Adecco Group AG
OTC:AHEXF
Adecco Group AG
In the bustling world of workforce solutions, Adecco Group AG stands as a pivotal player, orchestrating the delicate dance between talented individuals and the myriad needs of businesses across the globe. Headquartered in Zurich, Switzerland, this multinational enterprise has cemented its reputation by seamlessly connecting employers with job seekers, aligning aspirations with opportunities. Adecco's success lies in its dynamic approach, leveraging a rich portfolio of services that range from temporary staffing to permanent placement, outsourcing, and the magical realm of talent development and transition. Navigating through over 60 countries, the firm's commitment is evident in its robust network, harnessing local expertise while advocating for the highest standards of labor solutions.
At the heart of Adecco's business model is its astute ability to capitalize on the fluidity of the labor market. The company thrives on the intricate demand for flexible workforce solutions, catering to businesses navigating the often volatile economic tides. By offering tailored services such as workforce management and recruitment process outsourcing, Adecco effectively becomes an indispensable strategic partner for its clients. Through these engagements, the group garners revenue by billing companies for the successful placement and short-to-long-term management of workforce needs. Meanwhile, job seekers benefit from the comprehensive support and career guidance provided, making Adecco not just a service provider, but a career catalyst. By harmonizing the varied interests of its stakeholders, Adecco Group AG perpetuates a cycle of growth fueled by the evolving world of work.
In the bustling world of workforce solutions, Adecco Group AG stands as a pivotal player, orchestrating the delicate dance between talented individuals and the myriad needs of businesses across the globe. Headquartered in Zurich, Switzerland, this multinational enterprise has cemented its reputation by seamlessly connecting employers with job seekers, aligning aspirations with opportunities. Adecco's success lies in its dynamic approach, leveraging a rich portfolio of services that range from temporary staffing to permanent placement, outsourcing, and the magical realm of talent development and transition. Navigating through over 60 countries, the firm's commitment is evident in its robust network, harnessing local expertise while advocating for the highest standards of labor solutions.
At the heart of Adecco's business model is its astute ability to capitalize on the fluidity of the labor market. The company thrives on the intricate demand for flexible workforce solutions, catering to businesses navigating the often volatile economic tides. By offering tailored services such as workforce management and recruitment process outsourcing, Adecco effectively becomes an indispensable strategic partner for its clients. Through these engagements, the group garners revenue by billing companies for the successful placement and short-to-long-term management of workforce needs. Meanwhile, job seekers benefit from the comprehensive support and career guidance provided, making Adecco not just a service provider, but a career catalyst. By harmonizing the varied interests of its stakeholders, Adecco Group AG perpetuates a cycle of growth fueled by the evolving world of work.
Revenue Growth: Adecco Group’s full-year revenue grew 1.3% year-on-year, with Q4 revenue up 3.9% to EUR 6 billion, the strongest quarterly performance of the year.
Profitability: Group gross margin for the year was 19.2%, industry-leading, with Q4 gross profit up 4%. EBITA reached EUR 693 million for the year (3% margin) and EUR 225 million in Q4 (3.8% margin, up 60 bps).
Cost Discipline: The group achieved net G&A savings of nearly EUR 200 million since 2022, with Q4 productivity up 11% and operating leverage driving margin improvement.
Strong Cash Flow: Free cash flow reached EUR 483 million for the year, with a high cash conversion ratio of 102%. Net debt fell to EUR 2.29 billion, and leverage improved to 2.4x.
Market Share Gains: Adecco outperformed competitors, gaining 245 basis points of market share for the year and 395 bps in Q4, driven by strong delivery and digital innovation.
Turnarounds & Restructuring: Akkodis Germany restructuring delivered EUR 58 million in annual savings and a 5.4% EBITA margin run rate, while Adecco North America revenues rose 12% for the year and 23% in Q4.
Shareholder Returns: The Board proposed a dividend of CHF 1 per share (46% payout), with a scrip (stock) option to support deleveraging and growth.
Positive Outlook: Management reports continued positive volume momentum into 2026 and expects gross margin and SG&A to remain broadly stable in Q1.
