Adecco Slumps 10% After Investor Update Raises Payout Doubts

(Bloomberg) — Adecco Group AG’s stock plummeted 10% after the company presented a new strategy at its capital-markets day that disappointed investors.

While the Zurich-based staffing company confirmed its financial targets and touted the tailwinds of artificial intelligence for its business, analysts and investors questioned the firm’s ability to deliver on future dividend payments while reducing net debt. Adecco confirmed a margin target of earnings before interest, taxes and amortization at 3% to 6% through the cycle.

Gian Marco Werro, an analyst at Zuercher Kantonalbank, said the company’s debt reduction goal would imply a dividend cut.

Adecco’s shares fell as much as 10%, the most since April, before trading down 9.4% as of 2:42 p.m. in Zurich trading.

Adecco, a staffing company that’s seen as an economic bellwether, has faced headwinds in some of its key markets including Germany and France. Both countries are suffering from economic weakness with muted job markets. Adecco Chief Executive Officer Denis Machuel said on a call that uncertain times prompt companies to boost temporary hirings, which typically lowers the firm’s margins.

The company already cut its dividend to 1 Swiss franc a share in February, saying it needs to reduce debt. Machuel confirmed a payout ratio of 40% to 50% during a media call on Wednesday, but said that the board would decide on the dividend in February 2026.

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