CBRE Group (CBRE) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 core earnings and free cash flow, with broad-based strength across all business segments and significant progress on strategic initiatives, including integration of project management into Turner & Townsend and full ownership of Industrious.

• Net revenue in resilient business lines grew 14% year-over-year, contributing nearly 60% of total segment operating profit.

• Completed key acquisitions (Industrious, Turner & Townsend) and reorganized into four business segments, enhancing scale and expertise.

• Over $800 million in share repurchases since Q3 2024, reflecting confidence in future growth and resiliency.

• Leadership team strengthened with new appointments to drive future growth.

Financial highlights

• Q4 2024 revenue rose 16% year-over-year to $10.4B; net revenue up 18% to $6.1B.

• Q4 GAAP EPS: $1.58 (up 1.9% YoY); Core EPS: $2.32 (up 68.1% YoY); FY 2024 Core EPS: $5.10 (up 32.8% YoY).

• Core EBITDA surged 47% to $1.09B in Q4; FY core EBITDA: $2.70B (up 22.4% YoY).

• Free cash flow for 2024 exceeded $1.5B, with nearly 100% conversion, surpassing the 75–85% target range.

• Advisory segment SOP rose 34% year-over-year, driven by record leasing and capital markets rebound.

Outlook and guidance

• 2025 Core EPS projected at $5.80–6.10, representing mid-teens growth at the midpoint, including FX headwinds.

• Free cash flow expected to approximate 2024’s $1.5B, with conversion in the 75–85% range.

• Expect mid-teens SOP growth in resilient businesses, continued leasing momentum, and capital markets recovery.

• Net leverage expected at or below 1.0x by end of 2025, absent material M&A.

• Restructuring costs to largely disappear in 2025; tax rate to normalize at 22%.