Kelly Services sees organic revenue growth in Q4
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Fourth-quarter revenue at Kelly Services (NASDAQ: KELYA, KELYB) rose 4.4% on an organic basis. It excludes the impact from the sale of its European staffing operations in January 2024 and the acquisitions of Motion Recruitment Partners in May 2024 and Children’s Therapy Center in November 2024. On a reported basis, revenue fell 3.3%. In addition to earnings, Kelly announced the upcoming retirement of President and CEO Peter Quigley.
“We are pleased with our results in the fourth quarter, during which we drove organic revenue growth that outpaced the market and increased adjusted EBITDA by 34%,” Quigley said in a press release.
Moving forward, the company is focusing on North American staffing and its global RPO and MSP businesses. It’s also looking to build a pipeline of potential acquisitions in science, engineering and technology as well as education.
Kelly forecast revenue will rise 10% in the first half of 2025 with the benefit of both the MRP acquisition and modest organic growth. Revenue growth in the first quarter will be slightly higher than in the second given the May 31, 2024, closing date of the Motion Recruitment Partners acquisition. MRP had revenue of $554 million in 2023.
“We enter 2025 a more efficient and focused company, well positioned to capitalize as demand improves and deliver top- and bottom-line growth,” Quigley said.
Kelly Services – Q4 2024
(USD millions) | Q4 2024 | Q4 2023 | % change | % constant currency |
Revenue | 1,191.10 | 1,232.20 | -3.3% | -3.1% |
Gross profit | 241.5 | 238.2 | 1.4% | 1.6% |
Gross margin | 20.3% | 19.3% | - | - |
Net loss/net earnings | -31.8 | 11.4 | nm | nm |
Revenue by Segment
(USD millions) | Q4 2024 | Q4 2023 | % change | % constant currency |
Professional & industrial | 384.2 | 368.1 | 4.4% | 5.2% |
Science, engineering & technology | 396.1 | 287.3 | 37.9% | 37.9% |
Education | 289.2 | 258 | 12.1% | 12.1% |
Outsourcing & consulting | 122.3 | 112.3 | 8.8% | 8.6% |
International | - | 207.4 | - | - |
Revenue by Geography
(USD millions) | Q4 2024 | Q4 2023 | % change | % constant currency |
United States | 1,075.50 | 908.7 | 18.4% | 18.4% |
Canada | 47.5 | 47.6 | -0.4% | 2.1% |
Puerto Rico | 28.3 | 25.9 | 9.3% | 9.3% |
Mexico | 13.7 | 20.6 | -33.6% | -23.7% |
Total Americas Region | 1,165.0 | 1,002.8 | 16.2% | 16.5% |
Switzerland | 1.1 | 58.3 | 98.0% | 98.0% |
France | 0.3% | 49.4 | -99.5% | -99.5% |
Portugal | - | 47.1 | - | - |
Italy | - | 14.4 | - | - |
Other Europe | 8.8 | 49.4 | -82.2% | -82.5% |
Total European Region | 10.2 | 218.6 | -95.3% | -95.4% |
Asia Pacific | 15.9 | 10.8 | 47.7% | 44.4% |
Full-Year Earnings
(USD millions) | FY 2024 | FY 2023 | % change | % constant currency |
Revenue | 4,331.80 | 4,835.70 | -10.4% | -10.3% |
Gross profit | 882.6 | 961.4 | -8.2% | -8.1% |
Gross margin | 20.4% | 19.9% | - | - |
Net loss/net earnings | -0.6 | 36.4 | nm | nm |
Share Price
Kelly Services shares closed on 13 February 2025 at USD 14.25, up 7.22% on the day and 12.38% above the 52-week low of USD 12.68 set on 19 December 2024. The company has a market cap of 506.39 million.