CBRE Reports Strong Financial Performance

By Tamara Parker • Thursday, February 13 10:27 • Permanent Link

CBRE Group, Inc. (NYSE:CBRE) has reported its financial results for the fourth quarter and full year ended December 31, 2024. Here are the key highlights:

Q4 GAAP EPS of $1.58; core EPS of $2.32 and 2024 GAAP EPS of $3.14; core EPS of $5.10.
Revenue up 16% for Q4 and 12% for 2024; net revenue up 18% for Q4 and 14% for 2024.
Resilient business net revenue increased 16% for Q4 and 14% for 2024.
$1.7 billion net cash flow from operations and $1.5 billion free cash flow for all of 2024.
Repurchased more than $800 million worth of shares since the end of the third quarter of 2024.
Expect to achieve 2025 core EPS of $5.80 to $6.10, reflecting mid-teens growth at the midpoint.

In terms of financial performance, CBRE Group, Inc. saw significant growth across various metrics:

Operating results: Revenue for Q4 2024 was $10,404 million, up 16.2% from Q4 2023. Net revenue for the same period was $6,134 million, reflecting an 18.3% increase from the previous year.
GAAP net income for Q4 2024 was $487 million, up 2.1% from Q4 2023. Core adjusted net income for the same period increased by 67.1%.
Cash flow results: Cash flow provided by operations was $1,340 million for Q4 2024, representing a 57.1% increase from the same period in 2023. Free cash flow for Q4 2024 was $1,377 million, up 79.1% from Q4 2023.

The company's advisory services segment also showed strong performance:

Advisory services segment: Revenue for Q4 2024 was $3,088 million, up 19.2% from Q4 2023. Net revenue for the same period saw a similar increase of 19.2%.
Leasing: Global leasing revenue increased 15% (same local currency) in Q4 2024, with the Americas experiencing a strong leasing revenue growth of 15% (same local currency).
Capital markets: Property sales revenue growth accelerated to 35% globally (34% local currency) in Q4 2024.

The GWS segment and REI segment also demonstrated significant growth:

GWS segment: Revenue for Q4 2024 was $7,042 million, up 15.4% from Q4 2023. Net revenue for the same period increased by 18.5%.
REI segment: Revenue for Q4 2024 was $275 million, up 5.0% from Q4 2023. Segment operating profit saw a substantial increase of 120.6%.

CBRE Group, Inc.'s strong financial performance is further supported by its capital allocation and leverage, with the company having repurchased approximately 6.05 million shares for $806 million since the end of the third quarter of 2024, and maintaining a net leverage ratio of 0.93x as of December 31, 2024.

Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $139.77. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.