Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 94

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Executive Overview

We entered 2025 propelled by positive momentum from our recent growth and efficiency improvements. Our priorities remained focused on delivering organic growth, realizing efficiencies by further streamlining our operating model, and driving incremental margin expansion. As anticipation of global trade policy shifts increased throughout the first quarter of 2025, we remained agile and ready to respond to changing external dynamics while keeping our sights set on our priorities. By focusing on what we can control and through disciplined execution, we delivered solid results in the quarter and substantial progress on our strategic priorities. 

We combined our former P&I and OCG segments into the ETM segment in the first quarter of 2025, responding to a shift in customer demand toward integrated workforce solutions and enabling a more streamlined and efficient go-to-market approach. This streamlined structure builds upon the enterprise account growth initiative we implemented in 2023, further enhancing our ability to deliver the full suite of Kelly offerings to large enterprise accounts. We also shifted certain customers from the SET segment to the ETM segment to support this integrated strategy. Also in the first quarter of 2025, we moved Motion Recruitment Partners’ Sevenstep business from the SET segment to the ETM segment as part of the broader integration of MRP. 

We also accelerated our progress on integrating MRP’s portfolio of businesses with our existing SET businesses. We initiated plans to modernize SET’s front- and back-office systems leveraging MRP’s leading technology stack. This will create a scalable, efficient, and integrated technology platform within SET that reduces complexity and enhances agility across the business. 

In addition, we implemented targeted cost-reduction actions to deliver additional structural improvements to our cost base. These actions underscore our commitment to enhancing Kelly’s profitability over the long term. In parts of our portfolio where customers are taking a more measured approach to hiring, we took action to align resources with demand. 

Together, our actions in the first quarter of 2025 reflect Kelly’s strategic progress, and our team’s ability to execute in any environment. These achievements reinforce our confidence in the resilience of our business, the strength of our operating model, and the expertise of our team – momentum we aim to carry forward throughout the remainder of 2025. 

Financial Measures 

Reported percentage changes were computed based on actual amounts in thousands of dollars.

EBITDA (earnings before interest, taxes, depreciation and amortization) and EBITDA margin (EBITDA divided