#Q3 Results #Financial Performance #Switzerland #Zurich #Adecco Group

Overview of Adecco Group's Q3 2025 Results

On November 6, 2025, The Adecco Group announced its results for the third quarter of 2025, showcasing substantial gains in market share and robust revenue growth. The developments highlight the company's effective operational strategies and market resilience in a fluctuating economic landscape.

Key Financial Highlights

Market Share Gains

The group reported remarkable market share gains with overall performance reflecting a 375 basis point increase, and Adecco itself achieving a 300 basis point increase. This upward trend illustrates the company’s competitive advantages and ability to capture more business despite external challenges.

Revenue Growth

Group revenues witnessed a year-over-year increase of 3.4%, along with a quarter-over-quarter growth of 3.0%. All Global Business Units (GBUs) showed sequential improvement. Notably, revenues for Adecco GBU surged by 4.5% year-over-year, signaling a robust rebound in Europe and an impressive 20% growth in the Americas.

Regional Performance

In a detailed breakdown of regional performance, the Americas achieved a remarkable 20% year-over-year growth, while the Asia-Pacific (APAC) region exhibited a solid 9% growth. These figures indicate effective regional strategies and strong demand dynamics across various markets. Europe, after a period of stagnation, has returned to a positive growth trajectory.

Profit Margins

The gross margin stood at a healthy 19.2%, representing a minor decline of 10 basis points year-over-year; however, it increased by 30 basis points sequentially, reflecting the company's effective business mix and pricing strategies. Furthermore, the EBITA margin, excluding one-off items, was recorded at 3.4%, reflecting an increase of 10 basis points year-over-year, showcasing the efficient operational leverage that Adecco has managed to harness.

Income and Earnings

Operating income for the quarter reached €160 million, reflecting a 2% increase year-over-year, while net income slightly decreased by 2% to €89 million. Basic earnings per share (EPS) were reported at €0.53, with an adjusted EPS of €0.67, both indicating a resilient performance amidst market challenges. The company achieved an impressive 110% cash conversion over the last twelve months, supported by an operating cash flow of €200 million, which saw an increase of €79 million year-over-year.

Debt Management

In terms of financial stability, the net debt decreased significantly by €220 million year-over-year, resulting in a net debt to EBITDA ratio of -0.3x, underscoring Adecco's strong financial position and disciplined approach to debt management.

Leadership Remarks

Denis Machuel, CEO of The Adecco Group, commented on the results, stating, "Our positive trajectory has continued in mixed markets, with further market share gains and good growth. We have improved margins by 90 basis points compared to the last quarter, demonstrating strong operational leverage. We thank our teams for yet another quarter of rigorous execution. The results validate our strategic approach and operational capabilities in navigating through diverse market conditions."

He also highlighted the improvement in the Akkodis GBU, which is experiencing a successful turnaround in Germany, and the strong performance of the LHH GBU, especially in career transition services. This overall momentum positions Adecco favorably for the upcoming Capital Markets Day scheduled for November 26 in London, where further strategic plans and value-creation initiatives will be unveiled.

Conclusion

The Adecco Group’s Q3 2025 results are a testament to its strategic execution and resilience in capturing market opportunities even amid economic fluctuations. With continued focus on improving operational efficiencies and maintaining robust client relationships across regions, Adecco is well-prepared to navigate the dynamics of the labor market and deliver sustained value to its stakeholders. This quarter’s performance not only reinforces its leadership position but also sets a positive outlook for the future.