Sign in

You're signed outSign in or to get full access.

C&

Cushman & Wakefield plc (CWK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue rose 11% YoY to $2.61B, with service line fee revenue up 9% and continued strength across Leasing (+9%) and Capital Markets (+21%); diluted EPS was $0.22 and adjusted EPS was $0.29 .
  • Results beat Wall Street consensus: revenue $2.606B vs $2.507B consensus and adjusted EPS $0.29 vs $0.278 consensus; beat driven by broad-based Americas momentum in leasing and capital markets and improved debt availability supporting transactions, plus Services organic growth of 7%* .
  • Guidance raised: FY25 adjusted EPS growth lifted to 30%-35% (from 25%-35%); management reiterated leasing growth toward the high end of 6%-8%, capital markets mid-high teens, and services mid-single digit .
  • Balance sheet de-risking continues: term loans repriced to SOFR+2.50%, revolver extended to 2030, YTD prepayments $300M, cumulative two-year prepayments $500M—supporting lower interest expense and improved free cash flow conversion (TTM $165M, ~61%) .

Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Fourth consecutive quarter of double-digit Capital Markets revenue growth (+21%), with strength across all asset classes and deal sizes in the Americas, aided by improved debt availability and resilient transaction environment across major markets .
  • Largest third-quarter leasing revenue in company history; leasing up 9%, led by office and industrial demand in the Americas, with EMEA also strong and APAC supported by Singapore/Australia .
  • Services organic revenue grew 7% (accelerated), supported by facilities services and project management; EMEA project management highlighted, and management emphasized “desiloing” and cross-sell strategies for profitable growth .

What Went Wrong

  • Earnings from equity method investments declined YoY: Greystone JV recorded non-cash loan loss provisions (company share $18.5M in Q3); JV mix shift reduced MSR value and increased credit loss provisions, weighing on reported equity-method results .
  • APAC leasing revenue down 6% (tough Greater China comp), and APAC EBITDA lower YoY in Q3, though capital markets surged and services grew; management noted JV timing headwind (~$5M) .
  • Other income fell due to prior-year insurance proceeds; stock-based compensation increased (unique 2024 performance awards), creating year-over-year expense pressure despite overall margin improvements .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$2,284.6 $2,483.9 $2,605.9
Diluted EPS ($USD)$0.01 $0.25 $0.22
Adjusted EPS ($USD)$0.09 $0.30 $0.29
Adjusted EBITDA ($USD Millions)$96.2 $161.7 $159.6
Adjusted EBITDA Margin (%)6.2% 9.5% 9.0%
Segment (Q3 2025)AmericasEMEAAPAC
Service line fee revenue ($USD Millions)$1,276.5 $224.5 $279.9
Gross contract reimbursables ($USD Millions)$646.6 $35.6 $142.8
Total revenue ($USD Millions)$1,923.1 $260.1 $422.7
Adjusted EBITDA ($USD Millions)$125.9 $18.3 $15.4
KPIsValue
Liquidity ($USD Billions)$1.7
Net Debt ($USD Billions)$2.2
Net Leverage (x)3.4x
Trailing 12-month Free Cash Flow ($USD Millions)$165
FCF Conversion (%)~61%
Term Loan SpreadSOFR + 2.50% (Oct 2025 repricing)
Revolver MaturityExtended to Oct 21, 2030; capacity right-sized to $1.0B
YTD 2025 Debt Prepayments ($USD Millions)$300
2-Year Cumulative Debt Prepayments ($USD Millions)$500

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPS Growth (%)FY 202525%–35% 30%–35% Raised
Leasing Revenue GrowthFY 20256%–8% Toward high end of 6%–8% Bias higher
Capital Markets Revenue GrowthFY 2025Mid–high teens Mid–high teens Maintained
Services Revenue GrowthFY 2025Mid-single digit Mid-single digit Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025)Previous Mentions (Q1 2025)Current Period (Q3 2025)Trend
AI/data centers & tech enablementStrategy momentum; focused talent build; no specific tool cited Strategy execution, improving margins Scaling data center advisory; proprietary Athena site selection tool launched; comprehensive platform approach Expanding focus; platform differentiation
Tariffs/macroTariffs “disruptive” but not disrupting deal flow; pipelines strong Rate stability, improved debt liquidity aided capital markets Improved debt availability supported transactions; ECB cuts buoy EMEA confidence Macro tailwinds building
Regional trendsEMEA margins doubled YoY; strong UK/Ireland/Netherlands/Spain; APAC growth in India/Australia EMEA weaker; APAC strong in capital markets EMEA up: leasing +37% UK; APAC mixed (China timing) but cap markets +84% Broadening strength
Capital Markets momentum+27% YoY; strong across asset classes; targeted hiring paying off +11% YoY; APAC led +21% YoY; Americas broad-based; deal sizes healthy Sustained double-digit
Services transformation & profitabilityMid-single digit organic growth; project mgmt wins; focus on margins/infrastructure Mid-single digit organic growth achieved ahead of plan Organic +7%; “desiloing” & cross-sell; higher-margin technical services Improving mix/margins
Regulatory/legal & non-GAAP adjustmentsExcluding Greystone non-cash MSR/loan loss in Adj EBITDA; one-time consulting/redomicile One-time consulting and performance-based awards adjustments Greystone non-cash items excluded; antitrust/legal fees noted in “Other” Ongoing normalization in reporting

Management Commentary

  • “We reported 9% service line fee revenue growth… accelerating organic Services revenue growth to 7%. Following record third quarter cash flow generation, we prepaid an additional $100 million in debt yesterday, bringing our two-year cumulative debt prepayments to $500 million.” — CEO Michelle MacKay .
  • “Adjusted EPS grew by 26% year-over-year to $0.29… we are raising our expectations for adjusted EPS and now anticipate full year 2025 adjusted EPS growth of 30% to 35%.” — CFO Neil Johnston .
  • “We’re scaling up our business quickly [in data centers]… our proprietary site selection tool Athena… is streamlining the site selection process for our clients.” — CEO Michelle MacKay .
  • “We ended the quarter with net leverage of 3.4x, lowest it’s been since Q4 2022… trailing 12 month free cash flow was $165 million, ~61% conversion.” — CFO Neil Johnston .

Q&A Highlights

  • Capital Markets hiring ramp: 45 advisors with 200% higher average gross revenue than 2024; platform still in ramp phase, global buildout underway .
  • EMEA margins: +170 bps YoY; prior quarter benefited from FX/comp timing; margin improvement driven by retooled project management and brokerage scale .
  • APAC JV timing: ~$5M headwind from China JV timing; expect full-year roughly flat contribution; excluding headwind, APAC EBITDA would be up YoY .
  • Services margin drivers: shift up the value chain (mechanical/engineering), technology use, cross-sell (“Plus One” initiative), higher client retention .
  • Momentum into Q4: Management cited continued momentum into early Q4 post-October .

Estimates Context

MetricQ3 2025 ConsensusQ3 2025 Actual
Revenue ($USD Millions)2,507.1*2,605.9
Adjusted/Primary EPS ($USD)0.2781*0.29
Primary EPS – # of Estimates10*—
Revenue – # of Estimates5*—
  • Both revenue and EPS were beats versus consensus. Drivers: Americas leasing (+11% in region) and capital markets (+16% in Americas) strength, improved debt availability, and Services organic growth; margins expanded with expense discipline (Adjusted EBITDA margin +23 bps YoY) .
  • Outlook implies potential upward estimate revisions for FY EPS on raised guidance (30%-35%), with leasing expected near high end of 6%-8% and capital markets mid-high teens; Services mid-single digit growth maintained .

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong topline and breadth: Double-digit capital markets and high-single-digit leasing growth, with Service line fee revenue up 9%—supports sustained momentum into Q4 .
  • Beat and raise: Revenue and adjusted EPS beats alongside increased FY25 adjusted EPS growth guidance to 30%-35%—a positive catalyst for sentiment and potential estimate revisions .
  • Structural improvements: Debt repricings and prepayments lower interest burden; revolver extended to 2030; net leverage at 3.4x; liquidity remains robust at $1.7B .
  • Services profitability mix: Strategic shift to higher-margin technical services, desiloing, and cross-sell underpin margin trajectory; project management retooling is showing results, especially in EMEA .
  • JV non-cash noise quarantined in non-GAAP: Excluding Greystone MSR/loan-loss related items improves comparability of core performance; watch Greystone credit trends but note non-cash nature .
  • Regional broadening: UK leasing strength (+37%), EMEA confidence buoyed by rate cuts; APAC mixed with China JV timing, but capital markets strong in India/Japan .
  • Near-term trading: Focus on Q4 pipeline momentum and capital markets deal flow; medium-term thesis centers on platform buildout (data centers, Athena), talent recruitment, and operating leverage .