S&P affirms Cushman & Wakefield 'BB-' rtgs; outlook positive

S&P affirms Cushman & Wakefield 'BB-' rtgs; outlook positive

S&P Global Ratings has revised its outlook for Cushman & Wakefield to positive from stable while affirming its long-term credit rating of 'BB-' according to S&P Global Ratings. The upgrade reflects improved credit metrics driven by a rebound in commercial real estate (CRE) transaction activity and deleveraging efforts. For the 12 months ended September 30, 2025, the company's adjusted net debt to EBITDA ratio declined to 3.6x, down from 4.2x at year-end 2024 and 5.3x in 2023. This improvement aligns with stronger operating performance, including S&P-adjusted EBITDA of $722 million for the period, up from $569 million in the prior year.

EBITDA margins expanded by nearly 200 basis points year-over-year to 10.5%, highlighting enhanced profitability. S&P noted sustained growth in CRE leasing and capital markets activity, with fee revenue from these segments rising 9% and 20%, respectively, in Q3 2025. The company has also strengthened liquidity through loan repricing and prepayments, including $300 million in total tranche-1 and tranche-2 term loan repayments.

S&P projects fee revenue growth of 7.5% in 2025 and 7.0% in 2026, with adjusted EBITDA margins expected to remain between 9%-10%. A potential rating upgrade within 12 months hinges on sustained leverage below 4.0x, while a return to stable outlook would require leverage exceeding 4.0x. The rating agency emphasized Cushman & Wakefield's top-three market position in CRE services and absence of near-term refinancing risks as key credit strengths.