Core Insights - Cushman & Wakefield has been ranked sixth in the Top Ten 2026 Military Friendly® Employers for companies with revenue over $5 billion, highlighting its commitment to recruiting, retaining, and developing veteran talent in the U.S. [1] - The firm has achieved recognition as a Top Ten Military Friendly® Employer for four consecutive years and has been acknowledged as a Military Friendly® Employer for eight consecutive years, indicating a sustained effort in this area [1] Company Recognition - The ranking reflects the meaningful efforts of Cushman & Wakefield in supporting veterans, showcasing the company's dedication to diversity and inclusion within its workforce [1] - The recognition as a Military Friendly® Employer emphasizes the discipline and leadership qualities that veterans bring to the organization, which are valued by the company [1]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] Group 1: Investment Strategy - The research service aims to identify deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - It also seeks wide moat stocks, which are high-quality businesses with strong competitive advantages, often referred to as "Magic Formula" stocks [1] Group 2: Market Focus - The primary market of interest is the Asian equity market, with a specific emphasis on Hong Kong-listed stocks [1] - The service provides monthly updates and watch lists to assist investors in tracking potential investment opportunities [1]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The research service aims to identify deep value stocks, such as net cash stocks and low price-to-book (P/B) ratio stocks, which are available at a discount [1] - It also seeks wide moat stocks, which are high-quality businesses with sustainable competitive advantages, often referred to as "Magic Formula" stocks [1] Group 2: Market Focus - The primary focus is on the Asian equity market, with a particular emphasis on opportunities within the Hong Kong market [1] - The service provides monthly updates and watch lists to keep investors informed about potential investment opportunities [1]

Core Insights - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks with recent price momentum can be safer, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 2: Cushman & Wakefield (CWK) Analysis - CWK has shown a price increase of 3.1% over the past four weeks, indicating growing investor interest [3] - The stock gained 20.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - CWK has a beta of 1.51, suggesting it moves 51% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - CWK has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - CWK is trading at a Price-to-Sales ratio of 0.37, indicating it is relatively cheap at 37 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - CWK has significant potential for growth, and there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [7] - Zacks offers over 45 Premium Screens to help investors find winning stock picks based on their investing style [8]

Financial Performance - Revenue for Q3 2025 was $2.6 billion, an increase of 11% compared to Q3 2024[144] - Net income for Q3 2025 was $51.4 million, up $17.7 million from Q3 2024, with diluted earnings per share rising to $0.22 from $0.14[144] - Adjusted EBITDA for Q3 2025 increased by 12% to $159.6 million compared to Q3 2024[144] - Year-to-date revenue for the nine months ended September 30, 2025, was $7.4 billion, an 8% increase from the same period in 2024[144] - Total revenue for Q3 2025 reached $2,605.9 million, an 11% increase compared to $2,344.2 million in Q3 2024[168] - Adjusted EBITDA for Q3 2025 was $159.6 million, a 12% increase from $142.5 million in Q3 2024, with an Adjusted EBITDA margin of 9.0%[168][169] - Net income for Q3 2025 was $51.4 million, representing a 53% increase from $33.7 million in Q3 2024, with a net income margin of 2.0%[168] - Services revenue increased by 6% year-over-year to $920.2 million in Q3 2025, while leasing revenue grew by 9% to $538.3 million[168] - Operating income for Q3 2025 was $107.5 million, a 43% increase compared to $75.2 million in Q3 2024[168] - Net income for the nine months ended September 30, 2025, was $110.6 million, an increase of $92.2 million from the prior year, resulting in a net income margin of 1.5% compared to 0.3%[192] - Adjusted EBITDA for the nine months ended September 30, 2025, was $417.5 million, reflecting a 16% increase or $58.0 million compared to the same period in 2024, with an adjusted EBITDA margin of 8.3%[193] Revenue Breakdown - Capital markets revenue for Q3 2025 rose by 21%, driven by strong performance across all asset classes in the Americas[144] - Services revenue for Q3 2025 increased by 6%, or 7% excluding the impact of a non-core business sale[144] - Capital markets revenue surged by 21% to $204.7 million in Q3 2025, reflecting strong performance in this segment[168] - Revenue for the nine months ended September 30, 2025, was $7.4 billion, an increase of $557.4 million or 8% compared to the same period in 2024, driven by a 20% increase in capital markets revenue[184] - Total revenue for the Americas segment in the nine months ended September 30, 2025, was $5.4 billion, an increase of $331.0 million or 7% from the prior year, driven by an 11% growth in Leasing revenue[200] - EMEA revenue for the three months ended September 30, 2025, was $260.1 million, an increase of $40.2 million or 18% from the same quarter in 2024, with a 12% increase on a local currency basis[205] - APAC revenue for the nine months ended September 30, 2025, was $1.2 billion, a 16% increase from the previous year, with a 17% increase on a local currency basis[216] Costs and Expenses - Total costs and expenses for Q3 2025 were $2,498.4 million, a 10% increase from $2,269.0 million in Q3 2024[168] - Costs of services for the three months ended September 30, 2025, were $2.2 billion, reflecting a $240.2 million or 13% increase compared to Q3 2024, primarily due to higher employment costs[176] - Costs of services for the nine months ended September 30, 2025, were $6.1 billion, reflecting an increase of $449.8 million or 8% compared to the same period in 2024[185] - Operating, administrative, and other expenses for the nine months ended September 30, 2025, were $944.7 million, an increase of $40.3 million or 4% compared to the same period in 2024[186] - Fee-based operating expenses in the Americas for the nine months ended September 30, 2025, were $3.3 billion, an increase of 6% primarily due to higher employment costs of approximately $220.0 million[201] - Fee-based operating expenses in EMEA increased by 3% to $578.3 million, mainly due to higher employment costs and third-party consumables[209] - Fee-based operating expenses in APAC increased by 5% to $782.1 million, driven by higher employment costs and third-party consumables[217] Liquidity and Financing - Liquidity as of September 30, 2025, was $1.7 billion, consisting of $1.1 billion in undrawn revolving credit and $0.6 billion in cash[144] - The company prepaid $300.0 million in principal under its Term Loans year-to-date as of October 29, 2025[143] - The company generated $83.1 million in cash from operating activities during the nine months ended September 30, 2025, a decrease of $9.7 million from the previous year[228] - The company used $233.1 million in cash for financing activities during the nine months ended September 30, 2025, an increase of $35.6 million from the same period in 2024, primarily due to a $50.0 million increase in principal repayments under the 2018 Credit Agreement[230] Market Conditions and Risks - The company faces significant macroeconomic uncertainty that could negatively impact demand for its services[145] - Approximately 30% of the company's revenue for the three and nine months ended September 30, 2025, was transacted in currencies other than USD, compared to 29% for the same periods in 2024[236] - If variable interest rates increased by 100 basis points as of September 30, 2025, the company would incur an incremental interest expense of approximately $8.0 million[235] - A hypothetical 10% increase in the value of the USD against the Singapore dollar, euro, and Australian dollar would have resulted in a revenue decrease of approximately $9.3 million, $12.7 million, and $11.4 million, respectively, for the three months ended September 30, 2025[236] - The company manages foreign exchange risk by establishing local operations, invoicing in local currencies, and using derivative financial instruments such as foreign currency forward contracts[237] Debt and Interest Rates - The 2030 Tranche-1 of the company's Term Loans was repriced in October 2025, reducing the applicable interest rate by 25 basis points to 1-month Term SOFR plus 2.50%[233] - The company's 2028 Notes and 2031 Notes bear fixed interest rates of 6.75% and 8.88%, respectively[233] - The company employs interest rate swap agreements to hedge against interest rate volatility and limit the impact of interest rate changes on earnings and cash flows[234]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $1.8 billion, an increase of 8%, with organic revenue growth of 9% [6] - Adjusted EBITDA rose 11% to $160 million, and adjusted EBITDA margin expanded by 23 basis points to 9% [6] - Year-to-date adjusted EBITDA margin improved by approximately 70 basis points compared to the previous year [3][12] - Adjusted EPS grew by 26% year-over-year to $0.29 from $0.23 [6] Business Line Data and Key Metrics Changes - The leasing business grew by 9% in the quarter, with the Americas leasing growing 11% [7][8] - Capital markets delivered 20% year-over-year growth, with the Americas revenue growing 16% [9][10] - Services revenue in the Americas grew by 6%, while EMEA services grew by 17% [10][11] Market Data and Key Metrics Changes - In EMEA, leasing grew 9%, with strong performances in the UK and Spain [9] - APAC leasing revenue declined by 6%, but strong performance in Singapore and Australia helped mitigate losses [9] - Industrial properties built after 2020 recorded 196 million square feet of net absorption, accounting for nearly all industrial net absorption [9] Company Strategy and Development Direction - The company is focused on organic growth and has raised its 2025 adjusted EPS guidance to 30% to 35% growth [3][14] - Investments are being made in data and AI infrastructure, project management, and retaining top leasing talent [4][3] - The company is building a global capital markets platform and expanding its services offerings [19][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth into 2026, particularly in capital markets [19] - The company anticipates full-year leasing revenue growth towards the high end of the 6% to 8% guidance range [13] - Management noted strong momentum in the business, supported by strategic growth investments and improved operational performance [14] Other Important Information - The company prepaid an additional $100 million in debt, bringing total debt repayment to $500 million over two years [3][13] - The company ended the quarter with net leverage of 3.4x, the lowest since Q4 2022 [12] Q&A Session Summary Question: Insights on Americas capital markets growth and advisor hires - Management indicated they are in the ramp-up stages and anticipate continued growth into 2026, emphasizing the building of a global capital markets platform [18][19] Question: EMEA margins and year-over-year performance - EMEA margins increased by 170 basis points, with management noting that previous quarter benefits from FX and incentive compensation timing did not recur [20][21] Question: Factors supporting stronger services growth in the Americas - Management highlighted strong performance in project management and design and build services, particularly in the UK, Ireland, Netherlands, and Spain [23][24] Question: Capital allocation strategy regarding debt repayment and organic growth - Management stated they are balancing deleveraging with organic growth investments, emphasizing the importance of free cash flow conversion [34][35] Question: Expectations for services business margins and profitability - Management expressed confidence in continued growth and profitability, focusing on moving up the value chain and improving client retention [31][33] Question: Recruiting environment and talent acquisition - Management noted that recruiting has not become more expensive and they are receiving interest from top talent in the capital markets sector [38][40] Question: Cross-selling initiatives within the company - Management is implementing incentives and cultural changes to promote cross-selling across business lines, referred to as "Plus One" [43][44] Question: Positioning to capture benefits from the flight to quality in real estate - Management highlighted a significant increase in larger deals and strong demand for Class A buildings, which aligns with their strengths [48]

Core Insights - Cushman & Wakefield (CWK) reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.23 per share a year ago, representing an earnings surprise of +3.57% [1] - The company achieved revenues of $2.61 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.44%, and an increase from $2.34 billion year-over-year [2] - The stock has gained approximately 26.4% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $2.76 billion, and for the current fiscal year, it is $1.21 on revenues of $10.03 billion [7] - The estimate revisions trend for Cushman & Wakefield was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Real Estate - Operations industry, to which Cushman & Wakefield belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a positive outlook for the sector [8]

Q3 2025 Financial Performance - Fee revenue for Q3 2025 reached $1.781 billion, an 8% increase compared to Q3 2024[20, 22] - Adjusted EBITDA for Q3 2025 was $160 million, up 11% from Q3 2024[20, 22] - Adjusted diluted EPS increased by 26% to $0.29, marking five consecutive quarters of year-over-year growth[20, 22] - The Adjusted EBITDA margin was 9%, a 23 bps increase compared to Q3 2024[20, 22] Segment and Service Line Performance - Leasing fee revenue increased by 9%, driven by growth in the Americas and EMEA regions[20] - Capital markets fee revenue increased by 20%, with double-digit growth across all regions[20] - Services fee revenue increased by 6%, with organic Services fee revenue up 7%[20] - Americas fee revenue reached $1.277 billion in Q3 2025[25] - EMEA fee revenue reached $225 million in Q3 2025[27] - APAC fee revenue reached $280 million in Q3 2025[27] Balance Sheet Management - The company prepaid $150 million of debt in August and an additional $100 million in October, bringing year-to-date debt prepayments to $300 million[20] - The company repriced $948 million of debt in July and $840 million in October, reducing the applicable interest rate by 50 bps and 25 bps, respectively[20] - Liquidity at the end of Q3 2025 was $1.7 billion, consisting of $0.6 billion of cash and $1.1 billion revolving credit facility availability[20]

Revenue Performance - Revenue for Q3 2025 was $2.6 billion, an increase of 11% compared to Q3 2024, driven by strong performance in the Americas[6] - Total revenue for the nine months ended September 30, 2025, was $7.4 billion, an 8% increase compared to the same period in 2024[6] - Revenue for the nine months ended September 30, 2025, was $7.4 billion, an increase of $557.4 million or 8%, driven by a 20% growth in Capital markets revenue[17] - Total revenue for the Americas segment increased by 10% to $1,923.1 million in Q3 2025, compared to $1,750.5 million in Q3 2024[45] - EMEA segment revenue rose by 18% to $260.1 million in Q3 2025, up from $219.9 million in Q3 2024[46] - APAC segment revenue grew by 13% to $422.7 million in Q3 2025, compared to $373.8 million in Q3 2024[47] Income and Earnings - Net income for Q3 2025 was $51.4 million, up $17.7 million from Q3 2024, with diluted earnings per share rising to $0.22 from $0.14[6] - Net income for the nine months ended September 30, 2025, was $110.6 million, an increase of $92.2 million compared to the same period in 2024, resulting in a net income margin of 1.5%[25] - Basic earnings per share increased to $0.22 in Q3 2025 from $0.15 in Q3 2024, reflecting a growth of 46.7%[39] - Net income for the Americas segment increased by 23% to $50.8 million in Q3 2025, compared to $41.2 million in Q3 2024[45] - Net income for the three months ended September 30, 2025, was $51.4 million, compared to $33.7 million in 2024, representing a 52.5% increase[64] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $159.6 million, reflecting a 12% increase from Q3 2024, with an adjusted EBITDA margin of 9.0%[6] - Adjusted EBITDA rose by $58.0 million or 16% to $417.5 million for the nine months ended September 30, 2025, with an adjusted EBITDA margin of 8.3%[26] - Adjusted EBITDA for the EMEA segment surged by 48% to $18.3 million in Q3 2025, up from $12.4 million in Q3 2024[46] - Adjusted earnings per share for the three months ended September 30, 2025, was $0.29, compared to $0.23 in 2024, marking a 26.1% increase[68] Costs and Expenses - Operating, administrative and other expenses increased by $40.3 million or 4% to $944.7 million for the nine months ended September 30, 2025, primarily due to a $48.0 million rise in employment costs[19] - Total costs and expenses for the three months ended September 30, 2025, were $2,498.4 million, compared to $2,269.0 million in 2024, indicating a 10.1% increase[66] - Costs of services increased by $449.8 million or 8% to $6.1 billion for the nine months ended September 30, 2025, with total costs of services as a percentage of total revenue remaining at 82%[18] Debt and Liquidity - Liquidity as of September 30, 2025, was $1.7 billion, consisting of $1.1 billion available on the undrawn revolving credit facility and $0.6 billion in cash[6] - Net debt as of September 30, 2025, was $2.2 billion, reflecting outstanding term loans of $1.8 billion and senior secured notes totaling $1.0 billion[28] - The company prepaid an additional $100 million in term loan debt, bringing total debt prepayments to $500 million over two years[2] - Interest expense decreased by $12.9 million or 7% to $161.5 million for the nine months ended September 30, 2025, due to lower outstanding principal balances and interest rates[21] Segment Performance - Leasing revenue for Q3 2025 increased by 9%, driven by strong demand for office and industrial leasing in the Americas[8] - Total service line fee revenue for the Americas segment increased by 8% to $1,276.5 million in Q3 2025[45] - Adjusted EBITDA margin for the Americas segment was 9.8% in Q3 2025, compared to 9.4% in Q3 2024[45] - APAC segment reported a net loss of $3.7 million in Q3 2025, compared to a net income of $6.0 million in Q3 2024[47] Other Financial Metrics - Cash flows from operating activities for the nine months ended September 30, 2025, were $83.1 million, compared to $92.8 million in 2024[43] - Free cash flow for the nine months ended September 30, 2025, was $58.7 million, slightly down from $61.1 million in 2024[69] - The company reported a restructuring charge of $6.5 million for the nine months ended September 30, 2025, down from $36.5 million in the same period of 2024[39] - The company incurred $56.0 million in interest expense for the three months ended September 30, 2025, compared to $54.9 million in 2024, a 2% increase[64]

Core Insights - Cushman & Wakefield has launched a new Quantitative Insights Group aimed at advising institutional investors and occupier clients using advanced mathematics, statistics, and AI tools [1][2]. Group Overview - The Quantitative Insights Group enhances the firm's existing service platform throughout the asset lifecycle and strengthens its advisory capabilities, particularly in complex market conditions [2]. - Rebecca Rockey has been appointed as the Head of the Quantitative Insights Group and Principal Economist, leading a team of experts [3]. Leadership and Strategy - Rebecca Rockey expressed her commitment to guiding clients through complex decisions by integrating data and AI tools, creating a forward-looking advisory engine [4]. - Toby Dodd, Chief Revenue Officer, emphasized the strategic investment in capabilities to connect data platforms and insights for client value [4]. - Brad Kreiger, Americas Co-Chief Executive, highlighted the combination of advanced analytics with market expertise to equip clients for data-driven decisions and portfolio optimization [4]. Industry Context - The launch of the Quantitative Insights Group is part of Cushman & Wakefield's ongoing evolution in research, analysis, and advisory capabilities, aiming to enhance innovation and analytics in client portfolio performance [4]. - Rockey is recognized as a thought leader in macroeconomics and real estate, contributing to innovative studies like "Reimagining Cities," which addresses post-pandemic urban challenges [4].