CBRE Group, Inc. Reports Financial Results for Second-Quarter 2025

CBRE Group, Inc. (NYSE:CBRE) today reported financial results for the second quarter ended June 30, 2025.

Key Highlights:

• GAAP EPS up 71% to $0.72; Core EPS up 47% to $1.19
• Revenue up 16% to $9.8 billion
• Resilient Businesses⁽¹⁾ revenue up 17% to $8.1 billion; Transactional Businesses⁽¹⁾ revenue up 15% to nearly $1.7 billion
• GAAP net income up 65% to $215 million; Core EBITDA up 30% to $658 million
• $1.4 billion net cash flow from operations and nearly $1.3 billion free cash flow, both on a trailing 12-month basis
• Liquidity increased by $1.2 billion during the quarter to $4.7 billion
• 2025 Core EPS outlook increased to $6.10 to $6.20 from $5.80 to $6.10 previously, reflecting better than 20% growth at the midpoint of the range. This forecast is based on constant currency and would increase by at least $0.10 based on today's forward FX curves.

"The strong momentum we exhibited to start the year continued in the second quarter. Despite uncertainty in the macro environment, occupier and investor clients largely proceeded with executing their plans," said Bob Sulentic, CBRE's chair and chief executive officer. "Resilient revenue rose 17%, surpassing the 15% growth rate for transactional businesses. Resilient revenue growing faster than transactional revenue during a market recovery attests to the progress we've made with our resilient businesses."

"In light of our outperformance in the year's first half and the pipelines across our business," Sulentic continued, "we have increased our earnings outlook for the year and expect to set a new peak just two years after the 2023 trough in the commercial real estate downturn. We anticipate this outcome even though capital markets activity remains well below prior peak levels."

Consolidated Financial Results Overview

The following table presents highlights of CBRE performance (dollars in millions, except per share data; totals may not add due to rounding):

Advisory Services Segment

The following table presents highlights of the Advisory Services segment performance (dollars in millions; totals may not add due to rounding):

Note: all percent changes cited are vs. second-quarter 2024, except where noted.

Leasing

• Global leasing revenue increased 14% (13% local currency), in line with expectations, reaching the highest level for any second quarter in company history.
• The United States saw leasing revenue rise 14% overall, led by office and industrial.
• Europe, the Middle East & Africa (EMEA) set the pace with leasing revenue growth of 18% (13% local currency), driven by the United Kingdom and Germany, while Asia Pacific (APAC) leasing revenue rose 12% (11% local currency), paced by India and Japan.

Capital Markets

• Global property sales revenue rose 20% (19% local currency), exceeding expectations.
• Growth was strong around the world. The United States registered 25% growth, with notable strength in data centers, office and retail. APAC grew by 24% (21% local currency) and EMEA by 19% (13% local currency).
• Mortgage origination revenue rose 44% (same local currency), reflecting particularly strong lending by government agencies as well as debt funds and CMBS lenders.

Other Advisory Business Lines

• Loan servicing revenue ticked up 1% (same local currency). The servicing portfolio totaled $443 billion, up 1% for the quarter and 4% over the past year.
• Valuations revenue increased 7% (5% local currency), with the United States showing the strongest growth.

Building Operations & Experience (BOE) Segment

The following table presents highlights of the BOE segment performance (dollars in millions; totals may not add due to rounding):

Note: all percent changes cited are vs. second-quarter 2024, except where noted.

• Facilities management revenue increased 17% (16% local currency) with strong growth across the Enterprise and Local businesses. In Enterprise, growth was led by data center hyperscalers as well as the technology, healthcare and industrial sectors. The Local business continued to expand its foothold in the United States while increasing its business base in the United Kingdom, its largest market.
• Property management revenue rose 30% (same local currency). Contributions from Industrious, the flexible workplace operator acquired in early January 2025, enhanced the growth rate.

Project Management Segment

The following table presents highlights of the Project Management segment performance (dollars in millions; totals may not add due to rounding):

Note: all percent changes cited are vs. second-quarter 2024, except where noted.

• Project management revenue rose 14% (13% local currency), with broad-based growth globally.
• Turner & Townsend's legacy business delivered mid-teens revenue increases across most regions, with notable growth in its largest geography—the United Kingdom.
• Revenue rose by low double digits in the legacy CBRE Project Management business.

Real Estate Investments (REI) Segment

The following table presents highlights of the REI segment performance (dollars in millions):

Note: all percent changes cited are vs. second-quarter 2024, except where noted.

Investment Management

• Revenue fell 3% (5% local currency) to $144 million. Recurring asset management fees rose 5% (3% local currency). The overall revenue decline reflected the absence of significant carried interest in the current quarter versus the year-ago period.
• Investment Management operating profit⁽¹⁰⁾ totaled $31 million versus $39 million in last year's second quarter, driven by the lower carried interest.
• Assets Under Management (AUM) totaled $155.3 billion, up $6.2 billion from first-quarter 2025, mainly driven by favorable foreign currency movement.

Real Estate Development

• Global development swung to an operating profit⁽¹⁰⁾ of $3 million from a $26 million operating loss in last year's second quarter.
• The portfolio of in-process projects and pipeline stood at $31.7 billion, up $0.6 billion for the quarter.

Core Corporate Segment

• Core corporate operating loss increased by approximately $22 million.

Capital Allocation Overview

• Free Cash Flow – Free cash flow totaled $2 million during the second quarter of 2025. This reflected cash provided by operating activities of $57 million and gains on sale of real estate of $19 million, adjusted for total capital expenditures of $74 million. On a trailing 12-month basis, free cash flow totaled nearly $1.3 billion.
• Stock Repurchase Program – The company has repurchased approximately 5.2 million shares for $663 million ($127.82 average price per share) since year-end 2024. There was approximately $5.2 billion of capacity remaining under the company's authorized stock repurchase program as of June 30, 2025.
• Acquisitions and Investments – The company did not make any material acquisitions during the second quarter of 2025.

Leverage and Financing Overview

• Leverage – CBRE's net leverage ratio (net debt⁽¹¹⁾ to trailing twelve-month core EBITDA) was 1.47x as of June 30, 2025, which is substantially below the company's primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):

• Liquidity – At the end of the second quarter, the company had approximately $4.7 billion of total liquidity, consisting of $1.4 billion in cash, plus the ability to borrow an aggregate of approximately $3.3 billion under its revolving credit facilities and commercial paper program. Total liquidity increased from approximately $3.5 billion at the end of the first quarter, reflecting new financing activity completed during the second quarter.

Conference Call Details

The company's second quarter earnings webcast and conference call will be held today, Tuesday, July 29, 2025 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.

Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on July 29, 2025. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13754375#. A transcript of the call will be available on the company's Investor Relations website at https://ir.cbre.com.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage serving, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

Safe Harbor and Footnotes

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the economic outlook, the company's future growth momentum, operations and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients' willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in economic and commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect wholly-owned subsidiary, CBRE Capital Markets, Inc. to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; our and our employees' ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control.

Additional information concerning factors that may influence the company's financial information is discussed under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Cautionary Note on Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2024, our latest quarterly report on Form 10-Q, as well as in the company's press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company's website at www.cbre.com or upon written request from CBRE's Investor Relations Department at [email protected].

The terms "adjusted net revenue," "core adjusted net income," "core EBITDA," "core EPS," "business line operating profit (loss)," "segment operating profit on revenue margin," "segment operating profit on adjusted net revenue margin," "net debt" and "free cash flow," all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the "Non-GAAP Financial Measures" section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.

Totals may not sum in tables in millions included in this release due to rounding.

Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Non-GAAP Financial Measures

The following measures are considered "non-GAAP financial measures" under SEC guidelines:

These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.

With respect to adjusted net revenue, adjusted net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company's overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business. We re-named this metric as adjusted net revenue to emphasize it is a non-GAAP measure.

With respect to core EBITDA, core EPS, core adjusted net income, business line operating profit/loss, and segment operating profit on revenue and net revenue margins, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income tax and the accounting effects of capital spending. The presentation of core adjusted net income, excluding amortization of intangible assets acquired in business combinations, is useful to investors as a supplemental measure to evaluate the company's ongoing operating performance. While amortization expense of acquisition-related intangible assets is excluded from core adjusted net income, the revenue generated from the acquired intangible assets is not excluded. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of core EBITDA, this measure is not intended to be a measure of free cash flow for our management's discretionary use because it does not consider cash requirements such as tax and debt service payments. The core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.

With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations and real estate investment and development activities after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company's net leverage ratio.

With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments that are not directly related to our business segments. These can be volatile and are often non-cash in nature.

Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data):

Core EBITDA is calculated as follows (in millions, totals may not add due to rounding):