Jones Lang LaSalle(US:JLL)2026-02-19 19:05Financial Performance - Total revenue for the year ended December 31, 2025, was $26,115.6 million, representing an 11% increase from $23,432.9 million in 2024 [320]. - Operating income increased by 26% to $1,098.0 million in 2025, compared to $868.1 million in 2024 [320]. - The company reported a net income attributable to common shareholders of $792.1 million for 2025, compared to $546.8 million in 2024 [331]. - Adjusted EBITDA for 2025 was $1,452.9 million, a 22% increase from $1,186.3 million in 2024 [331]. - Consolidated revenue increased by 11% to $25.0 billion in 2025, with transactional revenues up 13% and resilient revenues up 11% [335]. - Net income attributable to common shareholders increased to $792.1 million in 2025, up from $546.8 million in 2024, with diluted earnings per share rising to $16.40 [348]. Revenue Breakdown - Real Estate Management Services revenue grew by 11% to $20,001.2 million in 2025, up from $17,992.7 million in 2024 [320]. - Leasing Advisory revenue rose by 11% to $3.0 billion, with significant growth in the office sector across various geographies [359]. - Capital Markets Services revenue increased by 19% to $2.4 billion, primarily driven by investment sales and debt advisory transactions [362]. - Investment Management revenue decreased by 4% to $450.1 million in 2025, primarily due to a 35% drop in incentive fees [365][366]. - Software and Technology Solutions revenue grew by 3% to $232.3 million, driven by double-digit growth in software [370][371]. Expenses and Charges - Total operating expenses for 2025 were $25,017.6 million, an 11% increase from $22,564.8 million in 2024 [320]. - Operating expenses rose by 10% to $25.0 billion, driven by revenue-related expenses and higher restructuring and acquisition charges [338]. - Restructuring and acquisition charges totaled $75.3 million in 2025, significantly higher than $23.1 million in 2024 [340]. - The provision for income taxes increased to $189.5 million in 2025, with an effective tax rate of 19.3% [345]. Investments and Assets - The company evaluates goodwill for impairment at least annually, with the largest asset on the balance sheet being goodwill [282]. - The company accounts for investments in proptech funds and early to mid-stage companies at fair value, with significant estimates involved in determining fair value [287]. - Assets Under Management (AUM) decreased by 3% to $86.4 billion, with asset dispositions of $8.7 billion exceeding acquisitions of $5.9 billion [368]. Cash Flow and Capital Management - Cash flows from operating activities increased significantly to $1,194.1 million in 2025, up from $785.3 million in 2024 [372]. - Cash used for investing activities rose to $336.6 million, primarily due to a $100 million contribution to JLL Income Property Trust [373]. - Total share repurchases in 2025 amounted to $211.5 million, with 747.5 thousand shares repurchased [382][383]. - Net capital additions were $215.6 million in 2025, primarily for office improvements and software [384]. - Total paid for business acquisitions in 2025 was $27.3 million, down from $69.7 million in 2024 [386]. Borrowing and Interest - The company reported a maximum borrowing capacity of $3.30 billion under its unsecured credit facility as of December 31, 2025, with no outstanding borrowings [307]. - The company has $400 million of senior unsecured notes due December 2028, bearing a fixed annual interest rate of 6.875% [308]. - The company maintains a commercial paper program allowing for the issuance of up to $2.5 billion in short-term notes, with no outstanding borrowings as of December 31, 2025 [309]. - Interest expense decreased to $107.3 million in 2025 from $136.9 million in 2024, due to lower average borrowings and a reduced average interest rate of 4.9% [341]. - If interest rates were to increase by 50 basis points, the company's interest expense for the year ended December 31, 2025, would increase by $3.5 million [310]. Market Influences - The company’s results are significantly influenced by macroeconomic trends, geopolitical environment, and global real estate markets [300]. - The company’s transaction-based revenues are impacted by the size and timing of client transactions, leading to variability in revenue recognition [302]. - The company’s equity earnings/losses may vary substantially due to valuation changes on investments reported at fair value and gains or losses on asset dispositions [303]. - Revenue from the British pound was $1,954.9 million, accounting for 7.5% of total revenue in 2025, while euro revenue was $1,662.5 million, or 6.4% of total revenue [316]. - The company experienced a 10% increase in reported operating income, estimated at $11.8 million, had the British pound-to-U.S. dollar exchange rates been 10% higher throughout 2025 [316].