Colliers International Group (CIGI) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue fell 3% to $4,335.1M; Adjusted EBITDA fell 6% to $595.0M. Recurring services generated 59% of revenue and 73% of Adjusted EBITDA.

• Market-driven Capital Markets weakness and lower Leasing activity offset growth in Outsourcing & Advisory and Investment Management.

Financial highlights

• Q4 revenue was $1,235.2M, up 1% USD and flat in local currency; Adjusted EBITDA was $198.4M, down 2% USD and 3% LC.

• Q4 Adjusted EBITDA margin was 16.1% versus 16.6%; Adjusted EPS was $2.00 versus $2.31. GAAP operating earnings were $132.6M versus $103.8M; diluted EPS was $1.42 versus $0.51.

• FY Adjusted EBITDA margin was 13.7% versus 14.1%; Adjusted EPS was $5.35 versus $6.99. GAAP operating earnings were $300.9M versus $332.5M; diluted EPS was $1.41 versus $1.05.

• Q4 net earnings were $81.2M versus $62.0M; FY net earnings were $144.7M versus $194.5M.

• FY free cash flow was $167.2M versus $293.7M; operating cash flow was $165.7M versus $67.0M.

Outlook and guidance

• 2024 guidance: revenue growth of 5%–10%, Adjusted EBITDA growth of 5%–15%, and Adjusted EPS growth of 10%–20%.

• Capital Markets and Leasing expected to remain challenging in H1, followed by year-over-year growth in H2 as sentiment, rates, and credit conditions stabilize.

• Outsourcing & Advisory growth expected to remain resilient; Investment Management revenue expected to grow with improving fundraising. Outlook remains sensitive to rate volatility and CRE credit availability.