Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 95

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 profit increased resulting from the acquisition of the MRP staffing and outcome-based solutions businesses. The change in the SET gross profit rate was driven by a 70 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 a 70 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 due primarily to favorable employee-related costs.

36 

Operating Results By Segment (continued)

(Dollars in millions)

Second QuarterJune Year-to-Date 20252024% Change20252024% ChangeSG&A Expenses (excluding depreciation and amortization):Enterprise Talent Management$92.9 $93.5 (0.7)%$194.1 $191.6 1.3 %Science, Engineering & Technology63.1 48.9 29.0 132.0 92.1 43.3 Education25.5 24.2 5.6 52.4 48.2 9.0 Corporate expenses13.3 12.4 6.7 29.2 27.4 6.3 Consolidated Total$194.8 $179.0 8.8 %$407.7 $359.3 13.4 %

Second Quarter Results

The decrease in ETM SG&A expenses excluding depreciation and amortization was primarily due to lower employee-related costs, partially offset by increases from the addition of the Sevenstep business.  Excluding the acquisition, expenses decreased 3.2% from the prior year primarily due to lower employee-related costs as a result of expense management actions in response to lower revenue volume compared to the prior year, partially offset by integration and realignment charges.

The increase in SET SG&A expenses excluding depreciation and amortization was primarily due to the acquisition of MRP.  Excluding the acquisition, expenses decreased 1.6% primarily due to lower employee-related costs.

The increase in Education SG&A expenses excluding depreciation and amortization primarily related to increased costs to support year-over-year revenue growth.

The increase in Corporate expenses was primarily driven by integration and realignment charges in the second quarter of 2025.

June Year-to-Date Results

The increase in ETM SG&A expenses excluding depreciation and amortization was primarily due to the addition of the Sevenstep business.