Adecco Group AG

The group reported Q2 2026 organic trading-days-adjusted revenue growth of 5.6% year on year. Gross profit was EUR 1.1 billion and gross margin was 18.6%, down 20 bps organically year on year but better than the 40 bps decline 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% (+30 bps YoY), and adjusted EPS increased 31%. Net debt-to-EBITDA excluding one-offs was 2.7x, improving by 0.5x YoY. For Q3, management expects a modest sequential improvement in gross margin and lower SG&A expenses excluding one-offs.

Denis Machuel framed the quarter as evidence that the strategy is working: strong growth, continued market share gains, improving profitability, and better deleveraging. He highlighted that Akkodis returned to growth, permanent placement appears to be stabilizing, and agentic AI is already live in 10 countries covering 50% of Adecco revenue. His tone was confident and upbeat, stressing that AI, disciplined execution, and focus on faster-growing end markets are supporting both growth and productivity.

Valentina Ficaio emphasized sequential margin improvement and disciplined cost control. She said the group’s gross margin trend improved from down 40 bps in Q1 to down 20 bps in Q2, EBITDA margin rose to 2.8% (+30 bps YoY), SG&A was 3.2% of revenue, and selling FTEs were 2% lower while productivity rose 6%. She also noted cash conversion of 83% over the last 12 months, Q2 operating cash flow of EUR 23 million, free cash outflow of EUR 14 million after EUR 37 million of capex, and DSO of 53 days; net debt was EUR 235 million lower YoY. She said restructuring benefits should begin flowing through from Q4 and continue into 2027.

Analysts focused on three issues: whether momentum could hold into Q3 despite tougher comps, how much AI investment was weighing on costs, and whether restructuring charges would continue. Management said momentum remained strong into early August, that AI contracts are on a fixed-cost basis for unlimited volumes, and that AI is helping both productivity and service quality rather than just cutting cost. On restructuring, management said Q2 charges were tied mainly to Akkodis Germany and Adecco France, that there is some spillover into Q3, and that benefits should start from Q4. They also explained that Akkodis Germany’s weakness was linked to further project stoppages at two OEMs, causing unexpected bench, while autos remains a major exposure though less than before.