The Adecco Group reported Q4 2024 revenue of €5.87 billion, a 5% organic decline. Despite revenue contraction, the company saw improving momentum, with net profit surpassing forecasts at €73 million. CEO Denis Machuel highlighted cost reductions exceeding 20% and advancements in AI-powered technologies. While key markets such as France, Northern Europe, and the Americas faced challenges, Southern Europe and APAC regions demonstrated resilience. Adecco expects improving trends in early 2025, with higher gross margins and stable SG&A costs. The company also introduced a new reporting structure and announced an executive change at Akkodis.

Adecco Group (VTX: ADEN), a global leader in HR solutions, released its Q4 2024 and full-year financial results on February 26, 2025. Q4 revenue stood at €5.87 billion, marking a 5% organic decline year-over-year. However, the company exceeded profit expectations, reporting a net profit of €73 million, well above the €63 million market forecast. The company attributes its resilience to AI-driven transformation, cost optimization, and market share growth despite challenging macroeconomic conditions.

Q4 Financial Performance: Resilient Profitability Amid Revenue Decline

Adecco’s Q4 2024 revenue was €5.87 billion, down 4% on a reported basis and 5% organically. Despite the revenue decline, gross profit reached €1.13 billion, with a gross margin of 19.2% (-40bps YoY).

Key Financial Metrics (Q4 2024):

• EBITA (excluding one-offs): €187 million (-29% YoY)


• Operating Income: €144 million (-22% YoY)


• Net Profit: €73 million (+6% YoY, +24% at constant currency)


• Basic EPS: €0.43 (+6% YoY)


• Adjusted EPS: €0.63 (-16% YoY)


• Operating Cash Flow: €491 million (+€174 million YoY)


• Free Cash Flow: €446 million (+€211 million YoY)

Despite a weaker economic environment, strong cost reductions, AI-driven efficiencies, and higher market share gains helped Adecco deliver above-expectation profitability.

Full-Year 2024 Performance: Market Share Gains Despite Revenue Pressure

For full-year 2024, Adecco reported total revenue of €23.14 billion, a 3% organic decline.

• Gross Profit: €4.50 billion (19.4% margin, down 80bps)


• EBITA (excluding one-offs): €709 million (-18% YoY)


• Operating Income: €541 million (-14% YoY)


• Net Profit: €303 million (-7% YoY, -2% at constant currency)

Despite revenue pressure, Adecco gained 200 basis points in market share, significantly outperforming competitors. The company also delivered €174 million in G&A cost savings, surpassing its initial targets.

Regional Performance: Strong Growth in APAC and Latin America, Weakness in Europe & North America

Weak Markets:

• France: €1.13 billion (-10% YoY), impacted by economic uncertainty and lower demand in logistics & healthcare.


• Northern Europe: €531 million (-11% YoY), with the UK business down 19%.


• DACH (Germany, Austria, Switzerland): €417 million (-11% YoY), affected by declines in manufacturing, logistics, and IT.


• North America: €640 million (-12% YoY), though SME business showed moderate growth.

Strong Markets:

• Southern Europe & EEMENA: €1.23 billion (+5% YoY), with Spain up 10% and EEMENA up 13%, supported by growth in logistics and retail.


• APAC: €634 million (+6% YoY), with Japan growing 7%, India 24%, and Asia 8%.


• Latin America: Revenue grew 8%, led by strong retail, logistics, and food & beverage sectors.

Service Line Performance

• Flexible Placement: €4.40 billion (-5% YoY)


• Permanent Placement: €133 million (-7% YoY)


• Career Transition: €125 million (+2% YoY)


• Outsourcing, Consulting & Other Services: €1.13 billion (+5% YoY)


• Training, Upskilling & Reskilling: €81 million (+1% YoY)

The outsourcing and consulting segment drove growth, while traditional staffing services remained under pressure due to cautious hiring trends.

Cash Flow & Financial Stability

• Operating Cash Flow: €491 million, up €174 million YoY


• Free Cash Flow: €446 million, up €211 million YoY


• Net Debt: €2.48 billion, down €114 million YoY


• Net Debt/EBITDA Ratio: 2.8x, targeting ≤1.5x by 2027

Adecco’s strong cash generation and cost discipline have bolstered its financial flexibility, positioning it for sustainable growth.

Dividend & Capital Allocation Strategy

• Proposed Dividend Per Share: CHF 1.00, maintaining a 42% payout ratio


• Dividend Policy Update: Removal of floor policy, allowing greater financial flexibility


• Capital Allocation Priorities: Deleveraging and growth investments, with a potential for buybacks

2025 Outlook: AI-Driven Transformation and Market Recovery

Adecco’s management expects improving business momentum in early 2025, with gross margins increasing sequentially in Q1. The company will continue to focus on AI-driven efficiencies, cost management, and SME market expansion.

Key Strategic Priorities:

• Accelerating AI-powered recruitment tools to improve efficiency and hiring accuracy.


• Optimizing sales & delivery capacity, with a focus on SMEs and high-growth sectors.


• New Reporting Structure: Effective January 2025, Pontoon MSP will be integrated into Adecco GBU for improved efficiency.

CEO Denis Machuel stated:
"We are rigorously executing our Future@Work Reloaded strategy, accelerating AI adoption, and driving digital transformation. Despite the challenges, we believe 2025 will be a year of renewed growth and operational excellence."

Following the earnings announcement, Adecco Group’s stock price surged by 9.93%, closing at CHF 25.02 (€26.63), up 23.13% from its 52-week low on January 13, 2025.

Despite revenue headwinds, Adecco’s market share gains, AI-driven transformation, and cost-cutting initiatives helped it maintain strong profitability. With early signs of market stabilization in 2025, the company is well-positioned for a gradual recovery and digital-driven growth.