ManpowerGroup Inc. (NYSE: MAN) reported its third-quarter earnings for 2025 on October 16, exceeding analysts’ expectations with an earnings per share (EPS) of $0.83, surpassing the anticipated $0.82. The company’s reported revenue for the quarter reached $4.6 billion, reflecting a decrease of 2% year-over-year in constant currency. This marks a significant shift after 11 consecutive quarters of organic revenue declines.
During the earnings call, Jonas Prising, Chair and CEO of ManpowerGroup, highlighted various factors influencing the current employment landscape. He noted that despite ongoing geopolitical complexities and economic challenges, there are signs of stabilization in hiring trends across several regions. The company’s Employment Outlook Survey, which included input from over 40,000 employers in 42 countries, indicated that 45% of employers plan to maintain their current workforce levels—the highest rate since early 2022.
Key Highlights from the Earnings Call
The company’s positive performance in Q3 is attributed to a gradual recovery in various markets, particularly in North America and Latin America. Jack McGinnis, Chief Financial Officer, explained that gross profit margins were impacted by a shift towards enterprise accounts and a decline in permanent recruitment activity, which contributed to a 22% decrease in adjusted EBITDA year-over-year, resulting in $96 million for the quarter.
Prising elaborated on the mixed global conditions, stating, “Strong momentum across Latin America and APME has been offset by softer trends in Europe and North America, where activity levels remain well below historical peaks.” He emphasized that while hiring remains cautious, there are gradual signs of stabilization, particularly in sectors such as financial services and IT.
The company reported an EBITDA margin of 2.1% for the quarter, while the earnings per diluted share on a reported basis was $0.38. Despite improvements, adjusted earnings per share decreased by 39% year-over-year in constant currency.
Looking Ahead: Guidance for Q4 2025
As ManpowerGroup approaches the fourth quarter, it is closely monitoring key indicators of demand, including activity among enterprise clients and new assignment starts in priority sectors. The company anticipates ongoing stability in most markets, predicting earnings per share in the range of $0.78 to $0.88. This guidance includes an expected favorable foreign currency impact of $0.08 per share.
Despite the positive outlook, the company acknowledged that decision timelines among clients remain extended, particularly in Europe and North America. The management team is focused on strategic initiatives aimed at enhancing operational efficiency and driving future growth.
Prising concluded the earnings call by reflecting on the importance of their technology investments, particularly in AI, stating, “We are now increasingly moving from AI use cases to scaled commercial impact.” The company has introduced its AI platform, Sophie AI, which has begun to significantly influence client engagement and revenue generation.
As ManpowerGroup navigates the complexities of the current economic landscape, its commitment to operational excellence and strategic growth remains evident. The leadership team is optimistic about the potential for recovery and is prepared to capitalize on future opportunities as market conditions improve.