TrueBlue Inc. (NYSE: TBI), an industrial staffing and RPO provider, reported it’s working on verticals such as renewable energy and remaining engaged with clients amid a weaker market. The Tacoma, Washington-based staffing provider reported revenue fell 11.7% year over year in the fourth quarter to $492.2 million.
Clients remained cost conscious and selective in what roles they filled, TrueBlue reported.
“While general market demand remains soft with hiring trends impacted by reduced business spend, we are capitalizing on attractive verticals, such as renewable energy, and maintaining a high level of engagement with clients to ensure we are well positioned as conditions improve,” President and CEO Taryn Owen said in a press release.
Owen also discussed renewable energy in a conference call with analysts.
“We already have a proven track record of success with renewable energy work and a strong position to capture further growth opportunities in that market,” Owen said. “We also see an opportunity to explore ways to expand our presence in other key end markets such as skilled trades, healthcare and hospitality. Within RPO, we are focusing our efforts towards diversifying into higher skill placements and more specialized product offerings in attractive verticals like healthcare.”
Renewable energy work more than doubled in the fourth quarter, representing its sixth straight quarter of growth, Executive VP and CFO Carl Schweihs said in the call.
“Strength in this vertical helped to offset overall softness in market demand as economic uncertainty continues to weigh on businesses, driving greater focus on cost cutting and restricting hiring trends,” Schweihs said.
The company noted the fourth quarter of 2023 comprised 14 weeks compared to the fourth quarter of 2022, which comprised 13 weeks. On a comparable 13-week basis, revenue fell 15% — at the high end of company outlook in the fourth quarter of 2023.
The company had also announced Feb. 21 that it was selling PeopleReady’s Canadian staffing business.
Guidance
TrueBlue forecast first-quarter revenue of between $392 million and $417 million, a year-over-year decrease of between 10% and 16%.
Share price
Shares in TrueBlue were down 6.76% to $11.59 as of 12:01 p.m. Eastern time. They were 14.19% above their 52-week low.