Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 39

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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.7 14.7 — 14.9 14.6 0.3 Consolidated Total20.5 %20.2 %0.3 pts.20.4 %19.9 %0.5 pts.

Second Quarter Results

Gross profit for ETM decreased on lower revenue volume.  Factors impacting the gross profit rate included the impact of changes in business mix and higher employee-related costs which reduced the gross profit rate by 50 basis points, partially offset by higher permanent placement fees which increased the gross profit rate by 20 basis points.  There was an additional 20 basis point increase due to the addition of the Sevenstep business.

The SET gross profit increased primarily as a result of the acquisition of the MRP staffing and outcome-based solutions businesses.  The change in the SET gross profit rate was driven by a 60 basis point increase due to the MRP acquisition, which generates higher gross profit rates, and 40 basis points reflecting favorable business mix and employee-related costs, partially offset by a 50 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 was flat to the prior year.

June Year-to-Date Results

Gross profit for the ETM segment decreased on lower revenue volume.  Factors impacting the gross profit rate included the impact of changes in business mix and employee-related costs which reduced the gross profit rate by 40 basis points, partially offset by higher permanent placement fees which increased the gross profit rate by 10 basis points.  There was an additional 20 basis point increase due to the addition of the Sevenstep business.

The SET gross 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