Adecco Group AG

The group reported second-quarter revenue growth of 5.6% year on year on an organic trading days adjusted basis. Gross profit was EUR 1.1 billion, gross margin was 18.6%, and organic gross margin was down 20 basis points year on year, improving from minus 40 basis points in Q1. EBITA excluding one-offs was EUR 165 million, up 21% year on year on an organic constant currency basis, EBITDA margin was 2.8% up 30 basis points, and adjusted EPS rose 31%. Net debt-to-EBITDA excluding one-offs was 2.7x, improved by 0.5x year on year. For the outlook, management said Q3 gross margin should see a modest sequential improvement and SG&A excluding one-offs should be lower sequentially; they also said positive volume momentum has continued quarter-to-date.

Denis Machuel framed the quarter as evidence that the strategy is working: market share gains, profitable growth, deleveraging, and AI-enabled execution. He stressed that permanent placement is stabilizing, Akkodis has inflected back to growth, and the group is gaining share in fragmented markets while improving client service and productivity. His tone was confident and forward-looking, especially on agentic AI, which he described as rapidly improving fill rates, time-to-submit, and recruiter productivity.

Valentina Ficaio emphasized sequential margin improvement, disciplined cost control, and strong operating leverage. She cited EBITDA margin of 2.8%, SG&A at 3.2% of revenue versus the 3.5% target, productivity up 6%, selling FTEs down 2%, and a 64% drop-down ratio. On cash, she said last-12-month cash conversion was 83%, operating cash flow was EUR 23 million in Q2, capex was EUR 37 million, free cash outflow was EUR 14 million, and DSO remained best-in-class at 53 days. She also said one-offs had a spillover into Q3 and that restructuring benefits should start flowing from Q4 onward.

Analysts focused on Q3 growth versus tougher comps, the cost of AI deployment, gross margin inflection, one-off charges, and Akkodis Germany/A&D mix. Management said momentum continued into early August, volumes remain strong, and AI deployment is on a fixed-cost contract with the provider, so adoption can scale without open-ended cost growth. On restructuring, management said Germany was hit by additional OEM project delays that created unexpected bench, while France restructuring was aimed at lowering cost to serve; they said some one-off spillover remains in Q3, but benefits should begin in Q4. They also clarified that aerospace & defense is meaningful in Akkodis, at 17% of revenue, and is a higher-margin area helping offset auto weakness.