Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 30

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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.9 %Science, Engineering & Technology322.4 231.6 39.2 Education309.0 289.9 6.6 Less: Intersegment revenue(0.5)(0.5)(10.8)Consolidated Total$1,164.9 $1,045.1 11.5 %

First Quarter Results

The increase in ETM revenue was driven by the acquisition of Sevenstep, the MRP talent solutions business, as revenue excluding the acquisition was flat to prior year.  Excluding the acquisition, revenue from staffing services decreased 1.8%, which was offset by increases of 1.8% in outcome-based services and 3.0% in talent solutions.

The increase in SET revenue from services was primarily driven by the acquisition of MRP staffing and outcome-based solutions businesses.  Excluding the acquisition, revenue from services decreased 7.2% primarily driven by declines in hours volume in our staffing specialties including the impact of changes in demand related to U.S. federal government.  Excluding the acquisition, revenue in our outcome-based services decreased 3.4%.  Permanent placement fees decreased, reflecting continued lower market demand.

The increase in Education revenue from services was driven by increased demand for our services as compared to a year ago, reflecting the impact of fill rate improvement and higher bill rates, partially offset by the impact of weather-related school closures.

31 

Operating Results By Segment (continued)

(Dollars in millions)

First Quarter20252024ChangeGross Profit:Enterprise Talent Management$108.0 $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