ManpowerGroup 2025 Q2 Earnings Significant Net Loss as EPS Declines 215%

ManpowerGroup (MAN) reported its fiscal 2025 Q2 earnings on Jul 17th, 2025. Despite the company's adjusted earnings per share of $0.78 exceeding analyst expectations of $0.69, the report reflected a significant swing to a net loss primarily due to non-cash goodwill impairment charges. ManpowerGroup's forward guidance for Q3 2025 anticipates diluted earnings per share between $0.77 and $0.87, indicating some optimism despite current challenges. The company's revenue remained flat year-over-year at $4.52 billion, signaling ongoing stability but also highlighting areas for improvement in its core operations.

Revenue

The total revenue for ManpowerGroup stood unchanged at $4.52 billion in 2025 Q2, mirroring the figures from 2024 Q2. This flat performance reflects underlying stability in the company's operations amidst challenging economic conditions.

Earnings/Net Income

ManpowerGroup transitioned from a profit of $1.25 per share in 2024 Q2 to a loss of $1.44 per share in 2025 Q2, marking a significant 215.2% negative change. The net loss amounted to $67.10 million, a 211.6% deterioration from the previous year's net income of $60.10 million, indicating serious financial setbacks.

Post-Earnings Price Action Review

ManpowerGroup's strategy of purchasing shares 30 days post-revenue increase has underperformed over the past three years. This approach has resulted in a compound annual growth rate of -0.69%, a total return of -3.37%, and an excess return of -88.85%. The high volatility of 8.56% and a maximum drawdown of 0.00% underscores the considerable risks and losses associated with this strategy, suggesting that investors should approach this tactic with caution given its historical performance.

CEO Commentary

Jonas Prising, Chairman & CEO, highlighted a mixed business performance with "encouraging signs of stabilization" in the U.S. and parts of Europe, driven by growth in the Manpower and Talent Solutions brands. He noted that while the global hiring outlook remains steady, challenges persist, particularly in Northern Europe due to economic headwinds. Prising emphasized the importance of leveraging proprietary data to identify growth opportunities and the need for targeted actions in struggling sectors like automotive. He expressed optimism about client confidence improving, stating, "stabilization is followed by a period of...positive demand environment," reflecting a cautiously optimistic outlook.

Guidance

For Q3 2025, ManpowerGroup expects earnings per share in the range of $0.77 to $0.87, including a favorable foreign currency impact of $0.03. The company guides for a constant currency revenue decline between flat and 4%, with an organic days adjusted constant currency revenue projected at a flat midpoint. EBITDA margin is anticipated to decrease by 50 basis points year-over-year, and the effective tax rate for the full year is expected to be 46.5%, with a slight increase to 48% for Q3.

Additional News

ManpowerGroup has announced significant leadership changes, with Becky Frankiewicz appointed as President & Chief Strategy Officer and Ger Doyle as Regional President for North America, enhancing strategic leadership in key markets. Additionally, ManpowerGroup's Talent Solutions division was recognized as a Global RPO Leader by Everest Group for the 15th consecutive year, exemplifying the company's continued excellence in workforce solutions. In a strategic move, ManpowerGroup has also invested in a new AI HR Hub in Paris, demonstrating a commitment to advancing AI-driven workforce transformation and strengthening its position in the global labor market.