CWK Q2 Deep Dive: Capital Markets Expansion and Margin Gains Drive Results

Real estate services firm Cushman & Wakefield (NYSE:CWK) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 8.6% year on year to $2.48 billion. Its non-GAAP profit of $0.30 per share was 36.7% above analysts’ consensus estimates.

Is now the time to buy CWK? Find out in our full research report (it’s free).

StockStory’s Take

Cushman & Wakefield delivered second quarter results that exceeded Wall Street’s expectations, with management emphasizing broad-based revenue gains across most business lines and regions. CEO Michelle Marie MacKay attributed the performance to the company’s multi-year transformation strategy, highlighting accelerated growth in Capital Markets and a turnaround in Services. Notably, Capital Markets revenue expanded 26% in the quarter, fueled by new hires and improving deal activity, while organic Services revenue growth reached 6%. MacKay stated, “We have rebuilt the company from the inside out, and now you will see us take flight.”

Looking ahead, management expects continued growth in leasing, further momentum in Capital Markets, and stable expansion in Services. CFO Neil O. Johnston noted that increased investment in talent and operational improvements will drive long-term margin expansion, though a modest uptick in expenses is anticipated in the second half. MacKay added that while macroeconomic uncertainty and tariffs remain factors, Cushman & Wakefield’s strong pipelines and market share gains are expected to support progress, stating, “You should continue to expect more from us.”

Key Insights from Management’s Remarks

Management credited the quarter’s performance to robust hiring, operational restructuring, and improving demand across property types and regions.

• Capital Markets acceleration: Capital Markets revenue grew 26%, led by strong fundamentals and larger transactions, particularly in the Americas where new broker hires have an average annual revenue 200% higher than last year’s cohort. This expansion is in its early stages and expected to contribute further as new hires ramp up.
• Leasing demand broadens: Leasing activity increased across all asset classes, with notable strength in office and industrial segments. In the Americas, industrial leasing grew at a high single-digit pace, bolstered by e-commerce, retail, and manufacturing, while office leasing benefited from return-to-office trends and new business formation.
• Services turnaround underway: Services posted 6% organic growth, reversing prior sluggishness. In EMEA (Europe, Middle East, Africa), project management wins in France and Italy and restructuring efforts led to improved margins. Client retention in the Global Occupier Services segment reached 96%, a notable improvement that management believes is highly profitable.
• Operational discipline and deleveraging: The company reduced gross debt by $400 million over the past 18 months, achieving annual interest savings of over $45 million. Operational efficiency gains contributed to a 75 basis point improvement in adjusted EBITDA margin to 9.5%, with further leverage expected as scale grows.
• Hiring and talent strategy: Cushman & Wakefield undertook a broad-based hiring initiative, particularly in Capital Markets and Leasing, reorganizing internal teams and bringing in new leadership in key regions. This approach is intended to sustain growth and productivity across business lines.

Drivers of Future Performance

Cushman & Wakefield’s outlook is anchored by strong pipelines in leasing and capital markets, ongoing investments in talent, and a focus on operating leverage, though macro and tariff risks persist.

• Ongoing hiring and productivity: Management expects that new broker teams, especially in Capital Markets and Leasing, will drive incremental revenue as they ramp up. Internal reorganization and leadership changes are also positioned to boost productivity and growth across geographies.
• Margin expansion versus investment: Although margin expansion is targeted for the full year, CFO Neil O. Johnston cautioned that higher investment in talent and operational improvements will result in slightly lower margins in the second half compared to the first. The company continues to balance growth initiatives with expense discipline.
• External risks and market trends: Management noted that macroeconomic uncertainty and tariffs could impact deal activity, but current client sentiment and strong pipelines suggest resilience. The company’s ability to adapt to changing market conditions and maintain high client retention will be key.

Catalysts in Upcoming Quarters

In the quarters ahead, our team will watch (1) the pace at which new broker hires in Capital Markets and Leasing translate to revenue growth, (2) the sustainability of margin improvements in Services, particularly in EMEA, and (3) ongoing debt reduction efforts. Execution on client retention and expansion of project management contracts, especially in Europe, will also be important signposts.

Cushman & Wakefield currently trades at $14.21, up from $12.33 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Stocks That Trumped Tariffs

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.