ManpowerGroup Inc. (NYSE: MAN) announced its fourth quarter earnings for the period ending December 31, 2025, revealing a net earnings per diluted share of $0.64, a significant increase from $0.47 in the same quarter of the previous year. The company's net earnings for the quarter reached $30.2 million, up from $22.5 million a year ago, marking a robust 34.3% increase in reported earnings.

However, the release also highlighted that the current quarter was impacted by several factors including restructuring costs, pension settlements, and non-cash currency translation losses related to Argentina’s hyperinflation. These factors collectively reduced earnings per share by $0.28. When adjusted for these charges, the earnings per share stood at $0.92, reflecting a 17% decrease in constant currency over the previous year.

2. Revenue Growth Driven by Market Stabilization

ManpowerGroup's revenues for the fourth quarter amounted to $4.7 billion, marking a 7% increase compared to the same period last year. On a constant currency basis, revenues increased by only 1%, while organic constant currency growth was slightly higher at 2%. Jonas Prising, Chair & CEO of ManpowerGroup, expressed satisfaction with the company’s performance, citing stabilization in market trends and effective execution of their cost optimization strategy.

Prising noted, "Throughout 2025, we delivered sequential progress in both revenue and profitability, as adjusted, exiting the year with strengthening trends." Key markets such as France, Northern Europe, and Italy showed improvement, while North America continued to see solid performances from Manpower and Talent Solutions TAPFIN MSP, despite challenges faced by other segments like Experis and RPO.

3. Looking Ahead: Cautious Optimism

For the first quarter of 2026, ManpowerGroup anticipates diluted earnings per share to fall between $0.45 and $0.55, which factors in a favorable currency impact of approximately 6 cents, alongside an expected effective tax rate of 43.0%.

Despite the challenges faced throughout 2025, the company remains optimistic about the potential for growth. Prising mentioned opportunities to capitalize on improving market demand as they advance their technology initiatives aimed at diversifying capabilities and enhancing market share.

4. Annual Performance: A Year of Transition

Looking at the full year, ManpowerGroup reported a net loss of $13.3 million, or a loss of $0.29 per basic share, a stark contrast to net earnings of $145.1 million, or $3.01 per diluted share in 2024. The annual results were severely impacted by non-cash goodwill and intangible asset impairment charges, restructuring costs, and other losses associated with business sales transitioning to franchise operations. Excluding these charges, the earnings per share for 2025 stood at $2.97, a decrease of 38% in constant currency.

Total revenues for the year were reported at $18.0 billion, reflecting a slight increase of 1% compared to 2024, although a decrease of 2% when adjusted for constant currency.

5. Financial Metrics and Future Outlook

ManpowerGroup's financial metrics indicate a significant shift in performance, with total current assets increasing to $5.79 billion, compared to $4.97 billion the previous year. Cash provided by operating activities was reported at $179 million, with free cash flow reaching $168 million for the quarter.

The company also noted an increase in accounts receivable, which stood at $4.77 billion, compared to $4.29 billion in 2024. Despite the losses, the company is focusing on driving productivity gains and operating leverage, emphasizing a disciplined transformation to adapt to evolving market conditions.

In conclusion, while the fourth quarter results of ManpowerGroup showcase both progress and challenges, the company remains committed to navigating the complexities of the global workforce solutions sector with cautious optimism as it moves into 2026.

Original press release