ManpowerGroup NYSE: MAN reported first-quarter 2026 results that management said showed “disciplined execution and continued stabilization of revenue trends across key markets,” alongside the launch of a multi-year transformation program aimed at lowering costs and improving operating efficiency.
First-quarter results and demand trends
Chairman and CEO Jonas Prising said the quarter delivered reported revenue of $4.5 billion, with organic constant-currency growth of 3%. System-wide revenue, which includes franchise operations, totaled $5.0 billion. Adjusted EBITDA margin was 1.4%, which Prising attributed to “improving demand trends as well as P&L leverage.”
Prising said the company saw strengthening conditions in manufacturing, “particularly across Europe,” and noted strong Manpower performance in key markets including France, the U.S., and Italy. He also cited “stable underlying trends” in Experis and “solid performance” in Talent Solutions, pointing to improvements in MSP and Right Management even as RPO “remains more challenged.”
On costs, Prising said the company reduced adjusted SG&A by 4% in constant currency while growing the top line, reflecting “ongoing efficiency efforts.”
Management also addressed geopolitical uncertainty. Prising said the company is “closely monitoring developments related to the conflict in the Middle East,” adding that it is “still too early to assess if there will be a broader impact.”
Transformation initiative targets $200 million of savings
A central focus of the call was a newly announced global transformation program. Prising said ManpowerGroup expects the initiative to deliver $200 million in permanent cost savings in 2028. He described two main components:
- A “complete redesign” of back-office operations, which he said is progressing well
- A front-office program that will apply best practices from the back-office work to sales, recruiting, and service delivery processes
Prising said the company has made “targeted investments in automation and AI” and built a modern technology infrastructure anchored by its PowerSuite platform, with “nearly 90%” of the global business operating on the platform. He said this provides a unified technology stack and access to global data across businesses.
Prising also said the company has hired a chief enterprise transformation officer to drive execution across the enterprise. In addition, he said ManpowerGroup is reviewing its portfolio to prioritize “core, higher-return opportunities” while evaluating “opportunities to divest of non-core assets.”
On timing and geography, CFO Jack McGinnis said early savings are expected to come from the back-office work, with a majority originating in Europe where the company began its back-office transformation. For the front office, McGinnis said the company is starting in North America, with North America savings expected to begin showing in 2027 and broader “rest of the regions” savings expected in 2028.
McGinnis said the company anticipates the full $200 million to be realized in 2028 as a “run rate savings” in that year, rather than only appearing late in the year.
AI initiatives: sales, recruiting, and new client offerings
President and Chief Strategy Officer Becky Frankiewicz outlined how the company is embedding AI “as a growth multiplier,” highlighting three areas: commercial scale, talent experience, and monetization through partnerships.
In France, Frankiewicz said an AI-powered sales targeting engine has generated approximately $200 million in incremental revenue by identifying high-probability opportunities and focusing sales coverage. She said the company expects to scale the tool to “roughly 50% of our markets by year-end.”
On recruiting and candidate experience, Frankiewicz said ManpowerGroup expanded PowerSuite to include a partnership with Hubert.ai for AI-powered screening and interviews. She said that in the past six months the company completed more than 25,000 AI-led interviews and reduced screening time by 67%, while achieving 87% candidate satisfaction. She added these capabilities currently support markets representing about 40% of global revenue, with plans to scale to 70% by year-end.
On monetization, Frankiewicz highlighted a partnership announced in March with SoundHound AI, which she described as focused on helping clients review and redesign workflows and accelerate adoption of AI and intelligent automation. She said the offering is part of Experis U.S.’s Accelerate AI services suite built around “humans and agents” working side by side, with plans to start in the U.S. and expand globally. Frankiewicz said it is “early days” for margin impact but said the company is encouraged by early deal economics and expects to provide updates as the offerings scale.
Frankiewicz also said “tens of thousands” of employees have completed AI fundamentals training and that over 80% of the company’s workforce is already using AI in their workflows.
Segment and brand performance, margins, and cost actions
McGinnis reported adjusted EBITDA of $61 million, a 5% increase in constant currency year over year. Reported EPS was $0.05, while adjusted EPS was $0.51, slightly above the midpoint of guidance. McGinnis said restructuring and strategic transformation program costs represented $0.46 per share in the quarter.
Gross margin was 16% and came in below the low end of guidance. McGinnis attributed the shortfall to lower bench utilization in Europe and mix shifts affecting staffing margin, while permanent recruitment improved sequentially and was “as expected.” In the Q&A, he characterized the pressure as primarily mix-related, driven by stronger enterprise demand, and said pricing remained “rational.” He also said bench-related impacts were a winter phenomenon and should ease in the second quarter.
By brand, Manpower revenue grew 6% in organic constant currency, Experis declined 9%, and Talent Solutions declined 1% (an improvement versus the prior quarter). McGinnis said the Experis decline was largely driven by the timing of healthcare IT projects in the U.S.
By geography, McGinnis highlighted:
- Americas: revenue of $1.1 billion, up 4% in constant currency; U.S. revenue of $655 million down 5% on a days-adjusted basis
- Southern Europe: revenue of $2.1 billion, up 3%; France flat in constant currency; Italy up 8% days-adjusted constant currency
- Northern Europe: revenue of $790 million, down 1% in organic constant currency; U.K. revenues down 2%
- Asia Pacific Middle East: revenue of $510 million, up 8%; Japan up 4% days-adjusted constant currency
Cash flow and second-quarter guidance
Free cash flow in the quarter was an outflow of $135 million, which McGinnis said was affected by payment timing in the MSP business and some working capital usage that he expects to reverse in the second quarter. The company ended the quarter with $225 million of cash and $1.1 billion of total debt, with net debt of $922 million.
For the second quarter of 2026, McGinnis guided to EPS of $0.91 to $1.10, including a favorable foreign currency impact of $0.05 per share. He forecast constant-currency revenue growth of 1% to 5% (midpoint 3%) and said EBITDA margin is projected to be up 10 basis points at the midpoint versus the prior year. He also said the company expects an effective tax rate of 43% for the second quarter and will continue to exclude restructuring and strategic transformation costs from underlying guidance.
In closing remarks, Prising said the market is stabilizing and the company is “executing with discipline,” while a dedicated group advances transformation initiatives to position ManpowerGroup for future opportunities.
About ManpowerGroup NYSE: MAN
ManpowerGroup NYSE: MAN is a global leader in workforce solutions, offering a broad spectrum of staffing and talent management services. Founded in 1948 and headquartered in Milwaukee, Wisconsin, the company has grown from a temporary staffing firm to a diversified provider of workforce consultancy, recruitment, and outsourcing services. ManpowerGroup is publicly traded on the New York Stock Exchange under the ticker MAN.
The company's service offerings are organized into four principal brands.
Further Reading
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