#Market Growth #financial results #Switzerland #Zurich #Adecco Group

The Adecco Group's Impressive Q4 and 2025 Performance

The Adecco Group has recently released its fourth quarter and full year results for 2025, showcasing significant achievements in financial performance. The group has reported strong market share gains and a positive trajectory as it concludes the fiscal year.

Q4 Highlights

In Q4, Adecco experienced impressive growth with a notable increase of 395 basis points in market share across the group, while the Adecco brand alone saw a gain of 240 basis points. The group’s revenues improved sequentially by 3.9% year-on-year, marking it as the best quarter for the year. When looking at geographic business units, Adecco revenues rose by 4.9% year-over-year, with the Americas leading the charge at a remarkable 21% increase. The Asia-Pacific region also demonstrated growth with 7%, though Akkodis faced a slight decline of 1% year-over-year, and LHH managed to grow by 2%.

Adecco’s gross margin remained strong at 19.1%, remaining stable year-over-year, showing a good blend of service solutions and client mix alongside firm pricing strategies. The EBITA margin, excluding one-off effects, reached 3.8%, which is a 60 basis point increase year-on-year. This performance is propelled by a productivity increase of 11%, particularly seeing positive progress in the turnaround of Akkodis Germany. Moreover, the operating income for Q4 hit €186 million, reflecting a robust 34% year-on-year increase, while net income saw a 31% rise to €88 million.

In terms of earnings per share (EPS), the basic EPS stood at €0.52, while adjusted EPS was reported at €0.76.

Full Year Achievements

Looking at the broader picture for the entire year, Adecco witnessed robust market share growth, gaining 245 basis points overall. The total revenues experienced moderate growth at 1.3% year-on-year. Within the geographical business units, Adecco itself grew by 2.5%, while Akkodis faced a more challenging year with a 4% decline, and LHH's performance remained flat.

The group maintained its healthy gross margin at 19.2%, despite a slight decline of 20 basis points year-over-year driven by mix effects amidst strong pricing strategies. The EBITA margin, excluding one-offs, stood at 3.0%, aligning with the management's guidance and commitments.

The total operating income for the year was €572 million, seeing an improvement of 8% year-on-year, while net income also saw a modest increase to €295 million, which is up by 2% compared to the previous year. Basic EPS for the full year was reported at €1.76, with adjusted EPS climbing to €2.37.

Notably, the company's ability to generate cash was highlighted, with operating cash flow reaching €613 million and free cash flow at €483 million, resulting in a conversion ratio of 102%.

Regarding the financial structure, the net debt/EBITDA ratio improved to 2.4x at the end of 2025, showing a reduction of 0.2x year-on-year and 0.6x quarter-on-quarter. The net debt has also decreased by €186 million compared to the previous year. The company has set a target to achieve a net debt/EBITDA ratio of ≤ 1.5x by the end of 2027. Furthermore, there is a proposed dividend of CHF 1.00, with a cash payment option available for shareholders.

Future Outlook

CEO Denis Machuel expressed optimism regarding the results, stating, "We had a strong finish to the year with ongoing positive momentum and a third consecutive quarter of growth, achieving a 3.8% margin in Q4. Rigorous execution through 2025 delivered 245 basis points of market share gains, strong operating leverage and cashflow, driving an improvement in leverage." He emphasized that Adecco’s growth trajectory positions the company well to assist their extensive clientele in managing and developing their workforces effectively. Machuel looks forward to continuing this robust performance into 2026 and beyond.

In conclusion, the Adecco Group’s substantial growth and solid financial health exhibited in Q4 and full year results illustrate a favorable outlook for the company as it enters the next fiscal year.