Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 112

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 112
---
MEA staffing operations.

Income tax expense was $2.7 million for the first six months of 2025 compared to an income tax expense of $5.1 million for the first six months of 2024 with the change primarily due to changes in pretax income, non-deductible transaction costs in 2024 and the impact of the sale of the EMEA staffing operations in both years.

34 

Operating Results By Segment

(Dollars in millions)

Second QuarterJune Year-to-Date 20252024% Change20252024% ChangeRevenue from Services:Enterprise Talent Management$520.2 $541.2 (3.9)%$1,054.2 $1,065.3 (1.0)%Science, Engineering & Technology317.3 265.7 19.4 639.7 497.3 28.6 Education265.3 251.1 5.6 574.3 541.0 6.1 Less: Intersegment revenue(1.0)(0.5)90.2 (1.5)(1.0)41.3 Consolidated Total$1,101.8 $1,057.5 4.2 %$2,266.7 $2,102.6 7.8 %

Second Quarter Results

ETM revenue includes the impact from the addition of the Sevenstep business, which represents the talent solutions business that was acquired as part of the MRP acquisition.  Revenue excluding the acquisition decreased 5.1% from the prior year.  Revenue from staffing services decreased 7.7% resulting from lower hours volume primarily at certain large customers and revenue from outcome-based services decreased 6.2% due primarily from lower demand for our contact-center solutions, which were offset by an increase of 2.3% in talent solutions, excluding the acquisition.  Permanent placement fees increased 27.2%.

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 8.5% primarily driven by declines in hours volume in our staffing specialties largely from changes in demand related to U.S. federal government contractors.  Excluding the acquisition, revenue in our outcome-based services decreased 4.5%.  Permanent placement fees decreased, reflecting continued lower market demand.

The increase in Education revenue from services was driven by the impact of