TrueBlue Q2 Earnings Call Highlights

TrueBlue’s second-quarter revenue rose 12% to $443 million, exceeding guidance on strength in skilled labor, particularly energy and commercial driving. Adjusted EBITDA increased to $11 million from $3 million a year earlier, while the company reported a $3 million net loss largely due to a non-cash headquarters write-down. PeopleReady revenue grew 23%, with energy revenue nearly doubling, while PeopleManagement was flat and PeopleSolutions declined 5%. Management said on-demand staffing returned to growth, demand improved across regions, and cost reductions helped offset lower gross margins. TrueBlue expects third-quarter revenue growth of 7% to 11% and ended the quarter with $79 million in total liquidity. The company is also expanding sales efforts and deploying AI across its workforce platforms to improve operating efficiency. TrueBlue NYSE: TBI reported second-quarter revenue growth that exceeded its outlook, driven by continued strength in skilled labor verticals and a return to growth in its on-demand business. Revenue rose 12% year over year to $443 million, Chief Financial Officer Carl Schweihs said, with results surpassing the company’s guidance range because of outperformance in its skilled businesses. Adjusted EBITDA increased to $11 million from $3 million a year earlier, while adjusted net income was $2 million, compared with an adjusted net loss of $2 million in the prior-year quarter. The company reported a net loss of $3 million for the quarter, including a $3 million non-cash write-down of its Tacoma headquarters tied to commercial real estate market conditions. Schweihs said the write-down and a valuation allowance on U.S. deferred tax assets did not affect operations or liquidity. Revenue Growth Led by Energy and Skilled Work President and Chief Executive Officer Taryn Owen said TrueBlue’s strategy is centered on strengthening its sales model, expanding in attractive end markets and improving operating efficiency through technology and disciplined operations. The company’s energy-sector revenue nearly doubled during the quarter, marking its fifth consecutive quarter of growth in that vertical. Its commercial driver business also posted its 10th consecutive quarter of growth. Owen said the company sees further opportunity in adjacent sectors including data centers and energy-storage facilities. During the question-and-answer session, she said TrueBlue signed a new agreement during the week of the call with a large battery-storage provider through its PeopleScout business. TrueBlue also cited government and healthcare as longer-term growth opportunities. Owen said the company is building momentum in government workforce solutions and is scaling its U.S. healthcare operations by drawing on recruitment capabilities and technology. Segment Results and Margin Trends PeopleReady revenue increased 23% from a year earlier, largely due to growth in energy work. The segment’s profit margin increased 260 basis points despite a favorable workers’ compensation adjustment in the prior-year period that did not recur this year. PeopleManagement revenue was unchanged from the prior-year quarter. Growth in commercial driving services offset lower on-site client volumes. Schweihs said on-site volumes improved each month during the quarter and returned to growth in June as new business wins and client expansions gained traction. PeopleManagement’s profit margin rose 60 basis points. PeopleSolutions revenue declined 5% as broader market conditions continued to limit hiring activity. However, management said it saw improving trends exiting the quarter, as well as new-client activity and expansion with existing customers in higher-skilled.