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's third-quarter performance exceeded expectations, with total revenue of $431 million, up 13% year-over-year, driven by skilled businesses, particularly in the energy sector. The company's commercial driver business delivered its fifth consecutive quarter of double-digit growth. Gross margin was 22.7%, down from 26.2% in the prior year, due to changes in revenue mix and less favorable workers' compensation reserve adjustments. The company reported a net loss of $2 million, but adjusted EBITDA of $11 million. Earnings per share (EPS) came in at $0.03, beating estimates of -$0.09.
Publication Date: Nov -17
The PeopleReady segment grew 17%, driven by energy sector demand, while PeopleManagement grew 2%, driven by commercial driver business growth. PeopleSolutions revenue grew 28%, with the recently acquired HSP business contributing 39% of growth. The company's diversified business segments are driving growth, with the energy sector being a significant contributor.
The company expects revenue growth of 4% to 10% year-over-year in the fourth quarter, with the HSP business expected to contribute 4 percentage points of growth. Analysts estimate next year's revenue growth at 4.6%. TrueBlue is seeing early signs of momentum and a return to growth among clients and geographies, with clients indicating a need for staff.
With a P/E Ratio of -4.33 and an EV/EBITDA of -18.44, the market is pricing in significant uncertainty. However, the company's strategic focus is driving results, strengthening its market position, and unlocking new growth avenues. The pricing environment remains challenging, with typical pricing pressure, but the team has maintained pricing discipline and driven efficiencies to remain competitive.
Regarding immigration reform, the company sees both tailwinds and headwinds. They've added new customers focused on workforce compliance, particularly in the Southwest. However, they're experiencing higher absenteeism from some staff due to ICE activity. The changes will create longer-term demand for compliant staffing solutions, a key strength of the company.
The company has made progress on SG&A leverage, and with revenue stabilization, they expect incremental margin expansion of over 20%, exceeding their historical range of 15-20%. They feel poised for significant incremental margins and expanding profitability as demand rebounds, with an optimized fixed cost base and a focus on investing in sales and other areas to drive the top line.
TrueBlue Appoints Two New Independent Directors
Dec -02
EHS Announces Intent to Nominate Directors at Upcoming TrueBlue Annual Meeting
Dec -02
TrueBlue's Leading Technology Recognized with Three 2025 Globee® Awards, Including Business Product of the Year
Nov -17
THE HYPERBARIC INSTITUTE RELEASES FILM: VA DENIES HBOT FOR TBI & PTSD AS 22 VETERANS DIE DAILY
Nov -06
TrueBlue: I'm Upgrading To Hold As The Slide Finally Slows
Nov -04
TrueBlue, Inc. (TBI) Q3 2025 Earnings Call Transcript
Nov -04
TrueBlue Reports Third Quarter 2025 Results
Nov -03
TrueBlue's PeopleReady Appoints New Sales Leadership to Further Advance Growth
Nov -03
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: 3.9
Growth: 4.4
Quality: 7.2
Yield: 4.0
Momentum: 1.0
Volatility: 4.7
1-Year Total Return ->
Value: 6.9
Growth: 3.1
Quality: 3.3
Yield: 0.0
Momentum: 8.5
Volatility: 1.7
1-Year Total Return ->
Value: 9.8
Growth: 0.7
Quality: 4.8
Yield: 0.0
Momentum: 3.5
Volatility: 2.7
1-Year Total Return ->
Value: 10.0
Growth: 4.6
Quality: 4.9
Yield: 0.0
Momentum: 1.5
Volatility: 0.0
1-Year Total Return ->
Value: 6.0
Growth: 3.6
Quality: 6.2
Yield: 0.0
Momentum: 0.0
Volatility: 2.3
1-Year Total Return ->
Value: 8.4
Growth: 3.8
Quality: 4.8
Yield: 0.0
Momentum: 1.0
Volatility: 0.0
1-Year Total Return ->