CBRE Group (CBRE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered double-digit revenue and profit growth across all segments, with core EPS up 67% to $1.20 and GAAP EPS up 20% to $0.73, marking the second-highest Q3 core EPS on record.

• Revenue rose 15% year-over-year to $9.04 billion, with net income up 18% to $225 million, driven by strong leasing, property management, and GWS performance.

• Resilient businesses contributed about 60% of segment operating profit, supporting more predictable earnings.

• Strategic M&A, including the J&J Worldwide Services acquisition, expanded technical services and government client base.

• Free cash flow improved for the fourth consecutive quarter, up 61% year-over-year to $494 million.

Financial highlights

• Q3 2024 revenue reached $9.04 billion (up 15% year-over-year); net revenue was $5.32 billion (up 20%).

• GAAP net income was $225 million (up 18%); core adjusted net income was $369 million (up 63%).

• Core EBITDA rose 58% to $688 million; operating income up 37% to $368 million.

• Free cash flow for Q3 was $494 million, with trailing 12-month conversion at 71%.

• Assets under management (AUM) reached $148.3 billion, up $5.8 billion sequentially.

Outlook and guidance

• Full-year 2024 core EPS guidance raised to $4.95–$5.05, up from $4.70–$4.90, with over 45% of full-year core EPS expected in Q4.

• Free cash flow for the year expected to be slightly over $1 billion.

• Advisory SOP growth expected to exceed 20% for the year, with GWS and REI segments anticipating high-teens SOP growth.

• Multiple development asset sales expected in Q4; AUM growth environment seen improving in 2025.

• Plans to reorganize into four reportable segments in 2025 after combining project management with Turner & Townsend.