CBRE Group Inc. CBRE reported fourth-quarter 2024 core earnings per share (EPS) of $2.32, ahead of the Zacks Consensus Estimate of $2.21. The reported figure also increased 68.1% year over year.

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Results reflect revenue growth in its resilient lines of business. The quarter marked the best quarter ever for core earnings and free cash flow with broad-based strength across its Advisory Services, Global Workplace Solutions (“GWS”) and Real Estate Investments business segments.

Quarterly revenues increased 16.2% year over year to $10.4 billion and compared favorably with the Zacks Consensus Estimate of $10.28 billion.

Net revenues increased 18.3% (17.4% in local currency) year over year to $6.13 billion. Core EBITDA rose 47.4 % (45.6% in local currency) to $1.09 billion.

For the full-year 2024, core EPS was $5.10, higher than the prior-year tally of $3.84, while surpassing the Zacks Consensus Estimate of $4.99. This was backed by an 11.6% increase in revenues to $35.64 billion.

CBRE’s Quarter in Detail

CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 19.2% (18.8% in local currency) to $3.09 billion. Our estimate was pegged at $3.00 billion.

Global leasing revenue rose 15% (same local currency), driven by notable leasing revenue growth in Asia-Pacific, Americas, and Europe, the Middle East & Africa.

Global property sales revenues grew 35% (34% in local currency) year over year, led by increases across all regions. Moreover, mortgage origination revenues rose 37% (same local currency) due to a 76% increase in loan origination fees, partly offset by lower escrow income.

The GWS segment registered a year-over-year increase of 15.4% (14.6% in local currency) in revenues to $7.04 billion. Our estimate was pegged at $6.84 billion.

With strength across the enterprise and local businesses, Facilities management net revenues rose 24% (23% in local currency). Project management net revenues increased 9% (7% in local currency), led by continued strength from Turner & Townsend. The margin on net revenues improved by 160 basis points compared with fourth-quarter 2023, reflecting the benefit of cost-efficiency initiatives and a focus on contract profitability.

The Real Estate Investments segment experienced an increase of 5% (3.1% local currency) in revenues to $275 million.

At the end of the fourth quarter of 2024, assets under management decreased $2.1 billion from the third quarter of 2024 to $146.2 billion due to adverse foreign currency movement.

Balance Sheet Position for CBRE

CBRE Group exited the fourth quarter of 2024 with cash and cash equivalents of $1.11 billion, up from $1.03 billion as of Sept. 30, 2024.

As of Dec. 31, 2024, CBRE Group had $4.4 billion in total liquidity. This comprised $1.1 billion in cash in addition to the ability to borrow a total of approximately $3.3 billion under its revolving credit facilities and commercial paper program, net of any outstanding letters of credit. The company’s net leverage ratio was 0.93X as of the same date, significantly less than CBRE’s primary debt covenant of 4.25X.

During the December-end quarter, the company repurchased approximately 6.05 million shares for $806 million. As of Feb. 11, 2025, it had $5.5 billion of stock-repurchase capacity remaining under its authorized stock repurchase program.

Outlook

For 2025, CBRE projects its core EPS in the range of $5.80-$6.10. The Zacks Consensus Estimate for the same is currently pegged at $6.00, which is within the guided range.

Currently, CBRE Group carries a Zacks Rank #3 (Hold).

CBRE Group, Inc. Price, Consensus and EPS Surprise

CBRE Group, Inc. price-consensus-eps-surprise-chart | CBRE Group, Inc. Quote

Upcoming Releases

It’s time to look forward to two stocks from the real estate operation industry, Jones Lang LaSalle JLL and Cushman & Wakefield plc CWK. Jones Lang LaSalle and Cushman & Wakefield are slated to report quarterly numbers on Feb. 19 and Feb. 20, respectively.

The Zacks Consensus Estimate for Jones Lang LaSalle’s fourth-quarter 2024 EPS stands at $5.79, which suggests an increase of 36.9% on a year-over-year basis. JLL currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Cushman & Wakefield’s fourth-quarter 2024 EPS is pegged at 48 cents, which implies a 6.7% increase year over year. CWK currently carries a Zacks Rank of 3.

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