PeopleIN Reports FY25 Loss, Cuts Costs, Plans $6M Share Buy-Back Amid Economic Challenges
PeopleIN Limited posted a statutory net loss of $11.862 million for FY25, impacted by tough economic conditions and weather disruptions, while achieving significant cost savings and announcing a $6 million share buy-back.
- Statutory net loss after tax of $11.862 million in FY25
- Revenue declined 6.4% to $1.098 billion
- Normalised EBITDA down 10% to $33.264 million
- No dividend declared for FY25; $6 million on-market share buy-back announced
- CEO Ross Thompson appointed Managing Director in November 2024
Financial Performance Amid Economic Headwinds
PeopleIN Limited, Australia’s largest locally owned labour hire and recruitment services provider, has released its audited results for the year ended 30 June 2025, revealing a statutory net loss after tax of $11.862 million, a sharp reversal from the $5.389 million profit recorded in FY24. The decline reflects a challenging economic environment marked by subdued business confidence, government election cycles, and inflationary pressures that have weighed heavily on the staffing industry.
Revenue for the year fell 6.4% to $1.098 billion, with normalised EBITDA contracting by 10% to $33.264 million. The company attributed part of the earnings pressure to severe weather events, including Cyclone Alfred and flooding in Queensland, which disrupted operations in key sectors such as agriculture and construction during March and April 2025.
Operational Efficiencies and Technology Investments
Despite the revenue decline, PeopleIN has made significant strides in operational efficiency, reducing overhead costs by $9.095 million in FY25 and over $25 million across the past three years. These savings have been driven by the completion of the Program Unite initiative, which introduced automation and early-stage artificial intelligence tools into recruitment and data analytics processes.
The company’s diversified client base across industrial, health, and professional services sectors has helped mitigate some of the broader market softness. Notably, the Health and Community Care division saw improvements through consolidation under the First Choice Care brand and growth in community care services aligned with changes to the National Disability Insurance Scheme (NDIS).
Leadership and Strategic Outlook
In November 2024, Ross Thompson was appointed Managing Director, formalising his leadership role after joining as CEO in 2021. Thompson’s experience, particularly in defence industries, is expected to support PeopleIN’s strategic positioning in emerging growth areas, including defence sector staffing and infrastructure projects tied to the Brisbane 2032 Olympic Games.
The company anticipates that the Olympic infrastructure build will generate approximately 50,000 new trade and construction roles in Southeast Queensland, positioning PeopleIN to benefit from increased demand. Additionally, PeopleIN remains a key sponsor of the Pacific Area Labour Mobility (PALM) scheme and is expanding its footprint in aged care, early learning, hospitality, and defence staffing.
Capital Management and Shareholder Returns
PeopleIN has focused on strengthening its balance sheet, reducing net debt by $27.45 million to achieve a leverage ratio of 1.6 times normalised EBITDA. The company’s improved cash flow management resulted in positive operating cash inflows of $34.87 million for FY25.
Reflecting the financial results and strategic priorities, the Board declared no final dividend for FY25 but announced an on-market share buy-back program of up to $6 million aimed at enhancing shareholder value. This dynamic capital management approach balances debt reduction, dividends, share buy-backs, and acquisition opportunities.
Risks and Future Challenges
PeopleIN acknowledges ongoing risks including labour market volatility, regulatory changes, cybersecurity threats, and climate-related disruptions. The company has implemented comprehensive risk management frameworks, including cybersecurity strategies aligned with Australian Cyber Security Centre guidelines and environmental initiatives such as land regeneration through its Timberwolf brand.
Looking ahead, PeopleIN is cautiously optimistic about improving economic conditions, supported by lower interest rates and government infrastructure spending. The company’s investments in technology and operational efficiency are expected to underpin future growth, though external uncertainties remain.
Bottom Line?
PeopleIN’s FY25 results underscore resilience amid adversity, setting the stage for growth tied to Brisbane 2032 and strategic capital management.
Questions in the middle?
- How will PeopleIN’s investments in AI and automation translate into revenue growth in FY26 and beyond?
- What is the timeline and expected impact of Brisbane 2032 Olympic infrastructure projects on PeopleIN’s staffing divisions?
- How might ongoing regulatory and labour market risks affect PeopleIN’s profitability and dividend policy?