Cushman & Wakefield (CWK) Earnings Transcript

Core Insights - The company is experiencing a transformational evolution in AI, which will create both winners and losers in the industry. Successful firms will be those that provide advisory-led, relationship-driven solutions, supported by large platforms and global execution capabilities [1][4]. Financial Performance - For the full year 2025, the company achieved revenue of $7.1 billion, a 7% increase, and adjusted EBITDA grew 11% to $656 million. Adjusted EPS was $1.22, up 34% from the previous year [8][9]. - The company generated over $290 million in free cash flow, exceeding the targeted conversion rate, with a conversion rate of 103% [7][8]. - The leverage ratio improved to 2.9 times from 3.8 times at the end of 2024, following a $300 million principal prepayment [9]. Growth Areas - The Americas saw multi-market leasing grow, with capital markets up 19% in Q4 and 33% in 2025. The leasing business also performed strongly, contributing to the highest quarterly revenue in company history [3][9]. - The company anticipates 2026 revenue growth of 6% to 8%, with adjusted EPS growth of 15% to 20% [14][15]. Strategic Initiatives - The company has broken down silos across departments and is deploying technologies to create integrated digital workflows, enhancing client engagement and operational efficiency [5][29]. - There is a focus on cross-selling between business lines, supported by AI-driven data flow and insights [29][30]. Market Trends - In The Americas, leasing revenue increased by 5%, driven by demand for high-quality office and industrial spaces, particularly those over 500,000 square feet [12][47]. - Capital markets globally grew by 15%, with strong performance in the Americas, particularly in office and retail sectors [13][14]. Future Outlook - The company is optimistic about the industrial sector, driven by e-commerce trends and demand for modern logistics facilities [47][48]. - The company plans to maintain a balanced approach to capital allocation, focusing on organic growth while continuing to reduce debt [31].