Savills (SVS) H2 2025 & Acquisition earnings summary

Executive summary

• Delivered results exceeding expectations, with profit surpassing pre-COVID 2019 levels and FY25 revenue up 6.1% and underlying profit before tax up 11.4% year-over-year, driven by robust growth in both transactional and less transactional business lines.

• Strong finish to the year driven by less transactional business lines, restructuring benefits, and operational leverage.

• Acquisition of Eastdil Secured for GBP 685 million (enterprise value £827m), creating a global leader in real estate investment banking and significantly enhancing U.S. and North American presence.

• Improved profitability supported an increase in dividend per share by 11.9%.

• Strategic focus on high-performance culture, targeted capital allocation, and expanding both transactional and less transactional service lines.

Financial highlights

• Achieved 6% reported and nearly 8% constant currency revenue growth year-over-year, with FY25 revenue at £2,550.9m and underlying EBITDA up 10.6% to £214.9m.

• Underlying profit before tax increased 11.4% to £145.3m; underlying basic EPS up 16.6% to 77.2p.

• Reported profit before tax grew 14.4% to £101.0m; reported basic EPS up 32% to 52.0p.

• EPS growth and strong cash generation supported a proposed 12% dividend increase to 33.8p per share.

• Restructuring costs of just over GBP 30 million incurred, expected to yield further benefits in the coming year.

Outlook and guidance

• Positive momentum expected to continue in 2026, with growth forecast across all regions and strong pipelines at the start of the year except China.

• Less transactional businesses expected to deliver growth in line with strategy; focus remains on cost management and operational leverage.

• Cautious on forecasting due to geopolitical risks, especially the Middle East conflict; too early to assess full impact.

• Medium-term targets set for 3-5 years, aiming for double-digit annualized total shareholder returns and margin improvement.