I'll begin with a brief overview of the quarter and the full year, including how we're seeing conditions evolve across markets and what that means for our execution. Jack will then walk through the detailed financial results and our guidance for the first quarter of 2026. Slide 2 of our earnings release presentation further identifies forward-looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures. In the fourth quarter, we delivered reported revenues of $4.7 billion, which represented Organic Constant Currency growth of 2%.
System-wide revenue, which includes our expanding franchise revenue base, was $5.1 billion. Adjusted EBITDA margin of 2.1% reflects improving demand trends across core markets as well as P&L leverage. Though we faced strong headwinds during the first half of 2025, reflected in our full-year results, we are encouraged by our fourth quarter performance, which demonstrated sequential improvement through year-end. As we move through the fourth quarter, revenue trends strengthened in several key markets.
Markets such as Italy and Spain stabilized earlier and began to inflect, with Italy standing out as a clear outperformer on both growth and margin. Against this backdrop, our priorities remain clear: execute with rigor, maintain cost discipline, and leverage our digitization advantage to position the business to generate operating leverage as demand improves. To that end, our diversified multi-brand portfolio continues to perform well in a selective demand environment and plays a critical role in earnings durability. Manpower addresses in-demand, AI-resilient skills at scale, supporting clients from entry-level to specialized roles in growth sectors and has grown for three consecutive quarters, with six quarters in the US.
| Metric | Period | Current guidance |
|---|---|---|
| U.S. business revenue | Q1 2026 | increased rate of revenue decline (lowered due to anniversarying very strong prior-year healthcare IT project volumes; ex-healthcare IT the trend is largely in line with Q4) |
| France revenue trend | Q1 2026 | similar sequential rate of trend improvement (reiterated improving trajectory after four consecutive months of improvement) |
| Italy revenue growth | Q1 2026 | similar constant currency growth trend (reiterated strong performance) |
| U.K. revenue trend | Q1 2026 | improved rate of decline (reiterated ongoing stabilization) |
| EBITDA margin | full year 2026 | focus on expanding EBITDA margin year over year (raised ambition as 2026 seen as potential inflection point) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue (organic constant currency) | +2% | stabilization led by enterprise demand with improving trends in France and ongoing strength in Italy |
| Manpower brand (organic constant currency) | +5% | sequential improvement from 3% in Q3, strong U.S. and France assignments |
| Experis brand (organic constant currency) | -6% | improved from 7% decline in Q3 as rate of decline narrowed |
| Talent Solutions brand (organic constant currency) | -4% | improved from 8% decline in Q3; RPO lower demand offset by MSP growth and slight Right Management growth |
| Adjusted EBITDA | -2% constant currency | margin held flat at 2.1% despite lower gross margin, aided by 4% SG&A reduction |
| Adjusted EPS | $0.92 | $0.09 above guidance midpoint on improved operational performance and lower interest expense |
| Full-year adjusted EBITDA | -20% constant currency | first-half headwinds weighed on the full year at $337 million |
| Full-year adjusted EPS | -38% constant currency | full-year adjusted EPS of $2.97 reflecting the downturn earlier in 2025 |
| Southern Europe revenue (constant currency) | +1% | flipped to growth after 13 consecutive quarters of declines |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Stabilization and path to inflection | Q3: crossed back to growth after 11 quarters of declines, cautious optimism | Q4: clear shift to stabilization; 2026 seen as potential inflection point with a path to sustainable organic growth and margin expansion | — |
| Transformation and cost discipline | Q3: back-office global business services progressing, front-office preparation underway | Q4: front-office transformation program being planned for North America, funded through ongoing cost management, carved out as a separate line | — |
| AI deployment | Q3: Sophie AI driving ~30% of new client revenue from AI-rated probability across 14 markets | Q4: AI Recruiter Toolkit scaled to 12+ markets with 7% placement rate lift; agentic AI coding assistants scaling across Experis U.S. | — |
| Strategy and market insight work | Q3: modernizing Experis, standardizing processes | Q4: comprehensive strategy evaluation surfacing two themes, flexibility and how AI shapes workforce composition, informing where to play and how to win | — |