Adecco Group's Q4 2025 Results Show Strong Growth and Market Gains

Adecco Group's Q4 2025 Results Show Strong Growth

The Adecco Group has announced its fourth-quarter and full-year results for 2025, revealing a significant upward trend in both revenues and market share. The report highlights robust figures that reflect the company's strategic execution and operational efficiency.

Q4 Highlights

In the last quarter of 2025, the Adecco Group achieved remarkable market share gains, with the Group expanding by 395 basis points and Adecco itself by 240 basis points. The year-on-year revenue growth reached 3.9%, marking the most robust quarter of the year.

By business unit, Adecco's revenue rose by 4.9% year-on-year, led predominantly by a 21% increase in the Americas and a 7% increase in the Asia-Pacific region. Specific areas of performance included:

- Akkodis: experienced a slight downturn of 1% year-on-year.
- LHH: grew by 2% year-on-year, showcasing resilience in its offerings.

Another key metric, the gross margin, held steady at 19.1%, consistent with organic trends from previous periods. This reflects a favorable mix of solutions and strong client pricing strength.

Adecco's EBITA margin for the quarter, excluding one-off items, improved to 3.8%, representing a 60 basis point increase from the previous year. This positive outcome was driven by operational leverage and productivity gains of 11% year-on-year, with Akkodis Germany demonstrating solid recovery momentum.

The operational profit for the quarter came to 186 million euros, illustrating a 34% rise year-on-year, while net income reached 88 million euros, a 31% boost compared to the previous year. Furthermore, the basic earnings per share (EPS) were reported at €0.52, with adjusted EPS at €0.76.

Full Year Performance

Examining the full year of 2025, Adecco recorded a solid increase in market share of 245 basis points. Overall revenue growth was modest, registering at 1.3% year-on-year. Breaking this down by business units:

- Adecco: +2.5% year-on-year.
- Akkodis: -4% year-on-year.
- LHH: remained flat year-on-year.

For the year, the gross margin was slightly lower at 19.2%, down by 20 basis points year-on-year, reflecting the effects of mix and pricing firmness. The EBITA margin also stabilized at 3.0%, aligning with the company's commitments.

The operational profit for the year totaled 572 million euros (+8% year-on-year), and net profit came in at 295 million euros, reflecting a modest 2% increase. Basic EPS for the year was reported at €1.76, with adjusted EPS at €2.37.

Moreover, the company demonstrated strong cash generation capabilities, with operational cash flow reaching 613 million euros and free cash flow of 483 million euros, resulting in a conversion rate of 102%.

The financial structure has improved, with a net debt to EBITDA ratio of 2.4x, a reduction of 0.2x year-on-year and 0.6x quarter-on-quarter, leading to a decrease of 186 million euros in net debt compared to the previous year. Adecco aims for a net debt to EBITDA ratio of less than or equal to 1.5x by the end of 2027.

In a move to reward shareholders, the company proposed a dividend of 1.00 CHF, with an option to receive shares in lieu of cash.

Leadership Insights

Denis Machuel, CEO of the Adecco Group, remarked on the company’s achievements, stating, "We had a strong year-end with continuous positive momentum and a third consecutive quarter of growth, achieving a margin of 3.8% in Q4. Our disciplined execution through the year led to a gain of 245 basis points in market share, strong operational leverage, and solid cash flow, which underpins improved leverage."

He further commented, "Adecco grew by 4.9% in Q4, consistently gaining market share across all regions. Akkodis posted further sequential improvement, including significant progress in its recovery efforts in Germany. LHH maintained a strong foothold in professional transitions, significantly driving growth in our service line."

Machuel emphasized Adecco's commitment to supporting its 100,000 clients in managing and training their workforce effectively while prioritizing human-centric AI solutions in its talent and technology offerings moving forward into 2026.

This remarkable performance underlines Adecco Group's strong positioning for future growth, as it continues to adapt to the evolving workforce landscape.