ManpowerGroup reported net earnings of $0.12 per diluted share for the first quarter ended March 31, 2025, a substantial decrease from $0.81 per diluted share in the prior year period. Net earnings for the quarter were $5.6 million, down from $39.7 million a year earlier.
Revenues for the first quarter were $4.1 billion, a 7% decrease from the prior year period, representing a 5% decline in constant currency and a 2% decrease on an organic constant currency basis. Restructuring costs and higher income tax charges, including a one-time French exceptional corporate income tax surcharge, reduced EPS by $0.32.
Excluding these charges, adjusted earnings per share was $0.44, representing a 51% decrease in constant currency. Jonas Prising, ManpowerGroup Chair & CEO, noted good growth in Latin America and Asia Pacific, but operating conditions remained challenging in Europe and North America, with the demand outlook less clear due to trade policy developments.
The effective income tax rate surged to 66.8% in Q1 2025, significantly higher than the 31.0% rate in Q1 2024, unfavorably impacted by the lower level and mix of earnings, restructuring costs, and the French tax surcharge. Operating profit fell 57.2% year-over-year to $28.2 million, resulting in an operating profit margin of 0.7%.
For the second quarter of 2025, ManpowerGroup anticipates diluted earnings per share to be between $0.65 and $0.75. This guidance includes an estimated favorable currency impact of 3 cents and a 46.5% effective tax rate, reflecting continued uncertainty in the market.
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