ManpowerGroup 2025 Q2 Earnings Sharp Drop in Net Income Amid Challenging Market Conditions

ManpowerGroup reported its fiscal 2025 Q2 earnings on Aug 05, 2025, with results that fell significantly below expectations. The company swung to a loss of $1.44 per share, representing a 215.2% negative change year-over-year, and reported a net loss of $67.10 million, a 211.6% deterioration from a year ago. The company did not adjust its guidance, maintaining its Q3 2025 outlook with adjusted EPS projected between $0.80 and $1.00.

Revenue
Total revenue for ManpowerGroup in the second quarter of 2025 remained flat at $4.52 billion, unchanged from the $4.52 billion reported in the same period of 2024. The results reflect softer demand in the temporary labor segment and ongoing headwinds in key markets, according to the company.

Earnings/Net Income
The earnings performance marked a dramatic downturn, as ManpowerGroup swung to a loss of $1.44 per share in Q2 2025 from a profit of $1.25 per share in the year-ago period. The net loss of $67.10 million highlights a severe deterioration in profitability compared to the $60.10 million net income reported in 2024 Q2. The sharp decline in EPS is clearly a negative development for the company and investors.

Price Action
The stock of ManpowerGroup has experienced a volatile price movement in the recent period. While it rose by 0.85% on the latest trading day, it declined by 10.86% for the week and 11.32% month-to-date, reflecting ongoing investor uncertainty and market volatility.

Post-Earnings Price Action Review
A strategy of buying MAN following an earnings beat and holding for 30 days proved to be highly underperforming, with a return of -40.85%. This strategy underperformed the benchmark by the same margin, indicating significant downside risk. The Sharpe ratio of -0.33 further underscores the poor risk-adjusted return, while the absence of a maximum drawdown suggests limited volatility control in this scenario. These metrics collectively highlight a high-risk investment environment in the wake of the earnings release.

CEO Commentary
CEO Darren Tischler acknowledged the difficult operating environment and noted that the Q2 results were impacted by headwinds in key markets and reduced demand in the temporary labor segment. He emphasized the importance of cost discipline and operational agility in navigating these conditions and reiterated the company’s commitment to digital transformation and workforce innovation. Tischler highlighted ongoing investments in talent solutions and AI-driven platforms as key growth drivers and expressed cautious optimism for the second half of the year.

Guidance
ManpowerGroup provided guidance for Q3 2025, expecting adjusted earnings per share to range between $0.80 and $1.00, with revenue projected to fall between $4.6 billion and $4.8 billion. The company plans to continue investing in technology and talent development, with capital expenditures aligned with prior periods. Leadership anticipates gradual improvement in market demand, driven by stabilization in core industries and a focus on high-growth sectors such as healthcare and skilled trades.

Additional News
In the three weeks following the Q2 earnings announcement, ManpowerGroup remained focused on strategic initiatives and leadership continuity. There were no major M&A announcements during the period, and no changes to the C-suite leadership were reported. Additionally, the company did not issue any new dividend or share repurchase program announcements. Instead, the leadership reiterated its long-term focus on digital transformation, AI-driven platforms, and investments in high-growth workforce sectors such as healthcare and skilled trades. These strategic directions are expected to play a key role in shaping the company’s future trajectory and operational resilience in the evolving labor market.