Robert Walters Shares Fall Over 11% as Q2 Fee Income Declines, Europe Remains Weak

Shares in global recruitment firm Robert Walters PLC (LSE:RWA) plunged on Tuesday after the company reported a second-quarter decline in net fee income, overshadowing its confirmation that first-half trading met internal expectations. Investors reacted to continued softness in European hiring and weakness in the group's core specialist recruitment division.

Market Reaction

Robert Walters' stock traded down 11.6% to 92.80 pence in Tuesday's session, sharply underperforming the broader market. The sell-off occurred despite the company stating that its performance for the first half of the year was "in-line with the Board’s expectations," suggesting investors are focused on the challenging near-term outlook.

Quarterly Performance Details

According to its trading update, the firm saw group net fee income fall by 4% on a constant-currency basis in the second quarter to £69.4 million. While this is a decline, it represents a sequential improvement from the 14% drop reported for the full-year 2025.

Performance across its divisions was mixed:

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• Specialist recruitment fees fell by 7%.
• Recruitment outsourcing fees grew by 9%, marking a second consecutive quarter of growth.

The company noted a positive turn in June, when group net fees returned to growth with a 1% year-over-year increase.

Regional Weakness and Outlook

Europe remained the most significant drag on performance, with net fees in the region contracting by 16% on a constant-currency basis. The company cited challenging hiring conditions across northern Europe, while France, its largest European market, also remained under pressure. Spain was a bright spot, posting its fourth consecutive quarter of growth.

Chief Executive Toby Fowlston commented that the downturn following the post-pandemic hiring surge remained "largely cyclical." He added that the company entered the second half with "good trading momentum in a number of our markets" and is continuing to focus on improving productivity and reducing costs.