Colliers International Group (CIGI) Q2 2024 earnings summary

Executive summary

• Achieved solid second quarter results with growth across all service lines and segments, notably in leasing and capital markets, supported by a diversified platform.

• Leasing revenues exceeded expectations, up 13%, with office leasing up 18% globally and 32% in the Americas; industrial leasing rose 11% globally.

• Recurring service lines (Outsourcing & Advisory, Investment Management) showed strong, predictable growth, now accounting for 72% of earnings post-Englobe/AntGlobe acquisition.

• Completed the acquisition of Englobe (AntGlobe), strengthening engineering and project management capabilities and increasing recurring revenue streams.

• Segment reporting will be realigned in Q3 to focus on real estate services, engineering, and investment management.

Financial highlights

• Second quarter revenues reached $1,139.4 million, up 6% year-over-year; internal growth was 5%.

• Adjusted EBITDA was $155.6 million, up 6% year-over-year, with margin increasing to 13.7%.

• Adjusted EPS increased 4% to $1.36; GAAP operating earnings up 52% to $114.7 million.

• Investment management segment raised $1 billion in new capital commitments in Q2, totaling $1.5 billion year-to-date.

• Assets under management stood at $96.4 billion as of June 30, 2024, flat due to offsetting asset dispositions and redemptions.

Outlook and guidance

• Maintaining financial outlook for 2024, with an increase to reflect the partial year impact of Englobe/AntGlobe.

• Revenue growth expected at 8–13%, adjusted EBITDA growth at 8–18%, and adjusted EPS growth at 11–21% for 2024.

• Expecting mid- to high single-digit revenue growth in recurring service lines for the remainder of the year.

• Anticipate a gradual recovery in capital markets activity in Q3 and Q4, with normalization likely in 2025.

• Outlook subject to macroeconomic, geopolitical, and credit market risks.