GICS Sector : Industrials
TrueBlue, Inc., together with its subsidiaries, provides specialized workforce solutions in the United States, Canada, and Puerto Rico.It operates through three segments: PeopleReady, PeopleManagement, and PeopleScout.The PeopleReady segment offers contingent staffing solutions for blue-collar, on-demand, and skilled labor in construction, manufacturing and logistics, warehousing and distribution, waste and recycling, energy, retail, hospitality, and general labor industries.
TrueBlue, Inc.'s fourth-quarter 2025 revenue was $418 million, up 8% year-over-year, driven by a 5% organic revenue growth and a 3% contribution from the acquired HSB business. However, gross margin was 21.5%, down from 26.6% in the prior year, primarily due to less favorable workers' compensation reserve adjustments and changes in revenue mix. The company's skilled businesses, particularly in the energy sector, delivered double-digit growth for the third consecutive quarter. The net loss was $32 million, which included a non-cash long-lived asset impairment charge of $18 million. Adjusted net loss was $8 million, and adjusted EBITDA was $2 million. The actual EPS came out at -$0.25, missing estimates at -$0.08.
Publication Date: Mar -08
The company's energy business, particularly in renewables, showed significant growth, with revenue more than doubling for the second consecutive quarter. TrueBlue secured several multimillion-dollar project wins and has a healthy pipeline, positioning it for continued growth in this space. The company has made progress in creating greater flexibility to scale and driving efficiencies, positioning it to deliver strong incremental margins as industry demand rebounds.
For 2026, TrueBlue expects revenue growth of 3-9% year-over-year, including 1% inorganic growth from HSB. Analysts estimate revenue growth at 3.9% next year. The company is focused on capturing market share, strengthening its sales reach, and expanding in growing markets. TrueBlue is confident in its strategy to drive long-term sustainable value and is well-positioned to capitalize on growth opportunities ahead.
With a P/E Ratio of -2.65, P/B Ratio of 0.46, and P/S Ratio of 0.08, the market seems to have priced in the challenges faced by the company. The EV/EBITDA ratio is high at 1013.16, indicating that the market is expecting significant improvement in EBITDA in the future. The company's ROE and ROIC are negative, indicating that the company is currently not generating returns on its equity and invested capital.
The current pricing environment continues to present some pressure, with pay rates up 3.8% and bill rates up 2.5% in the quarter, leading to a 40 bps decline in margin. However, the company has made progress in reducing SG&A by 11% despite revenue growth. The non-cash impairment charge of $18 million related to its Chicago support center is expected to result in $30 million in cash savings over the next ten years.
TrueBlue Responds to Misleading Statements From EHS Investments
Mar -03
EHS Comments on Disappointing TrueBlue Fourth Quarter Earnings Results
Mar -03
TrueBlue Appoints Mike Kruszewski to President of PeopleReady On-Demand
Feb -26
TrueBlue to Participate in Truist Securities' Inaugural Human Capital Virtual Conference
Feb -25
TrueBlue: A Contrarian Bet I'm Willing To Make (Upgrade)
Feb -20
TrueBlue, Inc. (TBI) Q4 2025 Earnings Call Transcript
Feb -19
TrueBlue (TBI) Reports Q4 Loss, Beats Revenue Estimates
Feb -18
TrueBlue Reports Fourth Quarter and Full-Year 2025 Results
Feb -18
Growing demand for temporary staffing solutions in industries such as construction, manufacturing, and hospitality, driven by labor shortages, increasing project-based work, and the need for workforce flexibility.
The workforce management platform is expected to grow driven by increasing demand for staffing and recruitment solutions, adoption of HR technologies, and rising need for businesses to optimize labor costs and improve workforce efficiency.
Growing demand for recruitment process outsourcing, increasing adoption of digital technologies, and rising need for efficient talent acquisition strategies drive the growth of the RPO market, benefiting PeopleScout's workforce solutions and talent acquisition services.
Provides on-demand, contingent labor for a variety of industries, including manufacturing, logistics, and hospitality.
Offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions to help clients manage their workforce.
Provides contingent workforce management solutions, including staffing, on-site management, and vendor management.
Specializes in commercial driver staffing and recruitment services for the transportation industry.
The threat of substitutes for TrueBlue, Inc. is medium due to the availability of alternative staffing solutions and the ease of switching costs for clients.
The bargaining power of customers is high due to the concentration of clients in the staffing industry, giving them significant negotiating power over prices and services.
The bargaining power of suppliers is low due to the abundance of labor supply and the lack of differentiation in the staffing industry, giving TrueBlue, Inc. significant negotiating power.
The threat of new entrants is low due to the high barriers to entry, including regulatory hurdles, high startup costs, and the need for established relationships with clients.
The intensity of rivalry is high due to the competitive nature of the staffing industry, with many established players competing for market share and clients.
| Value | |
|---|---|
| Debt Weight | 11.81% |
| Debt Cost | 3.95% |
| Equity Weight | 88.19% |
| Equity Cost | 11.46% |
| WACC | 10.57% |
| Leverage | 13.40% |
Value: 5.3
Growth: 4.4
Quality: 8.4
Yield: 4.0
Momentum: 1.0
Volatility: 3.7
1-Year Total Return ->
Value: 10.0
Growth: 4.4
Quality: 4.9
Yield: 0.0
Momentum: 6.0
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Value: 7.1
Growth: 3.0
Quality: 3.1
Yield: 0.0
Momentum: 6.5
Volatility: 1.7
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Value: 10.0
Growth: 0.7
Quality: 4.8
Yield: 0.0
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Volatility: 2.7
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Value: 6.0
Growth: 3.6
Quality: 6.2
Yield: 0.0
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Volatility: 2.3
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Value: 10.0
Growth: 3.8
Quality: 4.1
Yield: 0.0
Momentum: 0.5
Volatility: 0.0
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