Cushman & Wakefield Q2 2025 slides: Capital Markets surge 26%, EPS guidance raised

Cushman & Wakefield plc (NYSE:CWK) reported strong second-quarter results on August 5, 2025, with significant growth across all business segments and substantial improvements in profitability metrics. The company’s presentation revealed robust performance in its transactional businesses and prompted management to raise full-year guidance.

Quarterly Performance Highlights

Cushman & Wakefield delivered $1.7 billion in fee revenue for Q2 2025, representing a 7% increase compared to the same period last year. This growth was driven by strong performances across all service lines, with Capital Markets leading the way at 26% growth, followed by Leasing at 8% and Services at 3%.

The company’s adjusted EBITDA reached $162 million, up 15% year-over-year, while adjusted EBITDA margin expanded by 75 basis points to 9.5%. Adjusted earnings per share jumped 50% to $0.30, marking the fourth consecutive quarter of year-over-year growth.

As shown in the following comprehensive business update:

Following the earnings announcement, Cushman & Wakefield’s stock rose by 5.4% to $12.99 during regular trading hours, after gaining 3.08% in pre-market trading. The stock has traded between $7.64 and $16.11 over the past 52 weeks.

Detailed Financial Analysis

The company’s fee revenue growth was broad-based across all regions and most service lines. The breakdown by segment shows the Americas contributing $1.2 billion (up 7%), EMEA delivering $224 million (up 9%), and APAC generating $270 million (up 3%).

By service line, Capital Markets showed the strongest recovery with 26% growth, while Leasing continued its steady improvement with 8% growth. The Services business, which provides more stable recurring revenue, grew by 3% overall, with organic growth of 6%.

The following chart illustrates the company’s fee revenue breakdown by segment and service line:

In the Americas region, which accounts for approximately 71% of total fee revenue, all service lines showed growth. Leasing revenue increased by 9%, driven by strong performance across all asset classes, particularly office and industrial. Capital Markets revenue surged by 30%, supported by growth in all asset classes and deal sizes.

The Americas segment details are shown here:

The EMEA region delivered particularly strong results, with fee revenue up 9% and adjusted EBITDA more than doubling with a 133% increase. The adjusted EBITDA margin in EMEA expanded significantly from 6.8% to 14.4%, reflecting improved operational leverage and strong performance in Germany and Spain.

The following chart details EMEA’s performance:

Capital Structure & Debt Reduction

Cushman & Wakefield continued its focus on strengthening its balance sheet during the quarter. The company repaid an additional $25 million in term loan debt during Q2 and, subsequent to quarter-end, paid down an additional $150 million of term loan debt maturing in 2030. Additionally, the company successfully repriced approximately $950 million of term loan debt, reducing the applicable interest rate by 50 basis points.

The net debt to adjusted EBITDA ratio improved to 3.7x for the twelve months ended June 30, 2025, compared to 4.3x at the end of 2023. Liquidity remained strong at $1.7 billion, consisting of $618 million in cash and $1.1 billion in undrawn revolving credit facility availability.

The company’s debt reduction progress and maturity profile are illustrated in this chart:

Revised 2025 Outlook

Based on the strong first-half performance, Cushman & Wakefield significantly upgraded its full-year guidance. The company now expects Leasing revenue growth of 6-8% (up from mid-single-digits previously) and Capital Markets revenue growth in the mid-teens (improved from "better than 2024’s +4%").

Most notably, the company raised its adjusted EPS growth guidance to 25-35%, a substantial increase from its previous guidance of "improved growth vs. 2024’s +8%." This reflects management’s confidence in continued momentum across its business segments and ongoing margin expansion.

The updated guidance is detailed in the following table:

Executive Commentary

CEO Michele McKay emphasized the company’s transformation during the earnings call, stating, "We have rebuilt the company from the inside out, and now you will see us take flight." McKay also highlighted the resilience of business leaders, noting, "Leaders of companies are navigating their businesses through market noise and volatility."

The strong quarterly results and improved outlook suggest that Cushman & Wakefield’s strategic initiatives are gaining traction despite ongoing macroeconomic uncertainties. The company’s ability to grow revenue across all segments while expanding margins demonstrates effective execution of its business strategy.

During the Q&A session, executives addressed analyst questions about the strength of the industrial sector and office leasing trends. Management assured that the industrial sector remains robust and noted that office leasing is expanding beyond trophy properties. They also highlighted broad-based recruitment efforts as part of their talent expansion strategy.

With four consecutive quarters of year-over-year EPS growth and significant deleveraging progress, Cushman & Wakefield appears well-positioned to capitalize on improving commercial real estate market conditions through the remainder of 2025.

Full presentation:

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