#Switzerland #Zurich #Adecco Group #Market Share #EBITA margins

Overview of Adecco Group's Q3 2025 Results

On November 6, 2025, the Adecco Group announced its financial results for the third quarter of 2025, showcasing a robust performance amid mixed market conditions. The company reported further strong market share gains, with the Group increasing by 375 basis points (bps) and Adecco itself by 300 bps. Notably, this quarter's results were supported by a healthy demand across all geographical business units (GBUs).

Financial Highlights

• - Group Revenues: The Group's revenue grew by 3.4% year-on-year and by 3.0% quarter-on-quarter, highlighting a consistent upward trend. Each GBU displayed improvements sequentially, underlining the organization's strategic focus on enhancing operational efficiency and customer engagement.
• - Adecco GBU Performance: Adecco's individual revenues escalated by 4.5% year-on-year, with notable recoveries: Europe is back to growth, the Americas exhibited a remarkable 20% increase year-on-year, and the Asia-Pacific (APAC) region saw a 9% growth.
• - Akkodis GBU: While Akkodis experienced a slight decline of 3% year-on-year, the turnaround strategy in Germany is showing promising signs of progress, suggesting that the company is on the right path to recovery.
• - LHH GBU: The Career Transition (CT) segment led the way with a 9% increase, while Ezra delivered an impressive 59% growth year-on-year, highlighting strong demand in this area.

Margins and Profitability

Adecco Group also reported a healthy gross margin of 19.2%, which reflects a minor year-on-year decline of 10 bps but a sequential increase of 30 bps. This resilience in margin can be attributed to favorable business mix and diligent pricing strategies. Additionally, the EBITA margin excluding one-off costs was solid at 3.4%, marking a 10 bps increase compared to the previous year.

• - Operating Income: The company recorded an operating income of €160 million, indicating a 2% growth from the prior year.
• - Net Income and Earnings Per Share: Net income stood at €89 million, reflecting a modest decline of 2% year-on-year. Basic earnings per share (EPS) are reported at €0.53, with adjusted EPS at €0.67.
• - Cash Flow: The company maintains a strong cash conversion rate of 110%, with operating cash flow hitting €200 million, a remarkable increase of €79 million compared to last year, indicating effective working capital management.
• - Debt Management: The net debt decreased by €220 million year-on-year, resulting in a net debt to EBITDA ratio of -0.3x.

Insights from Management

Denis Machuel, the CEO of the Adecco Group, expressed satisfaction over the company’s progress amidst the varying market conditions. He stated, "Our positive trajectory has continued, with further market share gains and good growth. The improvement in margins by 90 basis points compared to last quarter exemplifies our strong operational leverage."

He further acknowledged the commendable performance of the Adecco brand and highlighted the successful turnaround in Germany for Akkodis. The company is optimistic as it moves towards its Capital Markets Day in London on November 26, where it will outline the evolution of its strategy and detailed plans for value creation.

Conclusion

The Adecco Group's Q3 2025 results clearly reflect strategic strength, market adaptability, and operational efficiency. As the company prepares for its upcoming presentations, stakeholders can expect exciting developments that will further drive the group's growth in the competitive landscape.