Colliers International(US:CIGI)2025-11-04 12:00Financial Performance - Third quarter consolidated revenues were $1.46 billion, up 24% year-over-year, with net revenues at $1.26 billion, up 19%[3] - Adjusted EBITDA for the third quarter was $191.1 million, reflecting a 24% increase compared to the prior year quarter[3] - Adjusted EPS for the third quarter was $1.64, an increase of 24% over the prior year quarter[3] - For the nine months ended September 30, 2025, revenues reached $3.95 billion, up 19%, and net revenues were $3.44 billion, up 16%[4] - Revenues for Q3 2025 reached $1,463.1 million, a 24.1% increase from $1,179.1 million in Q3 2024[21] - Net revenues for Q3 2025 were $1,258,852, compared to $1,058,042 in Q3 2024, reflecting a year-over-year increase of about 18.9%[32] - Adjusted EBITDA for Q3 2025 was $191,115, up from $154,636 in Q3 2024, indicating a growth of approximately 23.5%[34] - For the nine months ended September 30, 2025, total revenues were $3,951,917, an increase from $3,320,407 in the same period of 2024, representing a growth of approximately 19.0%[31] - Net revenues for the nine months ended September 30, 2025, were $3,438,480, compared to $2,966,769 in the same period of 2024, reflecting an increase of about 15.9%[31] - Adjusted EBITDA for the nine months ended September 30, 2025, was $487,368, up from $418,955 in the same period of 2024, indicating a growth of approximately 16.3%[34] Earnings and Cash Flow - More than 70% of the company's earnings came from recurring revenues, with a free cash flow conversion rate of 96% of adjusted net earnings[5] - GAAP diluted net earnings per share for the third quarter were $0.82, compared to $0.73 in the prior year quarter[3] - Net earnings attributable to the company for Q3 2025 were $42.2 million, up 13.5% from $37.2 million in Q3 2024[21] - The company reported net earnings of $65,134 for Q3 2025, a decrease from $69,377 in Q3 2024, representing a decline of about 3.5%[35] - The company’s net earnings for the nine months ended September 30, 2025, were $138,023, down from $155,440 in the same period of 2024, reflecting a decrease of approximately 11.3%[35] - Adjusted EPS for the nine months ended September 30, 2025, was $4.24, up from $3.46 in the same period of 2024, indicating a year-over-year increase of 22.5%[36] - Free cash flow for the three months ended September 30, 2025, was $115.192 million, compared to $106.521 million in Q3 2024, reflecting a growth of 8.3%[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $73.447 million, down from $110.702 million in 2024, a decrease of 33.7%[38] - Trailing twelve months free cash flow as of September 30, 2025, reached $317.092 million[39] Segment Performance - Engineering segment revenues grew by 54% to $488.1 million, driven by acquisitions and strong internal growth[11] - Real Estate Services revenues totaled $838.6 million, up 14%, with Capital Markets revenues increasing by 21%[10] - Investment Management revenues were $136.3 million, up 7%, with assets under management reaching $108.3 billion, a 10% increase from December 31, 2024[12] Debt and Acquisitions - Total debt as of September 30, 2025, was $1,840.5 million, up from $1,508.5 million at the end of 2024[24] - The net debt to pro forma adjusted EBITDA ratio was 2.3 as of September 30, 2025, compared to 2.0 at the end of 2024[24] - The company incurred $168.7 million in cash for acquisitions in Q3 2025, compared to $454.6 million in Q3 2024[28] - The company reported a contingent acquisition consideration paid of $896 thousand for Q3 2025, compared to $69 thousand in Q3 2024[38] Future Outlook - The company expects low-teens percentage revenue growth and mid-teens Adjusted EBITDA growth for the full year 2025[14] - The company plans to continue focusing on market expansion and new product development to drive future growth[30] Asset Management - Total assets as of September 30, 2025, were $6,805.6 million, an increase from $6,100.6 million at the end of 2024[23] - Cash and cash equivalents increased to $212.5 million from $176.3 million at the end of 2024[23] - Operating earnings for Q3 2025 were $104.7 million, slightly down from $109.7 million in Q3 2024[21] - Cash collections on AR Facility deferred purchase price for the nine months ended September 30, 2025, totaled $119.249 million, up from $101.805 million in 2024, an increase of 17.0%[38] Performance Metrics - The company emphasizes free cash flow as a key metric for evaluating operating performance and ability to service debt, fund acquisitions, and pay dividends[37] - Adjusted EBITDA growth rates are calculated on a local currency basis to exclude the effects of foreign currency fluctuations and acquisitions, providing a clearer view of operational performance[40]