TrueBlue (NYSE:TBI) reported fourth-quarter 2025 results that management said reflected continued progress on its strategic priorities, including a revamped sales model, expanded focus on higher-growth end markets, and ongoing cost controls. Executives also highlighted momentum in the company’s energy-related staffing activity and the integration of Healthcare Staffing Professionals (HSP), which was acquired in 2025.
Strategic priorities and market expansion
President and CEO Taryn Owen said TrueBlue spent 2025 restructuring parts of the business to expand sales capacity and improve profitability. In the company’s on-demand staffing operations, TrueBlue reorganized into a territory-based structure and invested in sales resources, which Owen said has enabled more localized sales strategies and deeper client engagement. She added that “sales-enabled territories” have delivered stronger sequential performance.
On end-market expansion, Owen said energy sector revenue grew 60% during 2025, while the company’s commercial driver business posted a second consecutive year of double-digit growth. She also cited progress in healthcare, including the addition of HSP to the portfolio and expansion into three new states since joining TrueBlue.
Technology investments were another focus. Owen said the company enhanced its digital ecosystem with AI-powered job matching, predictive analytics, and behavioral insights, and recently launched an AI-enabled bill rate feature in its JobStack app that generates bill rates “in seconds.”
Fourth-quarter results: revenue growth and margin pressures
Chief Financial Officer Carl Schweihs said fourth-quarter revenue totaled $418 million, up 8% year over year and near the high end of the company’s outlook range. Organic revenue increased 5%, with the acquired HSP business adding three percentage points of growth.
Schweihs said TrueBlue delivered its second consecutive quarter of organic revenue growth, supported by double-digit growth in skilled businesses for the third consecutive quarter, driven by demand in the energy vertical. Management also described broader market conditions as showing “ongoing signs of stabilization.”
Gross margin declined to 21.5% from 26.6% in the prior-year period. Schweihs attributed the decrease primarily to two factors:
- Less benefit from workers’ compensation reserve adjustments than the prior year, when results were aided by a significant reduction in workers’ compensation costs due to favorable reserve development.
- Changes in revenue mix, including outsized growth in PeopleReady renewable energy work, which carries a lower gross margin due to pass-through travel costs (though management said the underlying margin excluding those costs is consistent with other large PeopleReady accounts).
Despite the margin pressure, Schweihs said the company reduced SG&A by 11% while revenue rose 8%, which he described as improved leverage from cost discipline.
TrueBlue reported a net loss of $32 million, including an $18 million non-cash long-lived asset impairment charge tied to subleasing its Chicago support office. Schweihs said the reduction in corporate office space is expected to unlock more than $30 million of cash flow over the remaining 10 years of the lease. He later quantified savings as roughly $3 million to $5 million annually over time due to rent escalations, plus additional SG&A savings of about $1.5 million in 2026 and about $3 million in 2027. Adjusted net loss was $8 million and adjusted EBITDA was $2 million.
Segment performance highlights
PeopleReady revenue increased 11%, driven by energy-related outperformance. Schweihs said revenue more than doubled in the energy vertical for the second consecutive quarter. PeopleReady segment profit margin fell 370 basis points, primarily due to workers’ compensation reserve dynamics and mix shift toward renewable energy work with pass-through costs.
PeopleManagement revenue declined 2% due to lower on-site volumes, particularly in retail. Schweihs said the business launched 13 new sites during the quarter and continued winning new business. Segment profit margin increased 50 basis points due to cost actions. Management also noted the commercial driver business delivered its eighth consecutive quarter of growth.
People Solutions revenue rose 42%, with HSP driving the year-over-year increase. On an organic basis, the segment was flat as hiring volumes remained subdued, though management said it is encouraged by signs of stabilization through new wins and expansions. Segment profit margin increased 180 basis points due to efficiency actions and operating leverage.
Liquidity, credit facility update, and outlook
Schweihs said TrueBlue ended the quarter with $25 million in cash, $66 million of debt, and $68 million of borrowing availability, for total liquidity of $92 million. During the quarter, the company reduced debt by $2 million while increasing working capital by $2 million.
He also said the company amended its credit facility effective Jan. 30, transitioning to an asset-backed structure that increases borrowing availability for the remainder of the agreement term.
For the first quarter of 2026, management expects revenue growth of 3% to 9% year over year, including one percentage point of inorganic growth from HSP. Schweihs cautioned that workers’ compensation reserve comparisons are expected to remain a headwind in the first quarter, and he noted the first quarter is seasonally the lowest revenue quarter, contributing to a lower margin outlook. He said the company’s “lean cost structure” should support improved margins as the year progresses.
Q&A: energy visibility, pricing pressure, and M&A posture
In response to analyst questions, management emphasized the scale and growth of energy-related business. Schweihs said energy as an end market represented about 15% of the portfolio at the end of 2025, up from 10% in 2024. He also said renewable energy within PeopleReady is “about a third” of that business.
Owen said the company is seeing strength across commercial solar and full-scale renewable projects and is also focused on expanding into non-renewable energy sectors. She said that in the fourth quarter the company secured “several multimillion-dollar project wins,” and described the pipeline as “very healthy.”
On pricing, Schweihs said the company continues to see pricing pressure. He stated pay rates were up 3.8% in the quarter while bill rates rose 2.5%, contributing to about a 40 basis point margin decline. He said pay rate increases are increasingly driven by role-specific skills rather than broad labor shortages.
Asked about healthcare and potential inorganic expansion, Schweihs said HSP contributed about $14 million of inorganic growth in the fourth quarter and called the acquisition accretive. However, he added that the company is not prioritizing M&A currently and is instead focused on managing the business to be cash-flow positive.
Owen also briefly addressed changes to the board, noting that TrueBlue added two independent directors in early 2026 and that two current directors are expected to step down at or before the 2026 annual meeting, as part of a board refreshment process.
About TrueBlue (NYSE:TBI)
TrueBlue, Inc is a Tacoma, Washington–based workforce solutions provider specializing in temporary staffing, permanent placement and managed service solutions. Operating through its subsidiaries and brands, TrueBlue connects clients across manufacturing, logistics, retail, construction and public sector markets with skilled professionals for both short-term and long-term engagements. The company’s offerings encompass on-demand blue-collar labor, specialized industrial staffing, recruitment process outsourcing (RPO) and contingent workforce management.
TrueBlue’s primary service lines include PeopleReady, which supplies general labor for construction, hospitality and event services; PeopleManagement, which focuses on technical and industrial professionals; PeopleScout, a global RPO business offering end-to-end talent acquisition and consulting; and Staff Management | SMX, which delivers seasonal staffing for large-scale events, amusement parks and federal workforce contracts.
