Randstad: organic growth of 3.9% in third quarter, above expectations
Randstad published its third quarter 2026 results on October 21, 2026. They show an acceleration of activity: organic revenue per working day increased by 3.9%, following a rise of 1.9% in the second quarter and a decline of 1.2% in the third quarter 2025. Published revenue stood at 6,115 M€, compared with 5,810 M€ a year earlier.
This recovery in volumes is accompanied by a decline in underlying gross margin, reduced to 17.8% compared with 18.4%. The stability of underlying operating expenses nevertheless allowed the underlying EBITA margin to move from 3.3% to 3.5%. Underlying diluted earnings per share, at 0.75 €, came in above the average of 0.70 € expected by analysts.
Underlying EBITA of 211 M€ and net income up 33%
For the quarter, underlying EBITA of the Dutch temporary work and recruitment group reached 211 M€, compared with 191 M€ a year earlier, representing an increase of 11% (10% on an organic basis). Integration costs and non-recurring items fell to 15 M€, compared with 38 M€, mainly related to restructurings in several countries. Published EBITA thus increased to 196 M€, compared with 153 M€, and operating income to 177 M€, compared with 136 M€.
Net income stood at 110 M€, up 33%, and adjusted net income at 133 M€, up 11%. Revenue exceeded the average of analysts' expectations, who forecast 5.96 billion€.
The cumulative reading remains more moderate: over the first nine months, organic revenue grew by 2%, to 17,525 M€, and underlying EBITA reached 539 M€ compared with 529 M€, for a stable margin of 3.1%.
Stable expenses offsetting gross margin decline
The decline of 0.6 point in underlying gross margin stems mainly from temporary work, with a negative effect of 50 basis points, permanent placements weighing 10 basis points. Permanent placement fees declined by 4% on an organic basis. Underlying operating expenses remained stable at 878 M€ (down 1% on an organic basis), bringing their weight to 14.4% of revenue compared with 15.1%. Average headcount, at 37,010 full-time equivalents, declined by 3% organically year-on-year.
Growth is unevenly distributed. North America advanced 9%, driven by a 19% increase in Operational activity in the United States, and its EBITA margin moved from 4.6% to 5.3%. Germany saw its margin improve to 3.7% from 1.7%. Conversely, the Netherlands margin declined to 4.0% from 5.2%, despite activity up 3%, while France (-3%) and Belgium-Luxembourg (-5%) remained in decline.
By specialization, Randstad Operational and Randstad Enterprise each advanced 6%, while Randstad Professional (-1%) and Randstad Digital (-2%) declined further. Chief Executive Officer Sander van 't Noordende indicated that 75% of the group's activities are now growing.
Net debt reduced to 1,147 M€ and improvement in early October
Free cash flow for the quarter reached 250 M€, compared with 244 M€, and net debt excluding leases stood at 1,147 M€ at the end of September, compared with 1,220 M€ a year earlier. The leverage ratio returned to 1.5 times compared with 1.6 times, and return on invested capital improved to 11.2% compared with 10.4%.
For the fourth quarter 2026, the group indicated that activity and volumes improved as the quarter progressed and this improvement continues in early October. It anticipates overall gross margin stable compared with the third quarter and operating expenses slightly higher on the same basis, with 0.3 additional working day. The effective tax rate for the fiscal year is expected in the upper end of the 30% to 32% range.
Additionally, the disposal of the Technology and Consulting Services business in Europe and Australia, announced on May 22, 2026, is expected to be finalized in the fourth quarter 2026, subject to customary conditions and regulatory approvals; the assets concerned, classified as held for sale, amount to 310 M€. For the quarter, the combination of 3.9% organic growth and stable underlying expenses brought the underlying EBITA margin to 3.5%.
