CBRE Group, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Read the filing

Key takeaways

• Core EPS rose on higher core EBITDA: Core EPS was $1.56, against $1.20 a year earlier. Core EBITDA was $836 million, against $626 million. GAAP EPS was $0.69, against $0.72. Source
• Fire-safety reserve reduced GAAP net income: A $168 million non-cash increase in a U.K. development fire-safety reserve reduced GAAP net income to $204 million. Without it, GAAP net income would have risen 53%. Source
• Advisory profit rose 29%: Advisory revenue rose 18% to $2,306 million, and segment operating profit rose 29% to $449 million. Global leasing and property sales revenue both grew. Source
• Critical infrastructure revenue up 68%: Building Operations & Experience revenue rose 15% to $6,686 million, and segment operating profit rose 25% to $335 million. Critical infrastructure services drove much of the growth. Source
• Net leverage rose to 1.60x: Net leverage was 1.60x at June 30, 2026, up from 1.54x at March 31, 2026. Net debt was $5,893 million against trailing twelve-month core EBITDA of $3,680 million. Source
• Trailing free cash flow near $1.7 billion: Free cash flow was nearly $1.7 billion for the 12 months to June 30, 2026. Cash flow from operations for the same period was nearly $1.4 billion. Source

“The momentum in CBRE’s business continued in the second quarter, with Core EPS up 30% on a 16% revenue increase,”

Bob Sulentic, CBRE’s chair and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: The 2026 core EPS range moved up from $7.60 to $7.80 to $7.80 to $7.90. Source

Results and growth drivers

• Core EPS rose on higher core EBITDA: Core EPS was $1.56, against $1.20 a year earlier. Core EBITDA was $836 million, against $626 million. GAAP EPS was $0.69, against $0.72. Source
• Revenue rose 15.5% in dollars: Revenue was $11,226 million, up 15.5% in U.S. dollars and 14.3% in local currency. Pass-through costs of $4,622 million are included within revenue. Source
• Fire-safety reserve reduced GAAP net income: A $168 million non-cash increase in a U.K. development fire-safety reserve reduced GAAP net income to $204 million. Without it, GAAP net income would have risen 53%. Source
• Six-month gain on property disposals: Six-month income included a $306 million gain on disposition of real estate, against $19 million a year earlier. Six-month diluted GAAP EPS was $1.77, against $1.25. Source

Segments and regions

• Advisory profit rose 29%: Advisory revenue rose 18% to $2,306 million, and segment operating profit rose 29% to $449 million. Global leasing and property sales revenue both grew. Source
• Critical infrastructure revenue up 68%: Building Operations & Experience revenue rose 15% to $6,686 million, and segment operating profit rose 25% to $335 million. Critical infrastructure services drove much of the growth. Source
• Project Management profit rose 28%: Project Management revenue rose 19% to $2,045 million, and segment operating profit rose 28% to $147 million. Infrastructure work in the U.K., Europe and the Middle East supported growth. Source
• Real Estate Investments profit up, revenue down: REI revenue fell 10% to $193 million, while segment operating profit rose 68% to $42 million. Investment management revenue edged up 2%, reflecting higher recurring fees. Source

“Our strength was balanced across the company. Each of our segments - Advisory, Building Operations & Experience, Project Management and Real Estate Investments - grew Segment Operating Profit by more than 25%.”

Bob Sulentic, CBRE’s chair and chief executive officer

Lending and loan servicing

• Mortgage origination revenue rose 8%: Mortgage origination revenue rose 8% in constant currency. Activity with private capital sources was partly offset by lower government agency lending. Source
• Escrow income fell with interest rates: Loan servicing revenue growth was tempered by lower escrow income, tied to lower average interest rates. Source
• Valuations revenue grew, led by U.S.: Valuations revenue rose 12% (10% in local currency), with growth led by the U.S. Source

Costs, margins and pricing

• Pass-through costs rose 13%: Pass-through costs rose 13% to $4,622 million. Clients reimburse these vendor costs, and the amounts owed are reflected within revenue. Source
• Core corporate loss grew on incentive pay: The core corporate operating loss increased by about $9 million, mainly from higher incentive compensation tied to the company's performance. Source
• Transformation costs excluded from core: Business and finance transformation costs were $38 million in the quarter, against $28 million a year earlier, and were excluded from core results. Source

Demand and the order book

• Global leasing revenue up 24%: Global leasing revenue rose 24% (23% in local currency). The U.S. was also up 24%, led by office and industrial. Source
• Europe leasing rose with three markets leading: EMEA leasing revenue rose 27% (22% in local currency), with growth in France, Germany and Spain. APAC leasing revenue was up 19% (20% in local currency). Source
• Global property sales revenue up 20%: Global property sales revenue rose 20% (19% in local currency). The U.S. was up 24%, with strong growth across most property types. Source

Capital, cash and returns to shareholders

• Net leverage rose to 1.60x: Net leverage was 1.60x at June 30, 2026, up from 1.54x at March 31, 2026. Net debt was $5,893 million against trailing twelve-month core EBITDA of $3,680 million. Source
• Trailing free cash flow near $1.7 billion: Free cash flow was nearly $1.7 billion for the 12 months to June 30, 2026. Cash flow from operations for the same period was nearly $1.4 billion. Source
• Quarterly free cash flow of $29 million: Free cash flow for the quarter was $29 million, against $2 million a year earlier. Capital expenditures were $114 million, up from $74 million. Source
• Share repurchases near $1.0 billion: Year to date, the company repurchased nearly $1.0 billion of its shares. The six-month cash flow statement shows $940 million of common stock repurchases. Source
• Total liquidity of $4.4 billion: Total liquidity was $4.4 billion at quarter end. The company defines it to include cash available for company use, plus revolving credit and commercial paper availability. Source

Strategy and investment

• Resources directed to growth areas: Management said resources and investments are being directed into areas that drive current growth and position the company for long-term growth. Source
• Efficiency initiative costs excluded from core: Costs for efficiency and cost-reduction initiatives were $9 million in the quarter and were excluded from core results. Source

Coming up, as management said on 29 July 2026

• Call transcript to be posted: A transcript of the call will be posted on the company's Investor Relations website. Source

Figures management reported

Risks management discussed

• Demand: Lower government agency lending partly offset mortgage origination activity in the quarter. Source
• Financial: Lower co-investment returns partly offset higher asset management fees in investment management operating profit. Source

Earlier plans management reported on

• Not stated: The company referred to a reclassification of amortization costs that it had disclosed in first-quarter 2026 results, and cited it as aiding operating leverage. Source
• Not stated: Management said the strategy is working as it intended, without giving a status against a dated plan. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.