Kelly Services (KELYA) 17th Annual Southwest IDEAS Conference summary

Company transformation and leadership changes

• Monetized $500M in non-core assets and redeployed $900M to scale specialties, with $100M+ in SG&A cost reductions.

• New CEO Chris Laden, an industry veteran and first external CEO, joined in September, signaling a fresh perspective.

• Ongoing leadership changes include an external search for a division leader.

• Transformation of finance and operational models is a key mandate for new management.

Business segments and market positioning

• Operates in three segments: enterprise talent management (ETM), science, engineering & technology (SET), and education.

• ETM focuses on large enterprises, offering temp, perm, outcome-based, and talent solutions, with a global footprint.

• SET specializes in higher-value, project-based solutions in life sciences, engineering, telecom, and government.

• Education segment is the largest K-12 substitute teacher provider in the US, with significant growth and white space opportunity.

Financial performance and capital allocation

• Trailing 12-month revenue is $4.4B, with a 3% adjusted EBITDA margin.

• Achieved 200 bps gross margin expansion and doubled EBITDA margin to 3.3% last year, despite industry decline.

• Deployed over $1B in capital, mainly for acquisitions, and returned $100M to shareholders via buybacks and dividends.

• Current debt stands at $118M, with $400M total debt capacity and $100M trailing 12-month free cash flow.