PeopleIN’s FY25: Revenue Falls 6.4%, EBITDA Down 10%, Debt Ratio Improves to 1.6x

FY2025 Financial Overview

PeopleIN reported a mixed set of full-year results for FY2025, reflecting the ongoing challenges in the staffing and workforce solutions sector. Revenue declined by 6.4% to just over $1.09 billion, primarily due to an 11.2% drop in billed hours. However, the company managed to increase its billing rates by 6.9%, a testament to improved candidate and client management strategies.

Despite the revenue pressure, PeopleIN achieved a 10% reduction in normalised EBITDA to $33.3 million, driven by disciplined cost control measures that lowered operating expenses by $9.1 million. This focus on efficiency helped maintain a robust net revenue margin of 23.3%, underscoring the company’s ability to leverage technology to reduce overheads and protect profitability.

Segment Performance and Market Dynamics

Segment results were varied. Professional Services and Food & Agriculture Services showed solid organic EBITDA growth of 4.6% and 8.5% respectively, buoyed by higher billing rates and contract pricing improvements. Healthcare and Community services remained steady despite lower demand in some hospital sectors, supported by cost savings from automation initiatives.

Queensland, accounting for 42% of total revenue, emerged as a bright spot with improving market conditions late in FY25. The company’s deep roots and extensive regional network in Queensland position it well to benefit from the state’s infrastructure boom, particularly in the lead-up to the 2032 Brisbane Olympics.

Balance Sheet Strength and Capital Management

PeopleIN’s strong cash flow generation was a highlight, with cash collections reaching 125.4% of normalised EBITDA. This robust cash conversion enabled the company to reduce net debt by $27.4 million, bringing the net debt to EBITDA ratio down to a manageable 1.6x from 2.1x the previous year. The company also announced a $6 million on-market share buy-back, signaling confidence in its financial position and commitment to returning value to shareholders.

Looking ahead, PeopleIN is leveraging its technology platform to drive productivity gains and is actively pursuing growth opportunities in Defence and related sectors. The company’s recent involvement in major Defence exercises and contracts, including support for Exercise Talisman Sabre and RAAF Amberley projects, highlights its strategic positioning in this expanding market.

Outlook and Strategic Positioning

With a robust balance sheet and a focus on operational efficiency, PeopleIN is well placed to capitalise on Queensland’s infrastructure expansion and Defence sector growth. The company’s strategy to pursue targeted acquisitions that offer immediate cost synergies could further enhance earnings. However, external factors such as drought conditions in Victoria and fluctuating demand in hospitality and education sectors remain risks to watch.

Overall, PeopleIN’s FY2025 results reflect a company navigating a complex economic environment with pragmatic cost management and strategic focus, setting the stage for potential growth in key markets.