The Adecco Group reported a 27% increase in third-quarter net income and set a €75 million savings target, pairing stronger results with a planned overhaul of its business structure.
Net income attributable to shareholders reached €113 million, compared with €89 million a year earlier. Revenue totaled €5.998 billion, up 4% as reported and 3.7% on an organic basis adjusted for trading days. The company said currency translation contributed about 20 basis points to revenue growth.
Operating income rose 13% as reported to €180 million, or 14% in constant currency. Earnings before interest, taxes and amortization (EBITA), excluding one-off items, increased 10% organically to €213 million. The EBITA margin widened 20 basis points to 3.6%. Gross margin was 18.9%, down 30 basis points year over year but 30 basis points higher than in the second quarter.
Reuters reported that operating income exceeded a company-compiled analyst forecast of €166 million, while revenue was in line with consensus.
The Adecco business unit grew 4.7% organically after adjusting for trading days. Revenue increased 9% in the Americas, 8% in EMEA excluding France and 5% in APAC. Within that business unit, revenue in France fell 4%. Akkodis was flat organically, while LHH grew 1% and its Professional Recruitment Solutions business rose 6%. Chief Executive Denis Machuel said the company saw “good momentum in flexible placement” and that permanent placement had returned to growth.
Starting Jan. 1, 2027, the group plans to organize its activities across Workforce Solutions, Talent Transformation Solutions and Technology Solutions. LHH’s professional recruitment and recruitment process outsourcing activities are slated to move to Workforce Solutions. Adecco says the new structure is intended to simplify the organization and improve coordination and delivery. The additional €75 million in annualized savings would build on €200 million the company says it achieved over the previous three years.
For the fourth quarter, the company expects volume momentum to continue and gross margin to edge above the third-quarter level. SG&A expenses excluding one-off items are expected to rise slightly from the previous quarter, while declining modestly year over year as a share of revenue. Adecco is scheduled to report fourth-quarter and full-year 2026 results on Feb. 24, 2027.
