthroughs, and infrastructure spending:

1. Green Tech: The Quiet Revolution in Batteries and Hydrogen

The battery tech workshop at Kelly’s conferences reveals a sector ripe for disruption. While EV stocks like Tesla dominate headlines, companies focused on battery management systems (BMS) and domestic production (e.g., Accelera by Cummins, Amplify Cell Technologies) are flying under the radar. Kelly’s partnerships with firms like Windrose Technology and Schaeffler signal a bet on scalable manufacturing and cost reductions in battery tech—a critical enabler for the EV transition.

Meanwhile, hydrogen workshops at the conferences highlight an underappreciated alternative to lithium-ion dominance. Hydrogen internal combustion engines (ICE), showcased by Toyota and Cummins, offer a cost-effective path to decarbonization for heavy transport. Kelly’s clients in this space, such as Volvo Group, are quietly building infrastructure for green hydrogen production, a sector with $140 billion in global investment projected by 2030 (BloombergNEF).

2. AI Infrastructure: The Stealth Growth in Logistics and SDVs

The AI in Commercial Transportation session at Kelly’s events points to a sector where software-defined vehicles (SDVs) and predictive maintenance are reducing costs by 15-20% for fleets. Companies like Oshkosh Corporation and WideSense are integrating AI into trucking logistics, yet their stocks remain undervalued relative to tech giants. Kelly’s role in staffing engineers for these firms positions it as a proxy for this niche boom.

The SDV ecosystem—where over-the-air updates and cloud integration are extending vehicle lifespans—offers a margin-expansion play for suppliers. Kelly’s clients in this space, such as Sonatus and Elektrobit, are scaling partnerships with automakers, a trend Kelly’s CFO Troy Anderson will likely emphasize at the conferences.

3. Niche Manufacturing: The Last-Mile Advantage in Specialization

While megacaps like Apple and Boeing dominate manufacturing headlines, Kelly’s focus on niche segments—such as semiconductor tooling, renewable energy components, and hydrogen fuel cells—presents a hidden growth lever. The Fuel Portfolio Workshop at the conferences spotlights firms like Oberon Fuels, which are leveraging renewable propane to serve fleets without costly infrastructure overhauls.

Kelly’s Q1 results show 6.3% organic growth in Education, a sector increasingly tied to STEM talent pipelines for green and tech industries. This specialization gives Kelly an edge in connecting workers to companies like Penske Energy and UPS, which are expanding EV charging and wireless infrastructure.

Why Now? The Catalyst Timeline

• June 3: Baird Conference presentations will detail Kelly’s Q2 2025 guidance (6-7% revenue growth) and its role in scaling green tech partnerships.
• June 5: Noble Capital discussions will highlight margin expansion plans post-Q2 (targeted for H2 2025), driven by efficiency initiatives and outcome-based contracts.
• 2025 H2: Policy catalysts, including U.S. federal grants for battery manufacturing and hydrogen pipelines, will accelerate demand for specialized labor.

The Risk/Reward Trade

Critics may cite margin pressures in Q1 (a 20-basis-point dip to 3.0%) or macroeconomic uncertainty. However, Kelly’s $4.3 billion 2024 revenue base, $21.4 million in Q1 free cash flow, and $0.075 quarterly dividend provide a sturdy foundation. The stock’s forward P/E of 16.5x is below its five-year average, offering a margin of safety.

Investment Thesis: Act Before the Narrative Shifts

Kelly Services is not just a staffing firm—it’s a conduit to industries that will define the next decade. Its June 2025 conferences are a catalyst to recognize that undervalued sectors like battery tech, SDVs, and niche manufacturing are no longer “too small to matter.” For investors seeking asymmetric returns, Kelly’s stock is a leveraged play on the infrastructure of the green and AI revolutions.

The Bottom Line: With a mix of organic growth, strategic acquisitions, and a talent network critical to overlooked industries, Kelly Services is poised to deliver outsized returns as these sectors come into focus. The June conferences are your roadmap—act now before the market catches up.