Kelly Reports Second-Quarter 2025 Earnings
Kelly (Nasdaq: KELYA) reported Q2 2025 financial results with revenue of $1.1 billion, up 4.2% year-over-year due to acquisitions but down 3.3% organically. The company posted operating earnings of $22.2 million and adjusted EBITDA of $37.0 million, down 8.7% from the previous year.
Key metrics include adjusted earnings per share of $0.54, compared to $0.71 in Q2 2024, impacted by increased interest expense and lower operating earnings. The company declared a quarterly dividend of $0.075 per share and expects Q3 revenue to decline 5-7% with adjusted EBITDA margin expansion of 80-90 basis points.
Kelly also announced the appointment of Nick Zuhlke as vice president, controller and chief accounting officer, effective August 11, 2025, succeeding Laura Lockhart who is retiring.
Kelly (Nasdaq: KELYA) ha comunicato i risultati finanziari del secondo trimestre 2025 con ricavi pari a 1,1 miliardi di dollari, in crescita del 4,2% su base annua grazie alle acquisizioni, ma in calo del 3,3% su base organica. L'azienda ha registrato un utile operativo di 22,2 milioni di dollari e un EBITDA rettificato di 37,0 milioni di dollari, in diminuzione dell'8,7% rispetto all'anno precedente.
I principali indicatori includono un utile per azione rettificato di 0,54 dollari, rispetto a 0,71 dollari nel secondo trimestre 2024, influenzato dall'aumento degli oneri finanziari e dalla riduzione degli utili operativi. La società ha dichiarato un dividendo trimestrale di 0,075 dollari per azione e prevede un calo dei ricavi del 5-7% nel terzo trimestre, con un'espansione del margine EBITDA rettificato di 80-90 punti base.
Kelly ha inoltre annunciato la nomina di Nick Zuhlke come vicepresidente, controller e chief accounting officer, a partire dall'11 agosto 2025, in sostituzione di Laura Lockhart, che andrà in pensione.
Kelly (Nasdaq: KELYA) reportó los resultados financieros del segundo trimestre de 2025 con ingresos de 1.100 millones de dólares, un aumento del 4,2% interanual debido a adquisiciones, pero una caída orgánica del 3,3%. La compañía registró ganancias operativas de 22,2 millones de dólares y un EBITDA ajustado de 37,0 millones de dólares, una disminución del 8,7% respecto al año anterior.
Las métricas clave incluyen un beneficio ajustado por acción de 0,54 dólares, comparado con 0,71 dólares en el segundo trimestre de 2024, afectado por un mayor gasto en intereses y menores ganancias operativas. La empresa declaró un dividendo trimestral de 0,075 dólares por acción y espera que los ingresos del tercer trimestre disminuyan entre un 5 y 7%, con una expansión del margen EBITDA ajustado de 80 a 90 puntos básicos.
Kelly también anunció el nombramiento de Nick Zuhlke como vicepresidente, controlador y director contable, efectivo desde el 11 de agosto de 2025, en reemplazo de Laura Lockhart, quien se retira.
Kelly (나스닥: KELYA)는 2025년 2분기 재무 실적을 발표하며, 11억 달러의 매출을 기록했으며, 이는 인수합병에 힘입어 전년 대비 4.2% 증가했으나 유기적 성장률은 3.3% 감소했습니다. 회사는 영업이익 2,220만 달러와 조정 EBITDA 3,700만 달러를 기록했으며, 이는 전년 대비 8.7% 감소한 수치입니다.
주요 지표로는 조정 주당순이익 0.54달러가 있으며, 이는 2024년 2분기의 0.71달러에 비해 이자 비용 증가와 영업이익 감소의 영향을 받았습니다. 회사는 주당 0.075달러의 분기 배당금을 선언했으며, 3분기 매출은 5~7% 감소할 것으로 예상되지만 조정 EBITDA 마진은 80~90 베이시스 포인트 확대될 전망입니다.
또한 Kelly는 2025년 8월 11일부로 Nick Zuhlke를 부사장, 회계담당 이사 및 최고회계책임자로 임명했다고 발표했으며, 이는 은퇴하는 Laura Lockhart의 후임입니다.
Kelly (Nasdaq : KELYA) a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires de 1,1 milliard de dollars, en hausse de 4,2 % sur un an grâce aux acquisitions, mais en baisse de 3,3 % à périmètre constant. La société a enregistré un résultat opérationnel de 22,2 millions de dollars et un EBITDA ajusté de 37,0 millions de dollars, en recul de 8,7 % par rapport à l'année précédente.
Les indicateurs clés incluent un bénéfice ajusté par action de 0,54 dollar, contre 0,71 dollar au deuxième trimestre 2024, impacté par une hausse des charges d’intérêts et une baisse des résultats opérationnels. La société a déclaré un dividende trimestriel de 0,075 dollar par action et prévoit une baisse du chiffre d'affaires de 5 à 7 % au troisième trimestre, avec une expansion de la marge EBITDA ajustée de 80 à 90 points de base.
Kelly a également annoncé la nomination de Nick Zuhlke au poste de vice-président, contrôleur et directeur comptable, à compter du 11 août 2025, succédant à Laura Lockhart qui part à la retraite.
Kelly (Nasdaq: KELYA) meldete die Finanzergebnisse für das zweite Quartal 2025 mit Einnahmen von 1,1 Milliarden US-Dollar, was einem Anstieg von 4,2 % im Jahresvergleich aufgrund von Akquisitionen entspricht, jedoch einem organischen Rückgang von 3,3 %. Das Unternehmen verzeichnete betriebliche Erträge von 22,2 Millionen US-Dollar und ein bereinigtes EBITDA von 37,0 Millionen US-Dollar, was einem Rückgang von 8,7 % gegenüber dem Vorjahr entspricht.
Wichtige Kennzahlen umfassen ein bereinigtes Ergebnis je Aktie von 0,54 US-Dollar, verglichen mit 0,71 US-Dollar im zweiten Quartal 2024, beeinflusst durch gestiegene Zinsaufwendungen und niedrigere operative Gewinne. Das Unternehmen erklärte eine Quartalsdividende von 0,075 US-Dollar je Aktie und erwartet für das dritte Quartal einen Umsatzrückgang von 5-7 % bei einer Ausweitung der bereinigten EBITDA-Marge um 80-90 Basispunkte.
Kelly gab außerdem die Ernennung von Nick Zuhlke zum Vice President, Controller und Chief Accounting Officer bekannt, wirksam ab dem 11. August 2025, als Nachfolger von Laura Lockhart, die in den Ruhestand geht.
- Revenue increased 4.2% year-over-year to $1.1 billion
- Growth in K-12 staffing, telecom, engineering solutions, and payroll process outsourcing
- Education segment showed 5.6% growth in Q2
- Expected Q3 adjusted EBITDA margin expansion of 80-90 basis points
- Maintained quarterly dividend of $0.075 per share
- Organic revenue declined 3.3% excluding acquisitions
- Adjusted EBITDA decreased 8.7% to $37.0 million
- Adjusted earnings per share dropped to $0.54 from $0.71 year-over-year
- Expected Q3 revenue decline of 5-7%
- Margin pressure in SET and ETM segments
- Increased interest expense due to MRP acquisition debt
Insights
Kelly reports mixed Q2 results with acquisition-driven growth but organic revenue decline and margin pressure; outlook cautious.
Kelly's Q2 2025 results present a mixed financial picture with total revenue up
While reported operating earnings increased to
The Education segment stands out as a bright spot with
Looking forward, management has issued cautious guidance for Q3, projecting a
The company maintained its quarterly dividend of
The earnings per share decline from
TROY, Mich., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the second quarter of 2025.
- Q2 revenue of
$1.1 billion , up4.2% year-over-year reflecting previously disclosed acquisitions, and down3.3% on an organic basis - Q2 operating earnings of
$22.2 million ;$24.6 million on an adjusted basis, down12.1% versus the prior year period - Q2 adjusted EBITDA of
$37.0 million , down8.7% versus the prior year; adjusted EBITDA margin decreased 40 basis points (“bps”) to3.4% - Company expects year-over-year revenue decline of
5% to7% in Q3 driven by reduced demand for U.S. federal contractors and from certain large customers. Adjusted EBITDA margin expansion of 80 to 90 bps is expected in Q3 and modest year-over-year margin improvement for the full year.
“In the second quarter, Kelly continued to drive growth in more resilient markets, including K-12 staffing in our Education business, telecom and engineering solutions in SET, and payroll process outsourcing in ETM. Across the business, particularly in areas where customers are taking a more measured approach to hiring, we maintained our focus on aligning resource levels with demand,” said Peter Quigley, president and chief executive officer. “Our results reflect our commitment to staying close to our customers and creating opportunities in the current operating environment. By meeting employers’ evolving needs and executing on our efficiency and growth initiatives, we’ll continue to deliver near-term results while positioning Kelly for the future.”
Financial Results for the thirteen-week period ended June 29, 2025:
Revenue of
Operating earnings of
Earnings per share were
Financial Results for the 26-week period ended June 29, 2025:
Revenue of
Operating earnings of
Earnings per share were
_________________________________________
1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document.
Quarterly Cash Dividend:
Kelly also reported that on August 6, its board of directors declared a dividend of
In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call at 9 a.m. ET on August 7 to review the financial and operation results from the quarter. The presentation and a link to the live webcast will be accessible through the Company’s public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast.
Chief Accounting Officer Transition:
Kelly also announced that it has appointed Nick Zuhlke as vice president, controller and chief accounting officer, effective August 11, 2025. He succeeds Laura Lockhart, whose planned retirement was previously announced by the Company. Zuhlke brings to Kelly decades of global finance leadership experience with DexKo Global, Plastipak Holdings, and KPMG.
Forward-Looking Statements:
This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on second parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was
KLYA-FIN
| ANALYST & MEDIA CONTACT: |
| Scott Thomas |
| (248) 251-7264 |
| scott.thomas@kellyservices.com |
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
| FOR THE 13 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (In millions of dollars except per share data) | |||||||||||||
| % | |||||||||||||
| 2025 | 2024 | Change | Change | ||||||||||
| Revenue from services | $ | 1,101.8 | $ | 1,057.5 | $ | 44.3 | 4.2 | % | |||||
| Cost of services | 876.3 | 843.8 | 32.5 | 3.8 | |||||||||
| Gross profit | 225.5 | 213.7 | 11.8 | 5.5 | |||||||||
| Selling, general and administrative expenses | 207.3 | 191.5 | 15.8 | 8.2 | |||||||||
| Asset impairment charge | — | 5.5 | (5.5 | ) | NM | ||||||||
| (Gain) loss on sale of EMEA staffing operations | (4.0 | ) | 10.0 | (14.0 | ) | (139.3 | ) | ||||||
| Gain on sale of assets | — | (5.5 | ) | 5.5 | NM | ||||||||
| Earnings from operations | 22.2 | 12.2 | 10.0 | 81.0 | |||||||||
| Other income (expense), net | (2.3 | ) | (6.5 | ) | 4.2 | 65.0 | |||||||
| Earnings before taxes | 19.9 | 5.7 | 14.2 | 249.1 | |||||||||
| Income tax expense | 0.9 | 1.1 | (0.2 | ) | (23.8 | ) | |||||||
| Net earnings | $ | 19.0 | $ | 4.6 | $ | 14.4 | 314.7 | % | |||||
| Basic earnings per share | $ | 0.52 | $ | 0.13 | $ | 0.39 | 300.0 | % | |||||
| Diluted earnings per share | $ | 0.52 | $ | 0.12 | $ | 0.40 | 333.3 | % | |||||
| STATISTICS: | |||||||||||||
| Permanent placement revenue (included in revenue from services) | $ | 14.8 | $ | 10.7 | $ | 4.1 | 38.7 | % | |||||
| Gross profit rate | 20.5 | % | 20.2 | % | 0.3 | pts. | |||||||
| Adjusted EBITDA | $ | 37.0 | $ | 40.5 | $ | (3.5 | ) | ||||||
| Adjusted EBITDA margin | 3.4 | % | 3.8 | % | (0.4 | ) | pts. | ||||||
| Effective income tax rate | 4.2 | % | 19.4 | % | (15.2 | ) | pts. | ||||||
| Average number of shares outstanding (millions): | |||||||||||||
| Basic | 35.2 | 35.5 | |||||||||||
| Diluted | 35.7 | 35.9 | |||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
| FOR THE 26 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 | |||||||||||||
| (UNAUDITED) | |||||||||||||
| (In millions of dollars except per share data) | |||||||||||||
| % | |||||||||||||
| 2025 | 2024 | Change | Change | ||||||||||
| Revenue from services | $ | 2,266.7 | $ | 2,102.6 | $ | 164.1 | 7.8 | % | |||||
| Cost of services | 1,804.7 | 1,683.2 | 121.5 | 7.2 | |||||||||
| Gross profit | 462.0 | 419.4 | 42.6 | 10.2 | |||||||||
| Selling, general and administrative expenses | 433.0 | 382.0 | 51.0 | 13.3 | |||||||||
| Asset impairment charge | — | 5.5 | (5.5 | ) | NM | ||||||||
| Gain on sale of EMEA staffing operations | (4.0 | ) | (1.6 | ) | (2.4 | ) | (139.3 | ) | |||||
| Gain on sale of assets | — | (5.5 | ) | 5.5 | NM | ||||||||
| Earnings from operations | 33.0 | 39.0 | (6.0 | ) | (15.5 | ) | |||||||
| Gain on forward contract | — | 1.2 | (1.2 | ) | NM | ||||||||
| Other income (expense), net | (5.5 | ) | (4.7 | ) | (0.8 | ) | (15.8 | ) | |||||
| Earnings before taxes | 27.5 | 35.5 | (8.0 | ) | (22.6 | ) | |||||||
| Income tax expense | 2.7 | 5.1 | (2.4 | ) | (48.0 | ) | |||||||
| Net earnings | $ | 24.8 | $ | 30.4 | $ | (5.6 | ) | (18.3 | ) | % | |||
| Basic earnings per share | $ | 0.68 | $ | 0.84 | $ | (0.16 | ) | (19.0 | ) | % | |||
| Diluted earnings per share | $ | 0.67 | $ | 0.83 | $ | (0.16 | ) | (19.3 | ) | % | |||
| STATISTICS: | |||||||||||||
| Permanent placement revenue (included in revenue from services) | $ | 26.3 | $ | 18.7 | $ | 7.6 | 40.7 | % | |||||
| Gross profit rate | 20.4 | % | 19.9 | % | 0.5 | pts. | |||||||
| Adjusted EBITDA | $ | 71.9 | $ | 73.8 | $ | (1.9 | ) | ||||||
| Adjusted EBITDA margin | 3.2 | % | 3.5 | % | (0.3 | ) | pts. | ||||||
| Effective income tax rate | 9.7 | % | 14.4 | % | (4.7 | ) | pts. | ||||||
| Average number of shares outstanding (millions): | |||||||||||||
| Basic | 35.1 | 35.5 | |||||||||||
| Diluted | 35.6 | 35.9 | |||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||
| SEGMENT INFORMATION | |||||||||
| (UNAUDITED) | |||||||||
| (In millions of dollars) | |||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. Adjusted SG&A expenses and business unit profit (loss) further exclude integration, realignment and restructuring charges. | |||||||||
| Second Quarter | |||||||||
| % | |||||||||
| 2025 | 2024 | Change | |||||||
| Enterprise Talent Management | |||||||||
| Revenue from services | $ | 520.2 | $ | 541.2 | (3.9 | ) | % | ||
| Gross profit | 104.0 | 109.0 | (4.6 | ) | |||||
| Adjusted SG&A expenses | 91.8 | 93.2 | (1.6 | ) | |||||
| Integration, realignment and restructuring charges | 1.1 | 0.3 | 387.4 | ||||||
| Total SG&A expenses | 92.9 | 93.5 | (0.7 | ) | |||||
| Business unit profit (loss) | 11.1 | 15.5 | (28.5 | ) | |||||
| Adjusted business unit profit (loss) | 12.2 | 15.8 | (22.6 | ) | |||||
| Gross profit rate | 20.0 | % | 20.1 | % | (0.1 | ) | pts. | ||
| Science, Engineering & Technology | |||||||||
| Revenue from services | $ | 317.3 | $ | 265.7 | 19.4 | % | |||
| Gross profit | 82.4 | 67.8 | 21.5 | ||||||
| Adjusted SG&A expenses | 62.2 | 48.6 | 28.1 | ||||||
| Integration, realignment and restructuring charges | 0.9 | 0.3 | 166.9 | ||||||
| Total SG&A expenses | 63.1 | 48.9 | 29.0 | ||||||
| Business unit profit (loss) | 19.3 | 18.9 | 2.1 | ||||||
| Adjusted business unit profit (loss) | 20.2 | 19.2 | 4.9 | ||||||
| Gross profit rate | 26.0 | % | 25.5 | % | 0.5 | pts. | |||
| Education | |||||||||
| Revenue from services | $ | 265.3 | $ | 251.1 | 5.6 | % | |||
| Gross profit | 39.1 | 36.9 | 6.1 | ||||||
| Adjusted SG&A expenses | 25.4 | 24.2 | 5.2 | ||||||
| Integration, realignment and restructuring charges | 0.1 | — | NM | ||||||
| Total SG&A expenses | 25.5 | 24.2 | 5.6 | ||||||
| Business unit profit (loss) | 13.6 | 12.7 | 7.1 | ||||||
| Adjusted business unit profit (loss) | 13.7 | 12.7 | 7.9 | ||||||
| Gross profit rate | 14.7 | % | 14.7 | % | — | pts. | |||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||
| RESULTS OF OPERATIONS BY SEGMENT | |||||||||
| (UNAUDITED) | |||||||||
| (In millions of dollars) | |||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. Adjusted SG&A expenses and business unit profit (loss) further exclude integration, realignment and restructuring charges. | |||||||||
| June Year-to-Date | |||||||||
| % | |||||||||
| 2025 | 2024 | Change | |||||||
| Enterprise Talent Management | |||||||||
| Revenue from services | $ | 1,054.2 | $ | 1,065.3 | (1.0 | ) | % | ||
| Gross profit | 212.0 | 215.2 | (1.5 | ) | |||||
| Adjusted SG&A expenses | 190.3 | 190.6 | (0.2 | ) | |||||
| Integration, realignment and restructuring charges | 3.8 | 1.0 | 296.2 | ||||||
| Total SG&A expenses | 194.1 | 191.6 | 1.3 | ||||||
| Business unit profit (loss) | 17.9 | 23.6 | (24.0 | ) | |||||
| Adjusted business unit profit (loss) | 21.7 | 24.6 | (11.4 | ) | |||||
| Gross profit rate | 20.1 | % | 20.2 | % | (0.1 | ) | pts. | ||
| Science, Engineering & Technology | |||||||||
| Revenue from services | $ | 639.7 | $ | 497.3 | 28.6 | % | |||
| Gross profit | 164.7 | 125.2 | 31.5 | ||||||
| Adjusted SG&A expenses | 130.0 | 91.8 | 41.6 | ||||||
| Integration, realignment and restructuring charges | 2.0 | 0.3 | NM | ||||||
| Total SG&A expenses | 132.0 | 92.1 | 43.3 | ||||||
| Business unit profit (loss) | 32.7 | 33.1 | (1.3 | ) | |||||
| Adjusted business unit profit (loss) | 34.7 | 33.4 | 3.6 | ||||||
| Gross profit rate | 25.7 | % | 25.2 | % | 0.5 | pts. | |||
| Education | |||||||||
| Revenue from services | $ | 574.3 | $ | 541.0 | 6.1 | % | |||
| Gross profit | 85.3 | 79.0 | 8.1 | ||||||
| Adjusted SG&A expenses | 52.3 | 48.2 | 8.7 | ||||||
| Integration, realignment and restructuring charges | 0.1 | — | NM | ||||||
| Total SG&A expenses | 52.4 | 48.2 | 9.0 | ||||||
| Business unit profit (loss) | 32.9 | 30.8 | 6.6 | ||||||
| Adjusted business unit profit (loss) | 33.0 | 30.8 | 7.1 | ||||||
| Gross profit rate | 14.9 | % | 14.6 | % | 0.3 | pts. | |||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (UNAUDITED) | ||||||||||
| (In millions of dollars) | ||||||||||
| June 29, 2025 | December 29, 2024 | June 30, 2024 | ||||||||
| Current Assets | ||||||||||
| Cash and equivalents | $ | 18.0 | $ | 39.0 | $ | 38.2 | ||||
| Trade accounts receivable, less allowances of | 1,181.1 | 1,255.5 | 1,193.9 | |||||||
| Prepaid expenses and other current assets | 54.0 | 71.0 | 78.7 | |||||||
| Total current assets | 1,253.1 | 1,365.5 | 1,310.8 | |||||||
| Noncurrent Assets | ||||||||||
| Property and equipment, net | 22.8 | 25.8 | 26.8 | |||||||
| Operating lease right-of-use assets | 44.5 | 47.0 | 53.1 | |||||||
| Deferred taxes | 337.3 | 330.1 | 302.3 | |||||||
| Retirement plan assets | 272.1 | 258.1 | 245.9 | |||||||
| Goodwill | 304.1 | 304.2 | 372.6 | |||||||
| Intangibles, net | 241.0 | 256.3 | 272.3 | |||||||
| Other assets | 37.0 | 45.3 | 44.4 | |||||||
| Total noncurrent assets | 1,258.8 | 1,266.8 | 1,317.4 | |||||||
| Total Assets | $ | 2,511.9 | $ | 2,632.3 | $ | 2,628.2 | ||||
| Current Liabilities | ||||||||||
| Accounts payable and accrued liabilities | $ | 613.8 | $ | 613.8 | $ | 594.8 | ||||
| Operating lease liabilities | 12.1 | 12.3 | 12.4 | |||||||
| Accrued payroll and related taxes | 161.6 | 163.9 | 168.3 | |||||||
| Accrued workers' compensation and other claims | 18.8 | 19.0 | 18.7 | |||||||
| Income and other taxes | 20.4 | 17.5 | 18.1 | |||||||
| Total current liabilities | 826.7 | 826.5 | 812.3 | |||||||
| Noncurrent Liabilities | ||||||||||
| Long-term debt | 74.3 | 239.4 | 210.4 | |||||||
| Operating lease liabilities | 47.5 | 50.9 | 49.6 | |||||||
| Accrued workers' compensation and other claims | 33.4 | 33.8 | 34.7 | |||||||
| Accrued retirement benefits | 254.5 | 239.9 | 232.6 | |||||||
| Other long-term liabilities | 9.4 | 7.2 | 8.7 | |||||||
| Total noncurrent liabilities | 419.1 | 571.2 | 536.0 | |||||||
| Stockholders' Equity | ||||||||||
| Common stock | 38.5 | 38.5 | 38.5 | |||||||
| Treasury stock | (55.3 | ) | (61.4 | ) | (52.3 | ) | ||||
| Paid-in capital | 34.0 | 34.2 | 29.5 | |||||||
| Earnings invested in the business | 1,249.5 | 1,230.2 | 1,266.7 | |||||||
| Accumulated other comprehensive income (loss) | (0.6 | ) | (6.9 | ) | (2.5 | ) | ||||
| Total stockholders' equity | 1,266.1 | 1,234.6 | 1,279.9 | |||||||
| Total Liabilities and Stockholders' Equity | $ | 2,511.9 | $ | 2,632.3 | $ | 2,628.2 | ||||
| STATISTICS: | ||||||||||
| Working Capital | $ | 426.4 | $ | 539.0 | $ | 498.5 | ||||
| Current Ratio | 1.5 | 1.7 | 1.6 | |||||||
| Debt-to-capital % | 5.5 | % | 16.2 | % | 14.1 | % | ||||
| Global Days Sales Outstanding | 59 | 59 | 57 | |||||||
| Year-to-Date Free Cash Flow | $ | 114.8 | $ | 15.8 | $ | 25.5 | ||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| FOR THE 26 WEEKS ENDED JUNE 29, 2025 AND JUNE 30, 2024 | ||||||
| (UNAUDITED) | ||||||
| (In millions of dollars) | ||||||
| 2025 | 2024 | |||||
| Cash flows from operating activities: | ||||||
| Net earnings | $ | 24.8 | $ | 30.4 | ||
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||||
| Asset impairment charge | — | 5.5 | ||||
| Depreciation and amortization | 21.5 | 17.6 | ||||
| Operating lease asset amortization | 5.4 | 4.6 | ||||
| Provision for credit losses and sales allowances | 3.2 | (0.2 | ) | |||
| Stock-based compensation | 7.2 | 5.2 | ||||
| Gain on sale of EMEA staffing operations | (4.0 | ) | (1.6 | ) | ||
| Gain on sale of assets | — | (5.5 | ) | |||
| Gain on forward contract | — | (1.2 | ) | |||
| Other, net | (0.1 | ) | (1.1 | ) | ||
| Changes in operating assets and liabilities, net of acquisition | 61.3 | (21.5 | ) | |||
| Net cash from operating activities | 119.3 | 32.2 | ||||
| Cash flows from investing activities: | ||||||
| Capital expenditures | (4.5 | ) | (6.7 | ) | ||
| Proceeds from sale of EMEA staffing operations, net of cash disposed | 21.8 | 77.1 | ||||
| Proceeds from sale of PersolKelly investment | 6.4 | — | ||||
| Proceeds from sale of assets | — | 4.4 | ||||
| Acquisition of company, net of cash received | — | (427.4 | ) | |||
| Payment for settlement of forward contract | — | (2.4 | ) | |||
| Other investing activities | 1.0 | 1.9 | ||||
| Net cash from (used in) investing activities | 24.7 | (353.1 | ) | |||
| Cash flows from financing activities: | ||||||
| Proceeds from long-term debt | 774.4 | 378.6 | ||||
| Payments on long-term debt | (939.5 | ) | (168.2 | ) | ||
| Dividend payments | (5.5 | ) | (5.4 | ) | ||
| Payments of tax withholding for stock awards | (1.9 | ) | (2.1 | ) | ||
| Other financing activities | (0.2 | ) | (1.3 | ) | ||
| Net cash used in (from) financing activities | (172.7 | ) | 201.6 | |||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 7.6 | (2.7 | ) | |||
| Net change in cash, cash equivalents and restricted cash | (21.1 | ) | (122.0 | ) | ||
| Cash, cash equivalents and restricted cash at beginning of period | 45.6 | 167.6 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 24.5 | $ | 45.6 | ||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| REVENUE FROM SERVICES BY SERVICE TYPE | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| Second Quarter 2025 | |||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||
| Enterprise Talent Management | $ | 269.6 | $ | 120.8 | $ | 126.9 | $ | 2.9 | $ | 520.2 | |||||
| Science, Engineering & Technology | 200.7 | 107.3 | — | 9.3 | 317.3 | ||||||||||
| Education | 262.7 | — | — | 2.6 | 265.3 | ||||||||||
| Total Segment Revenue | $ | 733.0 | $ | 228.1 | $ | 126.9 | $ | 14.8 | $ | 1,102.8 | |||||
| Intersegment | (1.0 | ) | |||||||||||||
| Total Revenue from Services | $ | 1,101.8 | |||||||||||||
| Second Quarter 2024 | |||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||
| Enterprise Talent Management | $ | 292.2 | $ | 128.8 | $ | 117.9 | $ | 2.3 | $ | 541.2 | |||||
| Science, Engineering & Technology | 164.7 | 95.2 | — | 5.8 | 265.7 | ||||||||||
| Education | 248.5 | — | — | 2.6 | 251.1 | ||||||||||
| Total Segment Revenue | $ | 705.4 | $ | 224.0 | $ | 117.9 | $ | 10.7 | $ | 1,058.0 | |||||
| Intersegment | (0.5 | ) | |||||||||||||
| Total Revenue from Services | $ | 1,057.5 | |||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| REVENUE FROM SERVICES BY SERVICE TYPE (continued) | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| June Year-to-Date 2025 | |||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||
| Enterprise Talent Management | $ | 550.3 | $ | 254.0 | $ | 244.7 | $ | 5.2 | $ | 1,054.2 | |||||
| Science, Engineering & Technology | 405.6 | 216.7 | — | 17.4 | 639.7 | ||||||||||
| Education | 570.6 | — | — | 3.7 | 574.3 | ||||||||||
| Total Segment Revenue | $ | 1,526.5 | $ | 470.7 | $ | 244.7 | $ | 26.3 | $ | 2,268.2 | |||||
| Intersegment | (1.5 | ) | |||||||||||||
| Total Revenue from Services | $ | 2,266.7 | |||||||||||||
| June Year-to-Date 2024 | |||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||
| Enterprise Talent Management | $ | 578.1 | $ | 259.6 | $ | 222.6 | $ | 5.0 | $ | 1,065.3 | |||||
| Science, Engineering & Technology | 304.7 | 182.6 | — | 10.0 | 497.3 | ||||||||||
| Education | 537.3 | — | — | 3.7 | 541.0 | ||||||||||
| Total Segment Revenue | $ | 1,420.1 | $ | 442.2 | $ | 222.6 | $ | 18.7 | $ | 2,103.6 | |||||
| Intersegment | (1.0 | ) | |||||||||||||
| Total Revenue from Services | $ | 2,102.6 | |||||||||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| Second Quarter | June Year-to-Date | ||||||||||||||
| SG&A Expenses: | 2025 | 2024 | 2025 | 2024 | |||||||||||
| As reported | $ | 207.3 | $ | 191.5 | $ | 433.0 | $ | 382.0 | |||||||
| Integration and realignment costs(1) | (6.1 | ) | — | (16.8 | ) | — | |||||||||
| Transaction costs(2) | (0.1 | ) | (1.6 | ) | (0.4 | ) | (7.2 | ) | |||||||
| Executive transition costs(3) | (0.2 | ) | — | (0.5 | ) | — | |||||||||
| Restructuring(6) | — | (4.3 | ) | — | (6.6 | ) | |||||||||
| Adjusted SG&A expenses | $ | 200.9 | $ | 185.6 | $ | 415.3 | $ | 368.2 | |||||||
| Second Quarter | June Year-to-Date | ||||||||||||||
| Earnings from Operations: | 2025 | 2024 | 2025 | 2024 | |||||||||||
| As reported | $ | 22.2 | $ | 12.2 | $ | 33.0 | $ | 39.0 | |||||||
| Integration and realignment costs(1) | 6.1 | — | 16.8 | — | |||||||||||
| Transaction costs(2) | 0.1 | 1.6 | 0.4 | 7.2 | |||||||||||
| Executive transition costs(3) | 0.2 | — | 0.5 | — | |||||||||||
| (Gain) loss on sale of EMEA staffing operations(4) | (4.0 | ) | 10.0 | (4.0 | ) | (1.6 | ) | ||||||||
| Restructuring(6) | — | 4.3 | — | 6.6 | |||||||||||
| Gain on sale of assets(7) | — | (5.5 | ) | — | (5.5 | ) | |||||||||
| Asset impairment charge(8) | — | 5.5 | — | 5.5 | |||||||||||
| Adjusted earnings from operations | $ | 24.6 | $ | 28.1 | $ | 46.7 | $ | 51.2 | |||||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (In millions of dollars except per share data) | ||||||||||||||||
| Second Quarter | June Year-to-Date | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Income tax expense | $ | 0.9 | $ | 1.1 | $ | 2.7 | $ | 5.1 | ||||||||
| Taxes on integration and realignment costs(1) | 1.6 | — | 4.3 | — | ||||||||||||
| Taxes on transaction costs(2) | — | 1.1 | 0.1 | 2.3 | ||||||||||||
| Taxes on executive transition costs(3) | — | — | 0.1 | — | ||||||||||||
| Taxes on (gain) loss on sale of EMEA staffing operations(4) | — | — | — | (1.2 | ) | |||||||||||
| Taxes on restructuring charges(6) | — | 1.1 | — | 1.7 | ||||||||||||
| Taxes on gain on sale of assets(7) | — | (1.4 | ) | — | (1.4 | ) | ||||||||||
| Taxes on asset impairment charge(8) | — | 1.4 | — | 1.4 | ||||||||||||
| Adjusted income tax expense | $ | 2.5 | $ | 3.3 | $ | 7.2 | $ | 7.9 | ||||||||
| Second Quarter | June Year-to-Date | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net earnings | $ | 19.0 | $ | 4.6 | $ | 24.8 | $ | 30.4 | ||||||||
| Integration and realignment costs, net of taxes(1) | 4.5 | — | 12.5 | — | ||||||||||||
| Transaction costs, net of taxes(2) | 0.1 | 8.3 | 0.4 | 12.7 | ||||||||||||
| Executive transition costs, net of taxes(3) | 0.2 | — | 0.4 | — | ||||||||||||
| (Gain) loss on sale of EMEA staffing operations, net of taxes(4) | (4.0 | ) | 10.0 | (4.0 | ) | (0.4 | ) | |||||||||
| Gain on forward contract, net of taxes(5) | — | — | — | (1.2 | ) | |||||||||||
| Restructuring charges, net of taxes(6) | — | 3.2 | — | 4.9 | ||||||||||||
| Gain on sale of assets, net of taxes(7) | — | (4.1 | ) | — | (4.1 | ) | ||||||||||
| Asset impairment charge, net of taxes(8) | — | 4.1 | — | 4.1 | ||||||||||||
| Adjusted net earnings | $ | 19.8 | $ | 26.1 | $ | 34.1 | $ | 46.4 | ||||||||
| Second Quarter | June Year-to-Date | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Per Share | Per Share | |||||||||||||||
| Net earnings | $ | 0.52 | $ | 0.12 | $ | 0.67 | $ | 0.83 | ||||||||
| Integration and realignment costs, net of taxes(1) | 0.12 | — | 0.34 | — | ||||||||||||
| Transaction costs, net of taxes(2) | — | 0.23 | 0.01 | 0.35 | ||||||||||||
| Executive transition costs, net of taxes(3) | — | — | 0.01 | — | ||||||||||||
| (Gain) loss on sale of EMEA staffing operations, net of taxes(4) | (0.11 | ) | 0.27 | (0.11 | ) | (0.01 | ) | |||||||||
| Gain on forward contract, net of taxes(5) | — | — | — | (0.03 | ) | |||||||||||
| Restructuring charges, net of taxes(6) | — | 0.09 | — | 0.13 | ||||||||||||
| Gain on sale of assets, net of taxes(7) | — | (0.11 | ) | — | (0.11 | ) | ||||||||||
| Asset impairment charge, net of taxes(8) | — | 0.11 | — | 0.11 | ||||||||||||
| Adjusted net earnings | $ | 0.54 | $ | 0.71 | $ | 0.93 | $ | 1.26 | ||||||||
Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| (In millions of dollars) | |||||||||||||||
| Total Adjusted EBITDA: | |||||||||||||||
| Second Quarter | June Year-to-Date | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net earnings | $ | 19.0 | $ | 4.6 | $ | 24.8 | $ | 30.4 | |||||||
| Other (income) expense, net | 2.3 | (1.4 | ) | 5.4 | (3.2 | ) | |||||||||
| Income tax expense (benefit) | 0.9 | 1.1 | 2.7 | 5.1 | |||||||||||
| Depreciation and amortization | 12.5 | 12.5 | 25.3 | 22.7 | |||||||||||
| EBITDA | 34.7 | 16.8 | 58.2 | 55.0 | |||||||||||
| Integration and realignment costs(1) | 6.0 | — | 16.7 | — | |||||||||||
| Transaction costs(2) | 0.1 | 9.4 | 0.5 | 15.0 | |||||||||||
| Executive transition costs(3) | 0.2 | — | 0.5 | — | |||||||||||
| (Gain) loss on sale of EMEA staffing operations(4) | (4.0 | ) | 10.0 | (4.0 | ) | (1.6 | ) | ||||||||
| Gain on forward contract(5) | — | — | — | (1.2 | ) | ||||||||||
| Restructuring(6) | — | 4.3 | — | 6.6 | |||||||||||
| Gain on sale of assets(7) | — | (5.5 | ) | — | (5.5 | ) | |||||||||
| Asset impairment charge(8) | — | 5.5 | — | 5.5 | |||||||||||
| Adjusted EBITDA | $ | 37.0 | $ | 40.5 | $ | 71.9 | $ | 73.8 | |||||||
| Adjusted EBITDA margin | 3.4 | % | 3.8 | % | 3.2 | % | 3.5 | % | |||||||
Business Unit Adjusted EBITDA:
| Second Quarter 2025 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 11.1 | $ | 19.3 | $ | 13.6 | |||||
| Integration and realignment costs(1) | 1.1 | 0.9 | 0.1 | ||||||||
| Adjusted EBITDA | $ | 12.2 | $ | 20.2 | $ | 13.7 | |||||
| Adjusted EBITDA margin | 2.3 | % | 6.4 | % | 5.2 | % | |||||
| Second Quarter 2024 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 15.5 | $ | 18.9 | $ | 12.7 | |||||
| Restructuring(6) | 0.3 | 0.3 | — | ||||||||
| Adjusted EBITDA | $ | 15.8 | $ | 19.2 | $ | 12.7 | |||||
| Adjusted EBITDA margin | 2.9 | % | 7.2 | % | 5.1 | % | |||||
| KELLY SERVICES, INC. AND SUBSIDIARIES | |||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| Business Unit Adjusted EBITDA (continued): | |||||||||||
| June Year-to-Date 2025 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 17.9 | $ | 32.7 | $ | 32.9 | |||||
| Integration and realignment costs(1) | 3.8 | 2.0 | 0.1 | ||||||||
| Adjusted EBITDA | $ | 21.7 | $ | 34.7 | $ | 33.0 | |||||
| Adjusted EBITDA margin | 2.1 | % | 5.4 | % | 5.7 | % | |||||
| June Year-to-Date 2024 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 23.6 | $ | 33.1 | $ | 30.8 | |||||
| Restructuring(6) | 1.0 | 0.3 | — | ||||||||
| Adjusted EBITDA | $ | 24.6 | $ | 33.4 | $ | 30.8 | |||||
| Adjusted EBITDA margin | 2.3 | % | 6.7 | % | 5.7 | % | |||||
| Free Cash Flow: | June Year-to-Date | ||||||
| 2025 | 2024 | ||||||
| Net cash from operating activities | $ | 119.3 | $ | 32.2 | |||
| Capital expenditures | (4.5 | ) | (6.7 | ) | |||
| Free Cash Flow | $ | 114.8 | $ | 25.5 | |||
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2025 integration and realignment costs, the 2025 and 2024 transaction costs, the 2025 executive transition costs, the 2025 and 2024 gains and losses on the sale of our EMEA staffing operations, the 2024 gain on forward contract, and the 2024 restructuring charges are useful to understand the Company's fiscal 2025 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.
Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets.
These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(1) Integration and realignment costs in the second quarter and June year-to-date 2025 reflect various initiatives aimed at integrating MRP and other prior acquisitions, consolidating operating segments, and further aligning processes and technology across the Company. Included in the total integration and realignment costs is
| Second Quarter 2025 | June Year-to-Date 2025 | ||||||
| IT-related charges | $ | 1.7 | $ | 7.0 | |||
| Severance | 2.1 | 6.5 | |||||
| Fees and other costs | 2.3 | 3.3 | |||||
| Total integration and realignment costs | $ | 6.1 | $ | 16.8 | |||
(2) Transaction costs in 2025 and 2024 include costs incurred directly related to the sale of the EMEA staffing operations, which includes employee termination costs and transition costs. Transaction costs in 2024 also includes
(3) Executive transition costs represent non-recurring expenses associated with our CEO transition in 2025.
(4) (Gain) loss on sale of EMEA staffing operations represents the gains and losses recorded in each period as a result of the sale in January 2024. The gain on the sale in the second quarter of 2025 is the result of the Company receiving the remaining proceeds from working capital and other adjustments, which exceeded the recorded receivable.
(5) Gain on forward contract represents the gain recognized in the first quarter of 2024 for the settlement of the foreign currency forward contract relating to the sale of the EMEA staffing operations.
KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(6) Restructuring charges in 2024 represent a comprehensive transformation initiative that started in 2023 to further streamline the Company's operating model to enhance organizational efficiency and effectiveness. In the second quarter of 2024, these restructuring charges included
(7) Gain on sale of assets represents the sale of Ayers Group in the second quarter of 2024.
(8) Asset impairment charge in the second quarter of 2024 was for certain right-of-use assets related to our leased headquarters facility reflects adjustments to how we are utilizing the building as part of our ongoing transformation efforts.
FAQ
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