Cushman & Wakefield (CWK) Q2 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of global leasing revenue growth, up 2% year-over-year in Q2 2024, driven by the Americas and APAC.

• Adjusted EBITDA for Q2 2024 was $138.9 million, down 4–5% year-over-year, with a margin of 8.8%.

• Net income for Q2 2024 was $13.5 million, up from $5.1 million in Q2 2023; diluted EPS was $0.06.

• Announced sale of a non-core business, with a $12.5 million loss recognized in Q2 2024; proceeds to be used for debt reduction and growth investments.

• Liquidity at quarter-end was $1.7 billion, including $0.6 billion in cash and $1.1 billion undrawn credit.

Financial highlights

• Q2 2024 revenue was $2.3 billion, down 5% year-over-year; H1 2024 revenue was $4.5 billion, down 4%.

• Adjusted EBITDA margin for Q2 2024 was 8.8%; H1 2024 margin was 7.0%, up 44 basis points year-over-year.

• Adjusted EPS (diluted) was $0.20 in Q2 2024, down from $0.22 in Q2 2023.

• Free cash flow improved by over $130 million year-to-date compared to prior year.

• Net income margin for Q2 2024 was 0.6%; H1 2024 net loss margin was 0.3%.

Outlook and guidance

• Leasing revenue expected to grow in the low to mid-single digit range for 2024.

• Capital markets revenue anticipated to improve in the second half of 2024.

• Services organic revenue projected flat for 2024, returning to mid-single digit growth in 2025.

• Inflation and higher incentive compensation to be mostly offset by cost efficiency measures.

• Management remains confident in the company’s position and sees increased market optimism.