CBRE Q2 2025 presentation: Revenue jumps 16%, company raises full-year guidance

Introduction & Market Context

CBRE Group Inc (NYSE:CBRE) reported strong second-quarter 2025 results on July 29, showcasing substantial growth across all business segments and prompting management to raise its full-year guidance. The real estate services giant continues to build on its momentum from the first quarter, when it also exceeded analyst expectations.

The company’s stock was trading up 0.3% in premarket activity at $147.00, approaching its 52-week high of $148.50, as investors responded positively to the results and improved outlook.

Quarterly Performance Highlights

CBRE delivered impressive financial results for Q2 2025, with revenue increasing 16% year-over-year to $9.75 billion and adjusted net revenue rising 14% to $5.67 billion. The company reported particularly strong growth in profitability metrics, with GAAP net income surging 65% to $215 million and core earnings per share jumping 47% to $1.19.

As shown in the following consolidated results summary:

Core EBITDA, a key measure of operational performance, increased 30% year-over-year to $658 million. This robust performance was driven by growth across all business segments, with the company’s resilient businesses showing 17% revenue growth.

"We expect a new earnings peak this year," the company noted in its presentation, highlighting confidence in its business trajectory despite broader market uncertainties.

Segment Performance Analysis

CBRE’s Advisory Services segment demonstrated strong performance with revenue growth of 14% year-over-year. Global leasing revenue increased by 13%, led by 15% growth in U.S. leasing, while global property sales rose 19%. Segment operating profit grew by an impressive 31%.

The following chart illustrates the Advisory Services performance:

The Building Operations & Experience segment also delivered strong results with revenue growth of 18% compared to Q2 2024. Both property management and facilities management contributed to this growth, with segment operating profit increasing to $261 million from $213 million in the prior year.

Project Management continued its positive trajectory with 13% revenue growth and segment operating profit increasing from $102 million to $121 million year-over-year.

The Real Estate Investments segment showed mixed results with total revenue declining slightly to $215 million from $232 million in Q2 2024. However, segment operating profit more than doubled to $25 million from $10 million, driven by growth in recurring asset management fees.

Financial Position and Capital Allocation

CBRE maintained a strong financial position while continuing to invest in growth. The company expects to generate over $1.5 billion in free cash flow for the full year 2025, with free cash flow conversion within its long-term target range of 75-85%.

The following chart shows CBRE’s historical free cash flow and net leverage:

Net leverage increased to 1.5x as of Q2 2025, up from 0.9x at the end of 2024, but the company expects to end the year at or under its target of approximately 1.0x. CBRE has also strengthened its liquidity position to $4.7 billion through a bond offering and expanded credit facility.

"We’ve meaningfully increased the resilience of our business," CFO Emma Giamartino had noted during the Q1 earnings call, a statement that continues to be supported by the Q2 results.

Updated Guidance and Outlook

Based on its strong first-half performance, CBRE has raised its 2025 core EPS guidance to a range of $6.10-$6.20, up from the previous guidance of $5.80-$6.10 provided during the Q1 earnings call.

The updated segment-specific guidance shows confidence across all business lines:

For Advisory Services, CBRE expects low double-digit growth in leasing revenue and a steady but muted recovery in Capital Markets revenue, resulting in mid to high-teens segment operating profit growth.

Building Operations & Experience is projected to deliver mid-teens revenue growth and approximately 20% segment operating profit growth, while Project Management is expected to achieve low to mid-teens segment operating profit growth.

The company also noted that its full-year forecast is based on constant currency, and core EPS would increase by at least $0.10 based on today’s forward foreign exchange curves.

CBRE’s strong Q2 2025 performance and raised guidance demonstrate the company’s ability to execute effectively across its diversified business model, positioning it well for continued growth despite potential market uncertainties.

Full presentation:

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