Financial Data and Key Metrics Changes - Consolidated revenue increased by 10%, adjusted EBITDA grew by 17%, and adjusted EPS was up by 29% [6][27] - Free cash flow increased due to improved collections and lower cash taxes paid, despite higher commission payments [25] Business Line Data and Key Metrics Changes - Real Estate Management Services (REMS) revenue growth was led by Workplace Management, with nearly 30% growth on a two-year stacked basis [14] - Project Management revenue grew by 22% year-over-year, driven by strong leasing activity and new contracts [15][75] - Capital Markets Services saw debt advisory revenue increase by 27% and investment sales grow by 9% [21] - Software and technology solutions experienced low double-digit growth in software revenue, offset by reduced technology solutions spending [24] Market Data and Key Metrics Changes - U.S. industrial leasing revenue increased by 13%, outperforming the overall U.S. industrial market volume growth of 4% [18] - Global office leasing revenue tracked in line with market volume, with U.S. office leasing revenues growing nearly 3% [19] Company Strategy and Development Direction - The company is focused on organic growth, investing in data technology and AI to enhance operational efficiency and client value [10][27] - There is a commitment to returning capital to shareholders through increased share repurchases while considering M&A opportunities [27][62] - The company aims to maintain high single-digit to low double-digit revenue growth in REMS over the medium term [34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the market, noting stability in real estate fundamentals and growing tenant demand [29][70] - The evolving policy environment has led to delayed decision-making, particularly in industrial and manufacturing sectors [7][8] - The company anticipates continued organic growth and market share gains, despite potential headwinds from macroeconomic factors [11][29] Other Important Information - The company raised $1 billion in private equity capital in the second quarter, bringing the year-to-date total to $2.9 billion [23] - Liquidity totaled $3.3 billion at the end of the second quarter, with a reported net leverage of 1.2 times [26] Q&A Session Summary Question: Strength in project management and revenue growth expectations - Management noted strong demand for midsized projects and expects continued optimism for the remainder of the year [32][33] Question: Future revenue growth in REMS - Management indicated expectations of high single-digit to low double-digit revenue growth in REMS, with new contract wins contributing positively [34] Question: Growth drivers for JLL moving forward - Key growth drivers include stability in the geopolitical environment and the return of larger transactions in capital markets [35][36] Question: Capital markets pipeline and deal activity - Pipelines are strong compared to last year, with optimism for continued growth in the capital markets business [40][41] Question: Loan loss concerns with Fannie Mae - Management is closely monitoring the portfolio for potential fraud but has not identified specific areas of concern [43] Question: Elevated contract churn in property management - Management is reviewing contracts and expects some turnover as part of a long-term growth strategy [44] Question: Margin expansion expectations - Management expects margin expansion to be stronger in the latter half of the year, though not linear [47][50] Question: Geographic split in capital markets business - Approximately 60% of the business is in the Americas, with 40% in the rest of the world [56] Question: Capital allocation priorities - The company plans to increase share repurchases while maintaining a focus on organic growth and selective M&A [62][63] Question: Client sentiment regarding the macro environment - Clients are adapting to ongoing geopolitical noise and focusing on their business goals, contributing to a stable trading environment [70][71]

Financial Data and Key Metrics Changes - In Q4 2024, the company generated revenue of $3.3 billion, a 25% year-over-year increase, and delivered adjusted EBITDA of $251 million, growing 30% year-over-year [8][19] - For the full year 2024, revenue reached $11.7 billion, a 20% increase, with 3% being organic growth, and adjusted EBITDA was $815 million, growing 10% [8][18] - The adjusted diluted earnings per share for 2024 was $2.8, up from $2.59 in 2023 [18] Business Line Data and Key Metrics Changes - The omni-channel retail and consumer goods business led the organic revenue growth acceleration throughout 2024 [18] - The company closed over $1 billion in new business wins for the second consecutive year, including significant contracts in the healthcare sector [9][16] - E-commerce business saw a 60% increase in new business year-over-year [16] Market Data and Key Metrics Changes - Germany emerged as the fastest-growing market, with a 60% year-over-year revenue growth by the end of 2024 [10] - The sales pipeline increased by 15% year-over-year, with a 20% increase in the Americas [15] Company Strategy and Development Direction - The company aims for 3% to 6% organic growth in 2025, with adjusted EBITDA guidance of $840 million to $860 million [11][22] - Focus on technology leadership and AI-enabled solutions is a key differentiator, with ongoing investments in proprietary AI applications [13][26] - The company plans to leverage its M&A strategy to enhance growth in key verticals like aerospace and industrials following the acquisition of Wincanton [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth driven by outsourcing, automation, and e-commerce trends [12] - The company anticipates a sequential improvement in organic growth throughout 2025, despite short-term impacts from customer capacity realignments [21][23] - Management highlighted the importance of customer relationships and the ability to adapt to changing market conditions [64][100] Other Important Information - The company achieved a net leverage of 2.7 times by the end of Q4 2024, down from a peak of 3.1 times [20] - Customer satisfaction scores reached an all-time high by the end of 2024 [30] Q&A Session Summary Question: Can you elaborate on the $15 million EBITDA hit in Q1? - Management expects low single-digit organic revenue growth in Q1 and around $155 million of adjusted EBITDA, impacted by customer capacity alignments and new site implementations [35][36] Question: Is there confidence that this is not a structural issue? - Management indicated that network realignment is a short-term impact and emphasized strong relationships with customers [41][63] Question: How is transactional volume with existing customers trending? - Management noted that Continental Europe is showing the fastest growth, while the UK market has softened slightly due to economic conditions [46][48] Question: Can you discuss the healthcare win and its potential? - The healthcare contract is seen as a milestone win, expected to drive further business inquiries and opportunities in that vertical [55][56] Question: What is the outlook for free cash flow in 2025? - Management targets a free cash flow conversion of 25% to 35% for 2025, with some integration costs impacting the cash flow profile [68][70] Question: How is the customer pipeline evolving? - The sales pipeline is up 15% year-over-year, with strong activity across various regions and verticals [104] Question: What are the competitive dynamics in the market? - Management noted that the competitive landscape remains stable, with a focus on technology and AI as key differentiators [111]