Randstad shares slide after profit margin misses expectations

[HR employment company Randstad]
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Shares of Randstad (OTCPK:RANJF [https://seekingalpha.com/symbol/RANJF]) (OTCPK:RANJY [https://seekingalpha.com/symbol/RANJY]) tumbled Wednesday after the Dutch staffing group posted [https://seekingalpha.com/news/4506522-randstad-reports-q3-results] a third-quarter gross profit margin that came in below forecasts, as customers continued shifting toward lower-margin temporary hiring.

In afternoon trading in Europe, the stock was down 6.8% to €34.30, narrowing a deeper intraday decline.

The company reported a gross profit margin of 18.4%, short of its own guidance and below analysts’ expectations of 18.7%. The result echoed similar margin pressure recently reported by rival ManpowerGroup, according to a note from Morgan Stanley analysts.

The weaker profitability was attributed to fewer high-margin permanent placements, adverse currency effects and reduced contribution from Randstad’s Recruitment Process Outsourcing unit, the analysts said.

Organic revenue fell 1.2% in the quarter, marking a smaller decline than the 2.3% drop in the second quarter and the 5.9% contraction a year earlier. That performance was roughly in line with the 1.3% decline expected by analysts, according to company-provided consensus data.

Underlying earnings before interest, taxes and amortization totaled €191 million ($222 million), down slightly from €196 million in the same period last year but ahead of analysts’ expectations of €182 million.

Randstad said it remains focused on cost discipline and operational efficiency as the labor market continues to favor flexible staffing arrangements.

MORE ON RANDSTAD N.V.

* Randstad N.V. (RANJY) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4831767-randstad-n-v-ranjy-q3-2025-earnings-call-transcript]
* Randstad N.V. 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4831805-randstad-n-v-2025-q3-results-earnings-call-presentation]
* Seeking Alpha’s Quant Rating on Randstad N.V. [https://seekingalpha.com/symbol/RANJY/ratings/quant-ratings]
* Historical earnings data for Randstad N.V. [https://seekingalpha.com/symbol/RANJY/earnings]
* Dividend scorecard for Randstad N.V. [https://seekingalpha.com/symbol/RANJY/dividends/scorecard]