#Switzerland #Zurich #Adecco Group #EBITA Margin #organic revenue growth

Adecco Group Q3 2026 Results

The Adecco Group has released its financial results for the third quarter of 2026, highlighting robust growth and a strategic focus on improving profitability. This period marks a significant achievement for the company, as it reports an organic revenue increase of 3.7% compared to the previous year.

Key Highlights

• - Organic Revenue Growth: The Group recorded a 3.7% increase in organic revenue based on adjusted working days, showcasing steady growth momentum in flexible staffing solutions. Notably, permanent placements have also returned to a growth trajectory, indicating a positive shift in the employment market.
• - Regional Performance: Adecco's performance varied by region, with total revenue growth of 4.7% compared to the previous year. The Americas led with a remarkable 9% increase, followed by EMEA (excluding France) at 8% and the Asia-Pacific region at 5%.
• - Profitability Metrics: The gross margin stood at 18.9%, which represents a slight decrease of 30 basis points from the previous year, yet it reflects an improvement of 30 basis points from the last quarter. This performance is largely attributed to strategic business mix and effective pricing strategy.
• - EBITA Growth: The operating profit before interest and tax (EBITA) reached €213 million, reflecting a 10% increase year-on-year. This consistent profitable growth is a testament to the effective operational leverage employed by the Group.
• - Earnings Per Share (EPS): Adecco reported an unadjusted EPS of €0.65, up 23% from the previous year's figures. Adjusted EPS showed a similar positive trend, climbing to €0.79, a 17% year-on-year growth.

Operational Efficiency and Debt Reduction

The company's commitment to operational efficiency has resulted in an operating cash flow of €213 million, a 6% rise compared to last year's performance. The cash conversion ratio for the past twelve months was recorded at a commendable 84%. Furthermore, Adecco has made significant strides in reducing its overall debt, with a net debt-to-EBITDA ratio of 2.5x, down 0.6x year-over-year. The company is on track to achieve a net debt-to-EBITDA ratio of ≤1.5x by the end of 2027.

Future Outlook

Denis Machuel, CEO of Adecco Group, emphasized the company's strategic direction: “We are on a positive trajectory with continued growth and strong operating leverage contributing to enhanced profitability and debt reduction. The market is showing encouraging signs with positive dynamics in flexible staffing and a rebound in permanent placements.”

The Group aims to simplify its organizational structure to enhance growth and margin improvement, targeting additional yearly savings of €75 million by the third quarter of 2027.

Conclusion

The results from Adecco Group for Q3 2026 underscore an ongoing positive trend in the workforce solutions sector. As the company adapts to changing market demands, its commitment to leveraging technology and maintaining budgetary discipline places it in a strong position for future growth and improved performance. Investors and stakeholders are encouraged to stay tuned for continued updates from the Group as they build on this momentum in the upcoming quarters.