Jones Lang LaSalle(US:JLL)2025-11-05 19:14Revenue Growth - For the three months ended September 30, 2025, revenue from Real Estate Management Services was $4,982.4 million, an increase from $4,520.5 million in the same period of 2024, representing a growth of 10.2%[43] - Leasing Advisory revenue for the three months ended September 30, 2025, was $741.9 million, up from $691.5 million in the same period of 2024, reflecting an increase of 7.3%[44] - The company’s Workplace Management revenue for the nine months ended September 30, 2025, was $10,036.3 million, up from $9,057.4 million in the same period of 2024, a growth of 10.8%[43] - The total revenue for the nine months ended September 30, 2025, was $14,445.8 million, compared to $12,959.6 million in the same period of 2024, representing an increase of 11.5%[43] - Total revenue for the three months ended September 30, 2025, was $6,510.4 million, an increase of 10.9% compared to $5,868.8 million in the same period of 2024[48] Adjusted EBITDA - Adjusted EBITDA for Real Estate Management Services was $102.2 million for the three months ended September 30, 2025, compared to $94.5 million in the same period of 2024, indicating a growth of 8.0%[43] - Adjusted EBITDA for the three months ended September 30, 2025, was $347.3 million, up from $298.1 million in the same period of 2024, reflecting a growth of 16.5%[49] - Adjusted EBITDA for Capital Markets Services reached $89.9 million for the three months ended September 30, 2025, compared to $65.7 million in 2024, a growth of 36.7%[49] Contract Assets and Liabilities - The company reported contract assets, net of allowance, of $380.3 million as of September 30, 2025, slightly down from $384.4 million as of December 31, 2024[30] - Contract liabilities increased to $165.6 million as of September 30, 2025, compared to $154.7 million as of December 31, 2024[30] Investment Management - Total investment balances increased to $895.1 million as of September 30, 2025, up from $812.7 million as of December 31, 2024, primarily driven by a rise in Investment Management co-investments to $502.4 million[62] - The company reported maximum potential unfunded commitments of $210.1 million for Investment Management and $7.7 million for Proptech Investments as of September 30, 2025[63] Goodwill and Impairments - Goodwill as of September 30, 2025, was $4,705.5 million, reflecting an increase due to foreign currency exchange movements and adjustments[54] - The company recognized an investment-level impairment charge of $2.2 million in June 2025, with no other significant impairments reported for 2025[64] - The company recognized an investment-level impairment charge during the nine months ended September 30, 2025, but did not report significant impairment losses in the same period of 2024[93] Debt and Financing - As of September 30, 2025, total debt increased to $1,512.6 million from $1,198.4 million as of December 31, 2024, reflecting a significant rise in short-term and long-term obligations[95] - Average outstanding borrowings for the nine months ended September 30, 2025, were $1,243.7 million, with an average effective interest rate of 5.0%[100] - The commercial paper program allows the company to issue up to $2.5 billion in short-term notes, with proceeds intended for general corporate purposes[96] - The company maintained compliance with all financial covenants related to its credit facilities as of September 30, 2025[102] Foreign Exchange and Revenue Exposure - Revenue exposed to foreign exchange rates was 37% for the nine months ended September 30, 2025, down from 39% in 2024[227] - The total revenue for the nine months ended September 30, 2025, was 100% comprised of U.S. dollars and other currencies, with the U.S. dollar accounting for 63%[227] Acquisitions and Charges - Total payments for business acquisitions in the nine months ended September 30, 2025, amounted to $22.4 million, down from $45.9 million in the same period of 2024[51] - Restructuring and acquisition charges for the three months ended September 30, 2025, totaled $11.7 million, compared to a negative $8.8 million for the same period in 2024[119] - For the nine months ended September 30, 2025, severance and other employment-related charges amounted to $30.8 million, significantly higher than $17.8 million for the same period in 2024[119] Other Financial Metrics - The company reported net income attributable to common shareholders of $222.8 million for the three months ended September 30, 2025, compared to $155.1 million in 2024, an increase of 43.5%[49] - The company is evaluating the impact of new accounting standards issued by the FASB, including ASU 2025-05 and ASU 2025-06, which may affect future financial statements[25][26] - Effective January 1, 2026, the Software & Technology Solutions segment will merge into Real Estate Management Services, with revenues reported as a subsegment[39]