Kelly Services (KELYA) Investor presentation summary

Strategic positioning and business transformation

• Achieved $4.3 billion in 2025 revenue with organic growth in resilient markets and a 2.6% adjusted EBITDA margin, surpassing historical averages.

• Focused on higher-margin, higher-growth specialties, resulting in ~200 basis points of gross margin expansion since 2020.

• Monetized nearly $500 million by divesting non-core assets and redeployed capital to acquire seven specialty talent solutions companies.

• Enhanced operational efficiency, delivering over $100 million in SG&A savings.

• Refreshed board and management team committed to exceeding performance expectations.

Business segments and market leadership

• Operates three specialized business units: Enterprise Talent Management (ETM), Science, Engineering & Technology (SET), and Education (EDU).

• ETM generated $2.0B in revenue with a 19.6% gross profit margin in 2025, serving manufacturing, financial services, and healthcare.

• SET delivered $1.2B in revenue and a 25.3% gross profit margin, ranking #2 in life science staffing and #4 in engineering staffing in the U.S.

• EDU achieved $1.0B in revenue, serving over 8,700 schools and filling 4M+ vacancies annually.

• Recognized as the #2 temporary staffing firm in America and #1 in education staffing.

Financial performance and capital allocation

• Adjusted EBITDA margin improved to 2.6% in 2025, with a 9.6% CAGR from 2020-2025.

• Gross profit margin expanded to 20.1% in 2025, up from 18.3% in 2020.

• Free cash flow reached $114 million in 2025, rebounding from negative flows in 2021-2022.

• Deployed $1.2 billion from 2020-2025, prioritizing acquisitions (68%), dividends/share repurchases (12%), and organic investments (9%).

• $70 million in share repurchases since 2022, with $30 million remaining authorized.