In This Article:
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Fee Revenue: $1.5 billion, an increase of 4%, with organic fee revenue growing 6%.
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Adjusted EBITDA: Increased 24% to $96 million.
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Adjusted EBITDA Margin: Expanded by 100 basis points year-over-year.
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Adjusted EPS: Increased to $0.09 from breakeven a year ago.
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Net Leverage: 3.9 times EBITDA.
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Free Cash Flow: Use of $167 million in the first quarter.
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Leasing Revenue: Grew 9% globally, with America's leasing up 14% and APAC leasing up 16%.
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Capital Markets Revenue: Grew 11% globally, with APAC up 59% and EMEA up 17%.
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Services Revenue: Organic growth of 4% in the quarter.
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Liquidity: $1.7 billion with no funded debt maturities until 2028.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cushman & Wakefield PLC (NYSE:CWK) achieved mid single-digit organic growth in its services business, two quarters ahead of target.
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The company improved its adjusted EBITDA margin by 100 basis points year over year.
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CWK reduced its leverage by paying down an additional $25 million in debt, totaling $230 million repaid since the CEO took over.
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The company's Americas leasing pipeline is twice the size it was a year ago, indicating strong future growth potential.
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CWK's APAC services business demonstrated resilience and momentum with strong retention rates and five new sizable contracts.
Negative Points
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EMEA leasing contracted by 26% due to difficult comparisons against the previous year.
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Free cash flow was a use of $167 million in the first quarter, reflecting typical seasonal patterns.
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EMEA services experienced a reduction in project management work, impacting overall performance.
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The company faces a dynamic and rapidly evolving macroeconomic landscape, which could impact future performance.
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There is some uncertainty regarding the impact of tariffs on the leasing and capital markets businesses.
Q & A Highlights
Q: Can you explain the 100 basis points year-over-year margin improvement, which was expected to be flat three months ago? A: Neil Johnston, CFO, explained that the margin improvement was primarily due to stronger than expected top-line performance in leasing and services, along with some expense timing benefits. Approximately 30% of the beat was due to these timing benefits, which are expected to reverse in the second quarter.
Q: How would you characterize the environment in April, particularly regarding tariffs and their impact on leasing and capital markets? A: Michelle MacKay, CEO, noted that tariff uncertainty has not materially impacted their sector. They continue to see strong demand for high-quality office and industrial spaces. Client decision-making remains active, with 90-95% of clients proceeding with decisions on their existing timelines.