CBRE Group Inc. CBRE reported first-quarter 2025 core earnings per share (EPS) of 86 cents, ahead of the Zacks Consensus Estimate of 81 cents. The reported figure also increased 10.3% year over year.

Results reflect year-over-year revenue growth across all its business segments. CBRE’s resilient businesses generated net revenue growth of 17%, nearly matching the 18% increase in its transactional businesses.

Quarterly revenues increased 12.3% year over year to $8.91 billion. The Zacks Consensus Estimate was in line with the reported figure.

Net revenues increased 15% (17% in local currency) year over year to $5.11 billion. Core EBITDA rose 27.4 % (29.7% in local currency) to $540 million.

In January 2025, the company established two new business segments: Building Operations & Experience (BOE), following the acquisition of flexible workplace solutions provider Industrious, and Project Management, following the integration of CBRE’s legacy project management business into Turner & Townsend. It now reports results for four business segments, namely Advisory Services, BOE, Project Management and Real Estate Investments.

CBRE’s Quarter in Detail

CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 13.4% (15.2% in local currency) to $1.69 billion.

Global leasing revenue rose 18% (18% in local currency), driven by notable leasing revenue growth in the Unites States, and Europe, the Middle East & Africa (EMEA).

Global property sales revenues grew 11% (13% in local currency) year over year, led by increases across the United States and EMEA. Moreover, mortgage origination revenues rose 52% (53% in local currency) due to continued strength in loan origination activity with a variety of capital sources.

The BOE segment registered a year-over-year increase of 13.9% (15.9% in local currency) in revenues to $5.36 billion.

Facilities management net revenues rose 16% (18% in local currency). Project management net revenues increased 36% (38% in local currency), led by the contributions from Industrious, which was acquired in January 2025. The segment’s operating profit on net revenue margin improved by 100 basis points (in local currency) compared with the first quarter of 2024, reflecting the benefit of cost control initiatives in 2024.

Project Management segment net revenues grew 6.8% (8.8% in local currency) to $774 million year over year, led by infrastructure projects in the U.K. and the Middle East as well as large new program mandates in Real Estate.

The Real Estate Investments segment experienced an increase of 2.2% (3.9% local currency) in revenues to $233 million.

At the end of the first quarter of 2025, assets under management increased $2.9 billion from the fourth quarter of 2024 to $149.1 billion due to net inflows, higher asset values and favorable foreign currency movement.

Balance Sheet Position for CBRE

CBRE Group exited the first quarter of 2025 with cash and cash equivalents of $1.38 billion, up from $1.11 billion as of Dec. 31, 2024.

As of March 31, 2025, CBRE Group had $3.5 billion in total liquidity. This comprised $1.4 billion in cash in addition to the ability to borrow a total of approximately $2.1 billion under its revolving credit facilities and commercial paper program, net of any outstanding letters of credit. The company’s net leverage ratio was 1.45X as of the same date, significantly less than CBRE’s primary debt covenant of 4.25X.

During the March-end quarter, the company repurchased approximately 4.6 million shares for $858 million. As of April 23, 2025, it had $5.2 billion of stock-repurchase capacity remaining under its authorized stock repurchase program.

Outlook

For 2025, CBRE maintains its core EPS guidance in the range of $5.80-$6.10. The Zacks Consensus Estimate for the same is currently pegged at $5.94, which is within the guided range.

Currently, CBRE Group carries a Zacks Rank #3 (Hold).

CBRE Group, Inc. Price, Consensus and EPS Surprise

CBRE Group, Inc. price-consensus-eps-surprise-chart | CBRE Group, Inc. Quote

Upcoming Releases

It’s time to look forward to two stocks from the real estate operation industry, Newmark Group NMRK and Jones Lang LaSalle JLL. Newmark and Jones Lang are slated to report quarterly numbers on April 30 and May 7, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Newmark’s first-quarter 2025 EPS is pegged at 19 cents, which implies a 26.7% increase year over year. NMRK currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Jones Lang LaSalle’s first-quarter 2025 EPS stands at $1.99, which suggests an increase of 11.8% on a year-over-year basis. JLL currently carries a Zacks Rank of 3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Jones Lang LaSalle Incorporated (JLL) : Free Stock Analysis Report

Newmark Group, Inc. (NMRK) : Free Stock Analysis Report

CBRE Group, Inc. (CBRE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research