CBRE beats estimates with 14% revenue growth, raises 2025 outlook

DALLAS - On Thursday, CBRE Group, Inc. (NYSE:CBRE) reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.61 beating estimates by $0.14 and revenue of $10.26 billion surpassing the consensus of $10.08 billion.

The company’s shares edged up 0.26% in pre-market trading following the announcement.

The commercial real estate services firm posted a 14% increase in revenue compared to the same period last year, reaching $10.3 billion. Adjusted EPS surged 34% YoY, while GAAP net income jumped 61% to $363 million. Core EBITDA rose 19% to $821 million.

CBRE’s resilient businesses, which include facilities management and project management, saw revenue increase 14% to $8.4 billion. Transactional businesses revenue, covering property sales and leasing, grew 13% to $1.9 billion.

"CBRE continued to produce excellent results in the third quarter. All four segments delivered strong growth and operating leverage, and we exceeded the expectations we had going into the quarter," said Bob Sulentic, CBRE’s chair and chief executive officer.

The company’s leasing revenue increased 18%, with the U.S. showing particular strength in data centers, industrial, and office sectors. Property sales revenue rose 30%, with strong performance across all regions. Project management revenue grew 20%, supported by activity with the U.K. government and data center clients.

Based on the strong performance, CBRE raised its 2025 core EPS outlook to a range of $6.25 to $6.35, up from the previous guidance of $6.10 to $6.20. At the midpoint, this represents a 24% increase for the year and would be 10% above the prior peak.

The company generated $779 million in free cash flow during the quarter and maintained a strong liquidity position of $5.2 billion, up nearly $500 million from the previous quarter.

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