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Dec 29, 2024
Kelly Services Q4 2024 Earnings Report
Kelly Services drove organic revenue growth that outpaced the market and increased adjusted EBITDA.
Key Takeaways
Kelly Services reported Q4 revenue of $1.2 billion, a decrease of 3.3% year-over-year, but an increase of 4.4% on an organic basis. The company reported an operating loss of $56.7 million, including $80.8 million in non-cash impairment charges. Adjusted EBITDA was $43.5 million, up 34% versus the prior year.
Q4 revenue was $1.2 billion, down 3.3% year-over-year but up 4.4% on an organic basis.
Operating loss was $56.7 million, reflecting $80.8 million in non-cash impairment charges.
Adjusted EBITDA was $43.5 million, up 34% versus the prior year.
Adjusted EBITDA margin increased 110 basis points to 3.7%.
Revenue by Segment
Forward Guidance
The company expects to deliver incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025.
Positive Outlook
- Total Company first half revenue up approximately 10% due to the benefit of the MRP acquisition, up modestly on an organic basis
- Total Company revenue growth will be slightly higher in Q1 than in Q2 given the May 31, 2024 MRP transaction closing date
- Total Company rate up approximately 80 basis points reflecting the benefit of the MRP acquisition; organic GP rate roughly flat
- Adjusted SG&A – increase modestly on a quarterly run rate basis relative to Q4 2024, includes impact of payroll tax and performance-based incentive resets
- Adjusted EBITDA margin – up 10 basis points to approximately 3.6%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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