Welcome to ManpowerGroup's first quarter earnings results conference call. You'll be put in listen-only mode until the question-and-answer time begins. This call is being recorded. If you care to drop off now, please do so. I would now like to turn the call over to ManpowerGroup's Chair and CEO, Mr. Jonas Prising. Sir, you may begin. Welcome. Thank you for joining us for our first quarter 2025 conference call. Our Chief Financial Officer, Jack McGinnis, is with me today. For your convenience, we've included our prepared remarks within the investor relations section of our website at manpowergroup.com. I will start by going through some of the highlights of the quarter, and Jack will go through the first quarter results and guidance for the second quarter of 2025. I will then share some concluding thoughts before we start our Q&A session. Jack will now cover the safe harbor language. Good morning, everyone. This conference call includes forward-looking statements, including statements concerning economic and geopolitical uncertainty, which are subject to known and unknown risks and uncertainties. These statements are based on management's current expectations or beliefs. Actual results might differ materially from those projected in the forward-looking statements. We assume no obligation to update or revise any forward-looking statements. Slide two of our earnings release presentation further identifies forward-looking statements made in this call and factors that may cause our actual results to differ materially and information regarding reconciliation of non-GAAP measures. Thank you, Jack. This quarter, I spent time with many of our clients and leadership teams across our key markets in Europe, Latin America, and Asia-Pacific, as well as here in North America. Broadly, the consensus is the quarter has been of two halves, with the year began with a sense of optimism for economic growth in the U.S. particularly, and a greater acknowledgment among EU policymakers that Europe needed to do more to remain competitive. The last several weeks have impacted the sense of confidence, and the mood is significantly more uncertain and cautious as a result of recent trade policy announcements in the U.S., with ripple effects far beyond. At this stage, most of our clients are adopting a wait-and-see approach, and it is difficult to provide any concrete assessment of how significantly this might affect demand from our customers in our major markets around the world. As always, we're staying very close to our clients during this time and taking an industry and country-specific view as announced tariffs impact in different ways. We remain agile and are monitoring demand changes closely. At the same time, the benefits of a flexible workforce are highly visible during periods of increased uncertainty, and we know that those closest to their clients will win opportunities to deliver more flexible workforce solutions in a time of need. Our message to our organization and leadership teams in our 75+ countries and territories around the world is clear: control what you can control, stay close to our clients and candidates, and build agility so we can act quickly to anticipate and respond to evolving client needs. There remain plenty of opportunities to win in the market and provide value to those we serve, and we are determined to be the partner of choice during unsettled times. Now, to our results. In the first quarter, revenue was $4.1 billion, down 5% year-over-year in constant currency. Reported EBITDA for the quarter was $36 million. Adjusting for restructuring costs, EBITDA was $52 million, representing a decrease of 32% in constant currency year-over-year. Reported EBITDA margin was 0.9%, and adjusted EBITDA margin was 1.3%. Earnings per diluted share was $0.12 on a reported basis, while earnings per diluted share was $0.44 on an adjusted basis. Adjusted earnings per share decreased 51% year-over-year in constant currency. In the first quarter, we saw the continuation of a challenging environment in Europe and North America, while demand for our services in Latin America and Asia-Pacific Middle East remained good. Staffing margin was solid, reflecting business mix changes and ongoing disciplined pricing. However, permanent recruitment softened further, and we saw reduced outplacement volumes, which impacted our margins. We took further cost actions to mitigate these trends, and we will continue to adjust as needed as the environment evolves. Though we have seen a period of volatility relating to the tariff announcements and uncertainty is elevated right now, underlying economic indicators, including labor markets, continue to be relatively stable. Based on what we see today, we expect employers to continue to cautiously look at hiring select talent, particularly those with in-demand skills that enable their businesses to transform. Indeed, as AI accelerates, we expect to see a greater focus on skills development as organizations seek to guide their workforce through a period of transition and prepare them to work alongside AI. This is supported by our most recent Experis CIO report, which found that more than half of the companies are planning on upskilling existing talent with AI skills, and one in three are hiring people with the ability to collaborate across functions to solve business challenges. Thanks, Jonas. U.S. dollar reported revenues in the first quarter were impacted by foreign currency translation and, after adjusting for currency impacts, came in above the high end of our constant currency guidance range. Although conditions remain challenging, our revenue trends demonstrate we continue to perform well in the market. Following various recent sale and franchise arrangements, our revenues from franchise offices are significant and are included within system-wide revenues, which equaled $4.5 billion for the quarter. Additional information on franchise offices can be found in our press release financials. Gross profit margin came in just below the low end of our guidance range, driven by weaker permanent recruitment. As adjusted, EBITDA was $52 million, representing a 32% decrease in constant currency compared to the prior year period. As adjusted, EBITDA margin was 1.3% and came in just below the low end of our guidance range, representing 50 basis points of decline year-over-year. Foreign currency translation drove a 2.5% unfavorable impact to the U.S. dollar reported revenue trend from the constant currency decrease of 4.5%. Organic days adjusted constant currency revenue decreased 1% in the quarter, which was favorable to our guidance. Turning to the EPS bridge, reported net earnings per share was $0.12. Adjusted EPS was $0.44 and came in $0.03 below our guidance range. Walking from our guidance midpoint of $0.52, our results included a lower operational performance of $0.09, a foreign currency impact that was $0.04 favorable to our guide, and interest and other expenses, which was $0.03 unfavorable. Higher tax charges from a France law change imposed for a one-year period for 2025 and updated country earnings mix for the current environment represented $0.06, and restructuring costs represented $0.26, resulting in the reported EPS of $0.12. Next, let's review our revenue by business line. Year-over-year, on an organic constant currency basis, the Manpower brand declined 2% in the quarter, the Experis brand declined by 5%, and the Talent Solutions brand declined by 2%. Within Talent Solutions, our RPO business experienced a slight year-over-year revenue decrease. Our MSP business recorded a strong double-digit revenue increase compared to the prior year, while Right Management experienced a year-over-year revenue decline in the quarter as outplacement activity continued to slow. Looking at our gross profit margin in detail, our gross margin came in at 17.1% for the quarter. Staffing margin contributed a 10 basis point reduction due to mix shifts and lower bench utilization in select countries, while pricing remained stable. Permanent recruitment was weaker than expected and contributed a 10 basis point GP margin reduction as permanent hiring activity in the first quarter decreased year-over-year. Right Management career transition within Talent Solutions contributed a 10 basis point reduction as outplacement activity decreased in the quarter. Other items resulted in a 10 basis point margin decrease. Moving on to our gross profit by business line, during the quarter, the Manpower brand comprised 59% of gross profit. Our Experis professional business comprised 24%, and Talent Solutions comprised 17%. During the quarter, our consolidated gross profit decreased by 6% on an organic constant currency basis year-over-year, representing a sequential step down from the 4% decline in the fourth quarter. Our Manpower brand reported an organic gross profit decrease of 2% in constant currency year-over-year, a slight improvement from the 3% decrease in the fourth quarter. Gross profit in our Experis brand decreased 11% in organic constant currency year-over-year, flat from the 11% decrease in the fourth quarter. Gross profit in Talent Solutions decreased 5% in organic constant currency year-over-year, representing a step down from the fourth quarter increase of 7%. MSP saw continued year-over-year gross profit growth in the first quarter, while RPO and Right Management gross profit declined due to the end of select client projects and lower outplacement volumes. Reported SG&A expense in the quarter was $670 million. SG&A, as adjusted, was down 4% year-over-year on a constant currency basis and down 3% on an organic constant currency basis. The year-over-year SG&A decreases largely consisted of reductions in operational costs of $18 million. Corporate costs continue to include our back office transformation spend, and these programs are progressing well with expected medium and long-term efficiencies. Dispositions represented a decrease of $8 million, and currency changes contributed to a $15 million decrease. Adjusted SG&A expenses as a percentage of revenue represented 15.9% in constant currency in the first quarter. Adjustments represented restructuring costs of $16 million. The America segment comprised 25% of consolidated revenue. Revenue in the quarter was $1.1 billion, representing an increase of 5% year-over-year on a constant currency basis. OUP was $25 million, and OUP margin was 2.4%. The U.S. is the largest country in the America segment, comprising 65% of segment revenues. Revenue in the U.S. was $689 million during the quarter, representing a 2% days-adjusted increase compared to the prior year. This represents an improvement from the 1% decline in the fourth quarter, as Manpower and Talent Solutions had revenue growth, while the rate of decline improved in Experis. OUP for our U.S. business was $11 million in the quarter. OUP margin was 1.6%. Within the U.S., the Manpower brand comprised 25% of gross profit during the quarter. Revenue for the Manpower brand in the U.S. increased 7% on a days-adjusted basis during the quarter, which represented strong market performance and an improvement from the 2% increase in the fourth quarter. The Experis brand in the U.S. comprised 42% of gross profit in the quarter. Within Experis in the U.S., IT skills comprised approximately 90% of revenues. Experis U.S. revenue decreased 2% on a days-adjusted basis during the quarter, an improvement from the 6% decline in the fourth quarter. The improvement in the first quarter was driven by seasonal healthcare IT go-live projects, and the remaining business was relatively stable from the previous quarter. Talent Solutions in the U.S. contributed 33% of gross profit and saw a revenue increase of 3% in the quarter, a decrease from the 16% increase in the fourth quarter driven by RPO and Right Management. RPO experienced a modest revenue increase in the U.S. during the quarter following the completion of higher volume seasonal projects in the previous quarter. The U.S. MSP business executed well during the quarter, posting strong double-digit revenue increases, while outplacement activity within our Right Management business was down year-over-year as outplacement activity slowed. In the second quarter of 2025, we do not anticipate the seasonal Experis healthcare IT projects to be significant, and we expect the overall U.S. business to have a low single-digit year-over-year revenue decline. Southern Europe revenue comprised 45% of consolidated revenue in the quarter. Revenue in Southern Europe was $1.8 billion, representing a 5% decrease in constant currency. As adjusted, OUP for our Southern Europe business was $54 million in the quarter, and OUP margin was 2.9%. Restructuring charges of $3 million primarily represented actions in Spain and Portugal. France revenue comprised 53% of Southern Europe segment in the quarter and decreased 8% on a days-adjusted constant currency basis. France has historically managed our Morocco business as a small component of their overall business. In line with regional management changes, beginning with this 2025 reporting cycle, we have reclassified Morocco to Other Southern Europe and have restated prior periods to reflect like-for-like year-over-year variances. That said, we saw an improvement in the rate of revenue decline in France from January to March. In March, the largest month, revenue decreased 7.5%. As adjusted, OUP for our France business was $21 million in the quarter. Adjusted OUP margin was 2.2%. Activity to date in April is similar to the month of March, and we are estimating the second quarter trend to be similar to the month of March trend. Revenue in Italy equaled $398 million in the first quarter, reflecting an increase of 5% on a days-adjusted constant currency basis. OUP equaled $25 million, and OUP margin was 6.2%. We estimate that Italy will have a similar constant currency revenue trend in the second quarter compared to the first quarter. Our Northern Europe segment comprised 18% of consolidated revenue in the quarter. Revenue of $731 million represented a 14% decline in constant currency. As adjusted, OUP equaled a $6 million loss. The majority of the restructuring charges of $12 million was recorded in the Nordics, Belgium, and the U.K. Our largest market in the Northern Europe segment is the U.K., which represented 35% of segment revenues in the quarter. During the quarter, U.K. revenues decreased 16% on a days-adjusted constant currency basis. The U.K. market continues to be very challenging, and we expect the rate of revenue decline to be similar in the second quarter compared to the first quarter. In Germany, revenues decreased 26% on a days-adjusted constant currency basis in the quarter. Germany manufacturing trends have been weak, driving further declines. In the second quarter, we are expecting a similar to slightly improved year-over-year revenue decline compared with the first quarter trend. The Nordics continue to experience very difficult market conditions, with revenues decreasing 16% in days-adjusted constant currency in the quarter. Within the Nordics, Sweden is experiencing the largest declines based on a weak manufacturing environment and the adjustment to new temporary work term limits discussed in previous quarters. The Asia-Pacific Middle East segment comprises 12% of total company revenue. In the quarter, revenues equaled $476 million, representing an increase of 7% in organic constant currency. OUP was $20 million, and OUP margin was 4.2%. Our largest market in the APME segment is Japan, which represented 60% of segment revenues in the quarter. Revenue in Japan grew 9% on a days-adjusted constant currency basis. We remain very pleased with the consistent performance of our Japan business, and we expect continued strong revenue growth in the second quarter. I'll now turn to cash flow and balance sheet. In the first quarter, free cash flow represented an outflow of $167 million compared to an inflow of $104 million in the prior year. Timing of payables impacted the level of outflow in the first quarter. Outflow of free cash flow in the first half of the year typically follows strong free cash flow in the second half. At quarter end, day sales outstanding decreased by about half a day to 54 days. During the first quarter, capital expenditures represented $14 million. During the first quarter, we repurchased 433,000 shares of stock for $25 million. As of March 31st, we have 2.2 million shares remaining for repurchase under the share program approved in August of 2023. Our balance sheet ended the quarter with cash of $395 million and total debt of $1.07 billion. Net debt equaled $677 million at quarter end. Our debt ratios at year-end reflect total gross debt to trailing 12 months adjusted EBITDA of 2.5 and total debt to total capitalization at 34%. Our debt and credit facility arrangements are displayed in the appendix of the presentation. Next, I'll review our outlook for the second quarter of 2025. Based on trends in the first quarter and April activity to date, our forecast is cautious and anticipates that the second quarter will continue to be challenging in Europe and North America. It is important to note that our forecast reflects demand trends we are currently experiencing. If tariff policy-related matters have an additional significant dampening effect on demand for our services globally, this is not included in our guidance. With that said, we are forecasting earnings per share for the second quarter to be in the range of $0.65-$0.75. As I mentioned earlier, the increased French income tax for the one-year period of 2025 and the updated country mix effects have increased our global effective tax rate, which will have the impact of decreasing our second quarter EPS estimate by $0.14 from the beginning of the year tax rate guidance. The guidance range also includes a favorable foreign currency impact of $0.03 per share, and our foreign currency translation rate estimates are disclosed at the bottom of the guidance slide. Our constant currency revenue guidance range is between a decrease of 3% and 7%, and at the midpoint is a 5% decrease. Considering the impact of our dispositions and the slightly lower number of working days, our organic days-adjusted constant currency revenue decrease represents 2% at the midpoint. EBITDA margin for the second quarter is projected to be down 60 basis points at the midpoint compared to the prior year. We estimate that the effective tax rate for the second quarter will be 46.5%, which represents the previously mentioned French tax charge for the one-year period of 2025 and the overall mix effect of lower earnings from lower tax geographies in the current environment, including the impact of valuation allowances in certain markets, which will reverse in the future when those markets rebound. In addition, as usual, our guidance does not incorporate restructuring charges or additional share repurchases, and we estimate our weighted average shares to be $47.3 million. I will now turn it back to Jonas. Thank you, Jack. We are confident in our strategic plan to diversify, digitize, and innovate. In our next call, we will share more detail on the progress of our technology roadmap and how we're implementing AI and agentic AI. We're preparing to showcase this at VivaTech in Paris in May, one of the world's largest tech conferences. We'll be sharing how we're partnering with best-in-class platforms to build tailored solutions with candidate experience and data privacy front and center. We know our approach to buy best-in-class and build to differentiate will stand us apart, and we are focused on ensuring we have a strong foundation of data and aligned global systems that enable us to scale, drive efficiencies, and create even more value for our clients and candidates. Executing our diversification, digitization, and innovation strategy at speed and scale requires process convergence across our global enterprise and continued discipline to manage cost at the center for the benefit of our brands and countries, where business is done. In our last call, we shared that we had evolved our organizational structures to align our global brands, Manpower, Experis, and Talent Solutions within the strengthened global commercial function to drive profitable revenue growth. In Q1, we continued this progress, expanding alignment of our global functions, advancing the centralization and standardization of finance, technology, marketing, people and culture, and legal across countries and regions. This is already enabling us to better leverage subject matter expertise for greater global consistency and efficiency. Because we help our clients build workforces with the best specialist talent, we need to attract and retain the best people. To that end, we're delighted to have been named a world's most ethical company for the 16th time. We know this accolade matters to our people and to our clients. It is one of the reasons talent and organizations choose ManpowerGroup and its family of brands, Manpower, Experis, and Talent Solutions. In closing, we have been through uncertain times before and are confident in our ability to manage the business for short-term performance and long-term success. We are committed to being nimble and taking actions as needed, adjusting our cost base, and adding resources to respond to demand opportunities. We continue to transform our business at pace, investing in technology, process, and talent across our brands to serve our client needs globally, all while maintaining a strong local presence in every market we serve. Finally, I want to thank our dedicated teams around the world for supporting our clients who placed their trust in us and for guiding millions of people eager to contribute their skills and talent to make organizations successful. I would now like to open the line to Q&A. Operator? Thank you. If you'd like to ask a question, please press star one one. If your question hasn't answered and you'd like to remove yourself from the queue, please press star one one again. Our first question comes from Andrew Steinerman with JPMorgan. Your line is open. Good morning, Jonas. You know, I definitely heard ManpowerGroup's second quarter guide does not include the prospective impact of pending tariffs, but I was trying to think about if there was a resolution of U.S. tariffs that was considered, you know, kind of reasonable for trade between the U.S. and Europe. What kind of rebound might ManpowerGroup anticipate in that scenario? Good morning, Andrew. Thank you. That's a great question. As you could tell from our earnings release, you know, the first quarter really progressed as we had anticipated with one exception. Actually, revenues came in a bit stronger. We saw good and positive revenue growth in the U.S., Italy, and partly Spain, and of course, continued strong performance in Latin and APME. We had weakness in PERM, most notably in France and in a couple of other European countries, and that's the GP that we were missing, really, in terms of what we had planned to execute for the quarter. Now, some of that PERM hesitation or slowing, we believe, came from continued caution by employers, and that's really what we're guiding to, a continued trend of stability with, you know, operations continuing more or less with the trends that they have, but we note that there's a lot of caution. Now, if you look at this from an uncertainty level, the cause of this uncertainty is a U.S. trade policy that's been communicated across the world, which is not great in terms of our visibility. The good news with that is, as quickly as it came on, it can, when this gets removed, lead to a very quick change going the other way. That, coupled with, you know, the optimism that we talked about in our last earnings call around what Europe needs to do to become more competitive, and I think those conversations are continuing. You know, in our biggest market, France, last time we spoke, there was still budget uncertainty. Today, we have a budget that's been approved by the legislature. We think that's positive. As you can tell, our U.S. business is actually seeing growth in all of our Talent Solutions and in Manpower for three consecutive quarters. We have a number of European countries that are big for us, Italy, for instance, that is, you know, moving forward with good growth and good profitability as well. When a policy that's disrupted it gets to a good resolution in a reasonable way, there is a path to an actual quick turnaround in terms of employer confidence, because in the end, it's all about employer confidence, what they think could happen, and, you know, how they feel about the future when it comes to increasing their workforce. Thanks, Jonas. Thanks, Andrew. Thank you. Our next question comes from Manav Patnaik with Barclays. Your line is open. Thank you. Good morning. Just a couple of things. Jonas, if I could follow up on the comment on the permanent weakness that you're seeing. It sounds like most of it is just a freezing of hiring decisions, but I'm just wondering if you're starting to see any signs of layoffs, and I don't know if it's an early indicator or something, as you've seen in prior cycles of what happens in that area typically. I would say it follows, you know, our discussion and our prepared remarks. When employers adopt a wait-and-see approach, they become more cautious, and in the first phase of that caution, they pull back on their temporary staffing. As you can tell, in many countries, you know, we have stabilized, and in some, we've actually seen an improvement, you know, when before we saw a more pronounced pullback. What then happens is they move to their permanent hiring. I would provide this color, though, that I think is an interesting element that we also talked about in our prepared remarks, which is that the pullback on the PERM is primarily focused around lower skills. We are still seeing good demand on more specialized skills, more technical skills within manufacturing and logistics, other parts of, you know, our client segments. I think that distinction tells you that this notion of employers are uncertain, but they're holding on to their workforces. They are not letting go of workforces to any major degree. They're also not hiring to any major degree. They are, however, when they need any workforce, they are coming to us, which you can see reflected in a number of our countries actually performing with better revenues than what we had anticipated when we gave our guidance for the first quarter. It is a pretty traditional dynamic. When employers get cautious later on, they will pull back on PERM, but the distinction here is more specialized skills are still very important as companies are in full transformation mode in many areas of their businesses, and it is the skills that are easier to replace at a later point that we are seeing a little bit more weakness. Okay. Got it. That's helpful. Just one more, you know, you talked about how uncertainty is typically a benefit for kind of your services, but, you know, I think there's always that level, like when it gets too uncertain, which is probably what it is now, it isn't. My question is more, when do you start deciding that you need to, you know, right-size your cost base and workforce, you know, even more than perhaps what you've already done? It's something that we're looking at on an ongoing basis, and it very much depends on, you know, which country we're talking about, you know, what do we anticipate in terms of the demand, what are we seeing coming in terms of future pipeline. It's a balance that we're managing each country on a continuous basis. As you've seen in our results in the first quarter, clearly we've taken some significant additional action in Northern Europe because there is a clear dichotomy in Europe. Southern Europe is performing much better. Northern Europe continues to struggle. A lot of that is tied to their economic outlook in terms of the country, and we're seeing that reflected in our business, and we take actions. We try to do this in a balanced way because we want to protect our ability to deliver great service to our clients and drive increased performance in terms of our market share. I think our results this quarter illustrate that we're managing that quite well. The revenues came in higher, and I think that is a testament to competing well in the market across the world. Okay. Thank you very much. Thank you. Our next question comes from Alexander Sinatra with Baird. Your line is open. Hey, this is Mark Morricone. I had to dial in through Alex's line. There was a little snafu. Jonas, you started your presentation by mentioning that you had, you know, been to Europe recently and met with, you know, both your clients and your leadership teams. And I'm wondering, you know, if you could communicate to an even greater extent, you know, what is the mindset of some of those clients? Are they in disbelief with regards to the tariff policy? Is it their expectation that it's going to, you know, settle down and, you know, potentially go back to the way it was, or are they in the early stages of trying to prepare for, you know, a new reality? Good morning, Mark. As we mentioned in our prepared remarks, first of all, no one is making any big moves right now. They are adopting a wait-and-see approach. If their business is progressing, we're seeing good staffing trends in those countries. If their business isn't, you know, they're more cautious. Overall, as I just mentioned, you know, from the PERM perspective, we're seeing a little bit more softening. Most of them anticipate that this is a negotiation tactic to change the trade dynamics, that ultimately this will result in a settlement that is different than what was announced on April the 2nd. That is the belief in the vast majority of client conversations that we've had. The uncertainty comes from each country is different. You know, the application of this trade policy, you know, is different country by country, industry by industry, and I think that is what's causing a greater degree of uncertainty. There is a pretty uniform view that this is going to be part of a negotiated settlement. Most of them don't anticipate that it's going to be exactly the way it was before. They accept that there's going to be changes, but they believe that the changes, or they hope, I should say, that those changes are going to be manageable and different from what was announced on April the 2nd. Now, some of the regions, as I mentioned in my prepared remarks, you know, I was in Latin America recently. That's a region that, you know, has seen relatively mild changes to tariff arrangements. Clearly, they are not seeing this as that much of an obstacle and are feeling much better about the outlook. Overall, the sentiment is the sooner that this gets sorted, the better it is because there are opportunities and there is a belief that, you know, we can see good growth come back or accelerate if we just get past this policy hurdle. Great. You took some actions in Northern Europe. Can you describe the savings that you may get from those recent actions and how we should think about it? Secondly, can you also describe, you know, what the outlook is in terms of the French taxes, you know, for the balance of the year, how we should think about that? Is this a one-year deal, or could it continue into 2026 as well? Mark, this is Jack. I'd be happy to talk to that. Specifically on the restructuring charges, you can see for the quarter overall, we took $15.8 million. As Jonas said, if you look at our Northern Europe slide, you can see that's where we've been experiencing the most pressure. That's where the majority of our actions are happening. At the top of the list would be the Nordics, about $5 million of the total charge is the Nordics. Next would be Belgium and the U.K., about $2.5-$3 million each. You can see in the U.K., continue to see very difficult conditions there. I'd say lastly, the Netherlands continues to be, you know, a market we're focused on right-sizing as well based on current demand levels and a bit in Spain as well. The rest were relatively small. In terms of your point, Mark, on payback, generally, when we look at the majority of the actions, the majority of them are FTE-related. We see a pretty quick payback, and there are a small number of office optimization efforts there as well. Generally, our overall payback is about nine months. We will start to see that improvement coming through in Q2. I should say also, you know, we did restructuring, of course, in the second half of 2024, and you see some of that coming through now, particularly in Northern Europe, where we took some very significant actions. We are taking more now, but we took some good actions last year that are actually helping improve the sequential profitability in that region. We are very focused on getting Northern Europe back to break-even and then profitability, which you can see through these actions. That is what I'd say about the restructuring activities. In terms of your question on the France tax rate, yes, it is enacted as a one-year increase. That is the legislation. You can see in our materials, we estimate about a 5.3% increase in our, I should say, 5.6% increase in our overall tax rate that we guided at the beginning of the year. Then you add the country mix update to that, which is about 3.2% on top of that. That gets us to the new effective tax rate that I've guided to. In terms of France and whether or not there will be any changes beyond this year, I would say, you know, everything we've seen from the administration is they're very, very focused on the competitiveness of France. For that reason, we believe at this point that this is a one-year increase as they enacted. For them to increase it further, they would have to do that through new legislation and through a new budget at the end of the year. At this stage, we just do not see any signs that would indicate that that is a probability. We are viewing this as it has been enacted in the law as a one-year change. As we go forward, as I mentioned previously, we would also expect some of the countries where we have valuation allowances to start to see significant tax benefits as we move forward and we rebound in those markets back to profitability. You will see the tax rate improve pretty significantly once that happens in the future. Great. Thank you. One last one, just PERM is a percentage of gross profit and, you know, what your expectations are as it relates to the second quarter for PERM. Yes. PERM as a percentage of GP in Q1 was 16.4%. Because Q1 is our lowest quarter of earnings and GP dollars, that's a bit inflated generally because the staffing base is a bit lower in Q1. As we ended the year last year, we were at about 15.5%. I think that's a reasonable guideline as we go forward. I think PERM overall, to Jonas's point that we talked about, that really was the key factor in the earnings this quarter. As we ended the year last year, we actually saw the year-over-year PERM trend really come in line with what was happening with staffing at that time. PERM was down about 3% organically, and we saw, you know, staffing GP down around 4% or a little bit higher than that, but very closely aligned. As we walked into the first quarter, we saw PERM step down further year over year. PERM was down about 8% year over year in the first quarter. That really was what drove the lower. We had seen some good stabilization, but as Jonas said, it stepped down a bit further in the first quarter. As we go forward, I think we're being cautious, as you heard me say in the guide, and I think our PERM expectations for Q2 are pretty much aligned to what we just experienced in Q1. Great. Thank you very much. Thank you. Our next question comes from Kartik Mehta with Northcoast Research. Your line is open. Hey, good morning. I wanted to ask you a little bit of a bigger picture question. I know, you know, temporary staffing fundamentals have been under stress for almost three years now. Have you seen any impact from other technologies that might be impacting temporary staffing, whether it's LinkedIn or other apps? Is there any pressure on the business from kind of secondary competitors? As we look out over the world, you know, what's important to remember is, you know, when we talk about difficulties for three years, we have two regions that have been progressing all during this time and growing revenues and improving their profitability in Asia-Pacific and Latin America. Europe's economy has been very challenged. PMI has been well below 50 for more than two years, coming up to three. The biggest engine in Europe, Germany, has been in recession for two years. As you look at the industry dynamics, really the country that sticks out is the U.S. because we've had good growth, solid employment, although both of those factors are cooling right now. Yet as an industry, we have seen negative growth for those three years. The question then is, you know, why do we think these are, you know, this is the case? A lot of that we think has to do with the post-pandemic, you know, strong hiring right after the pandemic, probably overhiring, employers realizing that finding skilled talent is difficult, and they've been holding on to their workforce. This element of labor hoarding we think has been a feature as to why our industry has been impacted in this way. At this stage, we are seeing no signs that this has anything to do with a technological change or structural change. We think this is primarily due to pandemic anomalies that are playing out and through. We anticipate that they will normalize and the traditional dynamics in our industry will come back into play. If there were to be any indication of a technology change, I would look at certain roles primarily in the technology sector and specifically as it relates to programmers. You know, so software coding and programming, you can really see how AI has made that much more efficient. You can see it also come through in the unemployment rate for software programmers here in the U.S., which is above 7% right now, and we're at 4.2% unemployment for the country. That would be the one area where we can clearly see that there is a structural change in demand in a specific role where the application of technology is making those workers much more productive when they are augmented by GenAI in particular. Just as a follow-up, Jonas, and I realize this might be a difficult question, but you talked about France and maybe some certainty around when the budget was passed. Did you see as the budget was passed and the tax rate was increased, did the certainty result in less demand? Maybe that is difficult because all this tariff stuff is going on, but I am wondering if that resulted in less demand and once the budget year is over, could that increase demand? It definitely could. I think the current uncertainty around the trade policy, you know, clearly now causes more hesitation on the part of employers. Just as we said at the top of the call, you know, as quickly as this trade uncertainty came on and was really solidified on April thr 2nd, if it is negotiated and settled at a reasonable level, it could turn around the sentiment pretty quickly because, you know, companies feel that Europe is on the path of becoming more or wanting to take steps to become more competitive along the lines of the five pillars of the Draghi Plan, which talks about productivity, better innovation and technology adoption, reducing regulation, things like that, which would be good for business. You've also seen a surge in defense spending and announced willingness, especially in Germany, to finance for their part greater investments in that area, which from our perspective could be really good because we have a very strong position in aerospace and defense across all of our brands and especially exposure into Manpower, which is our biggest brand in Europe. We think that could be very good. You're absolutely right. If the current overhang of the trade policy enactment gets resolved, things and sentiment could change pretty quickly. I would just add to that, Kartik, in France, we actually saw that play out, that uncertainty around the budget impacted the month of January specifically. January was down the most in the quarter. As that budget was passed and moved forward in February, we started to see demand improve. It actually ended the quarter at probably the best part of the average for the quarter overall. We take that guide into Q2. We did see it play out to some degree in Q1, and we're now seeing trends that are more aligned with where we were early in the fourth quarter. Great. Thank you very much, both of you. I appreciate it. Thanks, Kartik. Thank you. Our next question comes from Josh Chan with UBS. Your line is open. Hi, good morning, Jonas and Jack. Thanks for taking my question. I guess you mentioned that the PERM weakness was primarily in France and a couple of European countries. Is there any insight that you can give as to why those countries are weaker in terms of PERM? Because I would think the trade policy uncertainty would really impact the globe, really, including even the U.S. Yeah, I think, as Jack just talked about, you know, in France, there was a greater deal of uncertainty with the budget not having been passed. Once that started to improve, we saw some improvement in our trends in France. I also think it depends on the composition. You heard me talk earlier about how specialized skills, that PERM pipeline and sales and revenue is actually holding steady and stable, but it's the lower skill where companies are making specific decisions. I wouldn't read too much into it in terms of the various countries, but rather say overall, you know, there is stability except with weakness in some countries and that we're being cautious looking into Q2 because we know hiring is highly dependent on employer confidence. When the uncertainty, you know, is increasing, you know, employers hold back a little bit more. At this stage, that would impact PERM to a greater degree than anything else. I think that would be our take on the PERM trends. Overall, many countries held up well, and we saw stability in many countries and actually good performance in a number of them as well. Okay, great. Thank you for that color, Jonas. Maybe one question on cash flow. I think Jack suggested that it may be kind of timing related. Could you give us a little bit more color on, you know, what happened in Q1 and kind of your confidence that cash flow can bounce back over the rest of the year? Josh, this is Jack. I'd be happy to talk to that. As I mentioned in the prepared remarks, we typically see much softer cash flow and net outflows in the first half of the year. That's been the case actually in 2024 and 2023. The first half is the net outflow, and then we generally seasonally see very strong cash flows in the second half of the year. We certainly saw that last year as well. That's definitely part of the equation. We would expect that dynamic to play out again this year. I think specifically on the payables, we have a very large market-leaning MSP business. As we manage the spend under management, that actually has a pretty big impact on our balance sheet in terms of our payables. There will generally be a little bit of volatility on the timing of payables as a result of the MSP business. That was a little bit of a factor in Q1. I would say that generally works itself out over the course of the year as well. I would say those are the main factors to think about in terms of free cash flow. Great. Thank you both for the color and the time. Thank you. Thank you. you. Our next question comes from Trevor Romeo with William Blair. Your line is open. Hi, good morning, Jonas and Jack. Thanks so much for taking the questions. First one I had was just kind of two quick ones on the U.S. Manpower brand. I think in the quarter, it was up 7%, nice improvement back into positive territory. What were some of the drivers of that improvement, and are you seeing any influence from changes in U.S. immigration policy there? I guess over the medium term or the long term, you know, who knows what will happen with the tariffs? If we do actually see, you know, reshoring and domestic manufacturing activity increase, any way to think about how much of a benefit that could be for the Manpower brand? Trevor, let me start with your last question with your questions in reverse order. On the first one, you know, it's really hard to tell in terms of what impact and to what degree, I mean, to what dimension a trade change would impact manufacturing and thus subsequently how much that would impact our Manpower business. Suffice to say that any increase in manufacturing employment will be good news for the country and will be good news from a Manpower brand perspective. From an immigration perspective right now, as we all know, you know, immigration, you know, really drove a lot of the economic growth that we've seen over a number of years. As it relates to our business today, we're not seeing any impact that we can directly relate to a tougher immigration policy. That's not been impacting our numbers. Lastly, I would say the U.S. team and Manpower has done an excellent job. We've really been working hard at innovating our offerings. You've heard us talk about our branch openings in Walmart, which we think is a great innovation in terms of being where our candidates come and also where clients come to. That's very encouraging. We've also been very strong in building a pipeline of client opportunities across various industry verticals. Finally, we are seeing the very positive early signs of our investments in our data analytics and our technology investments, which we now, leveraging AI, use to provide really unique and differentiated workforce insights to our clients to help them optimize cost. You know, we can do this down to a very granular level. We can go into a particular worksite, look at the overall wage levels surrounding a client's location, analyze with the help of data and AI the implications of their current workforce strategy and what we think can be an optimal workforce strategy that will result in cost optimization, productivity improvements, things of that nature. We can predict changes in outcome with the data that we have collected in the U.S. and, frankly, leveraging our global database. We believe we have the biggest global database in the world as we are now collecting data points from our digitization, our technology infrastructure in a way that is really starting to pay off for us in our client engagements in the U.S. The team has done a really nice job, and we're very encouraged with these early indicators of what can happen when we apply technology and AI to drive better outcomes for our clients. Thank you, Jonas. That's really helpful and actually a good segue into my other question, which was, I think for Jack, he had mentioned the back office transformation spending in your prepared remarks. I was just wondering if you could give an update on how much of that spend is currently flowing through the P&L and then how much of a, I guess, a margin benefit you'd expect whenever those investments are completed and the timing of that as well. Thanks. Trevor, I'd be happy to talk to that. You can see that actually through our corporate SG&A, the corporate component. That's where a lot of the spend on our transformation programs are coming through. As I mentioned previously, it's been elevated as we continue to execute that transformation. To your point on where we are in terms of the overall transformation, making very, very good progress. I think, you know, Jonas has covered the front office and the PowerSuite front office progress in the past, you know, with over 80% of our revenues now on our new cloud-enabled market-leading PowerSuite front office. That will pay off as we get operational leverage back. It already is having significant benefits in recruiter productivity and those types of things, but you'll see it more meaningful when operational leverage returns. On the back office side, we're doing really well on PowerSuite back office as well. We have just about 50% of our revenues going through the new platform. We have implementations going live again this quarter in some of our largest countries. We feel really good about that. What goes hand in hand with that is our standardization of our processes in our shared service center. We are making very, very good progress on that. I think we are up to seven countries now going through our shared service operations with another four to five in flight as we speak. Those will continue this year and into 2026, where we will start to inflect into savings from those programs during calendar year 2026. As I have mentioned in the past, that impact is going to be significant because you will see a decrease in the overall spend on those programs as they complete, but you will see the increase in efficiency, and you will see that come through in our bottom line margin. I think the efficiency is somewhere in the range of 25 basis points. The drop off in spend, as I've said in the past, is another 15 basis points -25 basis points. That will be a significant step change in our overall efficiency as we move forward with those programs. Thank you both very much. Appreciate the updates. Thank you. Our next question comes from Tobey Sommer with Truist Securities. Your line is open. Thanks. You've talked about the way you're managing expenses and where you're investing in the business. In terms of broader capital deployment, how do you think about things now, and what might you be looking to add to the portfolio as you, you know, pursue a change in the mix over time? You know, if the recession occurs in the U.S., typically you've come out and deployed capital more to a greater extent after such a period. Thanks. Yeah. Thanks for the question, Tobey. I think, you know, I would start by just saying our overall strategy and capital allocation principles are unchanged. As you've seen, you know, in environments like this, you see us continuing to do share repurchases and looking at our, when we look at our excess cash, we also look at whether or not there's opportunities for M&A, and we've prioritized that in the past. In the current environment, as we've talked, you know, it isn't very conducive to significant M&A. When we start to see an inflection point in the market, we would expect that would start to change. As we look at our overall businesses, the areas that we have been successful in M&A is on the Experis side, focused on IT services, and also on the Talent Solutions side. I would say, you know, RPO would be an area that we continue to, you know, be very interested in opportunities to continue to add skill sets and expansion in key markets. As we've talked about before, we think the U.S. market is a great opportunity. You've seen us do outsized acquisitions in that market in the past. In terms of internally, and as we continue to run the business, we continue to invest in key markets where there's great opportunities. You see us doing that in Italy, as Jonas talked about. Italy grew 5% days adjusted in the first quarter. That's a market where we continue to invest. Japan, you know, continuing to have, you know, a great track record with 10 years of growth. We are investing in the Japan business, and we're doing that in other markets as well, like Israel. You know, Jonas talked about U.S. Manpower. One of the reasons U.S. Manpower is performing very well is, you know, we continue to invest in sales professionals as part of that. We, although we are continuing to balance the equation with cost right-sizing, are making sure we do not, you know, impact our sales capabilities so that we have opportunities to continue to take market share and win in the market. In this current environment, we are going to be very focused on allocating our internal capital into those businesses that have good opportunities. I think, you know, to my point, when the market changes in the future, we will probably talk more about other opportunities externally. Thanks. If I could sneak in a follow-up, I know we are a long, long time. With respect to demand from your customers for upskilling, what kind of occupations are they most focused on in what you're hearing in customer conversations? Because that could inform us about where, you know, AI may be impacting the labor force. Thanks. It is really early days still, but I would say, you know, generally speaking, companies are really looking at upskilling people so they can handle more technology or different technology. You know, our view is that there is going to be a significant transformation with technology in general and with AI in particular. We also believe that this is an augmentation of human capabilities. Over time, we think that companies will want to accompany and help the upskilling of their workers around areas that help them work better with AI. That is what we are starting to see, you know, generally. I think specifically the areas where we're seeing demand from an AI perspective and where we can see skill sets really pulling is full-stack developers, cybersecurity, data analytics, and as I earlier mentioned, AI, and particularly generative AI, although, you know, those volumes, the demand is there, but the volumes are not as strong. As some of these skills are new to the market, this really plays well into our strengths around the Experis Academy and how we can continue to develop our consultants and candidates in these key areas to build the workforce of the future. We doubled the amount of people going through our academy last year versus 2023, and we anticipate to see further strong growth in this area also in 2025. The same is true for our Manpower MyPath program, where we have almost 300,000 people who've now gone through various upskilling and reskilling initiatives. We think this remains a very strong differentiator for both Manpower and Experis, and I think into the future. The demand for this as technology progresses at an accelerating pace, this will continue to be an area of great focus of ours, both in Manpower and in Experis. Thank you. Thank you. Our next question comes from Stephanie Moore with Jefferies. Your line is open. Hi, good morning. Thank you. I wanted to maybe touch on certain hiring verticals. If you're seeing any indication for, you know, maybe improved trends or a little bit more of a more favorable appetite in any certain verticals. I know in the past you've talked about government hiring, healthcare, and the likes of maybe being good indicators of an inflection in demand. Any specific industry vertical color would be helpful. Thank you. Thanks for the question, Stephanie, and good to have you on the call. I would say in terms of industry verticals where we've seen some strength, I'd say aerospace for sure has been a strength, particularly in France for us. I'd say food manufacturing generally has held up fairly well, while I'd say broader manufacturing has been weaker, as Jonas mentioned, with lower manufacturing PMIs. Food has held up well in markets like the U.S., France, and Italy. I'd say a bit mixed on financials. Certain markets have been holding up better than others. Logistics, I think we've seen some strength in markets like Spain. Again, a bit of a mix elsewhere, a bit lower in the U.K. and in France. I think in terms of where it's been continued to be a bit more sluggish, I'd say the public sector generally in the U.K. and Canada is the area where we've seen just a bit more of a pullback. Auto has been pretty well documented that that continues to be fairly sluggish and trending softer. As I mentioned, manufacturing more broadly. I think in terms of technology, clearly a year ago that was down quite significantly. Where that sits now is really just more stable at lower levels from our enterprise tech clients. As Jonas said, I think, you know, again, maybe a bit more caution and wait and see approach before we start to see that dynamic change significantly. Great. I'll leave it at that. Thank you so much. Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open. Hi, thanks. Good morning. Can you talk about how demand trends exiting the quarter performed relative to earlier in the quarter in your key countries? To what extent these trends reflected early changes to hiring demand in response to tariff uncertainty given the quarter closed prior to major U.S. tariff announcements on April the 2nd? George, thanks for the question. This is Jack. I'd be happy to talk to that briefly. I think, you know, as I mentioned in some of our larger countries, as we ended the quarter going into April, we saw trends that were fairly stable, actually. You know, France really in line with what we've been seeing in April, and we just received an update again this morning, pretty much showing trends pretty much in line with what we saw in France in the month of March, I should say. Fairly stable there. I would say similar in the U.S. I think in the U.S., the item we highlighted was the surge in the healthcare IT seasonal projects in Q1. If you put that to the side, I think underlying activity levels were fairly stable in both Experis and Manpower. As you mentioned in Manpower, they've certainly seen a bit of an uptick. Stable with some good underlying growth. I would say the same thing really in terms of the U.K., you know, pretty stable as we end the quarter into April. No significant movements. Our fourth biggest business, Japan, very similar as well. We see good ongoing trends there. I'd say in terms of our biggest markets and biggest countries, the punchline is really so far April's pretty stable with what we saw in the month of March. Got it. That's helpful. You mentioned your 2Q guide reflects demand trends that you're currently seeing. Can you quantify approximately how much tariffs may have lowered staffing demand so far across your business through mid-April? And which countries you're seeing the most hesitation in hiring because of tariff uncertainty? You know, I think we are really not reflecting any major changes in trend, just as Jack said. We're looking stable for the most part. The uncertainty is really mostly reflected in the perm numbers that we think are going to be a little bit softer. But the overall staffing numbers, as we look at this from a Manpower and as well as from an Experis perspective, we expect to, in our guide, to be, you know, running along the trends that Jack just talked about. Exactly. Got it. Thank you. Customers are adopting the wait and see approach, which means we do not expect any major changes until they have clarity on what the trade policy actually means and how they estimate that it would impact the business. Right. Makes sense. Thank you. Thanks, George. Thank you. There are no further questions at this time. I would like to turn the call back over to Jonas Prising for closing remarks. Thanks, everyone. We look forward to speaking with you again in our second quarter earnings call later on in July. Have a good rest of the week. Thank you for your participation. This does conclude the program, and you may now disconnect. Good day.