MAN earnings analysis
What we found in MAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
ManpowerGroup delivered a substantial year-over-year recovery in Q2 2026, with revenue up 7.5%, operating margin improving to 2.3%, and diluted EPS rising to $1.13 from a $(1.44) loss. Growth was broad across the Americas and Europe, but APME declined and gross margin fell 80 basis points. The earnings recovery benefited materially from an $88.7M prior-year impairment comparison and a $30.0M asset-sale gain, while cash declined sharply despite lower capex and significant debt repayment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Accelerated
- Second-quarter revenue increased 7.5% year over year to $4,860.2M, or 5.8% in constant currency. Americas was the strongest segment, with revenue up 14.4% to $1,212.3M.
- Operating Profit Rebounded
- Operating profit improved to $112.0M from a $(25.3)M loss, and operating margin expanded to 2.3% from (0.6)%. The comparison benefited from the prior-year $88.7M impairment charge and a current-year $30.0M gain on the Jefferson Wells sale.
- EPS Returned to Profit
- Diluted EPS improved to $1.13 from $(1.44), while net earnings rose to $53.5M from a $(67.1)M loss. Management said the Jefferson Wells gain and discontinued-business liquidation charge favorably affected EPS by $0.37, partly offset by $0.23 of restructuring and transformation costs.
- Europe Performance Improved
- Southern Europe revenue rose 7.4% to $2,308.7M, led by Italy revenue growth of 9.6% and Other Southern Europe growth of 16.2%. Northern Europe also returned to positive OUP of $2.0M versus $(9.0)M in the prior-year quarter.
- Material Debt Reduction
- Debt declined to $1,043.5M from $1,677.1M at December 31, 2025, reducing debt to capitalization to 33.1% from 44.9%. The company had $599.6M available under its revolving facility and $150.0M under its working-capital facility.
- Lower Capital Intensity
- Six-month capital expenditures fell to $14.8M from $31.3M, while cash used in operating activities improved to $(129.0)M from $(342.8)M. Management attributed the lower capex primarily to reduced investment in capitalized software.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin Compression Persists
- Gross margin contracted 80 basis points year over year to 16.1%, primarily from staffing and interim mix shifts and the sale of the higher-margin Jefferson Wells U.S. business. Management also cited a 50-basis-point impact from staffing and interim margins.
- Liquidity Buffer Compressed
- Cash and cash equivalents fell to $180.6M from $871.0M at December 31, 2025, while six-month operating cash flow remained negative at $(129.0)M. The company also reported six-month net debt repayments of $599.4M.
- APME Remains Under Pressure
- APME revenue declined 1.2% to $518.7M and OUP declined 8.9% to $23.9M. Japan revenue fell 7.0%, primarily due to a $30.8M unfavorable currency impact.
- Transformation Costs Continue
- The company recorded $22.6M of restructuring costs in the first half, including $6.7M in the quarter, and expects most of the remaining $25.2M reserve to be paid by the end of 2026. Strategic transformation program costs increased $7.1M year over year in the quarter.
- JFTC Investigation Ongoing
- The Japan Fair Trade Commission inspected offices associated with the Japanese subsidiary on June 2, 2026, as part of an investigation of the temporary staffing industry. The company stated that the investigation remains ongoing and its potential impact cannot yet be determined.
- No Formal Risk-Factor Update
- The filing states that risk factors remain those disclosed in the 2025 Form 10-K, with no new material risk-factor changes identified. However, management continues to flag volatile economic conditions, labor and tax legislation, and execution of strategic transformation initiatives as risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.13
- Gross margin
- 16.1%
- Operating margin
- 2.3%
- Segment
- Americas: $1,212.3M revenue, up 14.4% year over year; OUP $71.9M versus $36.1M.
- Segment
- Southern Europe: $2,308.7M revenue, up 7.4%; OUP $75.1M versus $73.3M.
- Segment
- Northern Europe: $825.5M revenue, up 3.9%; OUP $2.0M versus $(9.0)M.
- Segment
- APME: $518.7M revenue, down 1.2%; OUP $23.9M versus $26.4M.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS guidance; the prior Q3 2026 EPS outlook of $0.96-$1.06 was provided in the July 16 earnings release. Management expects improving activity trends to continue through 2026, expects to remain in covenant compliance for the next 12 months, and expects most of the remaining $25.2M restructuring reserve to be paid by year-end 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- ManpowerGroup delivered Q1 2026 earnings that exceeded expectations, reporting revenue of $4.51B and diluted EPS of $0.05, marking significant improvements from the prior quarter. However, a sharp increase in…
- 10-K · February 23, 2026
- ManpowerGroup positions itself as a global leader in workforce solutions with ~2,100 offices in more than 70 countries, emphasizing staffing plus higher‑value Talent Solutions (RPO/MSP/outsourcing) and upskilling…
- 10-Q · May 2, 2025
- ManpowerGroup reported Q1 revenue of $4,090.3M, down from $4,403.3M a year ago, with gross margin roughly stable at ~17.1% but operating margin compressing to ~0.7%. Net earnings fell to $5.6M (diluted EPS $0.12) from…
- 10-K · February 16, 2024
- ManpowerGroup presents itself as a global leader in workforce solutions with a network of over 2,100 offices across approximately 75 countries and 27,900 full-time equivalent employees as of December 31, 2023. The…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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