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CBRE Group Inc. CBRE reported first-quarter 2025 core earnings per share (EPS) of 86 cents, ahead of the Zacks Consensus Estimate of 81 cents. The reported figure also increased 10.3% year over year.
Results reflect year-over-year revenue growth across all its business segments. CBRE’s resilient businesses generated net revenue growth of 17%, nearly matching the 18% increase in its transactional businesses.
Quarterly revenues increased 12.3% year over year to $8.91 billion. The Zacks Consensus Estimate was in line with the reported figure.
Net revenues increased 15% (17% in local currency) year over year to $5.11 billion. Core EBITDA rose 27.4 % (29.7% in local currency) to $540 million.
In January 2025, the company established two new business segments: Building Operations & Experience (BOE), following the acquisition of flexible workplace solutions provider Industrious, and Project Management, following the integration of CBRE’s legacy project management business into Turner & Townsend. It now reports results for four business segments, namely Advisory Services, BOE, Project Management and Real Estate Investments.
CBRE’s Quarter in Detail
CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 13.4% (15.2% in local currency) to $1.69 billion.
Global leasing revenue rose 18% (18% in local currency), driven by notable leasing revenue growth in the Unites States, and Europe, the Middle East & Africa (EMEA).
Global property sales revenues grew 11% (13% in local currency) year over year, led by increases across the United States and EMEA. Moreover, mortgage origination revenues rose 52% (53% in local currency) due to continued strength in loan origination activity with a variety of capital sources.
The BOE segment registered a year-over-year increase of 13.9% (15.9% in local currency) in revenues to $5.36 billion.
Facilities management net revenues rose 16% (18% in local currency). Project management net revenues increased 36% (38% in local currency), led by the contributions from Industrious, which was acquired in January 2025. The segment’s operating profit on net revenue margin improved by 100 basis points (in local currency) compared with the first quarter of 2024, reflecting the benefit of cost control initiatives in 2024.
Project Management segment net revenues grew 6.8% (8.8% in local currency) to $774 million year over year, led by infrastructure projects in the U.K. and the Middle East as well as large new program mandates in Real Estate.
The Real Estate Investments segment experienced an increase of 2.2% (3.9% local currency) in revenues to $233 million.