ADP closed fiscal 2025 with 8% revenue growth in Q4, 40 basis points adjusted EBIT margin expansion, and 8% adjusted EPS growth.
Employer Services new business bookings grew 3% to approximately $2.1 billion, below expectations but still showing growth despite macro uncertainty.
Employer Services pays per control increased 1% in Q4 and fiscal 2025.
Employer Services retention increased 10 basis points to 92.1%, approaching a record high of 92.2%.
ES margins expanded 50 basis points in Q4 and 100 basis points for full year, exceeding expectations.
Fiscal 2025 revenue totaled $20.6 billion.
For the full year, ADP delivered 7% revenue growth, 50 basis points adjusted EBIT margin expansion, and 9% adjusted EPS growth.
PEO new business bookings growth accelerated in Q4 and full year, contributing to 7% PEO revenue growth at the high end of expectations.
PEO revenue grew 7% in Q4; average worksite employees increased 3% to 761,000; PEO margins contracted 20 basis points in Q4 and 60 basis points for full year due to higher zero-margin pass-through benefits and state unemployment insurance costs.
Q4 Employer Services revenue increased 8% reported, 6% organic constant currency; full year ES revenue grew 7% reported, 6% organic constant currency.
Adjusted operating profit was $489 million, up 28% year-over-year, with an adjusted operating margin of 18.5%, down 110 basis points primarily due to tariffs.
Free cash flow for Q2 was $277 million, lower year-over-year, but adjusted free cash flow for the first half was $542 million, up 24%.
Net leverage ratio stood at 0.6x at quarter-end, reflecting strong balance sheet management.
Organic sales grew 34% year-on-year, with Americas up mid-40s, APAC mid-30s, and EMEA high single digits.
Q2 orders surpassed $3 billion, up 15% from Q2 2024 and 11% sequentially from Q1 2025, with a trailing 12-month organic orders growth of 11%.
Segment results showed Americas with 43% organic sales growth and 24% adjusted operating margin; APAC with 37% growth and 10.6% margin; EMEA with 7% growth but facing operational challenges and investments.
Vertiv reported adjusted diluted earnings per share of $0.95 in Q2 2025, a 42% increase year-over-year, driven by higher adjusted operating profit.
Blue Point project cost is expected to be $3.7 billion, with CF's portion and common facilities totaling about $2 billion over the next 4 years.
CF Industries reported adjusted EBITDA of $1.4 billion for the first half of 2025 and $760 million for Q2 2025.
EBITDA and free cash flow expected to increase by over $100 million annually starting Q3 due to Donaldsonville CCS project tax incentives and product premiums.
Net earnings attributable to common stockholders were $698 million for the first half and $386 million for Q2 2025, with diluted EPS of $4.20 and $2.37 respectively.
Returned approximately $280 million to shareholders in Q2 2025, including $202 million for repurchasing 2.8 million shares.
Trailing 12-month net cash from operations was $2.5 billion and free cash flow was $1.7 billion, including a net benefit from the Blue Point joint venture.
Net debt increased to $596.8 million due to share repurchases and acquisition payments; leverage ratio was 2.5x adjusted EBITDA.
Net income was $19.4 million or $1.09 per diluted share, down from $37.5 million or $2.03 per diluted share in Q2 2024, impacted by an $8.2 million noncash impairment charge.
Operating income margins improved in Healthcare (30.2% vs 29.1%) and Commercial (16.6% vs 15.3%), Education margin stable at 25%.
Operating income margins improved in Healthcare (30.2% vs 29.1%) and Commercial (16.6% vs 15.3%), stable in Education (25% vs 25.1%).
Revenues before reimbursable expenses (RBR) grew 8% over Q2 2024, reaching a record high.
Dafinchi