CBRE Exceeds Expectations with Q2 Sales Growth of 16.2%

CBRE reported Q2 CY2025 results exceeding market expectations, with sales up 16.2% YoY to $9.75 billion and non-GAAP profit of $1.19 per share, a 11.2% beat. The company's revenue growth has been tepid at 9.4% CAGR over the last five years and 11.1% over the last two years. Sell-side analysts expect revenue to grow 8.9% over the next 12 months, a slight deceleration from the last two years.

CBRE Group, Inc. (NYSE: CBRE) has reported its financial results for the second quarter of 2025, showcasing a robust performance that exceeded market expectations. The company's revenue grew by 16.2% year-over-year (YoY) to $9.75 billion, while non-GAAP earnings per share (EPS) reached $1.19, a 11.2% beat compared to analyst estimates.

Key highlights of the report include:
- Revenue Growth: The company's total revenue increased by 16.2% YoY, reaching $9.75 billion. This growth was driven by a 17% increase in revenue from resilient businesses and a 15% increase in revenue from transactional businesses.
- EPS Growth: Non-GAAP EPS climbed to $1.19, a 46.9% increase compared to the same period last year. This performance beat analyst estimates by 11.2%.
- Operating Profit: Core EBITDA rose by 30% to $658 million, indicating strong operational efficiency.
- Cash Flow: Free cash flow totaled $2 million during the second quarter, reflecting a 99.1% decline compared to the same period last year. However, on a trailing 12-month basis, free cash flow totaled nearly $1.3 billion.
- Liquidity: Total liquidity increased to $4.7 billion, up $1.2 billion from the end of the first quarter.

The report also highlights the company's strong performance across its various segments:
- Advisory Services Segment: Revenue increased by 14.4% YoY, driven by robust growth in leasing and capital markets.
- Building Operations & Experience (BOE) Segment: Revenue grew by 18.7%, with strong contributions from facilities management and property management.
- Project Management Segment: Revenue increased by 14.3%, reflecting broad-based global growth.

Despite the strong performance, the company's revenue growth has been relatively tepid over the last five years, with a compound annual growth rate (CAGR) of 9.4%. Over the last two years, revenue growth has been 11.1%. Sell-side analysts expect revenue to grow by 8.9% over the next 12 months, a slight deceleration from the last two years.

The company's earnings outlook for the year has been increased to $6.10 to $6.20 per share, 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.

CBRE Group's strong performance in the second quarter of 2025 underscores its resilience in the face of a challenging macro environment. The company's ability to maintain growth across its various segments and its strong liquidity position position it well for future opportunities.

References:
[1] https://www.stocktitan.net/news/CBRE/cbre-group-inc-reports-financial-results-for-second-quarter-dw3wbujel7d6.html