#Financial Performance #Switzerland #Zurich #Adecco Group #Market Share

Adecco Group Reports Strong Performance for Q2 2025

On August 5, 2025, the Adecco Group released its financial results for the second quarter, announcing substantial gains in market share and encouraging financial indicators that reflect the company's strategic initiatives. This report highlights the affordance of growing revenues and steady operational improvements throughout the group’s various business units.

Key Highlights

During Q2, Adecco Group witnessed significant growth, with an impressive increase of +205 basis points in overall market share, while Adecco itself rose by +130 basis points. The company's revenues totaled €5.8 billion, marking a 0.4% year-over-year increase and a 2% quarterly growth, indicating an upward trajectory across all operational divisions.

Particularly noteworthy is the performance of Adecco's General Business Unit (GBU), which posted a 2% increase year-over-year and a 3% increase quarter-over-quarter, driven primarily by robust contributions from the Americas (+14% year-over-year) and the Asia-Pacific region (+9% year-over-year). However, the Akkodis GBU experienced a slight decline of 6% year-over-year, although it did manage a 2% rise quarter-over-quarter. The LHH segment faced a similar annual decline of 1% but recorded a 4% gain on a quarterly basis.

Financial Insights

The gross profit for the quarter reached €1.1 billion, translating to a gross margin of 18.9%, which is 50 basis points lower compared to the previous year. This reduction is attributed to the overall mix of activities and pricing pressure in various sectors. Moreover, the EBITDA margin was reported at 2.5% (excluding non-recurring items), reflecting a year-over-year drop of 60 basis points. This performance highlights Adecco’s disciplined cost management strategies and agile capacity management in navigating the complexities of the market landscape.

Operating income climbed to €115 million, reflecting a 6% year-over-year improvement, while net income saw an 8% increase to €58 million. The basic earnings per share stood at €0.35, and the adjusted earnings per share reached €0.46, indicating profitability gains.

Furthermore, the company's conversion of cash flow over the last twelve months was recorded at an impressive 98%, with operational cash flow amounting to €81 million, showcasing effective working capital management in line with typical seasonal patterns.

CEO Comments

Denis Machuel, the CEO of the Adecco Group, shared insights into the company's ongoing strategic efforts during the quarterly call. He expressed that despite operating in a heterogeneous market context, Adecco has successfully expanded its market share. Machuel emphasized the importance of rigorous cost management that has led to enhancements in selling, general, and administrative expenses.

He noted notable improvements in performance for Adecco France and Adecco US, two of the primary markets, while also affirming that the turnaround plan for Akkodis Germany is progressing as intended.

Machuel concluded with a confident outlook, stating, “We have the right strategy and team in place to maintain our positive performance momentum. Our ambitious innovation strategy, particularly focusing on pioneering technologies such as generative AI and agentic AI, is gaining strength and will bolster our continued performance in the upcoming quarters.”

Conclusion

The strong results and strategic direction of the Adecco Group signal a promising future as it enhances its market presence and operational efficiency. Investors and stakeholders can look forward to further developments as the company progresses through the second half of 2025.