Colliers International(US:CIGI)2025-07-31 16:00Financial Data and Key Metrics Changes - The company reported revenues of $1.3 billion, a 17% increase year over year, driven by strong performance in the engineering segment and recent acquisitions [8][9] - Adjusted EBITDA for the quarter was CAD 180 million, reflecting a 15% increase from the previous year [9] - Assets under management (AUM) increased to $103.3 billion, up 3% from March 31 and 7% from a year ago [13][14] Business Line Data and Key Metrics Changes - Real Estate Services segment revenue grew by 4%, with recurring outsourcing revenues rising by 6% [9] - Engineering segment net revenue surged by 70%, with internal growth of 8% contributing to a net margin increase to 13.7% [11][12] - Investment Management segment net revenues declined by 7% due to prior year catch-up fees, but net margin improved to 42% from 40% [12][13] Market Data and Key Metrics Changes - Capital markets performance was led by the U.S. and Western Europe, with a 16% growth in Q2 [10][76] - Leasing revenues declined by 5% globally, with industrial leasing impacted by macroeconomic uncertainties [10][11] Company Strategy and Development Direction - The company aims to build a diversified professional services and investment management business with high-quality recurring revenue streams [4] - Recent rebranding of the investment management division to Harrison Street Asset Management reflects the strength of the brand and aims to enhance growth [5] - The company completed the acquisition of Round Shield Partners, enhancing its credit, student housing, and hospitality capabilities [6] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, supported by healthy pipelines across all segments and expectations of modest market improvements [15] - The company raised its full-year consolidated outlook due to strong year-to-date performance and recent acquisitions [15] Other Important Information - Free cash flow conversion was strong, with 98% of adjusted net earnings converted into free cash flow [14] - The company has a robust M&A pipeline and expects to complete several additional tuck-under acquisitions throughout the year [7] Q&A Session Summary Question: Industrial leasing weakness and market changes - Management anticipated leasing softness for Q2 and noted a positive trend in July, indicating a potential rebound in industrial leasing activity [19][20] Question: Impact of M&A on guidance raise - Half of the guidance increase is attributed to completed acquisitions, while the other half comes from improved organic growth expectations [26][27] Question: Future of investment management branding and potential spin-off - Management believes the rebranding enhances the investment management segment's value and remains open to exploring a spin-off if necessary [28][29] Question: Engineering backlog and growth expectations - The company maintains a backlog exceeding twelve months of revenue and expects continued strong performance in engineering [35][36] Question: Fundraising environment and targets - The company is optimistic about achieving its fundraising targets for the year, with several funds currently in the market [39][46] Question: Performance of the EnGlobe acquisition - The EnGlobe acquisition has performed well, with strong integration and backlog growth [81][82]