Colliers International Group (CIGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $1.18B–$1.2B, up 12% year-over-year, with solid growth across all segments and realigned operating segments to reflect growth potential.

• Adjusted EBITDA increased 7% to $154.6M, and adjusted EPS rose 11% to $1.32; over 70% of earnings now come from recurring revenue streams, enhancing predictability.

• Englobe acquisition completed, expanding the Canadian platform; further acquisitions in Canada and Australia post-quarter.

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

• Year-to-date revenues grew 7% to $3.32B; adjusted EBITDA up 6% to $419.0M; adjusted EPS at $3.46.

Financial highlights

• Q3 2024 revenues reached $1.18B–$1.2B, up 11%–12% year-over-year; internal growth was 5%.

• Adjusted EBITDA was $154.6M–$155M, up 6%–7% over the prior year; margin declined slightly to 13.1%.

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

• 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.

Outlook and guidance

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

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

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

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

• Guidance reflects updated fundraising expectations in Investment Management and year-to-date results.