CBRE Group (CBRE) Q1 2025 earnings summary

Executive summary

• Revenue grew 12–12.3% year-over-year to $8.91B, with net income up 29% to $163M, driven by strong leasing, property sales, and BOE segment expansion.

• Core EBITDA rose 27% to $540M; Core EPS increased 10% to $0.86, or 39% excluding a prior-year tax benefit.

• Most business lines outperformed expectations, with robust new business pipelines, though some moderation due to tariff-related uncertainty.

• Major acquisitions (Industrious, Turner & Townsend) and share repurchases supported segment expansion and a new four-segment structure.

• Strategic positioning and a strong balance sheet support sustained growth and resilience amid market uncertainty.

Financial highlights

• Net revenue up 15% to $5.11B; revenue up 12–12.3% to $8.91B.

• GAAP net income up 29% to $163M; Core EBITDA $540M, up 27% year-over-year.

• Free cash flow (TTM) nearly $1.5B, with 93% conversion.

• Net leverage at 1.45x, within target range and well below covenants.

• Share repurchases of $585M–$600M since year-end 2024; $5.2B–$5.4B remaining repurchase capacity.

Outlook and guidance

• 2025 Core EPS guidance maintained at $5.80–$6.10, with guidance held due to tariff and market uncertainty.

• Free cash flow for 2025 expected to approximate 2024, with 75–85% conversion.

• Low to mid-teens SOP growth expected in Advisory, BOE, and Project Management; high-teens in BOE.

• Guidance assumes no recession or large-scale M&A; wider range of outcomes expected.

• Resilient business mix positions the company to better withstand a recession, with expected earnings declines less than half of those seen in the GFC.