#Switzerland #LHH #Zurich #Akkodis #Adecco Group

Adecco Group Third Quarter Results 2025

On November 6, 2025, the Adecco Group revealed compelling financial results for the third quarter of 2025, showcasing significant market share gains and revenue increases. The group recorded a growth of 3.4% in revenue compared to the previous year, with an impressive sequential growth of 3.0% from the last quarter. This positive trend highlights the robust performance across all business segments, reflecting the company's resilient strategy in a competitive market.

Key Highlights

1. Market Share Gains: The Adecco Group improved its market presence, with notable gains of 375 basis points overall and 300 basis points specifically for Adecco. This positions the group favorably against its competitors.

2. Segment Performance: The breakdown of the group's revenue showed various segments performing well:
- The Adecco Global Business Unit (GBU) achieved a 4.5% increase compared to the previous year, with significant growth noted in Europe, returning to an upward trajectory, while North America surged by 20%.
- However, the Akkodis GBU reported a decline of 3% year-on-year. Despite this, there are promising signs of recovery, especially in Germany, where restructuring efforts are taking effect.
- The LHH GBU experienced a 4% increase in revenue driven by successful transitions, with Career Transition (CT) and Ezra seeing remarkable growth of 9% and 59% year-over-year, respectively.

3. Profit Margins: The company reported a gross margin of 19.2%, which reflects a slight organic decrease of 10 basis points from the previous year, but a sequential improvement of 30 basis points. This aligns with the strategic focus on maintaining stable pricing and optimizing the business mix.

4. Earnings Performance: The Earnings Before Interest, Taxes, and Amortization (EBITA) margin improved to 3.4%, showcasing a 10 basis points increase from last year. Operational efficiency contributed to an 8% year-on-year rise in productivity, leading to an operating income of €160 million, which marks a 2% increase compared to last year.

5. Net Income: The net profit for the period was reported at €89 million, although this reflects a 2% decrease from the previous year.

6. Earnings Per Share: The diluted earnings per share came in at €0.53, while the adjusted earnings per share reached €0.67.

7. Cash Flow: The company demonstrated strong cash management with a cash conversion rate of 110%, supporting operational cash flow of €200 million, an increase of €79 million from last year. Additionally, net debt has decreased by €220 million compared to the previous year, resulting in a net debt to EBITDA ratio of -0.3x.

CEO Comment

Denis Machuel, CEO of the Adecco Group, expressed his satisfaction with the results:
"Our positive trajectory has continued in mixed market conditions, with additional market share gains and solid growth. We have improved our margins significantly compared to the last quarter, yielding strong operational leverage. We thank our teams for their consistent execution this past quarter, and we are on track to meet our margin objectives for the full year."

He further noted the excellent performance of Adecco in multiple regions and the steady improvement in Akkodis, in addition to the growth resurgence in LHH driven by the robust performance in the Career Transition sector.

Looking ahead, Machuel mentioned an eagerness to present the progression of their strategy and detailed plans for value creation at the upcoming Capital Markets Day scheduled for November 26 in London.

Conclusion

In conclusion, the Adecco Group's third quarter results signal robust operational performance and comprehensive market strategies that are yielding positive outcomes even in challenging market conditions. With a firm commitment to ongoing improvement across its businesses, the group appears well-positioned for sustained growth into 2026 and beyond.

For more detailed information on the Adecco Group's performance, stakeholders and analysts can access the full press release and upcoming webcast through the investor relations page.