What PageGroup (PAGE) Said on Its Q3 Earnings Call

Key Points

• PageGroup returned to growth in Q3, with gross profit rising 1.5% year over year to £190.5 million—the first quarterly increase since Q4 2022. Productivity increased 6%, supported by shifting resources toward higher-value Michael Page and Page Executive recruitment.
• Regional performance was uneven: the Americas grew 8.9% and Asia-Pacific surged 14.7%, while EMEA fell 3.8% and the U.K. declined 5.5%. Greater China, Japan, India and Southern Europe were particularly strong, offsetting weakness in France, Germany and Australia.
• Management highlighted continued uncertainty but maintained its expectation for 2026 operating profit to be about £29 million. The company ended September with approximately £6 million in net cash and has delivered about £40 million in annualized cost savings.

PageGroup LON: PAGE reported its first quarter of gross-profit growth since the fourth quarter of 2022, as improving trading in Asia-Pacific, the Americas and Southern Europe offset continued weakness in several European markets.

The recruitment group, which trades under the Michael Page brand, generated third-quarter gross profit of £190.5 million, up 1.5% in constant currencies and 1.4% at reported exchange rates from the prior year. Chief Financial Officer Kelvin Stagg said around half of the group’s business was in growth during the quarter.

Productivity, measured as gross profit per fee earner, rose 6% year over year and exceeded the level recorded in the third quarter of the company’s record 2022 year. Stagg attributed the improvement in part to the group’s strategy of moving resources from Page Personnel-level recruitment toward its Michael Page and Page Executive businesses, which operate at higher salary levels.

“The supply of talent remains a key challenge for our clients, and as a result, our permanent fee rates remain at record levels,” Stagg said.

Headcount, cash and cost actions

Fee-earner headcount fell by 63, or 1.3%, during the quarter, primarily because of fewer new starters over the summer. The group ended September with 4,851 fee earners and total headcount of 6,604. Reductions in EMEA and Asia-Pacific were partly offset by additions in the Americas and the United Kingdom.

Over the past two years, PageGroup has reduced headcount by 24% collectively in France, Germany and the U.K., while increasing it 18% across the U.S., Japan and India. Stagg said the company continues to allocate resources toward markets it sees as offering the strongest long-term structural growth opportunities while aligning staffing with current activity levels.

Net cash stood at approximately £6 million at the end of September, compared with net debt of £7 million at the end of the second quarter. The figure was before the £4.6 million interim dividend paid on Oct. 9.

The company said its cost-saving programs have delivered annualized savings of about £40 million since the strategy was launched. It incurred £2.5 million of one-off costs related to senior exits in the first half and expects a similar amount in the second half.

Regional results were mixed

EMEA, which accounted for 49% of group gross profit, declined 3.8%. Germany, the group’s largest market and 12% of group profit, declined 7%, although its contracting business grew 15% on demand for finance transformation and project-based IT implementation specialists. France, representing 11% of the group, declined 11%, with temporary recruitment down 8% and permanent recruitment down 15%.

Stagg said French clients and candidates remained cautious amid uncertainty, with clients more selective, slower to make decisions and more restrained on pay offers. The resulting hiring processes have become more complex and time to hire has increased.

Southern Europe grew 5%, led by Spain, where gross profit increased 9%. Switzerland returned to growth as the conversion of offers into placements improved. Elsewhere in Europe, the company described conditions as challenging.

The Americas, representing 22% of group gross profit, grew 8.9%. North America rose 8%, while the U.S. increased 7%, marking two years of consecutive quarterly growth. Construction grew 12% amid continued client demand and talent shortages, while manufacturing also expanded. Latin America grew 10%, with Mexico up 8%, Brazil up 5% and Colombia up 14%, supported by its technology-focused consulting operation.

Asia-Pacific, representing 18% of group gross profit, grew 14.7%. Asia increased 19%, its sixth consecutive quarter of growth, with 10 of 11 markets expanding. Greater China rose 28%, including 36% growth in mainland China, where PageGroup cited improved trading across Michael Page and Page Executive and better sentiment among clients and candidates.

Japan grew 23% in what Stagg called a record quarter, while India rose 18%, also reaching a record quarter. Australia declined 7%, however, amid a deterioration in market conditions linked to economic uncertainty.

The U.K., which made up 11% of the group, declined 5.5%, matching its second-quarter rate. Temporary recruitment rose 2%, while permanent recruitment fell 9%.

Executive recruitment and recovery outlook

Page Executive, which represents about 10% of the group, delivered its second consecutive quarter of 15% growth. Chief Executive Officer Nick Kirk said the executive-search business had become a central part of the company’s strategy and supports Michael Page by creating follow-on recruitment opportunities after senior placements.

Kirk said the group views recovery in three stages: an initial improvement in sentiment among clients and candidates; better conversion of interviews and offers into placements; and eventually a rise in overall hiring activity. He said the U.S. construction business had reached the third stage, while markets such as Germany and the U.K. may still be in the sentiment phase.

“As people start to feel better, it starts to lead to action, and then action ultimately starts to feed into our results,” Kirk said. He added that September trading was in line with management’s expectations.

Despite improvements in a number of markets, Stagg said there remains “a significant degree of uncertainty.” The company expects 2026 operating profit to be in line with company-compiled consensus of approximately £29 million.

About PageGroup (LON:PAGE)

Michael Page Changes Lives… That's our Michael Page Purpose, delivered by c.6,000 people in 34 markets, with a gross profit of over £769.6m in 2025. As a FTSE 250 company, a lot has changed since we were set up in 1976 and the Group continues to grow and evolve. What hasn't changed is our commitment to the success of our clients and candidates, and our own people. Our strategy is geared for the long-term. With world-renowned and fully integrated brands, highly trained and motivated consultants, established professional relationships and access to the best candidates, we use our established database and market-leading approach to data and innovation to pursue our objective of being the leading specialist recruitment consultancy in our chosen markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.