Colliers International Group (CIGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $1.18B–$1.2B, up 12% year-over-year, with strong growth across all segments, especially engineering (up 21%–22% via acquisitions) and capital markets (revenues up 17%).

• Adjusted EBITDA rose 6%–7% to $154.6M–$155M; adjusted EPS increased 11% to $1.32.

• Operating segments were realigned into Real Estate Services, Engineering, and Investment Management to reflect growth potential and business strategy.

• Several acquisitions were completed, including Englobe, Pritchard Francis, TTM, and GWAL, expanding the platform in Canada and Australia.

• Over 70% of earnings now come from recurring revenue streams, enhancing predictability and shareholder value.

Financial highlights

• Q3 GAAP operating earnings were $109.7M, up 38%–55% year-over-year; diluted EPS was $0.73.

• Adjusted EBITDA margin for Q3 was 13.1%, down from 13.7% in Q3 2023, due to higher insurance reserves and margin-dilutive performance fees.

• Free cash flow for Q3 was $106.5M, up from $73.7M in Q3 2023.

• Assets under management increased by $2.4B to $98.8B, driven by fundraising, mark-to-market gains, and FX gains.

• $1.1B in new capital commitments raised in Q3, bringing year-to-date fundraising to $2.6B.

Outlook and guidance

• 2024 revenue growth outlook revised to +8% to +13%; adjusted EBITDA growth +8% to +12%; adjusted EPS growth +6% to +12%.

• Full-year fundraising expected at $3.5B, up 15% over 2023 but below initial 2024 expectations.

• Leverage ratio expected to decline to just over 2x by year-end due to strong Q4 cash flows.

• Management anticipates additional upside in 2025 from improving capital markets and expanded investment strategies.

• Q4 expected to be seasonally strong, with potential for higher margins and capital markets activity.