ManpowerGroup (MAN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $4.5 billion, up 10% as reported and 3% in constant currency, with system-wide revenue of $5 billion and stabilization in key markets including Asia Pacific, Latin America, France, and Italy.

• Net earnings were $2.5 million ($0.05 per diluted share), down 55% year-over-year, impacted by restructuring and transformation costs.

• Adjusted EPS was $0.51, above guidance midpoint and up 3% in constant currency, with $0.46 per share in restructuring and transformation charges.

• Launched a global transformation initiative targeting $200 million in permanent cost savings by 2028, driven by automation, AI, and process redesign.

• AI initiatives delivered $200 million incremental revenue in France, over 25,000 AI-led interviews in six months, and significant improvements in candidate experience and operational efficiency.

Financial highlights

• Q1 revenue was $4.5 billion (system-wide $5.0 billion), up 10% as reported and 3% in constant currency year-over-year.

• Adjusted EBITDA was $61 million, up 5% in constant currency; EBITA margin 0.8% (as adjusted 1.4%).

• Gross profit margin was 16%, down 110 bps year-over-year, with a 3% year-over-year decline in consolidated gross profit on an organic constant currency basis.

• Free cash flow was an outflow of $135 million, improved from $167 million outflow in the prior year.

• Net debt at quarter end was $922–$953 million; gross debt to trailing 12 months adjusted EBITDA was 2.86.

Outlook and guidance

• Q2 2026 guidance: EPS of $0.91–$1.10, constant currency revenue growth of 1–5%, and EBITDA margin up 10 basis points year-over-year.

• Free cash flow expected to be negative in H1, offset by strong H2 performance.

• U.S. business expected to return to low single-digit revenue growth in Q2; Italy and Japan to see continued solid growth.

• Management anticipates continued stabilization in demand trends and ongoing cost discipline.

• Forecasts compliance with financial covenants and sufficient liquidity for the next 12 months.