CBRE GROUP, INC. (CBRE) Q3 2025 Earnings Summary

Executive Summary

Q3 2025 delivered broad-based strength: revenue $10.26B (+13.5% YoY), GAAP EPS $1.21 (+65.8% YoY), Core EPS $1.61 (+34.2% YoY), Core EBITDA $821MM (+19.3% YoY) .
Beat S&P Global consensus: EPS 1.61 vs 1.46 estimate*, revenue $10.26B vs $10.11B estimate*; both on higher Advisory and Capital Markets activity and operating leverage.
Raised FY2025 Core EPS guidance to $6.25–$6.35 (from $6.10–$6.20); CFO expects ~$1.8B FY free cash flow and continued deleveraging (net leverage 1.2x at Q3) .
Data centers were a key driver: ~$700MM revenue in Q3 (~10% of quarterly EBITDA) with multi-segment contributions and an emerging Digital Infrastructure Services line in BOE .
Liquidity increased to $5.2B; net leverage 1.23x; trailing 12-month free cash flow nearly $1.5B—funding M&A and buybacks while pipelines remain strong .

Values retrieved from S&P Global for consensus figures (marked with *).

What Went Well and What Went Wrong

What Went Well

Advisory momentum exceeded expectations: global leasing +18% YoY; global property sales +30% YoY; U.S. sales +32% driven by data centers, office, industrial, and multifamily .
Robust BOE and Project Management growth: BOE revenue +12.6% YoY (property management +30% aided by Industrious), Project Management revenue +20.4% YoY with U.K. government and hyperscaler demand .
CEO on secular tailwinds and scale: “We produced nearly $700 million of revenue from data centers…accounting for about 10% of overall EBITDA for the quarter” and Japan/India combined revenue “rose more than 30% to nearly $400 million”—supporting the guidance raise .

What Went Wrong

REI revenue declined: segment revenue down 30% YoY (incentive fees in prior-year quarter); Investment Management OP $43MM was lower YoY due to prior-period incentive fees, though co-investment returns were better than expected .
Loan servicing revenue -2% YoY; lower escrow earnings from reduced short-term rates offset higher servicing fees; servicing portfolio >$450B (+4% QoQ) .
Incremental margins in Advisory were slightly lower this quarter due to higher incentive compensation amid strong performance, tempering incremental margin flow-through .

Financial Results

Revenue, EPS, EBITDA – vs prior year and prior quarters

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($B)	$9.04	$8.91	$9.75	$10.26
GAAP EPS ($)	$0.73	$0.54	$0.72	$1.21
Core EPS ($)	$1.20	$0.86	$1.19	$1.61
Core EBITDA ($MM)	$688	$540	$658	$821

Margins

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
EBIT Margin %	4.33%*	3.10%*	4.41%*	4.92%*
Net Income Margin %	2.49%*	1.83%*	2.20%*	3.54%*

Values retrieved from S&P Global (marked with *).

Consensus vs Actual (S&P Global)

Metric	Q3 2025 Consensus	Q3 2025 Actual
EPS ($)	1.46*	1.61*
Revenue ($B)	$10.11*	$10.26*
EPS – # of estimates	11*	—
Revenue – # of estimates	7*	—

Values retrieved from S&P Global (marked with *).

Segment Breakdown

Segment	Revenue Q3 2024 ($MM)	Revenue Q3 2025 ($MM)	Segment Operating Profit Q3 2024 ($MM)	Segment Operating Profit Q3 2025 ($MM)
Advisory Services	$1,913	$2,235	$359	$444
Building Operations & Experience	$5,145	$5,794	$244	$285
Project Management	$1,683	$2,027	$129	$153
Real Estate Investments	$302	$211	$67	$73

KPIs and Operating Metrics

KPI	Q3 2025	Notes
Global Leasing Revenue Growth	+18% YoY	APAC +22% (23% LC) ; U.S. +18% ; EMEA +6%
Global Property Sales Growth	+30% YoY	APAC +53%; EMEA +29%; U.S. +32%
Mortgage Origination Revenue	+17% YoY	Driven by debt funds, CMBS, banks
Facilities Management Revenue	+11% YoY	BOE; pass-through proportion declined YoY
Property Management Revenue	+30% YoY	Industrious contribution
Project Management Revenue	+20% YoY	U.K., Middle East, North America; hyperscaler demand
Investment Management AUM	$155.8B	+$0.5B QoQ; +$1.3B in LC
Net Leverage Ratio	1.23x	Net Debt $3.813B; TTM Core EBITDA $3.105B
Liquidity	$5.2B	$1.7B cash + ~$3.5B undrawn facilities/CP
Trailing 12-mo Free Cash Flow	~$1.55B	TTM FCF bridge detailed
Data Center Revenue (Q3)	~$700MM	~10% of quarterly EBITDA

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Core EPS	FY2025	$6.10–$6.20	$6.25–$6.35	Raised
Free Cash Flow	FY2025	“Over $1.5B”	“~$1.8B”	Raised
Net Leverage	FY2025 YE	“~1.0x by year-end” (absent large M&A)	Expect to delever; 1.2x at Q3	Maintained trajectory
Development Monetizations (Data Center Sites)	2H25	Contribution expected in FY EPS outlook	High end of range depends on monetizations	Clarified sensitivity

Note: CBRE does not provide formal revenue or margin guidance; Core EPS is a non-GAAP metric with reconciliation impracticable prospectively due to variable items .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
Data Centers	Q1: Strong multi-line demand; Trammell Crow land work; DirectLine outperforming . Q2: Expected several site monetizations in 4Q; ~$900MM embedded profits over next five years .	~$700MM Q3 revenue; ~10% of EBITDA; building “Digital Infrastructure Services” in BOE; sustained multi-year build and operate cycles .	Accelerating and expanding
Tariffs/Macro	Q1: Significant uncertainty; wider outcome range; pipelines still strong . Q2: Activity steady; Europe choppier; U.S. sales picking up; expecting muted but steady recovery .	Focus shifted to comps/pipelines; strong October activity; no pull forward; high end EPS dependent on monetizations .	Improving resilience; less tariff emphasis
Advisory Leasing	Q1: U.S. office +38%; global leasing +19% . Q2: Global leasing +13%; U.S. office +15%; strength broad-based .	Global leasing +18%; new high for any Q3; gateway markets resurgence; broad-based office demand .	Sustained strength
Project Management (Turner & Townsend integration)	Q1: Integration benefits; margin to mid/high-teens over time . Q2: Integration progressing; synergies expected to start 2026 .	Operating model integrated; cost synergies expected next year; client wins expanding scope and complexity .	Integration advancing; margin upside ahead
BOE Synergies/TAM	Q2: Mid-teens growth; synergy work ongoing; margin gains mainly from 2024 cost actions .	CFO: strong pipelines; elevated Q4 sales volume; TAM expanding across data centers, healthcare, government .	Improving; pipeline-building

Management Commentary

CEO (prepared remarks): “We produced nearly $700 million of revenue from data centers in the third quarter…accounting for about 10% of overall EBITDA for the quarter.” Also, “Japan and India…combined revenue rose more than 30% to nearly $400 million,” supporting scale-driven growth .
CFO (prepared remarks): Raised FY Core EPS to $6.25–$6.35; expects ~$1.8B FY free cash flow; net leverage at 1.2x and delevering; development site dispositions embedded in outlook .
CEO (strategy): Combining management of data centers and DirectLine into a Digital Infrastructure Services line within BOE to capture the build and operate cycles durably .

Q&A Highlights

Comps and pull-forward: “We haven't seen a significant pull forward…comps get tougher,” with strong pipelines into Q4; Advisory incremental margins lower due to incentive comp .
Buybacks vs M&A: Not an active decision to avoid buybacks; pipeline of resilient, well-run targets; guidance excludes M&A/buybacks .
Data center monetization sensitivity: EPS range bottom/top “really dependent on the development monetization” .
Facilities management TAM: TAM expanding through data centers, healthcare, government, DirectLine; “we’re nowhere near bumping up against our total addressable market” .
Power constraints for DC land: Access to power is the key constraint; strategy focuses on entitlements and positioning with utilities .

Estimates Context

S&P Global consensus vs actual: EPS 1.46* vs 1.61*, Revenue $10.11B* vs $10.26B*. Beat driven by stronger-than-expected leasing/sales and operating leverage in Advisory, BOE, and Project Management .
Post-quarter estimate implications: Guidance raise and commentary on data center monetizations suggest upward bias to FY Core EPS; watch for model updates on BOE margin trajectory and Advisory incentives .