Newmark(US:NMRK)2026-02-25 16:02Financial Data and Key Metrics Changes - Total revenues increased by 15.3% to over $1 billion, compared to $872.7 million in the previous year, marking an all-time high [10] - Adjusted EPS rose by 23.6% to $0.68, exceeding previous guidance by $0.04 [12] - Adjusted EBITDA was $214 million, up 17% from $182.9 million, with an improved margin on total revenues [13] Business Line Data and Key Metrics Changes - Leasing revenues increased by 13.6%, driven by strong activity in New York and Texas across retail, office, and industrial sectors [11] - Management and servicing revenues grew by 12% to over $1.24 billion, with a goal of exceeding $2 billion by 2029 [6] - Capital markets saw a 19.2% increase, reflecting significant activity in office, retail, and multifamily sectors [11] Market Data and Key Metrics Changes - Investment sales volumes increased by 50% in the fourth quarter, compared to 21% industry growth in the U.S. and 15% in Europe [7] - For the full year, investment sales volumes were up 56%, compared to 20% for overall U.S. volumes and 12% for Europe [7] - Debt origination volumes increased by 12%, with a 67% rise in 2025 origination volumes compared to a 43% increase in U.S. industry originations [7] Company Strategy and Development Direction - The company is focused on leveraging AI and digital infrastructure to enhance service offerings and drive growth [8] - Newmark aims to continue its international expansion and increase market share across nearly all business lines [7] - The strategy includes investing in talent and technology to improve efficiency and margin enhancement [8] Management's Comments on Operating Environment and Future Outlook - Management expects double-digit growth in both top and bottom lines for the third consecutive year in 2026, with record total revenues and Adjusted EPS [9] - The favorable macroeconomic backdrop for commercial real estate is anticipated to support continued growth [9] - Management highlighted the importance of AI as an accelerant for business opportunities and margin enhancement [20] Other Important Information - The company ended 2025 with $229.1 million in cash and cash equivalents and a net leverage of 0.8x [14] - Adjusted free cash flow increased by 38.4% for the year to $268.9 million [14] - The board of directors increased the share repurchase authorization to $400 million [13] Q&A Session Summary Question: AI's impact on office needs and staffing - Management noted that it is early to fully understand AI's impact, but it is seen as an accelerant for business opportunities [19][20] Question: Debt maturities and refinancing expectations - Management indicated that $2 trillion of debt is coming due over the next three years, with significant activity expected in the market [27][28] Question: Risks of property-level data becoming public - Management acknowledged that while some data is confidential, there are opportunities to use proprietary data to create value for clients [32][33] Question: Competitive landscape for talent - Management stated that recruiting remains strong, with a focus on providing a less crowded environment for brokers to thrive [64]