What ManpowerGroup (MAN) Said on Its Q3 Earnings Call

Key Points

• Leadership transition: President and Chief Strategy Officer Becky Frankiewicz will become CEO on Jan. 1, 2027, while current CEO Jonas Prising moves to executive chair as part of the company’s internal succession plan.
• Q3 performance improved: Revenue reached $4.8 billion, with organic constant-currency growth of 6%; adjusted EBITDA rose 14% and margin expanded to 2.2%. Manpower and Experis showed particularly strong momentum, including 15% U.S. growth for Manpower.
• Outlook and transformation: ManpowerGroup expects fourth-quarter constant-currency revenue growth of 3%–7% and adjusted EPS of $1.03–$1.13. Management reaffirmed its goal of $200 million in annual cost savings by 2028, continued AI expansion, and a near-term focus on strengthening the balance sheet before resuming share repurchases.

ManpowerGroup NYSE: MAN reported third-quarter 2026 revenue growth, margin expansion and improving trends in its Experis and Talent Solutions businesses, while also announcing that President and Chief Strategy Officer Becky Frankiewicz will become chief executive officer effective Jan. 1, 2027.

Frankiewicz will join the company’s board when she assumes the CEO role. Current Chair and CEO Jonas Prising will transition to Executive Chair. Prising said the leadership change was part of the board’s long-term succession planning and reflects the company’s focus on developing leadership internally.

“Becky knows our business inside and out,” Prising said, citing her leadership of the North American region as well as her oversight of global strategy and commercial performance. Frankiewicz said she is committed to the company’s transformation strategy and its stated cost-savings and margin-improvement objectives.

Third-Quarter Results

ManpowerGroup reported revenue of $4.8 billion for the third quarter, while system-wide revenue, including franchise operations, was $5.3 billion. Organic, days-adjusted revenue increased 6% in constant currency, while reported constant-currency revenue growth was 5%.

Adjusted EBITDA totaled $107 million, up 14% year over year in constant currency. Adjusted EBITDA margin was 2.2%, expanding 10 basis points from a year earlier. Adjusted earnings per share were $1.01, at the midpoint of the company’s guidance range, while reported EPS was $0.71.

Gross margin was 15.9%. Chief Financial Officer Jack McGinnis said staffing margin was stable sequentially, although gross margin reflected a 50-basis-point year-over-year reduction in staffing margin due to mix changes. Softer permanent recruitment activity in France and certain other markets reduced gross margin by 10 basis points, while lower outplacement activity at Right Management accounted for another 10-basis-point reduction.

Adjusted SG&A expense declined 2% in constant currency, as the company continued to manage operating costs and implement its transformation programs. Reported SG&A was $685 million, including restructuring and strategic transformation costs of $16 million and a $2 million charge tied to the U.S. Jefferson Wells disposition.

Brand Performance and Regional Trends

The company’s Manpower brand generated 7% organic constant-currency revenue growth, compared with 8% growth in the preceding quarter. Experis revenue was flat, improving from a 2% decline in the second quarter, while Talent Solutions revenue increased 1%, compared with flat revenue previously.

• Manpower: The business continued to benefit from commercial staffing demand, and professional staffing returned to growth during the quarter. In the U.S., Manpower revenue rose 15% on a days-adjusted basis, marking its ninth consecutive quarter of growth. The company cited new client wins, expansion with existing clients, demand in food manufacturing and logistics, and opportunities related to automation and reshoring.
• Experis: The technology talent and services business showed improving global trends, including 4% revenue growth for Experis in the U.S. The company cited activity in financial services, healthcare and energy, where clients are investing in data governance, AI implementation and cloud optimization.
• Talent Solutions: Revenue improved from the second quarter, led by continued growth in managed service provider offerings and an improvement in recruitment process outsourcing, which returned to slight growth. Right Management declined as outplacement activity slowed.

In the Americas, revenue rose 14% in constant currency to $1.2 billion. U.S. revenue increased 9% on an organic, days-adjusted basis to $729 million. Southern Europe revenue grew 2% in constant currency to $2.2 billion, with Italy up 5% while France declined 2%.

Management said France experienced volatility during the quarter but saw improving trends in September and early October. McGinnis pointed to French manufacturing purchasing managers’ index trends, saying July represented the weakest point of the quarter before improvement in August and September. The company expects a modestly better year-over-year revenue trend in France during the fourth quarter.

Northern Europe revenue grew 6% in constant currency to $861 million, supported by 7% growth in the United Kingdom and what management described as very significant growth in Germany. Asia Pacific Middle East revenue rose 4% to $515 million, including 3% growth in Japan.

Transformation and AI Initiatives

Management reiterated its goal of delivering $200 million in permanent annual cost savings by 2028. The company has been redesigning sales and recruitment processes in the U.S. and is expanding that front-office program to the United Kingdom, with plans to scale it more broadly.

Frankiewicz said the transformation is intended to lower the company’s cost to serve, improve productivity and give teams more capacity to pursue growth. In response to an analyst question, she said she was “fully committed” to the company’s previously outlined 110-basis-point margin-improvement objective.

The company also continued to expand AI-enabled talent-screening capabilities, which it said now reach 70% of revenue after extensions in Italy and the U.S. during the quarter. Management said these tools are helping improve fill rates, accelerate hiring and enhance the candidate experience.

Frankiewicz said partnerships with organizations including SoundHound AI, IBM watsonx Orchestrate, AWS, SAP and Microsoft are beginning to produce commercial benefits, including greater share of client spending and deeper involvement in client transformation programs.

Fourth-Quarter Outlook

For the fourth quarter, ManpowerGroup forecast constant-currency revenue growth of 3% to 7%, or 5% at the midpoint. On an organic, days-adjusted constant-currency basis, the midpoint implies 4% growth after accounting for business days and dispositions.

The company expects gross margin of 15.9% at the midpoint and projects adjusted EBITDA margin expansion of 20 basis points year over year, an improvement from the 10-basis-point expansion recorded through the first nine months of 2026. Fourth-quarter EPS is forecast at $1.03 to $1.13, excluding restructuring and global strategic transformation costs.

Free cash flow was an outflow of $17 million in the third quarter, compared with a $45 million inflow a year earlier, primarily because of the timing of managed service provider payments. Excluding those quarter-end items, free cash flow would have been a $75 million inflow, McGinnis said. The company expects very strong free cash flow in the fourth quarter.

At quarter-end, ManpowerGroup had $233 million in cash, $1.1 billion in total debt and net debt of $870 million. The company did not repurchase shares during the quarter and said its immediate priority remains strengthening the balance sheet before resuming repurchases.

About ManpowerGroup (NYSE:MAN)

ManpowerGroup Inc is a global workforce solutions and staffing company headquartered in Milwaukee, Wisconsin. Founded in 1948, the company helps organizations recruit, manage and develop talent while assisting individuals with finding employment and advancing their careers.

ManpowerGroup provides temporary, permanent and contract staffing; recruitment process outsourcing; workforce management; career transition and outplacement services; and talent development programs. Its principal brands include Manpower, which focuses on staffing and workforce solutions; Experis, which specializes in information technology and professional talent; and Talent Solutions, which provides recruitment, career management and workforce consulting services.

The company serves employers and job seekers across a broad range of industries and geographic markets, with operations spanning numerous countries and territories worldwide.

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