A month has gone by since the last earnings report for CBRE Group (CBRE). Shares have added about 3.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CBRE due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
CBRE Group Q2 Earnings Beat Estimates, 2025 EPS Outlook Raised
CBRE Group reported second-quarter 2025 core earnings per share (EPS) of $1.19, ahead of the Zacks Consensus Estimate of $1.05. The reported figure also increased 46.9% year over year.
Results reflected year-over-year revenue growth across most of its business segments except the Real Estate Investments segment. The company’s resilient businesses generated net revenue growth of 17%, surpassing the 15% increase in its transactional businesses.
Quarterly revenues increased 16.2% year over year to $9.75 billion. The metric outpaced the Zacks Consensus Estimate of $9.37 billion.
Adjusted net revenues increased 14% (12.9% in local currency) year over year to $5.67 billion. Core EBITDA rose 30.3% (28.9% in local currency) to $658 million.
Quarter in Detail
CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 14.4% (13.8% in local currency) to $2 billion.
Global leasing revenue rose 14% (13% in local currency), driven by double-digit leasing revenue growth in the United States, Asia Pacific (APAC) and Europe, the Middle East & Africa (EMEA) regions.
Global property sales revenues grew 20% (19% in local currency) year over year, with the United States, APAC and EMEA registering 25%, 24% and 19% growth, respectively. Moreover, mortgage origination revenues rose 44% (same in local currency) due to strong lending by government agencies, as well as debt funds and CMBS lenders.
The Building Operations & Experience segment registered a year-over-year increase of 18.7% (17.5% in local currency) in revenues to $5.76 billion.
Facilities management revenues rose 17% (16% in local currency), with strong growth across enterprise and local businesses. Property management revenues increased 30% (same in local currency), led by the contributions from Industrious, which was acquired in January 2025.
Project Management segment revenues grew 14.3% (12.9% in local currency) to $1.79 billion year over year, led by mid-teens revenue growth from Turner & Townsend’s legacy business and low-double digit revenue growth from the CBRE Group Project Management legacy business.
However, the Real Estate Investments segment experienced a decrease of 7.3% (9.1% local currency) in revenues to $215 million.
At the end of the second quarter of 2025, assets under management increased $6.2 billion from the first quarter of 2025 to $155.3 billion due to favorable foreign currency movement.
Balance Sheet Position
CBRE Group exited the second quarter of 2025 with cash and cash equivalents of $1.40 billion, up from $1.38 billion as of March 31, 2025.
As of June 30, 2025, the total liquidity increased to $4.7 billion from $3.5 billion reported in the first quarter of 2025, due to new financing activity completed in the second quarter of 2025. The total liquidity comprised $1.4 billion in cash in addition to the ability to borrow a total of approximately $3.3 billion under its revolving credit facilities and commercial paper program.
The company’s net leverage ratio was 1.47X as of the same date, significantly less than CBRE Group’s primary debt covenant of 4.25X.
Since year-end 2024, the company repurchased approximately 5.2 million shares for $663 million. As of June 30, 2025, it had $5.2 billion of stock-repurchase capacity remaining under its authorized stock repurchase program.
Outlook
For 2025, CBRE Group increased its core EPS guidance in the range of $6.10-$6.20 from $5.80-$6.10 guided earlier.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, CBRE has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise CBRE has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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CBRE Group, Inc. (CBRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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