CBRE Group, Inc. has recently released its 10-K report, providing a detailed look into its financial performance and operations for the year ended December 31, 2024. The company operates as a commercial real estate services and investment firm, with a focus on three primary business segments: Advisory Services, Global Workplace Solutions, and Real Estate Investments.
In 2024, CBRE served clients through these three business segments, generating revenue from both resilient sources, such as multi-year portfolio and per-project contracts, and non-recurring sources, including commissions generated by transactions. The company's revenue mix has become more weighted towards resilient revenue sources, particularly occupier outsourcing, with a decline in dependence on cyclical property sales and lease transaction revenue.
The operating environment for commercial real estate improved in 2024, particularly in the second half of the year. This improvement was evident in real estate leasing markets, with strong demand for high-quality space and increased activity in real estate sales and financing. Additionally, outsourcing services gained favor, boosting demand for facilities and project management services.
In terms of financial performance, CBRE reported a net revenue of $35.8 billion for the year ended December 31, 2024, representing a 14.2% increase compared to the previous year. The company's GAAP net income was $968 million, reflecting a 1.8% decrease from the prior year. Core EBITDA reached $2.7 billion, a 22.4% increase, while GAAP earnings per share (EPS) was $3.14, showing a 0.3% decrease, and core EPS stood at $5.10, marking a 32.8% increase.
CBRE allocated significant capital in 2024 for projects aimed at enhancing capabilities and expanding its total addressable market. This capital deployment totaled approximately $1.8 billion, including M&A and strategic investments, such as the acquisition of J&J Worldwide Services and Direct Line Global. The company also deployed $644 million in share buybacks, repurchasing 5,110,624 shares.
The company's Advisory Services segment reported a total net revenue of $9.5 billion for 2024, representing a 13.0% increase from the previous year. The segment's operating profit margin on revenue increased to 17.8% from 16.2% in 2023.
As a result of these announcements, the company's shares have moved 0.4% on the market, and are now trading at a price of $143.73. Check out the company's full 10-K submission here.
