Adecco Group AG (ADIA) AI Stock Analysis

Company Guidance

For Q4, the group expects positive momentum in volumes, gross margin to be slightly higher sequentially, and SG&A expenses excluding one-offs to be slightly higher sequentially in line with normal seasonality and modestly lower year-on-year as a percentage of revenues; gross margin is expected to benefit from continuation of sequential improvement in flexible placement, permanent placement and outsourcing, consulting and other, partly offset by slight FX headwinds, probably to the same amount seen in Q3. France margin is expected to improve as early as Q4, with growth coming back progressively over a few quarters, while positive momentum in permanent placement is anticipated to continue in Q4, and management expressed confidence for North America in Q4 and next year. Full run-rate SG&A savings of EUR 75 million are expected by Q3 2027, in addition to EUR 200 million in annualized G&A savings already achieved over the past 3 years, with approximately EUR 75 million of one-off costs, including approximately EUR 20 million in Q4, while the full-year one-off guidance was moved from EUR 60 million to EUR 80 million and EUR 55 million of one-off costs are expected for the vast majority in H1 next year; the group expects to reach net debt-to-EBITDA of 1.5 or below by the end of 2027.