FY26 Q3 Trading Update

SThree plc ("SThree" or the "Group"), the global STEM workforce consultancy, today issues a trading update covering the 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 new business growth and supporting a 5% increase in our contractor order book. As Contract revenue is recognised over the life of each contract, it strengthens visibility over future net fees and gives us greater confidence in the trajectory of performance. We are seeing encouraging signs of stabilisation, supported by growth in the USA and moderating declines in several markets.

“SThree’s established international platform, leading positions across specialist STEM markets and the strength of our Contract business provide a strong foundation to capture long-term growth opportunities supported by structural demand for highly skilled talent.

“While market conditions remain mixed, improving trends across our Contract business and growth in our order book demonstrate that our strategy is delivering. The investments we have made in technology and data leave us well positioned to capitalise on future opportunities, with promising early indications from our proprietary agentic AI capabilities. This, combined with continued productivity gains and ongoing execution of our cost optimisation programme, reinforces our confidence in our future growth prospects and in delivering FY26 profit before tax ahead of previous 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 the Netherlands 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 continued productivity gains supported by the new technology platform. Permanent net fees declined 8% YoY, primarily reflecting declines in Germany, Japan against a tough prior year comparative, and the UAE, partly offset by a strong performance in 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 the USA, the Group's largest Life Sciences market. Engineering declined 2% YoY, with growth in demand for roles in Germany and the Netherlands, a resilient performance in the USA against a record prior year comparative, alongside declines in Japan and several smaller markets. Technology declined 6% YoY, as growth in the USA, the Netherlands and several smaller European countries only partially offset softer demand elsewhere, although rates of decline moderated 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 focused execution in areas of stronger demand including Life Sciences and Technology. In Germany, market conditions remained challenging, although the fiscal stimulus is expected to support activity progressively from 2027 onwards as disbursement broadens beyond initial defence-led spending into areas such as the public sector, construction and other STEM-intensive fields. In the Netherlands, performance improved against soft prior year comparatives, although the wider market backdrop remains subdued.

Group period-end headcount was down 7% from the end of the last financial year, reflecting the careful management of natural attrition, continued selectivity in hiring, and the ongoing realisation of cost optimisation actions and efficiency improvements.

• All YoY growth rates expressed at constant currency.
• 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.
• As guided on 16 September 2025, the Board expected FY26 profit before tax to be c.£10 million.
• DACH – Germany, Austria and Switzerland.
• Netherlands (incl. Spain) – Netherlands and Spain, which is managed from the Netherlands.
• Rest of Europe – UK, Belgium and France.
• Middle East & Asia – Japan and UAE.
• 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 Trading Update. 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.

FY26 PBT Profit Forecast

The updated FY26 PBT guidance referred to in this announcement constitutes a “profit forecast” under the UK City Code on Takeovers and Mergers (the “Code”). SThree is consulting with the Takeover Panel regarding the application of Rule 28 of the Code to the FY26 PBT guidance and a further announcement will be made in due course.

Outpace tomorrow, together