CBRE Group (CBRE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 8.7%–9% year-over-year to $8.4 billion, with all business segments outperforming expectations, especially in leasing, mortgage origination, and property management.

• Net income declined 35.5% to $130 million, mainly due to higher restructuring charges, interest expense, and equity losses.

• Free cash flow improved to $220 million in Q2, with nearly 90% conversion, and full-year free cash flow outlook raised to slightly over $1 billion.

• Significant capital investments included the combination of project management with Turner & Townsend, the acquisition of Direct Line Global, and the purchase of J&J Worldwide Services.

• Decisive cost actions and strategic M&A positioned the company for margin expansion and strong growth.

Financial highlights

• Q2 2024 revenue: $8.4 billion (+8.7%); net revenue: $4.97 billion (+11%).

• GAAP net income: $130 million (-35.5%); Core adjusted net income: $248 million (-3.8%).

• Core EBITDA: $505 million (flat year-over-year); Core EPS: $0.81 (down 2%).

• Free cash flow for Q2: $220 million; trailing 12-month cash flow conversion at 64%.

• Core EPS guidance for 2024 increased to $4.70–$4.90, up from $4.25–$4.65.

Outlook and guidance

• Full-year Core EPS outlook raised to $4.70–$4.90, with over 45% of EPS expected in Q4.

• Free cash flow for the full year expected to slightly exceed $1 billion.

• Advisory and GWS segments forecast mid-to-high teens SOP growth; REI improvement expected with asset sales in Q4.

• Increased confidence in achieving record EPS in 2025, with resilient businesses expected to contribute $1.8 billion of SOP in 2024.