Capital markets revenue growth of 27% (26% in local currency), marking third straight quarter of double-digit year-over-year growth
Leasing revenue growth of 8%, with strength across all major asset classes
Continued acceleration of Services revenue growth
Announced an additional $150.0 million term loan debt repayment
NEW YORK–(BUSINESS WIRE)–#cre–Cushman & Wakefield (NYSE: CWK) today reported financial results for the second quarter of 2025.
“Our second quarter results highlight the strong and resilient growth engine we have successfully built over the past two years. Capital markets revenue growth of 26% in the quarter underscores our solid market positioning and the early success of our expanded recruiting efforts. Leasing and Services revenue growth continued to exceed expectations as our teams consistently developed and executed compelling market opportunities for our clients. Through the first half of 2025, we achieved 95% adjusted earnings per share growth and are raising our earnings per share outlook for the full year. We also continue to focus on fortifying our balance sheet and this morning have announced an additional $150 million debt paydown,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield. “We are now starting to see the multiplier effect of our transformational work take hold: we have the right talent, right structure and right vision coming together at the right time to drive sustainable long-term growth. This is an exciting time for Cushman & Wakefield, and we look to the future with confidence and a clear commitment to always bring the best to our people, clients and shareholders.”
Second Quarter Results:
-
Revenue of $2.5 billion for the second quarter of 2025 increased 9% (8% in local currency) and service line fee revenue of $1.7 billion for the second quarter of 2025 increased 7% (7% in local currency) from the second quarter of 2024.
- Leasing revenue increased 8% (8% in local currency), with strength in the Americas and EMEA.
- Capital markets revenue increased 27% (26% in local currency), driven primarily by strong performance across all asset classes in the Americas.
- Services revenue increased 3% (3% in local currency), while organic Services revenue increased 6% (6% in local currency)(1).
- Valuation and other revenue increased 8% (6% in local currency).
-
Net income of $57.3 million for the second quarter of 2025 increased $43.8 million from the second quarter of 2024. Diluted earnings per share was $0.25 for the second quarter of 2025 compared to $0.06 for the second quarter of 2024.
- Adjusted EBITDA of $161.7 million increased 16% (15% in local currency) from the second quarter of 2024. Adjusted EBITDA margin of 9.5% improved 75 basis points from the second quarter of 2024.
- Adjusted diluted earnings per share of $0.30 was up 10 cents from the second quarter of 2024.
- In June 2025, we elected to prepay $25.0 million in principal outstanding under the Company’s term loans due in 2030, which brought our year-to-date principal prepayments through June 30, 2025 to $50.0 million.
Year-to-Date Results:
-
Revenue of $4.8 billion for the first half of 2025 increased 7% (7% in local currency) and service line fee revenue of $3.2 billion for the first half of 2025 increased 5% (5% in local currency) from the first half of 2024.
- Leasing revenue increased 8% (8% in local currency), driven primarily by office and industrial leasing in the Americas.
- Capital markets revenue increased 20% (19% in local currency), with strong performance across all segments.
- Services revenue increased 1% (2% in local currency), while organic Services revenue increased 4% (5% in local currency)(1).
- Valuation and other revenue increased 4% (4% in local currency).
-
Net income of $59.2 million for the first half of 2025 improved $74.5 million compared to a net loss of $15.3 million for the first half of 2024. Diluted earnings per share for the first half of 2025 was $0.25 compared to a diluted loss per share of $0.07 for the first half of 2024.
- Adjusted EBITDA of $257.9 million increased 19% (18% in local currency) from the first half of 2024. Adjusted EBITDA margin of 8.0% improved 92 basis points from the first half of 2024.
- Adjusted diluted earnings per share of $0.39 was up 19 cents from the first half of 2024.
- Liquidity as of June 30, 2025 was $1.7 billion, consisting of availability on the Company’s undrawn revolving credit facility of $1.1 billion and cash and cash equivalents of $0.6 billion.
| (1) “Organic” services revenue excludes the impact of the sale of a non-core Services business in August 2024, which accounted for $25.2 million and $51.3 million of Services revenue in the three and six months ended June 30, 2024, respectively. |
|
Consolidated Results (unaudited) |
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|
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|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
(in millions, except per share data) |
|
2025 |
|
|
2024 |
|
% Change in USD |
% Change in Local Currency(5) |
|
|
2025 |
|
|
2024 |
|
% Change in USD |
% Change in Local Currency(5) |
||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Services |
$ |
890.2 |
|
$ |
864.5 |
|
3 |
% |
3 |
% |
|
$ |
1,756.8 |
|
$ |
1,735.6 |
|
1 |
% |
2 |
% |
|
Leasing |
|
486.9 |
|
|
450.3 |
|
8 |
% |
8 |
% |
|
|
899.5 |
|
|
832.0 |
|
8 |
% |
8 |
% |
|
Capital markets |
|
207.0 |
|
|
163.2 |
|
27 |
% |
26 |
% |
|
|
364.5 |
|
|
304.8 |
|
20 |
% |
19 |
% |
|
Valuation and other |
|
114.2 |
|
|
105.7 |
|
8 |
% |
6 |
% |
|
|
218.2 |
|
|
208.9 |
|
4 |
% |
4 |
% |
|
Total service line fee revenue(1) |
|
1,698.3 |
|
|
1,583.7 |
|
7 |
% |
7 |
% |
|
|
3,239.0 |
|
|
3,081.3 |
|
5 |
% |
5 |
% |
|
Gross contract reimbursables(2) |
|
785.6 |
|
|
704.3 |
|
12 |
% |
12 |
% |
|
|
1,529.5 |
|
|
1,391.5 |
|
10 |
% |
10 |
% |
|
Total revenue |
$ |
2,483.9 |
|
$ |
2,288.0 |
|
9 |
% |
8 |
% |
|
$ |
4,768.5 |
|
$ |
4,472.8 |
|
7 |
% |
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Cost of services provided to clients |
$ |
1,231.0 |
|
$ |
1,170.5 |
|
5 |
% |
4 |
% |
|
$ |
2,387.4 |
|
$ |
2,315.8 |
|
3 |
% |
3 |
% |
|
Cost of gross contract reimbursables |
|
785.6 |
|
|
704.3 |
|
12 |
% |
12 |
% |
|
|
1,529.5 |
|
|
1,391.5 |
|
10 |
% |
10 |
% |
|
Total costs of services |
|
2,016.6 |
|
|
1,874.8 |
|
8 |
% |
7 |
% |
|
|
3,916.9 |
|
|
3,707.3 |
|
6 |
% |
6 |
% |
|
Operating, administrative and other |
|
318.3 |
|
|
294.2 |
|
8 |
% |
10 |
% |
|
|
624.1 |
|
|
590.2 |
|
6 |
% |
7 |
% |
|
Depreciation and amortization |
|
26.2 |
|
|
31.2 |
|
(16 |
)% |
(17 |
)% |
|
|
52.9 |
|
|
63.7 |
|
(17 |
)% |
(17 |
)% |
|
Restructuring, impairment and related charges |
|
— |
|
|
17.4 |
|
(100 |
)% |
(100 |
)% |
|
|
6.5 |
|
|
22.4 |
|
(71 |
)% |
(71 |
)% |
|
Total costs and expenses |
|
2,361.1 |
|
|
2,217.6 |
|
6 |
% |
6 |
% |
|
|
4,600.4 |
|
|
4,383.6 |
|
5 |
% |
5 |
% |
|
Operating income |
|
122.8 |
|
|
70.4 |
|
74 |
% |
74 |
% |
|
|
168.1 |
|
|
89.2 |
|
88 |
% |
85 |
% |
|
Interest expense, net of interest income |
|
(53.2 |
) |
|
(60.8 |
) |
(13 |
)% |
(13 |
)% |
|
|
(105.5 |
) |
|
(119.5 |
) |
(12 |
)% |
(12 |
)% |
|
Earnings from equity method investments |
|
0.2 |
|
|
4.3 |
|
(95 |
)% |
(96 |
)% |
|
|
11.3 |
|
|
16.0 |
|
(29 |
)% |
(29 |
)% |
|
Other income, net |
|
6.4 |
|
|
3.3 |
|
94 |
% |
85 |
% |
|
|
7.3 |
|
|
5.0 |
|
46 |
% |
42 |
% |
|
Earnings (loss) before income taxes |
|
76.2 |
|
|
17.2 |
|
n.m. |
n.m. |
|
|
81.2 |
|
|
(9.3 |
) |
n.m. |
n.m. |
||||
|
Provision for income taxes |
|
18.9 |
|
|
3.7 |
|
n.m. |
n.m. |
|
|
22.0 |
|
|
6.0 |
|
n.m. |
n.m. |
||||
|
Net income (loss) |
$ |
57.3 |
|
$ |
13.5 |
|
n.m. |
n.m. |
|
$ |
59.2 |
|
$ |
(15.3 |
) |
n.m. |
n.m. |
||||
|
Net income (loss) margin |
|
2.3 |
% |
|
0.6 |
% |
|
|
|
|
1.2 |
% |
|
(0.3 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted EBITDA(3) |
$ |
161.7 |
|
$ |
138.9 |
|
16 |
% |
15 |
% |
|
$ |
257.9 |
|
$ |
217.0 |
|
19 |
% |
18 |
% |
|
Adjusted EBITDA margin(3) |
|
9.5 |
% |
|
8.8 |
% |
|
|
|
|
8.0 |
% |
|
7.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted net income(3) |
$ |
69.5 |
|
$ |
45.7 |
|
35 |
% |
|
|
$ |
90.0 |
|
$ |
46.3 |
|
77 |
% |
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted average shares outstanding, basic |
|
231.4 |
|
|
229.0 |
|
|
|
|
|
230.9 |
|
|
228.5 |
|
|
|
||||
|
Weighted average shares outstanding, diluted(4) |
|
232.4 |
|
|
231.5 |
|
|
|
|
|
232.4 |
|
|
231.3 |
|
|
|
||||
|
Earnings (loss) per share, basic |
$ |
0.25 |
|
$ |
0.06 |
|
|
|
|
$ |
0.26 |
|
$ |
(0.07 |
) |
|
|
||||
|
Earnings (loss) per share, diluted |
$ |
0.25 |
|
$ |
0.06 |
|
|
|
|
$ |
0.25 |
|
$ |
(0.07 |
) |
|
|
||||
|
Adjusted earnings per share, diluted(3)(4) |
$ |
0.30 |
|
$ |
0.20 |
|
|
|
|
$ |
0.39 |
|
$ |
0.20 |
|
|
|
||||
|
n.m. not meaningful |
|||||||||||||||||||||
|
(1) Service line fee revenue represents revenue for fees generated from each of our service lines. |
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|
(2) Gross contract reimbursables reflects revenue from clients which have substantially no margin. |
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|
(3) See the end of this press release for reconciliations of (i) Net income (loss) to Adjusted EBITDA and (ii) Net income (loss) to Adjusted net income and for explanations of the calculation of Adjusted EBITDA margin and Adjusted earnings per share, diluted. See also the definition of, and a description of the purposes for which management uses, these non-GAAP financial measures under the “Use of Non-GAAP Financial Measures” section in this press release. |
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|
(4) For all periods with a GAAP net loss, weighted average shares outstanding, diluted is only used to calculate Adjusted earnings per share, diluted. For all periods with a GAAP net loss, all potentially dilutive shares would be anti-dilutive; therefore, both basic and diluted loss per share are calculated using weighted average shares outstanding, basic. |
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|
(5) In order to assist our investors and improve comparability of results, we present the period-over-period changes in certain of our non-GAAP financial measures, such as Adjusted EBITDA, in “local” currency. The local currency change represents the period-over-period change assuming no movement in foreign exchange rates from the prior period. We believe that this presentation provides our management and investors with a better view of comparability and trends in the underlying operating business. |
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Second Quarter Results (unaudited)
Revenue
Revenue of $2.5 billion increased $195.9 million or 9% compared to the three months ended June 30, 2024, driven by broad strength across all segments and service lines. Capital markets revenue increased 27%, primarily driven by strong performance across all asset classes in the Americas, and as healthy fundamentals, such as improved debt availability and asset pricing corrections, supported a resilient transaction environment across most major markets. Leasing revenue increased 8%, principally due to strength in the office and industrial sectors in the Americas, including a relatively higher number of large transactions, and strength in EMEA. Services revenue increased 3%, primarily driven by higher facilities services and project management revenue, partially offset by the sale of a non-core Services business in August 2024, which accounted for $25.2 million and $20.5 million of facilities management and Gross contract reimbursables revenue, respectively, in the three months ended June 30, 2024. Excluding the impact of this sale, Services and Gross contract reimbursables revenue increased 6% and 15%, respectively, and total revenue increased 11%. In addition, Valuation and other revenue increased 8%.
Costs of services
Costs of services of $2.0 billion increased $141.8 million or 8% compared to the three months ended June 30, 2024, principally driven by an increase in employment costs of approximately $100.0 million, including higher commissions as a result of higher brokerage revenue, as well as an increase in third-party consumables and sub-contractor costs of approximately $46.0 million. Cost of services provided to clients increased 5% and Cost of gross contract reimbursables increased 12%.
Operating, administrative and other
Operating, administrative and other expenses of $318.3 million increased $24.1 million or 8% compared to the three months ended June 30, 2024, primarily driven by an increase in employment costs of approximately $19.0 million, including an increase in stock-based compensation expense as a result of the modification of our non-executive chairman’s awards in 2024 (which reduced expense in the prior year period), as well as strategic investments and cost inflation.
Restructuring, impairment and related charges
The Company did not incur any Restructuring, impairment and related charges during the second quarter of 2025. In the second quarter of 2024, Restructuring, impairment and related charges of $17.4 million were primarily driven by a $12.5 million loss on disposition related to the sale of a non-core Services business in the Americas.
Interest expense, net of interest income
Interest expense of $53.2 million decreased $7.6 million or 13% compared to the three months ended June 30, 2024, primarily driven by lower outstanding principal balances on our term loans following optional principal prepayments made in 2024 and 2025, as well as lower interest rates on our term loans compared to the prior year period as a result of our repricings in 2024 and 2025.
Earnings from equity method investments
Earnings from equity method investments of $0.2 million decreased $4.1 million compared to the three months ended June 30, 2024, primarily due to a decline of $4.1 million in earnings recognized from our equity method investment in Cushman Wakefield Greystone LLC (the “Greystone JV”) driven by changes in mix of mortgage loan origination volumes compared to the second quarter of 2024, contributing to a lower value of mortgage servicing rights (“MSRs”), and higher provisions for credit losses for mortgage loans due to expected losses on specific loans, loan repurchases and higher risk-sharing obligations. Changes in expectations and forecasts may materially impact the provision for credit losses in the future.
Provision for income taxes
Provision for income taxes for the second quarter of 2025 was $18.9 million on earnings before income taxes of $76.2 million. For the second quarter of 2024, the provision for income taxes was $3.7 million on earnings before income taxes of $17.2 million. The increase in income tax expense compared to the three months ended June 30, 2024 was primarily driven by higher earnings before income taxes, predominately in the U.S. which improved by approximately $37.0 million from the second quarter of 2024, as well as changes in the jurisdictional mix of those earnings resulting in lower non-deductible losses when compared to the same period in 2024.
Net income and Adjusted EBITDA
Net income of $57.3 million for the three months ended June 30, 2025 increased by $43.8 million compared to the three months ended June 30, 2024. Net income margin was 2.3% compared to 0.6% for the three months ended June 30, 2024. The $43.8 million increase in net income was principally driven by growth in our Services, Leasing and Capital markets service lines, as well as the impact of our cost savings initiatives, lower interest expense and lower depreciation and amortization expense. Additionally, the loss on disposition recorded in the second quarter of 2024 contributed to the increase from the prior year period. These favorable trends were partially offset by higher stock-based compensation expense, strategic investments, cost inflation and lower earnings recognized from the Greystone JV.
Adjusted EBITDA of $161.7 million increased $22.8 million or 16% compared to the three months ended June 30, 2024, driven by the same factors impacting Net income above, with the exception of the loss on disposition, interest expense, depreciation and amortization expense and the impact of the Greystone JV. Adjusted EBITDA margin, measured against service line fee revenue, was 9.5% for the three months ended June 30, 2025, an increase of 75 basis points from the second quarter of 2024.
Year-to-Date Results (unaudited)
Revenue
Revenue of $4.8 billion increased $295.7 million or 7% compared to the six months ended June 30, 2024, primarily driven by Capital markets and Leasing revenue growth of 20% and 8%, respectively. Capital markets revenue was strong across all segments as improved debt availability and built-up demand continued to positively impact investment sales activity in the first half of 2025, led by the Americas. Leasing revenue increased primarily due to office and industrial leasing in the Americas, including a relatively higher number of large transactions. Services revenue increased 1% compared to the six months ended June 30, 2024, primarily driven by higher facilities services and property management revenue, partially offset by the sale of a non-core Services business in August 2024, which accounted for $51.3 million and $39.0 million of facilities management and Gross contract reimbursables revenue, respectively, in the six months ended June 30, 2024. Excluding the impact of this sale, Services and Gross contract reimbursables revenue increased 4% and 13%, respectively, and total revenue increased 9%. In addition, Valuation and other revenue increased 4%.
Costs of services
Costs of services of $3.9 billion increased $209.6 million or 6% compared to the six months ended June 30, 2024, principally driven by an increase in employment costs of approximately $160.0 million, including higher commissions as a result of higher brokerage revenue and higher reimbursed employee costs as a result of higher Services revenue, as well as an increase in third-party consumables and sub-contractor costs of approximately $57.0 million. Cost of services provided to clients increased 3% and Cost of gross contract reimbursables increased 10%. Total costs of services as a percentage of total revenue was 82% for the six months ended June 30, 2025 compared to 83% for the six months ended June 30, 2024.
Operating, administrative and other
Operating, administrative and other expenses of $624.1 million increased $33.9 million or 6% compared to the six months ended June 30, 2024, driven by an approximately $26.0 million increase in employment costs, including an increase in stock-based compensation expense attributable to improved vesting expectations for certain previously granted performance-based equity awards and the modification of our non-executive chairman’s awards in 2024 (which reduced expense in the prior year period), as well as strategic investments and cost inflation. Operating, administrative and other expenses as a percentage of total revenue was 13% for both the six months ended June 30, 2025 and 2024.
Restructuring, impairment and related charges
Restructuring, impairment and related charges of $6.5 million decreased $15.9 million compared to the six months ended June 30, 2024, primarily driven by a $12.5 million loss on disposition recognized in the second quarter of 2024, as well as a decrease in severance costs of approximately $8.0 million associated with previous cost saving initiatives. These declines were partially offset by an impairment loss on real estate investments of $6.5 million recognized in the first quarter of 2025.
Interest expense, net of interest income
Interest expense of $105.5 million decreased $14.0 million or 12% compared to the six months ended June 30, 2024, primarily driven by lower outstanding principal balances on our term loans following optional principal prepayments made in 2024 and 2025, as well as lower interest rates on our term loans compared to the prior year period as a result of our repricings in 2024 and 2025.
Earnings from equity method investments
Earnings from equity method investments of $11.3 million decreased $4.7 million or 29% compared to the six months ended June 30, 2024, primarily due to a decline of $7.1 million in earnings recognized from our equity method investment in the Greystone JV driven by changes in mix of mortgage loan origination volumes compared to the second quarter of 2024, contributing to a lower value of MSRs, and higher provisions for credit losses for mortgage loans due to expected losses on specific loans, loan repurchases and higher risk-sharing obligations. Changes in expectations and forecasts may materially impact the provision for credit losses in the future. The decline in earnings recognized from the Greystone JV was partially offset by a $3.2 million increase in earnings recognized from our equity method investment in CWVS Holding Limited (the Onewo JV) as a result of increased scope of services contracts.
Provision for income taxes
Provision for income taxes for the six months ended June 30, 2025 was $22.0 million on earnings before income taxes of $81.2 million. For the six months ended June 30, 2024, the provision for income taxes was $6.0 million on a loss before income taxes of $9.3 million. The increase in income tax expense compared to the first half of 2024 was primarily driven by the improvement from loss before income taxes to earnings before income taxes, predominately in the U.S. which improved by approximately $89.0 million from the six months ended June 30, 2024, as well as changes in the jurisdictional mix of those earnings resulting in lower non-deductible losses when compared to the same period in 2024.
Net income (loss) and Adjusted EBITDA
Net income was $59.2 million for the six months ended June 30, 2025 compared to a net loss of $15.3 million for the six months ended June 30, 2024. Net income margin was 1.2% compared to a net loss margin of 0.3% for the six months ended June 30, 2024. The $74.5 million improvement in net income was principally driven by growth in our Capital markets and Leasing service lines, as well as the impact of our cost savings initiatives, lower interest expense and lower depreciation and amortization expense. These favorable trends were partially offset by higher stock-based compensation expense, strategic investments, cost inflation and lower earnings recognized from the Greystone JV.
Adjusted EBITDA of $257.9 million increased $40.9 million or 19% compared to the six months ended June 30, 2024, driven by the same factors impacting Net income above, with the exception of interest expense, depreciation and amortization expense and the impact of the Greystone JV. Adjusted EBITDA margin, measured against service line fee revenue, was 8.0% for the six months ended June 30, 2025, an increase of 92 basis points from the six months ended June 30, 2024.
Balance Sheet
Liquidity at the end of the second quarter was $1.7 billion, consisting of availability on the Company’s undrawn revolving credit facility of $1.1 billion and cash and cash equivalents of $0.6 billion.
Net debt as of June 30, 2025 was $2.3 billion reflecting the Company’s outstanding term loans of $1.9 billion and senior secured notes totaling $1.0 billion, net of cash and cash equivalents of $0.6 billion. See the “Use of Non-GAAP Financial Measures” section in this press release for the definition of, and a description of the purposes for which management uses, this non-GAAP financial measure.
In July 2025, we repriced $947.5 million in aggregate principal of the Company’s term loans due in 2030, reducing the applicable interest rate by 50 basis points to 1-month Term SOFR plus 2.75%.
Today, we prepaid an additional $150.0 million in principal outstanding under the Company’s term loans due in 2030, using cash on hand, which brought our year-to-date principal prepayments to $200.0 million.
Conference Call
The Company’s Second Quarter 2025 Earnings Conference Call will be held today, August 5, 2025, at 9:00 a.m. Eastern Time. A webcast, along with an associated slide presentation, will be accessible through the Investor Relations section of the Company’s website at https://ir.cushmanwakefield.com.
The direct dial-in number for the conference call is 1-833-821-5374 for U.S. callers and 1-412-652-1260 for international callers. An audio replay of the call will be available approximately two hours after the conference call by accessing the Company’s Investor Relations website at https://ir.cushmanwakefield.com. A transcript of the call will also be available on the Company’s Investor Relations website at https://ir.cushmanwakefield.com.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
Cautionary Note on Forward-Looking Statements
All statements in this release other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events.
Contacts
INVESTOR RELATIONS
Megan McGrath
Investor Relations
+1 312 338 7860
[email protected]
MEDIA CONTACT
Aixa Velez
Corporate Communications
+1 312 424 8195
[email protected]
