Quarterly Outcomes Report 2022 (Q1)
Adecco Group Reports Improved Growth and Operational Efficiency
The Adecco Group, a leading workforce solutions provider, has announced a strategic gain in market share and operational efficiency, despite some market headwinds faced by its subsidiary Akkodis.
In a recent quarterly report, Alain Dehaze, the group CEO, commented on the improved growth this quarter. Notable improvement in several key regions was reported, with the overall Adecco Group reporting revenues of €5.8 billion in Q2 2025, up 0.4% year-on-year. The group also reported group-wide market share gains of 205 basis points and Adecco’s own gains of 130 basis points, showing a strong competitive positioning.
However, Akkodis, formerly part of the Adecco Group, faced a slight decline in revenues. Akkodis revenues were down 6% year-on-year on an organic and constant currency basis in Q2 2025, although this was an improvement from a minus 8% decline in Q1 2025, indicating a potential stabilization.
The Group has been making strides in managing this challenge. The Group secured its first combined client wins with Modis, and the integration plan for AKKA is progressing well. The Group acquired control of AKKA at the end of February and plans to operate as Akkodis from mid-May.
In terms of profitability, the Group achieved a gross profit of €1.1 billion with an 18.9% gross margin, down 50 basis points year-on-year, reflecting changing business mix and firm pricing. The EBITA margin excluding one-offs was 2.5%, showing good cost discipline despite a 60 basis point decline year-on-year. Operating income rose 6% year-on-year to €115 million, and net income increased 8% to €58 million, indicating effective operational management.
The Adecco Group’s strategy appears focused on disciplined cost management, agile capacity adjustments, and growth in higher-performing business units like the Adecco GBU and LHH, while navigating challenges in Akkodis, particularly in Germany. They also emphasize gaining market share even in mixed market conditions and investing in services such as Career Transition and digital coaching, which are performing well.
Projected growth for Akkodis specifically is somewhat restrained in the near term due to current market pressures, but the overall group's trend is positive with modest organic revenue growth and improving market share. The group’s strong cash conversion (98% LTM) and solid operating cash flow support ongoing investments and resilience.
LHH Recruitment Solutions continued to capture strong market demand, and the Group's targeted investment in headcount has shown results. Management is confident the Group will deliver higher growth and stronger margins in the second half of 2022.
In summary, the Adecco Group is strategically gaining market share and improving operational efficiency, despite some challenges faced by Akkodis. The Group's focus on disciplined cost management, agile capacity adjustments, and growth in higher-performing business units is expected to drive future success.
The Adecco Group's focus on higher-performing business units like LHH Recruitment Solutions indicates a strategic intent for career transition, offering opportunities for professionals seeking a change.
The Group's acquisition and integration plan for AKKA, now operating as Akkodis, reflects a commitment to permanent placement within the industry, aiming to strengthen its position in the business sector.
Despite some market headwinds faced by Akkodis, the Adecco Group's financial reports show a positive trend, with projected growth and improving market share, emphasizing their resilience in the face of industry challenges.
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