Kelly Services ( (KELYA) ) has released its Q1 earnings. Here is a breakdown of the information Kelly Services presented to its investors.
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Kelly Services, Inc., a prominent player in the staffing industry, specializes in providing talent solutions across various sectors, including science, engineering, technology, education, and more. The company recently released its first-quarter 2025 earnings report, showcasing a mix of growth and challenges.
In the first quarter of 2025, Kelly Services reported revenue of $1.16 billion, marking an 11.5% increase year-over-year, largely driven by the acquisition of Motion Recruitment Partners, LLC. However, organic revenue growth was modest at 0.2%. The company’s adjusted EBITDA rose by 4.8% to $34.9 million, although the adjusted EBITDA margin experienced a slight decline to 3.0%. Despite these gains, operating earnings fell to $10.8 million from $26.8 million in the previous year, with adjusted earnings per share dropping to $0.39 from $0.56.
The company’s performance was bolstered by strong demand in the Education sector and increased interest in higher-margin solutions within the semiconductor and renewables industries. However, Kelly faced challenges such as reduced demand from U.S. federal government contractors and increased net interest expenses due to prior acquisitions.
Looking ahead, Kelly Services anticipates a revenue growth of 6.0% to 7.0% in the second quarter of 2025, with expectations of adjusted EBITDA margin decline in the short term but potential margin expansion in the latter half of the year. The company remains focused on efficiency and strategic priorities to capitalize on future demand rebounds.