Jones Lang's Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Jones Lang LaSalle Incorporated JLL reported first-quarter 2025 adjusted earnings per share (EPS) of $2.31, which beat the Zacks Consensus Estimate of $2.02. The reported figure increased from the prior-year quarter’s $1.78.

Results reflect better-than-anticipated revenues. The company’s transaction-based businesses witnessed growth, driven by major asset classes like Leasing and Investment Sales, Debt/Equity Advisory. Its resilient revenue business lines also continued to deliver strong growth, led by Workplace Management and Project Management.

Revenues of $5.75 billion surpassed the Zacks Consensus Estimate of $5.59 billion. The figure increased by 12.1% from the year-ago quarter.

Per Christian Ulbrich, CEO of JLL, "As we enter the second quarter with a notably more volatile market backdrop, our pipelines are healthy and we have conviction in both the long-term fundamentals supporting our industry and the agility we have developed across our organization. Looking ahead, our ongoing investments to further unify our data, technology and people position us well to navigate real estate cycles and continue to deliver superior client outcomes.”

JLL’s Segment-Wise Performance

During the first quarter, the Real Estate Management Service segment’s revenues came in at $4.57 billion, reflecting a year-over-year increase of 12.3% (in USD). The rise was mainly driven by an increase in revenues from Workplace Management, largely from a balanced mix of client wins and mandate expansions. The rise was also attributable to an increase in Project Management revenues, led by the U.S. and Asia Pacific regions.

Revenues for the Leasing Advisory segment were $586.1 million, increasing 12.6% (in USD) year over year. The rise was driven by broad-based leasing growth across asset classes, led by growth in office and accelerated momentum from industrial. The United States, Canada, Greater China and Germany achieved double-digit leasing revenue growth in the quarter. Importantly, U.S. office leasing increased for the fifth consecutive quarter, exceeding first-quarter 2019 levels.

JLL’s Capital Market Services segment reported revenues of $435.3 million, up 15.3% (in USD) year over year. The uptick in revenues was driven by Debt Advisory (approximately 45% growth) and Investment Sales (approximately 15% growth), most notably in the United States. The residential, hotels and industrial sectors contributed to the current-quarter growth.

Software and Technology Solutions segment reported revenues of $57.1 million, increasing 5.9% (in USD) from the prior-year quarter levels. The rise was due to increased bookings from software, partially offset by technology solutions.

However, revenues in the Investment Management segment decreased 4.7% (in USD) year over year to $98.5 million. The fall in revenues was due to lower assets under management (AUM), indicating asset dispositions on behalf of certain clients in the previous quarter.

As of March 31, 2025, JLL had $82.3 billion of AUM, down from $89.7 billion as of March 31, 2024. This was due to net dispositions and withdrawals.

JLL’s Balance Sheet

JLL exited the first quarter of 2025 with cash and cash equivalents of $432.4 million, up from $416.3 million at the end of the fourth quarter of 2024.

As of March 31, 2025, the net leverage ratio was 1.4, up from 0.7 as of Dec. 31, 2024. The corporate liquidity was $3.31 billion as of the first quarter's end, down from $3.62 billion as of the fourth quarter of 2024.

JLL currently carries a Zacks Rank #3 (Hold).

Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise

Jones Lang LaSalle Incorporated price-consensus-eps-surprise-chart | Jones Lang LaSalle Incorporated Quote

Performance of Other Broader Real Estate Market Stocks

CBRE Group Inc. CBRE reported first-quarter 2025 core EPS of 86 cents, ahead of the Zacks Consensus Estimate of 81 cents. The reported figure also increased 10.3% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflected year-over-year revenue growth across all its business segments. CBRE’s resilient businesses generated net revenue growth of 17%, nearly matching the 18% increase in its transactional businesses.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Iron Mountain Incorporated IRM reported first-quarter adjusted funds from operations (AFFO) per share of $1.17, beating the Zacks Consensus Estimate of $1.16. This figure jumped 6.4% year over year.

IRM’s results reflected solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent.

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