Company: KELYB
Filing Date: 2025-04-14
Form Type: DEF 14A
Source: 0001193125-25-080159
Chunk: 1

Company: KELLY SERVICES INC
Filing Date: 2025-04-14
Form: DEF 14A
Chunk 1
---
 share through its omni-channel delivery strategy, and capitalized on growing demand for outcome-based solutions in semiconductors, logistics, manufacturing, and distribution. KellyOCG achieved solid revenue growth driven by its payroll process outsourcing solution while building a strong pipeline and winning a number of higher-margin managed service provider (MSP) and recruitment process outsourcing (RPO) opportunities. Across our portfolio, our large enterprise account strategy enabled our businesses to penetrate further into Kelly’s blue-chip client base. We delivered these results notwithstanding a challenging operating environment in which total staffing industry revenues declined in most segments by double digits. Our achievements against this backdrop further reinforce our strategic decision to focus on in-demandspecialties in which Kelly is well positioned to compete and win. Significantly Improving Kelly’s Profitability We remained laser-focused on improving profitability as well. In 2024, we delivered 100 basis points of adjusted EBITDA margin expansion, increasing our full-year EBITDA margin to 3.3% on an adjusted basis. This represents a significant increase over Kelly’s recent historical average of approximately 2.0%. Contributing to this improvement are sustained structural efficiencies and Kelly’s ongoing shift toward higher margin, higher growth areas. This includes outcome-based solutions, which now represent more than one-thirdof P&I and SET’s revenue, and an even greater portion of each business unit’s gross profit. Redeploying Capital to Create Shareholder Value Following the sale of Kelly’s European staffing business at the beginning of the year, we swiftly redeployed the proceeds in support of our inorganic growth strategy. In May, we completed the purchase of Motion Recruitment Partners (MRP). This transformational acquisition strengthened the scale and capabilities of Kelly’s technology staffing, consulting and RPO solutions in attractive customer end markets. The highly complementary nature of MRP’s portfolio of businesses and Kelly’s SET and OCG businesses enhance Kelly’s revenue growth potential and drive continued EBITDA margin expansion. We also accelerated the expansion of Kelly Education’s higher-margin therapy business through the acquisition of Children’s Therapy Center (CTC), which we completed in November. Specializing in occupational, physical, and speech therapy for children, CTC brings scale to our current network of licensed therapists, enabling flexible practice in clinics or schools. In addition to inorganic investments, we maintained our commitment to shareholder remuneration. In 2024, we returned $21 million to shareholders through dividends and share repurchases. This includes $10 million of Class A common shares repurchased under the