ManpowerGroup Q2 Earnings Call Highlights

Key Points

• ManpowerGroup beat second-quarter expectations with revenue of $4.9 billion, up 6% in constant currency, and adjusted EPS of $0.99 above the company’s guidance midpoint. Adjusted EBITDA also rose 15% in constant currency to $103 million.
• The Manpower brand drove growth, posting its fifth straight quarter of gains as demand improved across manufacturing, automotive, aerospace, logistics and retail. The U.S. business was especially strong, with revenue up 16% on a days-adjusted basis.
• Management said AI and transformation initiatives are advancing, with AI tools expected to scale to nearly 70% of revenue by year-end and transformation efforts targeting $200 million in permanent cost savings by 2028. The company also issued third-quarter guidance calling for continued 6% midpoint organic revenue growth.

ManpowerGroup NYSE: MAN reported stronger-than-expected second-quarter 2026 revenue and said improving demand across several markets helped drive organic growth, led by its core Manpower staffing business.

Chair and CEO Jonas Prising said the company delivered “strong results with revenues ahead of expectations,” citing growing client demand, cost discipline and progress on its transformation strategy. Reported revenue was $4.9 billion, while system-wide revenue, including franchises, was $5.3 billion. Revenue increased 6% in constant currency.

Adjusted EBITDA was $103 million, up 15% in constant currency from the prior-year period. Adjusted EBITDA margin was 2.1%, up 10 basis points year over year. Reported earnings per share were $1.13, while adjusted EPS was $0.99, above the company’s guidance midpoint.

Manpower Brand Leads Growth

Prising said the Manpower brand delivered its fifth consecutive quarter of growth, with revenue up 8% in constant currency. He pointed to stronger demand in manufacturing, automotive, aerospace, logistics and retail.

The U.S. Manpower business was a standout, with revenue rising 16% on a days-adjusted basis during the quarter. CFO Jack McGinnis said that represented “strong market performance” and marked eight consecutive quarters of growth for the brand in the U.S.

During the question-and-answer portion of the call, McGinnis said U.S. revenue trends strengthened as the quarter progressed. France, by contrast, was stable throughout the quarter, while Italy remained strong and Japan was steady.

President and Chief Strategy Officer Becky Frankiewicz said demand in the U.S. Manpower business has improved, while the company has also become better at targeting areas of growth. She cited manufacturing, consumer goods, retail, aerospace and logistics as areas of strength.

Experis, the company’s technology resourcing and services business, declined 2% on an organic constant currency basis, improving from a 9% decline in the first quarter. Talent Solutions was flat year over year, also an improvement from the first quarter. Within Talent Solutions, McGinnis said RPO showed sequential improvement, MSP continued to grow, and Right Management declined slightly due to lower outplacement activity.

Regional Results Show Broad Improvement

The Americas segment generated $1.2 billion in revenue, up 14% year over year on an organic constant currency basis. Adjusted operating unit profit was $45 million, with a 3.7% margin. The U.S., which represented 59% of Americas revenue, posted revenue of $714 million, up 8% on an organic days-adjusted basis.

Southern Europe revenue was $2.3 billion, up 4% in constant currency. France revenue was $1.2 billion and was flat in constant currency, while Italy revenue rose 6% on a days-adjusted constant currency basis to $522 million.

Northern Europe revenue was $825 million, up 2% on an organic constant currency basis. McGinnis said the region was profitable in the quarter, with operating unit profit of $2 million, reflecting improvement from actions taken in previous quarters. The U.K. returned to growth, with revenue up 2% on a days-adjusted constant currency basis.

Asia-Pacific Middle East revenue was $519 million, up 5% in constant currency. Japan, the largest market in the segment, grew 4% on a days-adjusted constant currency basis.

Gross Margin Stable Despite Mix Shifts

Gross profit margin was 16.1% in the second quarter. McGinnis said staffing margin declined 60 basis points year over year, primarily due to business mix shifts, but improved from the 70-basis-point decline recorded in the first quarter. He also noted the sale of the higher-margin Jefferson Wells U.S. business affected staffing margin.

During the Q&A session, McGinnis said pricing remained “rational” and “very stable,” and said the company remained disciplined on pricing. He added that the company is seeing early signs of improvement in contingent demand in the U.S., particularly among smaller and midsize customers.

Permanent recruitment activity resulted in a 10-basis-point gross margin decline, but McGinnis said permanent recruitment crossed over to flat in the quarter overall. He said permanent recruitment represented 15.3% of gross profit in the quarter, roughly in line with the prior year.

Transformation Program and AI Initiatives Advance

Prising said ManpowerGroup is making progress on its global strategic transformation program, which is expected to deliver $200 million in permanent cost savings in 2028. The company continues to expect restructuring and strategic transformation charges to average $10 million to $15 million per quarter through the end of the year.

The company also completed the sale of the Jefferson Wells U.S. business during the second quarter. Prising described the sale as part of a broader effort to prioritize investment and management attention on core, higher-return opportunities.

Frankiewicz said ManpowerGroup is using AI in two main areas: improving internal effectiveness and creating new commercial opportunities. She said AI-based sales tools are being used in many of the company’s largest markets and are on track to scale to nearly 70% of revenue by year-end.

The company is also expanding AI-powered screening and interviewing tools. Frankiewicz said those tools are on track to scale to 70% of revenue by year-end and are helping improve fill rates and time to hire. In response to an analyst question, she said early-in-the-funnel interview tools have produced a 67% decrease in time to fill after nine months of use.

Frankiewicz also highlighted partnerships with SoundHound AI and IBM watsonx Orchestrate. She said the company has begun converting SoundHound-related opportunities into customer engagements, with traction among healthcare clients. She also said Experis is working with IBM on Accelerate Workflow, which combines AI technology implementation, workforce transformation and specialized talent.

In the Q&A, Frankiewicz said partnership-driven revenue is expected to be between $50 million and $100 million this year, with nearly 100 qualified leads in the pipeline.

Third-Quarter Guidance Calls for Continued Growth

For the third quarter of 2026, ManpowerGroup forecast EPS of $0.96 to $1.06, including an unfavorable foreign currency impact of $0.02 per share. The company expects organic days-adjusted constant currency revenue growth of 6% at the midpoint, continuing the second-quarter growth rate.

Gross profit margin is expected to be about 16% at the midpoint, reflecting the full-quarter impact of the Jefferson Wells disposition and current business mix. EBITDA margin is projected to rise 10 basis points year over year at the midpoint.

Prising said the company is encouraged by its second-quarter performance and expects momentum to continue in the second half of the year. He said commercial execution, improving demand and cost management are helping drive operating leverage and profitability.

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.

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