Financial Data and Key Metrics Changes - The company achieved fee revenue of $1,500,000,000, an increase of 4%, with organic fee revenue growing by 6% [14] - Adjusted EBITDA rose by 24% to $96,000,000, with an adjusted EBITDA margin improvement of 100 basis points year over year [14] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [14][20] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1 [15] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [15][16] - Services revenue on an organic basis increased by 4%, with The Americas organic services fee revenue growing by 6% [17][18] Market Data and Key Metrics Changes - The Americas experienced a significant increase in RFPs, up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [10] - The APAC Services business showed strong retention rates and five new sizable contracts coming online in the first half of the year [11] - EMEA is considered the weakest economy among the three segments, but there are signs of recovery, particularly in capital markets [51] Company Strategy and Development Direction - The company is focused on long-term growth, having repaid $230,000,000 in debt since the new CEO took over and successfully refinancing and repricing debt multiple times [6][20] - The management emphasizes a disciplined investment approach to stabilize the business and unlock new areas of organic growth [6][11] - The company believes it is at the beginning of a multi-year recovery in commercial real estate, positioning itself to capitalize on market opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has not materially impacted the sector, with strong demand for high-quality products continuing [31] - The company expects leasing growth in the mid-single digits for the full year, with capital markets growth anticipated to exceed the previous year's mid-single-digit growth rate [21] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [22] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [19] - The company closed the quarter with $1,700,000,000 in liquidity and has no funded debt maturities until 2028 [20] Q&A Session Summary Question: Margin improvement and outperformance drivers - Management indicated that the margin improvement was driven primarily by top-line strength, with stronger than expected leasing and services contributing to the results [28] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with most clients continuing to make decisions on their existing timelines [31] Question: Outlook for office leasing in a potential recession - Management noted that demand for office leasing remains strong, with long-term leases being signed and lease terms increasing [37] Question: Recruiting and retention efforts - Management highlighted significant recruitment efforts, having hired multiple capital markets and leasing teams in the past year [38][39] Question: Trends in industrial leasing amid trade discussions - Management expressed confidence in the industrial leasing sector, noting positive trends and ongoing demand despite tariff discussions [43] Question: Rate outlook and its impact on capital markets - Management indicated that clients are still closing deals and financings, with many able to facilitate transactions through alternative means if necessary [46]

For Immediate Release Cushman & Wakefield Reports Financial Results for the First Quarter 2025 CHICAGO (BUSINESS WIRE), April 29, 2025 — Cushman & Wakefield (NYSE: CWK) today reported financial results for the first quarter of 2025. "We drove excellent first quarter results, increasing organic revenue in each of our service lines and achieving mid-single digit organic growth in our Services business two quarters ahead of target. We realized over 100 basis points of margin improvement while continuing to red ...

Core Insights - Greystone and Cushman & Wakefield facilitated the acquisition financing and sale of Country Place Apartments, a 312-unit multifamily property in Burtonsville, Maryland, for $62.5 million [1][2]. Group 1: Transaction Details - The transaction involved a $62.5 million sale price, with Greystone providing a $40.7 million, 7-year Freddie Mac Optigo® loan for financing [2]. - The property features amenities such as an outdoor pool, fitness center, landscaped exercise paths, on-site dog park, playground, Tech Bar, and car care center [3]. Group 2: Strategic Insights - The purchase utilized a buy-right PILOT structure to maintain affordability for residents, demonstrating effective sales execution in a changing investor landscape [4]. - The collaboration between Greystone and Cushman & Wakefield offers clients comprehensive solutions for property investment needs [5]. Group 3: Company Profiles - Cushman & Wakefield is a global commercial real estate services firm with approximately 52,000 employees and reported revenue of $9.5 billion in 2023 [6]. - Greystone is recognized as a leader in multifamily and healthcare finance, ranking as a top lender with various government-backed entities [7].

Financial Performance - The company's revenue for the year ended December 31, 2024, was $9,446.5 million, a decrease of 0.5% compared to $9,493.7 million in 2023 [292]. - Operating income increased to $338.9 million in 2024 from $205.6 million in 2023, reflecting a significant improvement in operational efficiency [292]. - Net income for 2024 was $131.3 million, compared to a net loss of $35.4 million in 2023, indicating a strong recovery in profitability [292]. - The company's total assets decreased to $7,549.2 million in 2024 from $7,774.0 million in 2023, primarily due to a reduction in goodwill and intangible assets [290]. - Goodwill decreased from $2,080.9 million in 2023 to $1,998.3 million in 2024, reflecting the company's ongoing assessment of its asset values [290]. - The total liabilities decreased to $5,793.8 million in 2024 from $6,096.0 million in 2023, indicating improved financial stability [290]. - Basic earnings per share improved to $0.57 in 2024 from a loss of $0.16 in 2023, showcasing enhanced shareholder value [292]. - The company reported a total comprehensive income of $48.1 million for 2024, compared to a loss of $29.8 million in 2023, highlighting a positive shift in overall financial performance [294]. Employee and Operational Insights - The company operates with approximately 52,000 employees across nearly 400 offices in about 60 countries, enhancing operational leverage and profitability [37]. - Approximately 44% of employee costs are fully reimbursed by clients, indicating a strong client relationship model [52]. - The company relies heavily on attracting and retaining qualified revenue-producing employees, with significant competition in the industry for such personnel [80]. - The Company has approximately 52,000 employees focused on comprehensive service offerings including Services, Leasing, Capital markets, and Valuation [306]. Market and Industry Trends - The commercial real estate industry is showing signs of improvement in 2024 despite ongoing macroeconomic challenges, with increased capital ready for deployment [32]. - Sustainability considerations are increasingly influencing investor and occupier decisions, with the company developing solutions to meet stricter environmental regulations [36]. - The company’s business is significantly impacted by macroeconomic conditions and global demand for commercial real estate, which could adversely affect financial performance [77]. - The company is experiencing ongoing volatility in global capital and credit markets due to elevated inflation and increased interest rate volatility, impacting real estate transaction decisions [78]. - In 2024, clients are facing challenges in procuring credit or financing, leading to delays in real estate transactions, which could reduce commissions and fees earned [79]. Sustainability and Environmental Goals - The company aims to achieve a 50% reduction in absolute Scope 1 and 2 GHG emissions by 2030 from a 2019 base year [61]. - The company plans to engage clients representing 70% of emissions at managed properties to set their own science-based targets by 2025 [62]. - The company has been recognized as one of the World's Most Sustainable Companies of 2024 by TIME [39]. - Climate change poses risks to operations, including increased operating costs and potential declines in demand for commercial real estate in certain regions [110]. - The company has set voluntary greenhouse gas emissions targets, but failure to achieve these goals could lead to reputational damage and reduced revenue [111]. Risk Management and Compliance - Compliance with regulations is crucial, as failures could lead to fines, license suspensions, or other adverse actions affecting business operations [67]. - The company is exposed to various litigation risks that could materially damage its reputation and financial condition [130]. - The company faces risks related to compliance with numerous laws and regulations across different jurisdictions, which could adversely impact its operations [118]. - The company has experienced cybersecurity attacks in the past and anticipates additional attacks in the future, which could lead to disruptions in critical systems and potential revenue loss [93]. - Non-compliance with cybersecurity and data privacy regulations could result in significant liabilities, fines, or penalties, damaging the company's reputation and operating results [95]. Financial Strategy and Debt Management - The company has a total indebtedness of approximately $3.0 billion as of December 31, 2024, which includes finance lease liabilities [125]. - The company repaid over $200 million in aggregate principal outstanding under its Term Loans in 2024, most of which was ahead of schedule [125]. - The company is subject to a credit agreement governing $2.0 billion in term loans and a $1.1 billion revolving credit facility, with no funds currently drawn from the latter [119]. - The company does not intend to pay cash dividends on its ordinary shares for the foreseeable future, focusing instead on retaining earnings for operations and debt repayment [129]. - The company has implemented interest rate hedges and refinanced debt in response to interest rate increases by the U.S. Federal Reserve [127]. Corporate Governance and Shareholder Relations - The company has a classified Board with staggered three-year terms, which may delay or prevent hostile takeovers [141]. - The company has received authority from shareholders to allot additional shares for a period of five years from May 11, 2023 [144]. - The company obtained shareholder authority to repurchase shares up to $300 million, valid for five years from September 2022 [146]. - The company’s articles of association provide that the courts of England and Wales will be the exclusive forum for resolving shareholder complaints [147]. Technology and Innovation - The company is investing in new information technology and AI technologies to maintain competitive advantages, but may face challenges in successful deployment [88]. - Disruptions to information technology and communication systems could materially harm the company's ability to provide services effectively [90]. - The company collects and stores sensitive data, making the secure processing and maintenance of this information critical to operations [92]. - The reliance on third-party service providers for information technology networks increases vulnerability to security breaches, potentially adversely affecting operations and reputation [94].

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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