Cushman & Wakefield(US:CWK)2025-04-29 13:00Financial Data and Key Metrics Changes - The company achieved fee revenue of $1,500,000,000, an increase of 4%, with organic fee revenue growing by 6% [14] - Adjusted EBITDA rose by 24% to $96,000,000, with an adjusted EBITDA margin improvement of 100 basis points year over year [14] - Adjusted EPS increased to $0.09 from breakeven a year ago, with net leverage at 3.9 times EBITDA [14][20] Business Line Data and Key Metrics Changes - The leasing business grew by 9%, with Americas leasing showing a standout growth of 14% in Q1 [15] - APAC leasing grew by 16%, while EMEA leasing contracted by 26% due to tough comparisons from the previous year [15][16] - Services revenue on an organic basis increased by 4%, with The Americas organic services fee revenue growing by 6% [17][18] Market Data and Key Metrics Changes - The Americas experienced a significant increase in RFPs, up by 35% compared to last year, and bid volume in the valuation business was up 30% in Q1 [10] - The APAC Services business showed strong retention rates and five new sizable contracts coming online in the first half of the year [11] - EMEA is considered the weakest economy among the three segments, but there are signs of recovery, particularly in capital markets [51] Company Strategy and Development Direction - The company is focused on long-term growth, having repaid $230,000,000 in debt since the new CEO took over and successfully refinancing and repricing debt multiple times [6][20] - The management emphasizes a disciplined investment approach to stabilize the business and unlock new areas of organic growth [6][11] - The company believes it is at the beginning of a multi-year recovery in commercial real estate, positioning itself to capitalize on market opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has not materially impacted the sector, with strong demand for high-quality products continuing [31] - The company expects leasing growth in the mid-single digits for the full year, with capital markets growth anticipated to exceed the previous year's mid-single-digit growth rate [21] - Management remains confident in achieving EPS growth in 2025 that exceeds the growth reported in 2024 [22] Other Important Information - Free cash flow was a use of $167,000,000, consistent with historical working capital trends [19] - The company closed the quarter with $1,700,000,000 in liquidity and has no funded debt maturities until 2028 [20] Q&A Session Summary Question: Margin improvement and outperformance drivers - Management indicated that the margin improvement was driven primarily by top-line strength, with stronger than expected leasing and services contributing to the results [28] Question: Impact of tariffs on leasing and capital markets - Management stated that tariff uncertainty has not materially impacted the sector, with most clients continuing to make decisions on their existing timelines [31] Question: Outlook for office leasing in a potential recession - Management noted that demand for office leasing remains strong, with long-term leases being signed and lease terms increasing [37] Question: Recruiting and retention efforts - Management highlighted significant recruitment efforts, having hired multiple capital markets and leasing teams in the past year [38][39] Question: Trends in industrial leasing amid trade discussions - Management expressed confidence in the industrial leasing sector, noting positive trends and ongoing demand despite tariff discussions [43] Question: Rate outlook and its impact on capital markets - Management indicated that clients are still closing deals and financings, with many able to facilitate transactions through alternative means if necessary [46]