BIPS of Info: Virtual Staffing Trip Takeaways

Research evidence excerpt

BIPS of Info: Virtual Staffing Trip Takeaways

Barclays | BIPS of Info

improvement (incl. AI-related work). A step-up in demand for risk & compliance likely requires

a catalyst (e.g., an AML event or regulatory or even D.C. administration change) to drive a new

wave of large projects. Tech consulting is ~ 1/3 of revenue but more than 1/3 of the pipeline,

internal audit ~25% and business process improvement the ~ balance after the ~20% risk &

compliance.

•• Spreads remain intact — margins are not the issue. Bill/pay spreads were described as

“unbelievably consistent”, with no evidence of pricing pressure. Any variation in margin is

mix-driven (skills/client type/project cadence), not pricing deterioration driven — a clear

differentiator vs peers.

•• CEO commented on thinking that FCF has likely bottomed, and as it incrementally increases

this will go to buybacks.

MAN (featured the CFO & French management team, as such key takeaways are France

focused - France represented ~25% of total company revenues/OUP for 2025):

•• Manufacturing (PMI) is a key early recovery driver and signal, but it is still narrow. France

stabilization is industrial-led (auto/aero/defense), with improvement since ~Aug/Sep ’25,

while logistics and construction remain weak, reinforcing that a relative recovery is real but

not broad-based.

•• This PMI Improvement could be showing early fragility. MAN was reluctant to comment on

business results post 1Q26 call but did highlight that higher energy costs could cause a

manufacturing pullback, referencing what happened with Russia/Ukraine. MAN did

acknowledge that a May PMI dip may be attributed to potential caution from elevated energy

prices, but was clear that there was no direct slowdown in this business yet. So while it may