Colliers Reports Second Quarter Results

Core Insights - Colliers International Group Inc. reported strong financial results for the second quarter of 2025, with consolidated revenues of $1.35 billion, an increase of 18% year-over-year, and net revenues of $1.19 billion, up 16% [4][5][7] - The company's diversified business model, particularly in its Engineering division, has contributed to its outperformance, with all three growth engines—Real Estate Services, Engineering, and Investment Management—showing solid momentum [7][8] - The company has raised its annual outlook for 2025, anticipating low-teens percentage revenue growth, mid-teens Adjusted EBITDA growth, and mid to high-teens Adjusted EPS growth [14][15] Financial Performance - For the three months ended June 30, 2025, revenues were $1,347.6 million, compared to $1,139.4 million in the same period of 2024, reflecting an 18% increase [20] - Adjusted EBITDA for the second quarter was $180.2 million, up 16% from $155.6 million in the prior year quarter [4][20] - Adjusted EPS increased by 26% to $1.72 from $1.36 in the prior year quarter [4][20] Segment Performance - Real Estate Services revenues totaled $785.4 million, up 4% year-over-year, while Engineering revenues surged 67% to $436.0 million, driven by acquisitions and strong internal growth [10][11] - Investment Management revenues remained flat at $126.1 million, with net revenues down 7% due to prior year catch-up fees [12] - The Engineering segment's Adjusted EBITDA increased by 145% to $46.3 million, showcasing significant margin expansion [11] Strategic Initiatives - The company announced the rebranding of its Investment Management division to Harrison Street Asset Management, enhancing its global recognition [7][8] - Colliers completed the acquisition of a 60% stake in RoundShield Partners, expanding its capabilities in credit, student housing, and hospitality [8] - The leadership team was expanded with key appointments aimed at scaling the platform and unlocking new opportunities [8] Recurring Revenue and Cash Flow - Over the past 12 months, 71% of the company's earnings were derived from recurring revenues, indicating a stable revenue base [6] - The company achieved a free cash flow conversion rate of 98% of adjusted net earnings, aligning with its performance targets [6] Updated Outlook - The updated outlook for 2025 reflects year-to-date operating results and the impact of completed acquisitions, with expectations for continued growth despite macroeconomic uncertainties [14][15]