Kelly Services Reports Mixed 2024 Earnings

By Tamara Parker • Thursday, February 13 10:26 • Permanent Link

Kelly (NASDAQ: KELYA, KELYB) has announced its fourth-quarter and full-year 2024 earnings, revealing a mixed performance. In the fourth quarter of 2024, the company reported a revenue of $1.2 billion, representing a 3.3% decrease compared to the corresponding quarter of 2023 due to previously disclosed dispositions and acquisitions. However, on an organic basis, the revenue was up by 4.4%. For the full year, Kelly reported a revenue of $4.3 billion, down 10.4% as reported, but up 0.5% on an organic basis.

The operating loss in the fourth quarter was $56.7 million, including $80.8 million in non-cash impairment charges, while adjusted operating income was $29.2 million, marking a 32% increase compared to the prior year period. Adjusted EBITDA for the fourth quarter was $43.5 million, up 34% year-over-year, with an EBITDA margin increase of 110 basis points to 3.7%. For the full year, adjusted EBITDA was $143.5 million, marking a 31% increase over the prior year, with an EBITDA margin of 3.3%, up 100 basis points versus the prior year.

On a per share basis, Kelly reported a loss of $0.90 in the fourth quarter of 2024, compared to earnings per share of $0.31 in the same period of 2023. On an adjusted basis, earnings per share were $0.82 in the fourth quarter of 2024, down from $0.93 per share in the corresponding quarter of 2023.

Looking ahead, the company expects to deliver incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025. Additionally, Kelly announced the planned retirement of President and CEO Peter Quigley by the end of 2025. Quigley mentioned that the company drove organic revenue growth that outpaced the market and increased adjusted EBITDA by 34% in the fourth quarter, marking a year of significant strategic progress.

Kelly also declared a quarterly cash dividend of $0.075 per share and executed share repurchases of $10.0 million during the fourth quarter of 2024. The company will host a live webcast of a conference call with financial analysts to review the results from the quarter and answer questions. Today the company's shares have moved 3.6% to a price of $13.78. For more information, read the company's full 8-K submission here.

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