KELLY SERVS INC. B DL 1

At the Midwest IDEAS Conference, Kelly Services announced a shift to an integrated "One Kelly" model focusing on cross-selling to existing clients, technology modernization and stricter capital discipline. Management expects a slight improvement in the EBITDA margin of 10–20 basis points by 2026 and sees growth opportunities in AI, reshoring, data centers, semiconductors and education. After a major acquisition in 2024, Kelly reduced net debt from about USD 240 million to roughly USD 100 million and is emphasizing organic growth; buybacks were reduced in 2024/2025 and the dividend remains USD 0.30 per share. » More on de.investing.com

Kelly Services reported adjusted earnings of $0.37 per share and revenue of $1.04 billion for the second quarter of 2026, with both results clearly above analyst expectations. Adjusted EBITDA margin increased to 3.0% and free cash flow was $47.7 million, while total revenue fell 5.8% year on year. Management sees signs of a recovery, points to technological modernization and broader demand in core segments, and reaffirms its 2026 outlook with expected margin improvement. Investors reacted positively: the stock climbed about 9% premarket but remains well below its 52-week high despite the rally. » More on de.investing.com

Palm Valley Capital highlighted Kelly Services in its Q1 2026 letter, noting a new motivated controlling shareholder who in January paid more than four times the current price for the company's nonvoting stock. Palm Valley said this catalyst could help close Kelly Services' valuation gap even though the market has not yet responded. Kelly Services closed April 8 at $8.68, has a market cap of $296.956 million and its shares are down 25.81% over the past 52 weeks. » More on finance.yahoo.com