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CBRE Group, Inc. Reports Financial Results for Q1 2026April 23, 2026 6:55 AM
Business Wire
CBRE Group, Inc. (NYSE: CBRE) today reported financial results for the first quarter ended March 31, 2026.
Key Highlights:
GAAP EPS up 98% to $1.07 and Core EPS up 81% to $1.61
Revenue up 19% to $10.5 billion
Resilient Businesses(1) revenue up 18%
Transactional Businesses(1) revenue up 22%
Cash flow from operations of nearly $1.3 billion and free cash flow of nearly $1.7 billion on a trailing 12-month basis
2026 core EPS outlook raised to $7.60 to $7.80 from $7.30 to $7.60, reflecting more than 20% growth at midpoint of new range
“CBRE continued to generate strong financial results while making important strategic gains during the first quarter of 2026. Together, our three services segments – Advisory, Building Operations & Experience and Project Management – grew revenue by 20% and operating profit by nearly 30%. Additionally, profits from our data center land development program were delivered earlier in the year than anticipated,” said Bob Sulentic, CBRE’s chair and chief executive officer.
“We had strong growth from both our Resilient and Transactional Businesses during the quarter. Notably, our work related to infrastructure assets, consisting of the services we perform for data centers as well as power, telecom and transportation assets, among others, has become a source of significant profits and growth spanning all four business segments,” Mr. Sulentic added.
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
% Change
Q1 2026
Q1 2025
USD
LC (2)
Operating Results
Revenue
$
10,527
$
8,875
18.6
%
14.6
%
Pass-through costs (3)
4,448
3,798
17.1
%
13.0
%
GAAP net income
318
163
95.1
%
92.6
%
Core adjusted net income (4)
478
269
77.7
%
74.3
%
GAAP EPS
1.07
0.54
98.1
%
98.1
%
Core EPS (4)
1.61
0.89
80.9
%
78.7
%
Core EBITDA (5)
831
518
60.4
%
56.4
%
Cash Flow Results
Cash flow used in operations
$
(825
)
$
(546
)
51.1
%
Gain on disposition of real estate
301
—
NM
Less: Capital expenditures
81
64
26.6
%
Free cash flow (6)
$
(605
)
$
(610
)
0.8
%
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions):
% Change
Q1 2026
Q1 2025
USD
LC
Revenue
$
2,024
$
1,659
22.0
%
19.2
%
Pass-through costs
8
12
(33.3
)%
(33.3
)%
Segment operating profit (7)
375
279
34.4
%
34.9
%
Revenue and segment operating profit increased by 22% (19% local currency) and 34% (35% local currency), respectively.
Global leasing revenue increased 20% (18% local currency) and was strong around the world. Asia-Pacific (APAC) was up 24% (22% local currency), led by Japan. In the U.S., leasing revenue rose 21%, driven by industrial, office and data centers.
Global property sales revenue increased 43% (39% local currency). The U.S. was up 64% as all major property types posted double-digit increases. APAC saw growth of 29% (26% local currency), paced by Japan.
Mortgage origination revenue rose 53% (same local currency) fueled by strong volumes from debt funds, and government-sponsored enterprises.
The loan servicing portfolio increased 5% for the quarter to more than $460 billion. Loan servicing revenue reflected a decline in escrow income tied to lower average interest rates, which masked underlying growth in the business.
Valuations revenue rose 9% (4% local currency), with double-digit growth in the U.S.
Building Operations & Experience (BOE) Segment
The following table presents highlights of the BOE segment performance (dollars in millions):
% Change
Q1 2026
Q1 2025
USD
LC
Revenue
$
6,491
$
5,393
20.4
%
16.0
%
Pass-through costs
3,513
2,959
18.7
%
14.3
%
Segment operating profit
280
218
28.4
%
22.5
%
Revenue and segment operating profit increased by 20% (16% local currency) and 28% (23% local currency), respectively.
Facilities management revenue rose 17% (13% local currency). Local facilities management produced mid-teens revenue growth with strength across all global regions, led by the Americas. Enterprise facilities management revenue also grew by double digits, led by the technology, industrial and life sciences sectors.
Critical infrastructure services revenue increased 71% (65% local currency), including strong growth from Data Center Solutions and contributions from Pearce Services, acquired in November 2025.
Property management revenue rose 17% (14% local currency), aided by Industrious’ continued strong growth.
Operating leverage was driven by the reclassification of costs associated with leases for fleet vehicles from cost of services to depreciation and amortization.
Project Management Segment
The following table presents highlights of the Project Management segment performance (dollars in millions):
% Change
Q1 2026
Q1 2025
USD
LC
Revenue
$
1,838
$
1,594
15.3
%
11.0
%
Pass-through costs
927
827
12.1
%
9.1
%
Segment operating profit
135
112
20.5
%
14.4
%
Revenue and segment operating profit increased by 15% (11% local currency), and 21% (14% local currency), respectively.
Growth was underpinned by strong infrastructure activity. Among real estate projects, growth was driven by the technology sector and was broad based, led by double-digit growth in Asia, the U.K. and the U.S.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
% Change
Q1 2026
Q1 2025
USD
LC
Revenue
$
199
$
233
(14.6
)%
(19.0
)%
Segment operating profit
180
25
620.0
%
616.0
%
Real Estate Development
Operating profit(8) exceeded expectations, totaling $145 million. The outperformance was driven by earlier-than-anticipated profits from the data center land program.
The portfolio of in-process projects and pipeline stood at $29.6 billion at the end of the first quarter.
Investment Management
Recurring asset management fees increased, reflecting higher net asset values. However, overall revenue was flat (down 6% local currency) due to sharply lower incentive fees compared with first-quarter 2025.
The absence of significant incentive fees and promote income resulted in lower operating profit(8) than in last year’s first quarter.
Assets under management (AUM) ended the first quarter at more than $155 billion, in line with the prior quarter’s level.
Core Corporate Segment
Core corporate operating loss increased by approximately $23 million for the quarter, driven by higher incentive compensation related to the company’s strong performance in 2025 as well as a change in the timing of certain expense recognition.
Capital Allocation Overview
Free Cash Flow – Free cash flow totaled nearly $1.7 billion for the 12 months ended March 31, 2026.
Stock Repurchase Program – Year-to-date (as of April 21), the company has repurchased nearly $540 million worth of shares.
Acquisitions and Investments – The company did not make any acquisitions during the first quarter.
Leverage and Financing Overview
Leverage – CBRE’s net leverage ratio (net debt(9) to trailing twelve-month core EBITDA) was 1.54x as of March 31, 2026, substantially below the company’s primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):
As of
March 31, 2026
Total debt
$
7,013
Less: Cash and cash equivalents
1,664
Net debt (9)
$
5,349
Divided by: Trailing twelve-month Core EBITDA
$
3,470
Net leverage ratio
1.54x
Liquidity – At the end of the first quarter, the company had approximately $4.4 billion of total liquidity.
Conference Call Details
The company’s first quarter earnings webcast and conference call will be held today, Thursday, April 23, 2026 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on April 23, 2026. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13759393#. A transcript of the call will be available on the company’s Investor Relations website at https://ir.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the economic outlook, the company’s future growth momentum, operations and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments; cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in economic or commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in supply/demand and capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new occupier and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect wholly-owned subsidiary, CBRE Capital Markets, Inc. to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our loan servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-rating downgrade; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control.
Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2025, our quarterly reports on Form 10-Q, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
The terms “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “net debt” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
Totals may not sum in tables in millions included in this release due to rounding.
Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
(1)
Resilient Businesses include facilities management, critical infrastructure services, property management, project management, loan servicing, valuations, other portfolio services and recurring investment management fees. Transactional Businesses include property sales, leasing, mortgage origination, carried interest and incentive fees in the investment management business, and development fees.
(2)
Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.
(3)
Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
(4)
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from U.S. GAAP net income and U.S. GAAP earnings per diluted share. Adjustments during the periods presented included non-cash amortization expense related to intangible assets attributable to acquisitions, interest expense related to indirect tax audits and settlements, impact of adjustments on non-controlling interest, the tax impact of adjusted items and strategic non-core investments, net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, business and finance transformation, costs associated with efficiency and cost-reduction initiatives and net fair value adjustments on strategic non-core investments.
(5)
Core EBITDA represents earnings before the portion attributable to non-controlling interests, depreciation and amortization, asset impairments, net interest expense, write-off of financing costs on extinguished debt, income taxes, further adjusted for net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, net fair value adjustments on strategic non-core investments, and provision associated with Telford’s fire safety remediation efforts.
(6)
Free cash flow is calculated as cash flow provided by operations, plus gain on sale of real estate assets, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).
(7)
Segment operating profit (SOP) is the measure reported to the chief operating decision maker (CODM) for purposes of assessing performance and allocating resources to each segment. SOP represents earnings, inclusive of non-controlling interests, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, business and finance transformation and costs associated with efficiency and cost-reduction initiatives.
(8)
Represents line of business profitability/losses, as adjusted.
(9)
Net debt is calculated as total debt (excluding non-recourse debt) less cash and cash equivalents.
CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(in millions, except share and per share data)
(Unaudited)
Three Months Ended March 31,
2026
2025
Revenue
$
10,527
$
8,875
Costs and expenses:
Cost of revenue
8,675
7,265
Operating, administrative and other
1,460
1,192
Depreciation and amortization
182
142
Total costs and expenses
10,317
8,599
Gain on disposition of real estate
301
—
Operating income
511
276
Equity (loss) income from unconsolidated subsidiaries
(9
)
16
Other income
11
1
Interest expense, net of interest income
59
50
Income before provision for income taxes
454
243
Provision for income taxes
112
52
Net income
342
191
Less: Net income attributable to non-controlling interests
24
28
Net income attributable to CBRE Group, Inc.
$
318
$
163
Basic income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.08
$
0.54
Weighted-average shares outstanding for basic income per share
294,377,494
300,288,602
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.07
$
0.54
Weighted-average shares outstanding for diluted income per share
296,987,404
302,914,671
Core EBITDA
$
831
$
518
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(in millions)
(Unaudited)
Three Months Ended March 31, 2026
Advisory
Services
Building
Operations &
Experience
Project
Management
Real Estate
Investments
Corporate(1)
Total Core
Other
Total
Consolidated
Revenue
$
2,024
$
6,491
$
1,838
$
199
$
(25
)
$
10,527
$
—
$
10,527
Costs and expenses:
Pass-through costs
8
3,513
927
—
—
4,448
—
4,448
Cost of revenue, excluding pass-through costs
1,181
2,371
651
26
(2
)
4,227
—
4,227
Operating, administrative and other
469
377
127
287
200
1,460
—
1,460
Depreciation and amortization
33
107
26
4
12
182
—
182
Gain on disposition of real estate
—
—
—
281
20
301
—
301
Operating income (loss)
333
123
107
163
(215
)
511
—
511
Equity (loss) income from unconsolidated subsidiaries
(1
)
2
—
(7
)
—
(6
)
(3
)
(9
)
Other income (loss)
1
11
—
—
1
13
(2
)
11
Add-back: Depreciation and amortization
33
107
26
4
12
182
—
182
Adjustments:
Net non-cash mortgage servicing rights
12
—
—
—
—
12
—
12
Integration and other costs related to acquisitions
—
26
2
—
41
69
—
69
Carried interest incentive compensation expense to align with the timing of associated revenue
—
—
—
1
—
1
—
1
Net results related to the wind-down of certain businesses
—
1
—
19
—
20
—
20
Business and finance transformation
2
10
—
—
20
32
—
32
Costs associated with efficiency and cost-reduction initiatives
(5
)
—
—
—
2
(3
)
—
(3
)
Total segment operating profit (loss)
$
375
$
280
$
135
$
180
$
(139
)
$
(5
)
$
826
Core EBITDA
$
831
_______________
(1)
Includes elimination of inter-segment revenue and expense.
CBRE GROUP, INC.
SEGMENT RESULTS—(CONTINUED)
FOR THE THREE MONTHS ENDED MARCH 31, 2025
(in millions)
(Unaudited)
Three Months Ended March 31, 2025
Advisory
Services
Building
Operations &
Experience
Project
Management
Real Estate
Investments
Corporate(1)
Total Core
Other
Total
Consolidated
Revenue
$
1,659
$
5,393
$
1,594
$
233
$
(4
)
$
8,875
$
—
$
8,875
Pass-through costs
12
2,959
827
—
—
3,798
—
3,798
Cost of revenue, excluding pass-through costs
955
1,922
547
47
(4
)
3,467
—
3,467
Operating, administrative and other
428
300
115
166
183
1,192
—
1,192
Depreciation and amortization
32
70
25
3
12
142
—
142
Operating income (loss)
232
142
80
17
(195
)
276
—
276
Equity income (loss) from unconsolidated subsidiaries
1
1
—
(7
)
—
(5
)
21
16
Other income (loss)
1
1
—
—
—
2
(1
)
1
Add-back: Depreciation and amortization
32
70
25
3
12
142
—
142
Adjustments:
Net non-cash mortgage servicing rights
13
—
—
—
—
13
—
13
Integration and other costs related to acquisitions
—
4
7
—
57
68
—
68
Carried interest incentive compensation expense to align with the timing of associated revenue
—
—
—
4
—
4
—
4
Charges related to indirect tax audits and settlements
—
—
—
—
(1
)
(1
)
—
(1
)
Net results related to the wind-down of certain businesses
—
—
—
6
—
6
—
6
Costs associated with efficiency and cost-reduction initiatives
—
—
—
2
11
13
—
13
Total segment operating profit (loss)
$
279
$
218
$
112
$
25
$
(116
)
$
20
$
538
Core EBITDA
$
518
_______________
(1)
Includes elimination of inter-segment revenue and expense.
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
March 31, 2026
December 31, 2025
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$
1,664
$
1,864
Restricted cash
131
150
Receivables, net
8,404
8,284
Warehouse receivables (1)
950
1,630
Contract assets
475
462
Prepaid expenses
379
372
Income taxes receivable
192
175
Other current assets
539
552
Total Current Assets
12,734
13,489
Property and equipment, net
1,040
1,049
Goodwill
7,024
7,051
Other intangible assets, net
2,915
2,972
Operating lease assets
2,064
2,062
Investments in unconsolidated subsidiaries
844
870
Non-current contract assets
101
103
Real estate under development
822
646
Non-current income taxes receivable
98
106
Deferred tax assets, net
724
697
Other assets
1,804
1,832
Total Assets
$
30,170
$
30,877
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
4,725
$
4,838
Compensation and employee benefits payable
1,623
1,630
Accrued bonus and profit sharing
1,028
1,879
Operating lease liabilities
293
284
Contract liabilities
471
448
Income taxes payable
271
258
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1)
940
1,609
Other short-term borrowings
1,922
856
Current maturities of long-term debt
70
71
Other current liabilities
410
447
Total Current Liabilities
11,753
12,320
Long-term debt, net of current maturities
5,021
5,050
Non-current operating lease liabilities
2,112
2,121
Non-current tax liabilities
196
183
Deferred tax liabilities, net
239
238
Other liabilities
1,542
1,339
Total Liabilities
20,863
21,251
Mezzanine Equity:
Redeemable non-controlling interests in consolidated entities
447
433
Equity:
CBRE Group, Inc. Stockholders’ Equity:
Class A common stock
3
3
Additional paid-in capital
—
—
Accumulated earnings
9,678
9,916
Accumulated other comprehensive loss
(1,161
)
(1,041
)
Total CBRE Group, Inc. Stockholders’ Equity
8,520
8,878
Non-controlling interests
340
315
Total Equity
8,860
9,193
Total Liabilities and Equity
$
30,170
$
30,877
_______________
(1)
Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.
CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Three Months Ended March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
342
$
191
Reconciliation of net income to net cash used in operating activities:
Depreciation and amortization
182
142
Amortization of other assets
51
48
Net non-cash mortgage servicing rights and premiums on loan sales
22
2
Deferred income taxes
—
(3
)
Stock-based compensation expense
48
21
Equity loss (income) from investments
9
(16
)
Gain on sale of real estate assets
(301
)
—
Other non-cash adjustments
16
8
Sale of mortgage loans
4,338
1,976
Origination of mortgage loans
(3,673
)
(2,599
)
Changes in:
Warehouse lines of credit
(669
)
626
Receivables, prepaid expenses and other assets
(254
)
218
Accounts payable, accrued liabilities and other liabilities
(89
)
(225
)
Accrued compensation expenses
(844
)
(859
)
Income taxes, net
(3
)
(76
)
Net cash used in operating activities
(825
)
(546
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(81
)
(64
)
Payments for business acquired, net of cash acquired
—
(303
)
Capital contributions related to investments
(17
)
(51
)
Acquisition and development of real estate assets
(165
)
(66
)
Proceeds from disposition of real estate assets
321
13
Other investing activities, net
6
9
Net cash provided by (used in) investing activities
64
(462
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of revolving credit facility
—
(132
)
Proceeds from commercial paper, net
1,066
1,421
Proceeds from long-term debt
—
585
Repayment of long-term debt
(18
)
(33
)
Repurchase of common stock
(530
)
(418
)
Other financing activities, net
27
(167
)
Net cash provided by financing activities
545
1,256
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash
(3
)
44
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(219
)
292
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD
2,014
1,221
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD
$
1,795
$
1,513
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest
$
98
$
102
Income tax payments, net
$
105
$
131
Non-cash investing and financing activities:
Deferred and/or contingent consideration
$
(2
)
$
27
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i)
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”)
(ii)
Core EBITDA
(iii)
Core EPS
(iv)
Business line operating profit/loss
(v)
Net debt
(vi)
Free cash flow
These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to core EBITDA, core EPS, core adjusted net income, and business line operating profit/loss, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings, income taxes and the accounting effects of capital spending. The presentation of core adjusted net income, excluding amortization of intangible assets acquired in business combinations, is useful to investors as a supplemental measure to evaluate the company’s ongoing operating performance. While amortization expense of acquisition-related intangible assets is excluded from core adjusted net income, the revenue generated from the acquired intangible assets is not excluded. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of core EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations and real estate investment and development activities after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company’s net leverage ratio.
With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments that are not directly related to our business segments. These can be volatile and are often non-cash in nature.
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data):
Three Months Ended March 31,
2026
2025
Net income attributable to CBRE Group, Inc.
$
318
$
163
Adjustments:
Non-cash amortization expense related to intangible assets attributable to acquisitions
58
56
Interest expense related to indirect tax audits and settlements
2
—
Impact of adjustments on non-controlling interest
—
(1
)
Net non-cash mortgage servicing rights
12
13
Integration and other costs related to acquisitions
69
68
Carried interest incentive compensation expense to align with the timing of associated revenue
1
4
Charges related to indirect tax audits and settlements
—
(1
)
Net results related to the wind-down of certain businesses
20
6
Business and finance transformation
32
—
Costs associated with efficiency and cost-reduction initiatives
(3
)
13
Net fair value adjustments on strategic non-core investments
5
(20
)
Tax impact of adjusted items and strategic non-core investments
(36
)
(32
)
Core net income attributable to CBRE Group, Inc., as adjusted
$
478
$
269
Core diluted income per share attributable to CBRE Group, Inc., as adjusted
$
1.61
$
0.89
Weighted-average shares outstanding for diluted income per share
296,987,404
302,914,671
Core EBITDA is calculated as follows (in millions):
Three Months Ended March 31,
2026
2025
Net income attributable to CBRE Group, Inc.
$
318
$
163
Net income attributable to non-controlling interests
24
28
Net income
342
191
Adjustments:
Depreciation and amortization
182
142
Interest expense, net of interest income
59
50
Provision for income taxes
112
52
Net non-cash mortgage servicing rights
12
13
Integration and other costs related to acquisitions
69
68
Carried interest incentive compensation expense to align with the timing of associated revenue
1
4
Charges related to indirect tax audits and settlements
—
(1
)
Net results related to the wind-down of certain businesses
20
6
Business and finance transformation
32
—
Costs associated with efficiency and cost-reduction initiatives
(3
)
13
Net fair value adjustments on strategic non-core investments
5
(20
)
Core EBITDA
$
831
$
518
Core EBITDA for the trailing twelve months ended March 31, 2026 is calculated as follows (in millions):
Trailing
Twelve Months Ended
March 31, 2026
Net income attributable to CBRE Group, Inc.
$
1,312
Net income attributable to non-controlling interests
116
Net income
1,428
Adjustments:
Depreciation and amortization
623
Interest expense, net of interest income
225
Write-off of financing costs on extinguished debt
2
Provision for income taxes
377
Net non-cash mortgage servicing rights
(6
)
Integration and other costs related to acquisitions
304
Carried interest incentive compensation expense to align with the timing of associated revenue
7
Net results related to the wind-down of certain businesses
88
Impact of fair value non-cash adjustments related to unconsolidated equity investments
2
Business and finance transformation
133
Non-cash pension buy-out settlement loss
147
Costs associated with efficiency and cost-reduction initiatives
(16
)
Provision associated with Telford’s fire safety remediation efforts
132
Net fair value adjustments on strategic non-core investments
24
Core EBITDA
$
3,470
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions):
Three Months Ended March 31,
Real Estate Investments
2026
2025
Investment management operating profit
$
36
$
52
Global real estate development operating profit (loss)
145
(25
)
Segment overhead (and related adjustments)
(1
)
(2
)
Real estate investments segment operating profit
$
180
$
25
Below represents a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended March 31, 2026 (in millions):
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Trailing
Twelve Months
Cash Flow Results
Cash flow provided by (used in) operations
$
57
$
827
$
1,221
$
(825
)
$
1,280
Gains on disposition of real estate sales
19
36
404
301
760
Less: Capital expenditures
74
84
144
81
383
Free cash flow
$
2
$
779
$
1,481
$
(605
)
$
1,657
View source version on businesswire.com: https://www.businesswire.com/news/home/20260423403983/en/
For further information:
Chandni Luthra - Investors
212.984.8113
Chandni.Luthra@cbre.com
Steve Iaco - Media
212.984.6535
Steven.Iaco@cbre.com
Original: CBRE Group, Inc. Reports Financial Results for Q1 2026
US Market News
4月前
CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2025February 12, 2026 6:55 AM
Business Wire
CBRE Group, Inc. (NYSE: CBRE) today reported financial results for the fourth quarter ended December 31, 2025.
Key Highlights:
Q4 GAAP EPS of $1.39 and Core EPS of $2.73
2025 GAAP EPS of $3.85 and Core EPS of $6.38
Revenue up 12% to $11.6 billion for Q4 and 13% to $40.6 billion for 2025
Resilient Businesses(1) revenue up 12% for Q4 and 13% for 2025
Transactional Businesses(1) revenue up 12% for Q4 and 14% for 2025
2025 cash flow from operations of ~$1.6 billion and free cash flow of ~$1.7 billion
Expect to achieve 2026 Core EPS of $7.30 to $7.60 - reflecting 17% growth at the midpoint
“We had a strong end to 2025, with fourth-quarter revenue and core earnings-per-share rising by double digits and both reaching their highest levels ever for CBRE,” said Bob Sulentic, CBRE’s chair and chief executive officer. “Our strength was broad-based. We saw significant gains in sales and leasing in the U.S. and much of the rest of the world and our resilient businesses continued to post double-digit revenue growth, a trend we see continuing.”
“CBRE is positioned for strong sustained growth,” Mr. Sulentic continued. “We are taking advantage of this circumstance to streamline our operations, while investing to ensure this growth continues further into the future.”
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
% Change
% Change
Q4 2025
Q4 2024
USD
LC (2)
FY 2025
FY 2024
USD
LC (2)
Operating Results
Revenue
$
11,629
$
10,404
11.8
%
10.4
%
$
40,550
$
35,767
13.4
%
12.7
%
Pass-through costs (3)
4,651
4,270
8.9
%
7.4
%
16,746
14,899
12.4
%
11.7
%
GAAP net income
416
487
(14.6
)%
(13.8
)%
1,157
968
19.5
%
19.4
%
Core adjusted net income (4)
818
712
14.9
%
14.5
%
1,920
1,571
22.2
%
21.6
%
GAAP EPS
1.39
1.58
(12.0
)%
(11.4
)%
3.85
3.14
22.6
%
22.3
%
Core EPS (4)
2.73
2.32
17.7
%
17.2
%
6.38
5.10
25.1
%
24.5
%
Core EBITDA (5)
1,288
1,086
18.6
%
17.4
%
3,308
2,704
22.3
%
21.4
%
Cash Flow Results
Cash flow provided by operations
$
1,221
$
1,340
(8.9
)%
$
1,559
$
1,708
(8.7
)%
Gain on disposition of real estate
404
130
210.8
%
459
142
223.2
%
Less: Capital expenditures
144
93
54.8
%
366
307
19.2
%
Free cash flow (6)
$
1,481
$
1,377
7.6
%
$
1,652
$
1,543
7.1
%
Fourth-quarter GAAP net income was reduced by $279 million due to the non-cash impact of the buy-out of the Advisory pension plan in the U.K., which will result in future net cash savings, and an increased reserve for fire-safety remediation in the U.K. development business. Without these items, fourth quarter GAAP net income would have increased 43%.
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
2,915
$
2,577
13.1
%
12.2
%
$
8,840
$
7,729
14.4
%
14.0
%
Pass-through costs
11
17
(35.3
)%
(35.3
)%
50
61
(18.0
)%
(19.7
)%
Segment operating profit (7)
709
622
14.0
%
12.8
%
1,834
1,502
22.1
%
21.5
%
Revenue and segment operating profit increased by 13% (12% local currency) and 14% (13% local currency), respectively.
Global leasing revenue rose 14% (13% local currency) and reached a new high for any quarter.
EMEA set the pace globally with leasing revenue growth of 26% (19% local currency). In the U.S., leasing revenue once again increased by double-digits, up 12%, driven by industrial and data centers.
Global property sales revenue increased 19% (17% local currency), paced by the U.S., rising 27%.
Mortgage origination revenue rose 18% (same local currency), driven by higher origination fees primarily from debt funds and CMBS lenders.
Loan servicing revenue rose 4% (same local currency), while the portfolio increased 6% for the quarter to end 2025 at $459 billion.
Valuations revenue increased 9% (8% local currency), with double-digit growth in the U.S.
Building Operations & Experience (BOE) Segment
The following table presents highlights of the BOE segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
6,311
$
5,509
14.6
%
13.0
%
$
23,224
$
20,208
14.9
%
14.2
%
Pass-through costs
3,382
3,054
10.7
%
9.1
%
12,529
11,168
12.2
%
11.5
%
Segment operating profit
332
277
19.9
%
18.1
%
1,094
894
22.4
%
21.4
%
Revenue and segment operating profit increased by 15% (13% local currency) and 20% (18% local currency), respectively.
Facilities management revenue increased 13% (12% local currency), led by outsized growth in data center services and continued double-digit growth in Local Facilities Management.
Property management revenue rose 28% (27% local currency). Contributions from Industrious, the flexible workplace operator acquired in early January 2025, enhanced the growth rate.
The segment also benefited from contributions from Pearce Services, acquired in November 2025.
Project Management Segment
The following table presents highlights of the Project Management segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
2,213
$
2,044
8.3
%
7.0
%
$
7,657
$
6,809
12.5
%
11.7
%
Pass-through costs
1,258
1,199
4.9
%
3.8
%
4,167
3,670
13.5
%
12.9
%
Segment operating profit
175
168
4.2
%
1.8
%
561
500
12.2
%
11.0
%
Revenue and segment operating profit increased by 8% (7% local currency), and 4% (2% local currency), respectively.
Growth was underpinned by new real estate projects for hyperscalers in the U.S. and new infrastructure mandates in the U.K. public sector.
As expected, segment operating profit growth was tempered by a few unusual one-time expenses. The segment delivered healthy operating leverage for the full year.
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
220
$
275
(20.0
)%
(21.5
)%
$
879
$
1,038
(15.3
)%
(16.4
)%
Segment operating profit
201
150
34.0
%
34.7
%
324
261
24.1
%
23.8
%
Segment operating profit increased 34% (35% local currency).
Real Estate Development
Operating profit(8) increased 46% (47% local currency) to $179 million, driven by the monetization of data center sites in the U.S.
The portfolio of in-process projects and pipeline stood at $29 billion at year-end.
Investment Management
Revenue edged down 1% (3% local currency) to $155 million. The decline was driven by lower incentive fees. Recurring asset management fees were up 7% (5% local currency).
Operating profit(8) fell due to lower incentive fees and co-investment returns.
Assets under management (AUM) increased by more than $9 billion for all of 2025 to $155 billion.
Core Corporate Segment
Core corporate operating loss decreased by approximately $2 million for the quarter.
Capital Allocation Overview
Free Cash Flow – For full-year 2025, free cash flow totaled nearly $1.7 billion.
Stock Repurchase Program – The company repurchased more than 7.6 million shares for more than $1.0 billion ($138.03 average price per share) since January 1, 2025.
Acquisitions and Investments – During the fourth quarter, CBRE acquired Pearce Services, LLC., a leading provider for advanced technical services for digital and power infrastructure, for approximately $1.2 billion.
Leverage and Financing Overview
Leverage – CBRE’s net leverage ratio (net debt(9) to trailing twelve-month core EBITDA) was 1.24x as of December 31, 2025, which is substantially below the company’s primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions):
As of
December 31, 2025
Total debt
$
5,977
Less: Cash and cash equivalents
1,864
Net debt (9)
$
4,113
Divided by: Trailing twelve-month Core EBITDA
$
3,308
Net leverage ratio
1.24x
Liquidity – At the end of the fourth quarter, the company had approximately $5.7 billion of total liquidity, up from approximately $5.2 billion at the end of the third quarter.
Conference Call Details
The company’s fourth quarter earnings webcast and conference call will be held today, Thursday, February 12, 2026 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.
Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on February 12, 2026. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13757978#. A transcript of the call will be available on the company’s Investor Relations website at https://ir.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2025 revenue). The company has more than 155,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, data center solutions); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Safe Harbor and Footnotes
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the economic outlook, the company’s future growth momentum, operations and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments; cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in economic or commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in supply/demand and capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect wholly-owned subsidiary, CBRE Capital Markets, Inc. to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our loan servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control.
Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2024, our quarterly reports on Form 10-Q, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
The terms “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “net debt” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
Totals may not sum in tables in millions included in this release due to rounding.
Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
(1)
Resilient Businesses include facilities management, project management, loan servicing, valuations, other portfolio services, property management and recurring investment management fees. Transactional Businesses include property sales, leasing, mortgage origination, carry interest and incentive fees in the investment management business, and development fees.
(2)
Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.
(3)
Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
(4)
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from U.S. GAAP net income and U.S. GAAP earnings per diluted share. Adjustments during the periods presented included non-cash amortization expense related to intangible assets attributable to acquisitions, interest expense related to indirect tax audits and settlements, write-off of financing costs on extinguished debt, impact of adjustments on non-controlling interest, and the tax impact of adjusted items and strategic non-core investments, integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, net fair value adjustments on strategic non-core investments, and provision associated with Telford’s fire safety remediation efforts.
(5)
Core EBITDA represents earnings before the portion attributable to non-controlling interests, depreciation and amortization, asset impairments, net interest expense, write-off of financing costs on extinguished debt, income taxes, further adjusted for integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, net fair value adjustments on strategic non-core investments, and provision associated with Telford’s fire safety remediation efforts.
(6)
Free cash flow is calculated as cash flow provided by operations, plus gain on sale of real estate assets, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).
(7)
Segment operating profit (SOP) is the measure reported to the chief operating decision maker (CODM) for purposes of assessing performance and allocating resources to each segment. SOP represents earnings, inclusive of non-controlling interests, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, the impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, and provision associated with Telford’s fire safety remediation efforts.
(8)
Represents line of business profitability/losses, as adjusted.
(9)
Net debt is calculated as total debt (excluding non-recourse debt) less cash and cash equivalents.
CBRE GROUP, INC.
OPERATING RESULTS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in millions, except share and per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Revenue
$
11,629
$
10,404
$
40,550
$
35,767
Costs and expenses:
Cost of revenue
9,474
8,290
32,984
28,811
Operating, administrative and other
1,747
1,473
5,543
5,011
Depreciation and amortization
189
177
729
674
Total costs and expenses
11,410
9,940
39,256
34,496
Gain on disposition of real estate
404
130
459
142
Operating income
623
594
1,753
1,413
Equity (loss) income from unconsolidated subsidiaries
(10
)
58
40
(19
)
Other income
8
14
19
39
Interest expense, net of interest income
57
53
216
215
Write-off of financing costs on extinguished debt
—
—
2
—
Income before provision for income taxes
564
613
1,594
1,218
Provision for income taxes
114
112
317
182
Net income
450
501
1,277
1,036
Less: Net income attributable to non-controlling interests
34
14
120
68
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Basic income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.40
$
1.60
$
3.88
$
3.16
Weighted-average shares outstanding for basic income per share
296,877,195
304,638,633
298,157,861
305,859,458
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.39
$
1.58
$
3.85
$
3.14
Weighted-average shares outstanding for diluted income per share
299,868,912
307,299,709
300,751,541
308,033,612
Core EBITDA
$
1,288
$
1,086
$
3,308
$
2,704
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025
(in millions)
(Unaudited)
Three Months Ended December 31, 2025
Advisory Services
Building Operations & Experience
Project Management
Real Estate Investments
Corporate (1)
Total Core
Other
Total
Consolidated
Revenue
$
2,915
$
6,311
$
2,213
$
220
$
(30
)
$
11,629
$
—
$
11,629
Pass-through costs
11
3,382
1,258
—
—
4,651
—
4,651
Cost of revenue, excluding pass-through costs
1,844
2,275
655
41
8
4,823
—
4,823
Operating, administrative and other
502
370
136
519
220
1,747
—
1,747
Depreciation and amortization
71
73
26
4
15
189
—
189
Gain on disposition of real estate
—
—
—
380
24
404
—
404
Operating income (loss)
487
211
138
36
(249
)
623
—
623
Equity income (loss) from unconsolidated subsidiaries
—
3
(1
)
8
—
10
(20
)
(10
)
Other income (loss)
2
4
1
(1
)
2
8
—
8
Add-back: Depreciation and amortization
71
73
26
4
15
189
—
189
Adjustments:
Integration and other costs related to acquisitions
—
32
11
—
57
100
—
100
Net results related to the wind-down of certain businesses
—
8
—
22
—
30
—
30
Business and finance transformation
15
1
—
—
46
62
—
62
Non-cash pension buy-out settlement loss
147
—
—
—
—
147
—
147
Costs associated with efficiency and cost-reduction initiatives
(13
)
—
—
—
—
(13
)
—
(13
)
Provision associated with Telford’s fire safety remediation efforts
—
—
—
132
—
132
—
132
Total segment operating profit (loss)
$
709
$
332
$
175
$
201
$
(129
)
$
(20
)
$
1,268
Core EBITDA
$
1,288
(1)
Includes elimination of inter-segment revenue.
CBRE GROUP, INC.
SEGMENT RESULTS—(CONTINUED)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2024
(in millions)
(Unaudited)
Three Months Ended December 31, 2024
Advisory Services
Building Operations & Experience
Project Management
Real Estate Investments
Corporate (1)
Total Core
Other
Total
Consolidated
Revenue
$
2,577
$
5,509
$
2,044
$
275
$
(1
)
$
10,404
$
—
$
10,404
Pass-through costs
17
3,054
1,199
—
—
4,270
—
4,270
Cost of revenue, excluding pass-through costs
1,475
1,901
559
63
22
4,020
—
4,020
Operating, administrative and other
490
309
118
276
280
1,473
—
1,473
Depreciation and amortization
66
66
28
3
14
177
—
177
Gain on disposition of real estate
—
—
—
130
—
130
—
130
Operating income (loss)
529
179
140
63
(317
)
594
—
594
Equity income (loss) from unconsolidated subsidiaries
—
1
—
88
—
89
(31
)
58
Other income
1
2
—
—
5
8
6
14
Add-back: Depreciation and amortization
66
66
28
3
14
177
—
177
Adjustments:
Integration and other costs related to acquisitions
—
4
—
—
59
63
—
63
Carried interest incentive compensation reversal to align with the timing of associated revenue
—
—
—
(4
)
—
(4
)
—
(4
)
Charges related to indirect tax audits and settlements
—
—
—
—
37
37
—
37
Costs associated with efficiency and cost-reduction initiatives
26
25
—
—
71
122
—
122
Total segment operating profit (loss)
$
622
$
277
$
168
$
150
$
(131
)
$
(25
)
$
1,061
Core EBITDA
$
1,086
(1)
Includes elimination of inter-segment revenue.
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
December 31, 2025
December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents
$
1,864
$
1,114
Restricted cash
150
107
Receivables, net
8,284
7,005
Warehouse receivables (1)
1,630
561
Contract assets
462
400
Prepaid expenses
372
332
Income taxes receivable
175
130
Other current assets
552
321
Total Current Assets
13,489
9,970
Property and equipment, net
1,049
914
Goodwill
7,051
5,621
Other intangible assets, net
2,972
2,298
Operating lease assets
2,062
1,198
Investments in unconsolidated subsidiaries
870
1,295
Non-current contract assets
103
89
Real estate under development
646
505
Non-current income taxes receivable
106
75
Deferred tax assets, net
697
538
Other assets
1,832
1,880
Total Assets
$
30,877
$
24,383
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
4,838
$
4,102
Compensation and employee benefits payable
1,630
1,419
Accrued bonus and profit sharing
1,879
1,695
Operating lease liabilities
284
200
Contract liabilities
448
375
Income taxes payable
258
209
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1)
1,609
552
Revolving credit facilities
—
132
Other short-term borrowings
856
222
Current maturities of long-term debt
71
36
Other current liabilities
447
345
Total Current Liabilities
12,320
9,287
Long-term debt, net of current maturities
5,050
3,245
Non-current operating lease liabilities
2,121
1,307
Non-current tax liabilities
183
160
Deferred tax liabilities, net
238
247
Other liabilities
1,339
945
Total Liabilities
21,251
15,191
Mezzanine Equity:
Redeemable non-controlling interests in consolidated entities
433
—
Equity:
CBRE Group, Inc. Stockholders’ Equity:
Class A common stock
3
3
Additional paid-in capital
—
—
Accumulated earnings
9,916
9,567
Accumulated other comprehensive loss
(1,041
)
(1,159
)
Total CBRE Group, Inc. Stockholders’ Equity
8,878
8,411
Non-controlling interests
315
781
Total Equity
9,193
9,192
Total Liabilities and Equity
$
30,877
$
24,383
(1)
Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.
CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Twelve Months Ended December 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
1,277
$
1,036
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization
729
674
Amortization of other assets
199
195
Net non-cash mortgage servicing rights and premiums on loan sales
(187
)
(162
)
Deferred income taxes
(269
)
(194
)
Stock-based compensation expense
120
146
Equity (income) loss from investments
(40
)
19
Gain on sale of real estate assets
(459
)
(142
)
Other non-cash adjustments
227
8
Changes in:
Sale of mortgage loans
15,135
12,817
Origination of mortgage loans
(16,163
)
(12,668
)
Warehouse lines of credit
1,057
(114
)
Receivables, prepaid expenses and other assets
(882
)
(597
)
Accounts payable, accrued liabilities and other liabilities
570
566
Accrued compensation expenses
285
206
Income taxes, net
(40
)
(82
)
Net cash provided by operating activities
1,559
1,708
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(366
)
(307
)
Payments for business acquired, net of cash acquired
(1,374
)
(1,067
)
Capital contributions related to investments
(161
)
(136
)
Acquisition and development of real estate assets
(390
)
(389
)
Proceeds from disposition of real estate assets
509
235
Other investing activities, net
155
150
Net cash used in investing activities
(1,627
)
(1,514
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility
—
4,173
Repayment of revolving credit facility
(132
)
(4,041
)
Proceeds from commercial paper, net
677
175
Proceeds from long-term debt
2,410
495
Repayment of long-term debt
(670
)
(9
)
Repurchase of common stock
(968
)
(627
)
Other financing activities, net
(521
)
(387
)
Net cash provided by (used in) financing activities
796
(221
)
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash
65
(123
)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
793
(150
)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD
1,221
1,371
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD
$
2,014
$
1,221
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest
$
448
$
396
Income tax payments, net
$
599
$
467
Non-cash investing and financing activities:
Deferred and/or contingent consideration
$
183
$
19
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i)
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”)
(ii)
Core EBITDA
(iii)
Core EPS
(iv)
Business line operating profit/loss
(v)
Net debt
(vi)
Free cash flow
These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.
With respect to core EBITDA, core EPS, core adjusted net income, and business line operating profit/loss, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings, income taxes and the accounting effects of capital spending. The presentation of core adjusted net income, excluding amortization of intangible assets acquired in business combinations, is useful to investors as a supplemental measure to evaluate the company’s ongoing operating performance. While amortization expense of acquisition-related intangible assets is excluded from core adjusted net income, the revenue generated from the acquired intangible assets is not excluded. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of core EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations and real estate investment and development activities after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company’s net leverage ratio.
With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments that are not directly related to our business segments. These can be volatile and are often non-cash in nature.
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data):
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Adjustments:
Non-cash amortization expense related to intangible assets attributable to acquisitions
57
54
226
199
Interest expense related to indirect tax audits and settlements
1
5
4
16
Write-off of financing costs on extinguished debt
—
—
2
—
Impact of adjustments on non-controlling interest
—
(6
)
—
(18
)
Integration and other costs related to acquisitions
100
63
303
93
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
—
(4
)
10
8
Charges related to indirect tax audits and settlements
—
37
(1
)
76
Net results related to the wind-down of certain businesses
30
—
74
—
Impact of fair value non-cash adjustments related to unconsolidated equity investments
—
—
2
9
Business and finance transformation
62
—
101
—
Non-cash pension buy-out settlement loss
147
—
147
—
Costs associated with efficiency and cost-reduction initiatives
(13
)
122
—
259
Costs incurred related to legal entity restructuring
—
—
—
2
Net fair value adjustments on strategic non-core investments
20
25
(1
)
117
Provision associated with Telford’s fire safety remediation efforts
132
—
132
33
Tax impact of adjusted items and strategic non-core investments
(134
)
(71
)
(236
)
(191
)
Core net income attributable to CBRE Group, Inc., as adjusted
$
818
$
712
$
1,920
$
1,571
Core diluted income per share attributable to CBRE Group, Inc., as adjusted
$
2.73
$
2.32
$
6.38
$
5.10
Weighted-average shares outstanding for diluted income per share
299,868,912
307,299,709
300,751,541
308,033,612
Core EBITDA is calculated as follows (in millions):
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Net income attributable to non-controlling interests
34
14
120
68
Net income
450
501
1,277
1,036
Adjustments:
Depreciation and amortization
189
177
729
674
Interest expense, net of interest income
57
53
216
215
Write-off of financing costs on extinguished debt
—
—
2
—
Provision for income taxes
114
112
317
182
Integration and other costs related to acquisitions
100
63
303
93
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
—
(4
)
10
8
Charges related to indirect tax audits and settlements
—
37
(1
)
76
Net results related to the wind-down of certain businesses
30
—
74
—
Impact of fair value non-cash adjustments related to unconsolidated equity investments
—
—
2
9
Business and finance transformation
62
—
101
—
Non-cash pension buy-out settlement loss
147
—
147
—
Costs associated with efficiency and cost-reduction initiatives
(13
)
122
—
259
Costs incurred related to legal entity restructuring
—
—
—
2
Net fair value adjustments on strategic non-core investments
20
25
(1
)
117
Provision associated with Telford’s fire safety remediation efforts
132
—
132
33
Core EBITDA
$
1,288
$
1,086
$
3,308
$
2,704
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions):
Three Months Ended December 31,
Real Estate Investments
2025
2024
Investment management operating profit
$
25
$
27
Global real estate development operating profit
179
123
Segment overhead (and related adjustments)
(3
)
—
Real estate investments segment operating profit
$
201
$
150
Below represents a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended December 31, 2025 (in millions):
Q1 2025
Q2 2025
Q3 2025
Q4 2025
2025
Cash Flow Results
Cash flow (used in) provided by operations
$
(546
)
$
57
$
827
$
1,221
$
1,559
Gains on disposition of real estate sales
—
19
36
404
459
Less: Capital expenditures
64
74
84
144
366
Free cash flow
$
(610
)
$
2
$
779
$
1,481
$
1,652
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212253465/en/
For further information:
Chandni Luthra - Investors
212.984.8113
Chandni.Luthra@cbre.com
Steve Iaco - Media
212.984.6535
Steven.Iaco@cbre.com
Original: CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2025
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