Randstad beats quarterly profit forecasts, 'slightly' lifts Q4 outlook (updated)

Randstad NV

22/10/2025 06:27

Randstad's Q3 underlying EBITA at 191 million euros

Shares on track of its worst day in five years

Expects "slightly higher" gross margin, operating expenses in Q4

Adds share move in para 2-3, recasts headline

Oct 22 (Reuters) - Headhunter Randstad RAND.AS on Wednesday reported better than expected third quarter profit but its shares fell 9%, putting them on track for their worst day in five years, as analysts focused on weak sales.

Third-quarter operating profit came in at 191 million euros ($223 million), beating an analyst consensus of 182 million polled by the company.

However, in a note to clients, KBC Securities said cost control and solid profitability belied a struggling top line, whilst Degroof Petercam pointed to weakening global labour markets even as it saw "top line momentum finally improving a bit".

The company said it expected next quarter's gross margin and operating expenses to be "slightly higher" given summer specific demands such as hospitality and student gigs.

RECRUITERS HIT BY GLOBAL TRADE WAR

Recruiters have found themselves in a tight spot as an on-again-off-again global trade war and economic struggles in major European economies cloud labour markets.

Previous signs of stabilisation continued however as the year-on-year decline in organic revenue reported in previous quarters narrowed to -1.2% from -2.3% in Q2.

Permanent hires remain stuck at very low levels as uncertainty continues, CFO Jorge Vazquez said in an interview, noting that Randstad's flexible work models provide some resilience.

REVENUE DROPS IN NORTH AMERICA

Revenue for the North American region, accounting for about a fifth of total revenue, dropped 1% compared to last quarter. Randstad said its combined U.S. businesses dropped the same amount.

"The labour market in the US, as in multiple markets in Northwest Europe, is pretty stagnant," van 't Noordende said.

He remained positive longer term, noting strong GDP growth in America and expecting AI investments to scale up in the long run even if short-term gains remain muted.

($1 = 0.8575 euros)

 (Reporting by Jakob Van Calster; Editing by Matt Scuffham)

 ((jakob.vancalster@thomsonreuters.com;))