CBRE(CBRE) - 2025 Q4 - Annual Results

Financial Performance - Q4 2025 revenue increased by 12% to $11.6 billion, while full-year revenue rose by 13% to $40.6 billion[2] - Q4 2025 core EPS reached $2.73, reflecting a 17.7% increase year-over-year, with full-year core EPS at $6.38, up 25.1%[2] - Revenue for Q4 2025 was $11,629 million, a 11.7% increase from $10,404 million in Q4 2024[25] - For the full year 2025, revenue reached $40,550 million, a 13.5% increase from $35,767 million in 2024[25] - Net income for Q4 2025 was $450 million, compared to $501 million in Q4 2024, representing a decrease of 10.2%[25] - Operating income for the full year 2025 was $1,753 million, compared to $1,413 million in 2024, marking a 24.1% increase[25] - Net income for the twelve months ended December 31, 2025, was $1,277 million, an increase of 23.3% compared to $1,036 million in 2024[34] - Core net income attributable to CBRE Group, Inc. for the twelve months ended December 31, 2025, was $1,920 million, up 22.2% from $1,571 million in 2024[41] Cash Flow and Investments - Cash flow from operations for 2025 was approximately $1.6 billion, with free cash flow totaling around $1.7 billion[2] - Cash flow provided by operating activities for the twelve months ended December 31, 2025, was $1,559 million, a decrease of 8.7% from $1,708 million in 2024[34] - Free cash flow for the twelve months ended December 31, 2025, was $1,652 million, compared to $1,481 million in 2024, indicating a significant increase[42] - The company reported a net cash used in investing activities of $1,627 million for the twelve months ended December 31, 2025, compared to $1,514 million in 2024[34] - The company’s cash, cash equivalents, and restricted cash at the end of the period were $2,014 million, an increase from $1,221 million at the beginning of the period[34] Segment Performance - The Advisory Services segment reported a 13.1% revenue increase in Q4 2025, reaching $2.915 billion, and a 14.4% increase for the full year[5] - The Building Operations & Experience segment saw Q4 revenue rise by 14.6% to $6.311 billion, with full-year revenue up 14.9%[6] - The Project Management segment's Q4 revenue increased by 8.3% to $2.213 billion, with full-year revenue growth of 12.5%[7] - The Real Estate Investments segment's operating profit surged by 34% in Q4 2025, despite a 20% decline in revenue[11] Future Projections - The company expects core EPS for 2026 to be between $7.30 and $7.60, indicating a projected growth of 17% at the midpoint[2] Financial Ratios and Metrics - CBRE's net leverage ratio was 1.24x as of December 31, 2025, significantly below the primary debt covenant of 4.25x[15] - The company’s net debt position is a key metric for investors, reflecting the company's leverage and financial health[38] Acquisitions and Integration Costs - CBRE acquired Pearce Services, LLC for approximately $1.2 billion during Q4 2025, enhancing its capabilities in advanced technical services[14] - Integration and other costs related to acquisitions amounted to $100 million in 2025, compared to $63 million in 2024, indicating an increase of approximately 58.7%[28] Asset and Liability Changes - Total current assets increased to $13,489 million in 2025 from $9,970 million in 2024, marking a significant rise of about 35.3%[32] - Total liabilities rose to $21,251 million in 2025, compared to $15,191 million in 2024, which is an increase of approximately 40.0%[32] - Cash and cash equivalents increased to $1,864 million in 2025 from $1,114 million in 2024, representing a growth of about 67.2%[32] - Goodwill increased to $7,051 million in 2025 from $5,621 million in 2024, which is an increase of approximately 25.4%[32] Earnings and Gains - Core EBITDA for Q4 2025 was $1,288 million, an increase from $1,086 million in Q4 2024, showing a growth of 18.6%[25] - The company reported a gain on disposition of real estate of $404 million in Q4 2025, significantly higher than $130 million in Q4 2024[25] - The company recognized a gain on the sale of real estate assets of $459 million for the twelve months ended December 31, 2025, compared to $142 million in 2024[34]