Q4 2024 EARNINGS PRESENTATION FEBRUARY 20, 2025 CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS All statements in this presentation other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and factors outside Cushman & Wakefield's control. Such factors include, but are not limited to, disruptions in general macroeconomic conditions and global and regional ...

Financial Data and Key Metrics Changes - In 2024, the company achieved fee revenue of $6.6 billion, up 1%, and adjusted EBITDA expanded 3% to $582 million, with an EBITDA margin improvement of ten basis points to 8.8% [18][19] - Adjusted EPS was $0.91, an increase of 8% from the previous year, setting a base for future growth [18] - Free cash flow for the year was $167 million, $66 million higher than 2023, with a conversion rate of 79% [19][20] Business Line Data and Key Metrics Changes - Q4 revenue reached $1.9 billion, a 4% increase, driven by a 14% growth in brokerage revenues and a 36% increase in capital markets revenue globally [21] - Leasing business grew 7% in Q4, with Americas leasing up 12%, marking the second consecutive quarter of double-digit growth [21][24] - Capital markets in the Americas rose 33%, while EMEA increased 20%, and APAC improved by 92% [26] Market Data and Key Metrics Changes - Nearly half of the tracked markets registered positive absorption in Q4, indicating a healthy leasing environment [12][58] - The industrial sector is normalizing but remains strong due to ongoing demand from e-commerce and supply chain optimization [13][58] - Specific markets like Brooklyn, Tampa, and Baltimore showed strong net absorption, while San Francisco and Dallas still need improvement [60][61] Company Strategy and Development Direction - The company aims to accelerate investments across its platform in 2025, focusing on delivering progressively improving earnings growth [8][15] - A multifaceted growth strategy includes talent retention, organic expansion, and strategic tuck-in acquisitions [33][36][37] - The company is committed to improving its balance sheet while pursuing top-tier talent and executing its growth plan, including M&A [8][19] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment is favorable, with job growth and healthy corporate profits, reducing recession odds [9][10] - Leasing revenue growth is expected to remain solid, with a strong pipeline of expiring leases creating steady deal flow [11][12] - The company anticipates a multiyear upcycle in commercial real estate, with a focus on sustainable growth and improved earnings per share in 2025 [14][32] Other Important Information - The company closed the year with $793 million in cash and cash equivalents and $1.9 billion in total liquidity, with an improved leverage ratio of 3.8 times [20] - The services platform is a key investment focus for 2025, with expectations for mid-single-digit top-line growth by midyear [27][29] Q&A Session Summary Question: Margin outlook for 2025 - Management acknowledged pressure on margins due to increased investments but emphasized long-term benefits [41][42] Question: Capital markets activity and pipeline - A strong pipeline was noted, with institutional investors showing increased interest, including a significant $950 million financing deal [46][48] Question: Services growth trajectory - Gradual improvement in services growth is expected, with a focus on recurring contracts and project management [49][50] Question: Leasing outlook by property type and geography - Strong demand in office leasing was highlighted, with positive absorption trends and a growing return to office [55][57] Question: Investments and margin headwinds - Investments are aimed at organic growth and market share expansion, which may create margin pressure [62][64] Question: Industrial sector and trade policy uncertainty - The policy situation remains fluid, but property has historically navigated changes effectively [71][72] Question: Sustainability of capital markets trends - Strong markets in APAC were attributed to prior investments, indicating potential for continued growth [74] Question: Transaction activity catalysts - A healthier path for capital markets is anticipated, with calibrated cap rates and neutral leverage conditions [80][81] Question: Spillover effect in office leasing - Demand for high-quality office space is trickling down to lower-tier buildings due to limited new supply [84]

Core Viewpoint - Cushman & Wakefield reported quarterly earnings of $0.48 per share, meeting expectations, and showing an increase from $0.45 per share a year ago [1]. Financial Performance - The company posted revenues of $2.63 billion for the quarter ended December 2024, which was 0.64% below the Zacks Consensus Estimate, but an increase from $2.55 billion year-over-year [2]. - Over the last four quarters, the company has not surpassed consensus revenue estimates [2]. - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $2.26 billion, and for the current fiscal year, it is $1.20 on revenues of $10.05 billion [7]. Stock Performance - Cushman & Wakefield shares have declined approximately 0.5% since the beginning of the year, while the S&P 500 has gained 4.5% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Industry Outlook - The Real Estate - Operations industry, to which Cushman & Wakefield belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5].

Revenue Performance - Revenue for Q4 2024 was $2.6 billion, a 3% increase from Q4 2023, driven by a 6% increase in Leasing revenue and a 35% increase in Capital markets revenue[5] - Full year revenue for 2024 was $9.4 billion, a decrease of $47.2 million from 2023, with Leasing revenue increasing by 7% and Capital markets revenue increasing by 4%[5] - Revenue for the year ended December 31, 2024, was $9.4 billion, relatively flat compared to the previous year, with a decline of $47.2 million driven by a 2% decrease in the Americas and EMEA, partially offset by 7% growth in APAC[15] - Total revenue for the year 2024 was $9,446.5 million, slightly down by 0.5% from $9,493.7 million in 2023[34] - Total revenue for the Americas increased by 2% to $1,912.9 million in Q4 2024 compared to $1,870.9 million in Q4 2023[40] - EMEA total revenue increased by 1% to $289.2 million in Q4 2024, up from $286.3 million in Q4 2023[41] - APAC total revenue grew by 8% to $427.4 million in Q4 2024, compared to $395.2 million in Q4 2023[42] Net Income and Earnings - Net income for Q4 2024 was $112.9 million, up $43.1 million from Q4 2023, with diluted earnings per share increasing to $0.48 from $0.30[5] - Net income for the full year 2024 was $131.3 million, a significant recovery from a net loss of $35.4 million in 2023, with diluted earnings per share rising to $0.56[5] - Net income for the year ended December 31, 2024, was $131.3 million, an improvement from a net loss of $35.4 million in 2023, resulting in a net income margin of 1.4% compared to a net loss margin of 0.4%[24] - Basic earnings per share for Q4 2024 was $0.49, compared to $0.31 in Q4 2023, reflecting a 58.1% increase[34] - Adjusted net income for Q4 2024 was $113.5 million, compared to $102.4 million in Q4 2023, which is an 10.8% increase[65] Cash Flow and Liquidity - Free cash flow for the year ended December 31, 2024, was $167.0 million, an increase of $65.8 million compared to 2023[5] - Liquidity as of December 31, 2024, was $1.9 billion, consisting of $1.1 billion in undrawn revolving credit and $0.8 billion in cash[5] - Liquidity at the end of the fourth quarter was $1.9 billion, consisting of $1.1 billion availability on the undrawn revolving credit facility and $0.8 billion in cash and cash equivalents[26] - The company reported a net cash provided by operating activities of $208.0 million for the year 2024, up from $152.2 million in 2023[38] Operating Performance - Operating income for Q4 2024 was $174.5 million, a 59% increase compared to Q4 2023[6] - Adjusted EBITDA for the full year 2024 was $581.9 million, a 2% increase from 2023, with an adjusted EBITDA margin of 8.8%[5] - Adjusted EBITDA for the year ended December 31, 2024, was $581.9 million, an increase of $11.8 million or 2% compared to the previous year, with an adjusted EBITDA margin of 8.8% remaining relatively flat[25] - The company incurred $28.9 million in cost savings initiatives for the year ended December 31, 2024, down from $55.6 million in 2023, reflecting a 48.0% reduction[63] Costs and Expenses - Costs of services for the year ended December 31, 2024, were $7.7 billion, a decrease of $121.4 million or 2% compared to the previous year, with total costs of services as a percentage of total revenue at 82%[16] - Operating, administrative, and other expenses decreased to $1.2 billion, down $38.7 million or 3% compared to the year ended December 31, 2023, primarily due to cost savings initiatives[17] - Interest expense for the year ended December 31, 2024, was $229.9 million, a decrease of $51.2 million or 18% compared to the previous year, attributed to lower interest rates and debt management[19] - Total costs and expenses for Q4 2024 were $2,455.0 million, slightly higher than $2,442.4 million in Q4 2023, indicating a 0.5% increase[64] Regional Performance - Net income for the Americas reached $84.8 million in Q4 2024, a significant increase from $28.0 million in Q4 2023[40] - Adjusted EBITDA for the Americas rose by 9% to $151.7 million in Q4 2024, compared to $139.1 million in Q4 2023[40] - EMEA net income improved by 32% to $25.1 million in Q4 2024, compared to $19.0 million in Q4 2023[41] - APAC net income decreased by 87% to $3.0 million in Q4 2024, down from $22.8 million in Q4 2023[42] Tax and Investments - Provision for income taxes for the year ended December 31, 2024, was $44.5 million on earnings before income taxes of $175.8 million, compared to $5.4 million on a loss before income taxes of $30.0 million in 2023[23] - The company reported a provision for income taxes of $19.2 million in Q4 2024, significantly higher than $0.3 million in Q4 2023[63] - Earnings from equity method investments decreased to $37.4 million for the year ended December 31, 2024, down $20.7 million compared to 2023, primarily due to lower transaction volumes in the Greystone JV[21] - The unrealized loss on investments for the year ended December 31, 2024, was $0.8 million, a decrease from $27.8 million in 2023[63] Future Outlook - The company plans to focus on enhancing its information technology strategies and expanding its market presence in the coming years[32]

Core Insights - Cushman & Wakefield (CWK) has consistently beaten earnings estimates, with an average surprise of 13.06% over the last two quarters [1][2] - The company reported earnings of $0.23 per share for the most recent quarter, exceeding the expected $0.20 per share, resulting in a 15% surprise [2] - Recent estimates for Cushman & Wakefield have been revised upward, with a positive Earnings ESP of +10.42%, indicating bullish sentiment among analysts [3][6] Earnings Performance - For the previous quarter, Cushman & Wakefield's earnings were $0.20 per share against an expectation of $0.18 per share, leading to an 11.11% surprise [2] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing a nearly 70% success rate for stocks with this combination [4][6] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to earnings releases [5] - A positive Earnings ESP indicates that analysts are optimistic about the company's earnings prospects, which is currently the case for Cushman & Wakefield [6] Upcoming Earnings - The next earnings report for Cushman & Wakefield is expected to be released on February 20, 2025 [6]

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Financial Data and Key Metrics Changes - Fee revenue for Q3 2024 increased by 3% year-over-year, with adjusted EBITDA of $143 million declining by 5% primarily due to a recent service divestiture and higher compensation costs [11][14] - Adjusted EPS rose to $0.23, an increase of $0.02 from the previous year, benefiting from interest and tax savings [11] - Year-to-date adjusted EBITDA of $360 million is up 1% compared to last year [11] Business Line Data and Key Metrics Changes - Leasing revenue grew by 13% in Q3, marking the fourth consecutive quarter of growth, with Americas Leasing up 16% and APAC Leasing up 13% [11][12] - Capital Markets revenue in the Americas increased by 2%, marking the first growth in nine quarters, while EMEA Capital Markets revenue declined by 5% [12] - Services revenue grew by 1% excluding the impact of divestiture, with APAC Services revenue increasing by 6% [13] Market Data and Key Metrics Changes - The Fed rate cut in September has revitalized Capital Markets, contributing to increased optimism among buyers and sellers [8] - EMEA Capital Markets revenue has shown a year-to-date growth of 3%, indicating gradual improvement in fundamentals [12] - APAC Capital Markets revenue declined by 44% due to deal timing, but strong pipelines are expected to support a rebound in Q4 [12] Company Strategy and Development Direction - The company is focusing on deleveraging and strategic investments in leasing, aiming to capitalize on growth opportunities [7][9] - Future capital allocation will prioritize funding brokerage business, re-accelerating Services revenue, and opportunistic deleveraging [21] - The company is committed to improving operational efficiencies and enhancing global platform offerings through targeted investments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in Capital Markets, anticipating further growth driven by Fed rate cuts and improved financial conditions [39][54] - The company expects to finish the year within the 30% to 40% free cash flow to EBITDA conversion target, translating to approximately 80% free cash flow to adjusted net income conversion [16] - Management highlighted the importance of maintaining margins while investing in growth opportunities as the brokerage business recovers [30] Other Important Information - The company fully extinguished its $200 million in 2025 debt maturities ahead of schedule, solidifying its balance sheet [8][17] - Free cash flow for Q3 was $187 million, an increase from $174 million in the same quarter last year, with year-to-date free cash flow improving by $146 million [14][17] Q&A Session All Questions and Answers Question: Clarification on 20% growth for Capital Markets in Q4 - The 20% growth for Capital Markets in Q4 is year-over-year growth [22] Question: Confidence in returning to mid-single digit organic growth in Services - Management remains confident in re-accelerating growth, particularly in facilities management and global occupied services [23][24] Question: Insights on Capital Markets growth drivers - The growth in Capital Markets is supported by a strong pipeline and improving market conditions, with expectations for a gradual recovery [26][28] Question: Commentary on margins and their impact - Management is focused on protecting margins while also investing in the business to prepare for growth [29][30] Question: Update on project management delays - Delays in project management are not thematic but rather a function of a subdued market, with expectations for improvement [51]

Cushman & Wakefield (CWK) reported $2.34 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.6%. EPS of $0.23 for the same period compares to $0.21 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.37 billion, representing a surprise of -1.22%. The company delivered an EPS surprise of +15.00%, with the consensus EPS estimate being $0.20.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

Cushman & Wakefield (CWK) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of 11.11%.Over the last four quarters, the company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________ Commission File Number: 001-38611 | --- | --- | --- | |------------------------------------------- ...