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JL

JONES LANG LASALLE INC (JLL)·Q2 2025 Earnings Summary

Executive Summary

  • JLL delivered a strong Q2 2025: revenue $6.25B (+10% LC), diluted EPS $2.32 (+32% YoY), adjusted diluted EPS $3.30 (+29% YoY), and adjusted EBITDA $291.7M (+18% YoY), marking the fifth consecutive quarter of double-digit revenue growth .
  • Versus consensus, JLL posted an adjusted EPS beat ($3.30 vs $3.20*), slight revenue beat ($6.25B vs $6.23B*), and a notable EBITDA beat ($314.6M actual vs $281.3M*), with estimates based on S&P Global; values retrieved from S&P Global*.
  • Management raised full-year adjusted EBITDA guidance to $1.30–$1.45B and indicated the low end was increased by $50M, citing strong pipelines and stability in debt markets; this is a positive narrative catalyst .
  • Cash generation and balance sheet improved: net debt fell to $1.59B (from $1.75B in Q1), net leverage 1.2x, corporate liquidity $3.32B; share repurchases doubled QoQ to $41.4M in Q2 .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth: Real Estate Management Services +12% (Workplace Management +11%, Project Management +23%), Leasing Advisory +5%, Capital Markets Services +14% with strength in debt advisory and investment sales .
  • Margin leverage: Adjusted EBITDA rose 18% YoY, driven by resilient revenue growth and improved platform leverage/cost discipline (technology and shared service centers) .
  • CEO tone and buyback signal: “We doubled share repurchases in the second quarter and… increased the mid-point of our full-year Adjusted EBITDA target range” — Christian Ulbrich, CEO .

What Went Wrong

  • Equity losses: Aggregate equity losses, primarily tied to Software and Technology Solutions investments, rose to $28.7M in Q2 from $16.3M YoY, diluting GAAP earnings vs adjusted results .
  • Discrete expenses in Capital Markets: ~$14M incremental expense from an enhanced loss-share agreement with Fannie Mae for a specific three-loan portfolio, partially offset by a $18M prior-year loan repurchase expense .
  • Investment Management profit softness: Adjusted EBITDA fell to $16.3M from $22.7M YoY on lower AUM-related advisory fees and lap of a prior-year $8.2M gain .

Financial Results

MetricQ4 2024Q1 2025Q2 2025YoY (Q2 2024)vs Estimates
Revenue ($USD Billions)$6.81 $5.75 $6.25 $5.63 $6.23* (S&P Global)
Diluted EPS ($USD)$4.97 $1.14 $2.32 $1.75 n/a
Adjusted Diluted EPS ($USD)$6.15 $2.31 $3.30 $2.55 $3.20* (S&P Global)
Adjusted EBITDA ($USD Millions)$454.8 $224.8 $291.7 $246.3 $281.3* (S&P Global)
Effective Tax Rate19.5% 19.5% 19.5% 19.5% n/a

Values with asterisk (*) are estimates retrieved from S&P Global.

Segment Revenue Breakdown ($USD Millions):

SegmentQ2 2024Q2 2025
Real Estate Management Services$4,369.9 $4,894.0
- Workplace Management$3,021.1 $3,349.1
- Project Management$788.1 $971.6
- Property Management$436.6 $454.4
- Portfolio Services & Other$124.1 $118.9
Leasing Advisory$642.2 $676.8
Capital Markets Services$457.6 $520.3
Investment Management$102.6 $103.1
Software & Technology Solutions$56.4 $55.9
Total Revenue$5,628.7 $6,250.1

Margins (S&P Global):

MetricQ2 2024Q1 2025Q2 2025
EBIT Margin %—*—*—*
Net Income Margin %—*—*—*

Values are retrieved from S&P Global; margin values not available in company documents and presented using S&P Global methodology*.

Key KPIs:

KPIQ2 2024Q1 2025Q2 2025
Net Debt ($USD Millions)$1,752.0 $1,754.0 $1,586.7
Net Leverage Ratio (x)1.7x 1.4x 1.2x
Corporate Liquidity ($USD Millions)$2,449.4 $3,312.4 $3,321.4
Cash from Operating Activities ($USD Millions)$273.9 $(767.6) $332.8
Free Cash Flow ($USD Millions)$235.7 $(812.1) $288.4
Shares Repurchased (000s)103.7 75.3 176.5
Buyback Spend ($USD Millions)$20.1 $19.8 $41.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA ($USD Billions)FY 2025Low end increased by $50M (prior low-end $1.25B implied) $1.30–$1.45B Raised low end by $50M

Note: Management indicated an increase to the low end by $50M and current range of $1.30–$1.45B; prior low-end implication derived from management commentary; both sources as cited above.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
AI/Technology investmentsContinued platform investments; JLL Technologies revenue softness, carried interest swings Cost discipline and platform leverage aided margins; tech/shared services enabled OpEx efficiency Efficiency gains from tech; investment focus sustained
Capital markets debt/investment salesQ4: strong acceleration; U.S. and APAC led; U.S. investment sales +60% QoQ Debt advisory and investment sales led growth; $14M Fannie Mae loss-share item; offset by $18M PY item Activity normalization with discrete loss-share item; underlying strength intact
Leasing trendsQ4: broad-based growth with office leadership; U.S., India, Greater China strong U.S. industrial momentum; U.S. office up low-single digits on larger deals; global office in line; outperformed U.S. office (-3%) Industrial strength; office stabilizing; mix shift to larger deals
Real Estate Management ServicesQ1: +14% with Workplace and Project Management strength Q2: +12% with Workplace +11% and Project +23%; margin improved Sustained multi-quarter growth, margin leverage improving
Investment Management AUMQ4: AUM $88.8B; advisory fees down; incentive fees up Q2: AUM up to $84.9B QoQ; YTD capital raised $2.9B; profit down vs PY gain Capital raising strong; AUM stabilizing; profit normalization

Management Commentary

  • “JLL’s strong second-quarter results on both the top and bottom line reflect our unwavering commitment to our clients… We doubled share repurchases… and… increased the mid-point of our full-year Adjusted EBITDA target range.” — Christian Ulbrich, CEO .
  • “Incremental cash inflow… was primarily attributable to… advance cash payments from clients… improved collection of trade receivables, and lower cash taxes paid.” — Q2 cash flow commentary .
  • “Capital Markets Services top-line growth was fueled by debt advisory and investment sales… U.S., Japan and MENA led the revenue growth.” — Segment commentary .

Q&A Highlights

  • Guidance and confidence: Management raised FY adjusted EBITDA range to $1.30–$1.45B, citing stability in debt markets, strong pipelines, and operating resilience .
  • Loan-related item: ~$14M incremental expense tied to an enhanced Fannie Mae loss-share on a three-loan portfolio; addressed as a discrete impact with prior-year offset .
  • Project Management trajectory: Management expects moderation from high growth rates but continued healthy demand amid shifting occupier needs .

Estimates Context

  • Adjusted EPS: Beat vs S&P Global consensus ($3.30 actual vs $3.20*).
  • Revenue: Slight beat ($6.25B actual vs $6.23B*).
  • EBITDA: Beat ($314.6M actual vs $281.3M*).
  • Coverage breadth: 10 EPS estimates*, 8 revenue estimates*.
    Values retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter demonstrated durable growth in resilient lines (Workplace, Project Management) and improving transactional momentum (Leasing, Capital Markets), supporting sustained margin leverage .
  • Guidance raise and net leverage reduction to 1.2x reflect improving cash generation and balance sheet flexibility, enhancing buyback and investment optionality .
  • Discrete loan-related expense in Capital Markets was manageable and overshadowed by underlying revenue strength; watch for any further loss-share developments .
  • Leasing mix is shifting to larger deals, with industrial strength and stabilizing office volumes; JLL outperformed U.S. office volumes (-3%), signaling share gains .
  • Equity losses in tech ventures continue to weigh on GAAP results; however, adjusted metrics better reflect core operations; monitor investment pacing in Software & Technology Solutions .
  • Near-term trading: A beat on adjusted EPS/EBITDA and raised FY guide is a positive sentiment driver; any softness related to discrete items or macro headlines may create entry points .
  • Medium-term thesis: Multi-quarter revenue growth in resilient segments, operational efficiency from technology, and stabilizing capital markets underpin margin expansion potential and capital deployment (buybacks) .