Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 98

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 98
---
.0 $106.2 1.7 %Science, Engineering & Technology82.3 57.4 43.3 Education46.2 42.1 9.8 Consolidated Total$236.5 $205.7 15.0 %Gross Profit Rate:Enterprise Talent Management20.2 %20.3 %(0.1)pts.Science, Engineering & Technology25.5 24.8 0.7 Education15.0 14.5 0.5 Consolidated Total20.3 %19.7 %0.6 pts.

First Quarter Results

Gross profit for ETM increased on higher revenue volume.  In comparison to the prior year, the gross profit rate decreased 10 basis points.  Factors impacting the gross profit rate included lower permanent placement fees which reduced the gross profit rate by 10 basis points and the impact of changes in business mix and employee-related costs reduced the gross profit rate by 20 basis points.  This was partially offset by a 20 basis point increase due to the acquisition of Sevenstep, a MRP talent solutions business.

The SET gross profit increased primarily as a result of the acquisition of the MRP staffing and outcome-based solutions businesses.  The SET gross profit rate increased 70 basis points driven by a 100 basis point increase due to the MRP acquisition, which generates higher gross profit rates, and 50 basis points reflecting favorable business mix and employee-related costs, partially offset by an 80 basis point decrease as a result of lower permanent placement fees.

Gross profit for the Education segment increased on higher revenue volume.  The gross profit rate increased 50 basis points due primarily to favorable employee-related costs.

32 

Operating Results By Segment (continued)

(Dollars in millions)

First Quarter20252024% ChangeSG&A Expenses (excluding depreciation and amortization):Enterprise Talent Management$101.2 $98.1 3.1 %Science, Engineering & Technology68.9 43.2 59.4 Education26.9 24.0 12.4 Corporate expenses15.9 15.0 5.9 Consolidated Total$212.9 $180.3 18.1 %

First Quarter Results

The increase in ETM SG&A expenses excluding depreciation and amortization is primarily due to the acquisition of Sevenstep, the MRP talent solutions business.  Excluding