CBRE(US:CBRE)2025-04-24 11:00Financial Performance - GAAP EPS increased by 32% to $0.54, while Core EPS rose by 10% to $0.86[3] - Revenue grew by 12% to $8.9 billion, with net revenue up 15% to $5.1 billion[4] - Net revenue for Q1 2025 was $5,112 million, a 15% increase from $4,444 million in Q1 2024[31] - Total revenue for Q1 2025 reached $8,910 million, up from $7,935 million in Q1 2024, reflecting a 12.3% growth[31] - Operating income increased to $276 million in Q1 2025, compared to $204 million in Q1 2024, representing a 35.3% rise[31] - Net income attributable to CBRE Group, Inc. was $163 million in Q1 2025, up 29.4% from $126 million in Q1 2024[31] - Core EBITDA for Q1 2025 was $540 million, a 27.4% increase from $424 million in Q1 2024[31] - Basic income per share for Q1 2025 was $0.54, compared to $0.41 in Q1 2024, marking a 31.7% increase[31] - Net income for the first quarter of 2025 was $191 million, compared to $148 million in the same period of 2024, reflecting a year-over-year increase of 29.1%[40] - Core EBITDA for Q1 2025 reached $540 million, up from $424 million in Q1 2024, indicating a growth of 27.4%[49] - Consolidated revenue for the three months ended March 31, 2025, is $8,910 million, up from $7,935 million in 2024, representing a 12.3% increase[50] - Net revenue for the three months ended March 31, 2025, is $5,112 million, compared to $4,444 million in 2024, reflecting a 15% growth[50] Revenue Breakdown - Resilient Businesses net revenue increased by 14% to $3.7 billion, and Transactional Businesses revenue rose by 16% to $1.4 billion[3] - Global leasing revenue surged by 18%, with the U.S. experiencing a 24% increase in leasing revenue[6] - Facilities management net revenue increased by 16%, driven by strong demand from technology and healthcare sectors[10] - Net revenue for Advisory Services was $1,682 million, while Building Operations & Experience generated $2,427 million, and Project Management contributed $774 million[33] - Facilities Management Revenue for Q1 2025 is $4,769 million, with net revenue of $1,865 million, an increase from $1,603 million in Q1 2024, marking a 16.4% rise[51] - Building Operations & Experience Revenue for Q1 2025 is $5,355 million, with net revenue of $2,427 million, up from $2,017 million in Q1 2024, indicating a 20.4% increase[51] Costs and Expenses - Total costs and expenses for Q1 2025 were $8,634 million, up from $7,744 million in Q1 2024, indicating an increase of 11.5%[31] - The company recognized pass-through costs of $3,798 million, which were also included in total revenue[33] - The operating income from Real Estate Investments was $25 million, while Corporate operations reported a loss of $195 million[33] - The company incurred $68 million in integration and other costs related to acquisitions during the quarter[33] - Integration and other costs related to acquisitions amounted to $166 million[50] - Costs associated with efficiency and cost-reduction initiatives totaled $243 million[50] Cash Flow and Liquidity - Free cash outflow totaled $610 million in Q1 2025, with trailing 12-month free cash flow reaching nearly $1.5 billion[21] - Cash and cash equivalents at the end of the period were $1.513 billion, an increase from $1.127 billion at the end of Q1 2024, marking a rise of 34.2%[40] - Cash flows from operating activities showed a net cash used of $546 million in Q1 2025, compared to $492 million in Q1 2024, indicating a deterioration in cash flow performance[40] - The company incurred $303 million in acquisition costs during Q1 2025, down from $783 million in the same period of 2024, a decrease of 61.2%[40] Shareholder Returns and Equity - The company repurchased approximately 4.6 million shares for $585 million since year-end 2024[21] - The weighted average shares outstanding for diluted income per share decreased from 308,502,456 in Q1 2024 to 302,914,671 in Q1 2025[31] - Equity income from unconsolidated subsidiaries improved to $16 million in Q1 2025, compared to a loss of $58 million in Q1 2024[31] - Equity income from unconsolidated subsidiaries showed a net loss of $5 million, indicating challenges in that segment[33] Balance Sheet and Assets - Total assets increased to $26.366 billion as of March 31, 2025, up from $24.383 billion at the end of 2024, representing a growth of 8.1%[38] - Total current liabilities rose to $10.868 billion as of March 31, 2025, compared to $9.287 billion at the end of 2024, an increase of 17.0%[38] - Total liabilities increased to $17.362 billion as of March 31, 2025, from $15.191 billion at the end of 2024, representing a rise of 14.3%[38] - The company reported a decrease in accumulated earnings to $9.386 billion from $9.567 billion, a decline of 1.9%[38] - Assets Under Management (AUM) totaled $149.1 billion, up $2.9 billion from year-end 2024[16] Strategic Initiatives and Outlook - CBRE established two new business segments: Building Operations & Experience and Project Management[2] - The net leverage ratio was 1.45x as of March 31, 2025, significantly below the primary debt covenant of 4.25x[19] - Future outlook remains positive with ongoing investments in new technologies and market expansion strategies[33] - The company is focusing on efficiency and cost-reduction initiatives, with associated costs amounting to $13 million[33]