Earnings release
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22 September 2026 SThree plc FY26 Q3 Trading Update Positive new business trends drive continued sequential improvement in performance SThree plc ("SThree" or the "Group"), the global STEM workforce consultancy, today issues a trading update coveringthe period 1 June 2026 to 31 August 2026. Q3 Highlights Group net fees down 2% YoY(1), representing a further quarter of sequential improvement (Q2 -6%, Q1 -8%). Contract (84% of net fees) down 1% YoY, Permanent down 8% YoY. Contract new business activity grew year-on-year and improved quarter-on-quarter. Contractor order book grew 5% YoY to £148 million, reflecting improving new business activity and strengthening future net fee visibility equivalent to circa five months(2). Robust balance sheet with net cash of £36 million at 31 August 2026 (31 August 2025: £42 million). Share buyback programme of up to £20 million, launched in February 2026, with £10.5 million purchased as at 21 September 2026. FY26 cost optimisation programme on track, with savings weighted to H2. Outlook FY26 PBT is expected to be at least £12 million, ahead of previously announced c.£10 million PBT guidance(3). This outperformance primarily reflects a focus on working capital efficiencies and other one-off benefits, which are not expected to recur. Timo Lehne, Chief Executive, commented: “Our Q3 performance showed continued sequential improvement, with six of our 11 Contract markets delivering newbusiness growth and supporting a 5% increase in our contractor order book. As Contract revenue is recognised overthe life of each contract, it strengthens visibility over future net fees and gives us greater confidence in the trajectory ofperformance. We are seeing encouraging signs of stabilisation, supported by growth in the USA and moderatingdeclines in several markets. “SThree’s established international platform, leading positions across specialist STEM markets and the strength of ourContract business provide a strong foundation to capture long-term growth opportunities supported by structuraldemand for highly skilled talent. “While market conditions remain mixed, improving trends across our Contract business and growth in our order bookdemonstrate that our strategy is delivering. The investments we have made in technology and data leave us wellpositioned to capitalise on future opportunities, with promising early indications from our proprietary agentic AIcapabilities. This, combined with continued productivity gains and ongoing execution of our cost optimisationprogramme, reinforces our confidence in our future growth prospects and in delivering FY26 profit before tax ahead ofprevious guidance.” Business performance highlights Group net fees declined 2% YoY in Q3, a further sequential improvement from declines of 6% in Q2 and 8% in Q1.Contract net fees were broadly stable, down only 1% YoY, reflecting continued growth in the USA, growth in theNetherlands supported by a soft prior year comparative, and moderating rates of decline in Germany and the UK.Extension activity remained resilient and new placement activity increased year-on-year reflecting continuedproductivity gains supported by the new technology platform. Permanent net fees declined 8% YoY, primarily reflectingdeclines in Germany, Japan against a tough prior year comparative, and the UAE, partly offset by a strong performancein the USA and growth in the Netherlands, albeit against a soft prior year comparative. Within our skill verticals, Life Sciences returned to growth, increasing 8% YoY, driven by strong demand for roles in theUSA, the Group's largest Life Sciences market. Engineering declined 2% YoY, with growth in demand for roles inGermany and the Netherlands, a resilient performance in the USA against a record prior year comparative, alongsidedeclines in Japan and several smaller markets. Technology declined 6% YoY, as growth in the USA, the Netherlandsand several smaller European countries only partially offset softer demand elsewhere, although rates of declinemoderated in Germany and the UK. Among the Group’s three largest markets, which accounted for 73% of net fees, trading conditions remained mixed.The USA continued to deliver double-digit growth, benefiting from more supportive market dynamics and focusedexecution in areas of stronger demand including Life Sciences and Technology. In Germany, market conditionsremained challenging, although the fiscal stimulus is expected to support activity progressively from 2027 onwards asdisbursement broadens beyond initial defence-led spending into areas such as the public sector, construction and otherSTEM-intensive fields. In the Netherlands, performance improved against soft prior year comparatives, although thewider market backdrop remains subdued.
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Group period-end headcount was down 7% from the end of the last financial year, reflecting the careful management ofnatural attrition, continued selectivity in hiring, and the ongoing realisation of cost optimisation actions and efficiencyimprovements. Q3 Q3 Q3 2026 Q2 2026 Q1 2026 Net fees 2026 2025 YoY (1) YoY (1) YoY (1) Contract £66.9m £67.9m -1% -6% -10% Permanent £12.3m £13.6m -8% -10% 0% GROUP £79.2m £81.5m -2% -6% -8% Regions DACH (4) £23.5m £26.8m -12% -16% -13% USA £24.9m £22.5m 11% 15% 8% Netherlands (incl. Spain) (5) £14.0m £13.3m 6% -15% -23% Rest of Europe (6) £12.4m £12.9m -5% -13% -14% Middle East & Asia (7) £4.4m £5.8m -18% 7% 27% GROUP £79.2m £81.5m -2% -6% -8% Top five countries Germany £21.1m £23.6m -10% -17% -11% USA £24.9m £22.5m 11% 15% 8% Netherlands £11.7m £11.3m 5% -19% -28% UK £6.4m £7.0m -11% -21% -17% Japan £3.2m £3.8m -7% 22% 57% ROW (8) £11.9m £13.3m -11% -6% -14% Group £79.2m £81.5m -2% -6% -8% Service mix Q3 2026 Q3 2025 Contract 84% 83% Permanent 16% 17% Skills mix Q3 2026 Q3 2025 Technology 42% 44% Engineering 31% 31% Life Sciences 18% 16% Other 9% 9% (1) All YoY growth rates expressed at constant currency. (2) The contractor order book represents value of net fees until contractual end dates, assuming all contractual hours are worked. The equivalent months of net fee visibility disclosed is calculated after applying normal shrinkage assumptions. (3) As guided on 16 September 2025, the Board expected FY26 profit before tax to be c.£10 million. (4) DACH – Germany, Austria and Switzerland. (5) Netherlands (incl. Spain) – Netherlands and Spain, which is managed from the Netherlands. (6) Rest of Europe – UK, Belgium and France. (7) Middle East & Asia – Japan and UAE. (8) ROW – All other countries we operate in. Analyst conference calls SThree is hosting a conference call for analysts and investors today at 8.30am to discuss the FY26 Q3 TradingUpdate. If you would like to register for the conference call, please contact SThree@almastrategic.com. Forward looking dates The Group will issue its trading update for the year ending 30 November 2026 on 16 December 2026. Enquiries:
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SThree plc Timo Lehne, CEODamian Fehrenberg, Interim CFOCharlie Hildesley, Investor Relations Manager investorrelations@sthree.com Alma Strategic Communications +44 20 3405 0205 Rebecca Sanders-HewettHilary BuchananSam ModlinRose Docherty SThree@almastrategic.com This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation. Theperson responsible for arranging the release of this announcement on behalf of SThree is Kate Danson, GroupCompany Secretary. FY26 PBT Profit Forecast The updated FY26 PBT guidance referred to in this announcement constitutes a “profit forecast” under the UK CityCode on Takeovers and Mergers (the “Code”). SThree is consulting with the Takeover Panel regarding the applicationof Rule 28 of the Code to the FY26 PBT guidance and a further announcement will be made in due course. Notes to editorsSThree plc brings skilled people together to build the future. We are the global STEM workforce consultancy, placinghighly skilled, STEM specialist workers in the industries where they are needed most. We advise businesses, buildexpert teams, and deliver project solutions for our clients. With 40 years of experience in pure-play STEM and a globalteam with local expertise across 11 countries, we cover high-demand skills across Engineering, Life Sciences andTechnology roles. We provide permanent and flexible contract talent to a diverse base of around 6,000 clients. By combining advancedtechnology with expertise, we push beyond traditional boundaries to deliver tailored solutions, leveraging data andinsight from our world-class operating platform. Outpace tomorrow, together Important noticeCertain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties orassumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding pasttrends or activities should not be taken as representation that such trends or activities will continue in the future. Certain data from the announcement is sourced fromunaudited internal management information. Accordingly, undue reliance should not be placed on forward looking statements. - Ends -
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