The Adecco Group reported a 5.6% organic revenue increase and an adjusted EBITA of 165 million euros for the second quarter of 2026. While the company achieved its fifth quarter of organic growth and expanded market share, it faced a decline in net profit to 47 million euros.
Adecco is currently balancing a narrative of operational efficiency against a tightening bottom line. The company’s second-quarter results, released Thursday, show a business that is successfully capturing more of the market but struggling to convert that volume into net profit, as net income dropped from 58 million euros in the same period last year to 47 million euros.
Organic Growth and Market Share Gains
The company’s top-line performance exceeded analyst expectations. Total revenue for the period from April to June reached 5.99 billion euros (5.6 billion francs), representing a 4% increase year-over-year. This figure surpassed the AWP analyst consensus, which had forecasted revenues of 5.94 billion euros and organic growth of 4.5%.
The company noted that exchange rate effects had a net negative impact of approximately 200 basis points, while working days had no significant impact on revenue. These results contributed to a total market share gain of 160 basis points against primary competitors.
This growth was not uniform across the group’s business units. The core Adecco division saw revenues rise by 7% (6.6% at constant exchange rates), while Akkodis revenues fell by 11% (though they rose 1% at constant perimeter) and LHH revenues decreased by 3% (stables à taux constants).
Meanwhile, the EMEA region posted 8% growth.
Our strategy, our rigorous execution and our customer-candidate orientation continue to deliver strong performance. The momentum was maintained throughout the 1st half, with a 5th quarter of growth and a new gain in market share, stated Denis Machuel.
The Profitability Gap: EBITA vs. Net Income
There is a distinct contrast between Adecco’s operational profitability and its final net earnings. The adjusted EBITA jumped 16% to 165 million euros, surpassing the consensus estimate of 146 million euros (and the AWP consensus of 163 million euros). This resulted in a margin of 2.8%—a 30-basis-point increase. The company attributes this improvement to a strong operational leverage and a rigorous management of capacities.
Denis Machuel added that a vigorous gross margin (4% organically, at 1,113 MEUR), combined with cost discipline, supported a higher EBITA. The group also reported an adjusted EPS (earnings per share) that grew by 31% to 0.61 EUR for the second quarter.
However, this operational win was dampened by pressures on the gross margin. This decline was driven by weakness in two key areas: flexible placement, which fell 25 basis points year-over-year, and permanent placement, which dropped 15 basis points year-over-year.
The financial strain is further evidenced by the company’s cash flow. Operational cash flow plummeted to 23 million euros from 81 million euros in the second quarter of 2025, largely due to working capital outflows. This pushed the free cash flow into negative territory at -14 million euros, compared to a positive 52 million euros in the previous year.
Debt Management and SG&A Costs
Adecco is actively attempting to lower its leverage, though the absolute debt figure has risen. Net debt increased to 2.647 million euros, placing the net debt-to-EBITDA leverage ratio at 2.7x.
Despite the increase in total debt, leadership maintains that the company is on a path of deleveraging. According to Denis Machuel, the net debt-to-EBITDA ratio is 0.5 times lower than it was one year ago.
Cost control remains a central pillar of the current strategy.
Third Quarter Projections and Strategy
Looking toward the next phase of 2026, Adecco is betting on a sequential recovery of its margins. The company expects the positive volume momentum seen at the start of the quarter to continue, even as it faces more difficult comparison bases.
- Gross Margin: The direction aims for a slight sequential improvement for the third quarter.
- SG&A Expenses: The company forecasts a sequential decrease in general and administrative expenses, excluding exceptional items.
- Strategic Focus: Management states it is implementing the group’s strategy and operational and transformation priorities “with rigor,” prioritizing market share gains while actively controlling costs and managing capacities to pursue profitable growth and deleveraging.
The company’s current trajectory depends on whether it can translate its organic growth and market share gains into actual net profit. While the operational leverage is working to boost EBITA, the volatility in cash flow and the decline in net profit suggest that the path to profitable growth and deleveraging remains a delicate balancing act.
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