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Real estate services firm Cushman & Wakefield (NYSE:CWK) reported Q1 CY2025 results beating Wall Street’s revenue expectations , with sales up 4.6% year on year to $2.28 billion. Its non-GAAP profit of $0.09 per share was significantly above analysts’ consensus estimates.

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Cushman & Wakefield (CWK) Q1 CY2025 Highlights:

• Revenue: $2.28 billion vs analyst estimates of $2.23 billion (4.6% year-on-year growth, 2.5% beat)

• Adjusted EPS: $0.09 vs analyst estimates of $0.02 (significant beat)

• Adjusted EBITDA: $96.2 million vs analyst estimates of $83.78 million (4.2% margin, 14.8% beat)

• Operating Margin: 2%, up from 0.9% in the same quarter last year

• Free Cash Flow was -$166.6 million compared to -$138.4 million in the same quarter last year

• Market Capitalization: $2.54 billion

StockStory’s Take

Cushman & Wakefield’s Q1 results reflected broad-based growth across its service lines, with management emphasizing momentum in both leasing and capital markets activity. CEO Michelle MacKay credited a simplified organizational structure and strategic investments made over the past 18 months for driving operational agility and sustained client demand, noting, “We are now attacking growth, and we are delivering results ahead of schedule.” Stronger-than-anticipated performance was seen across the Americas and Asia-Pacific, while Europe, the Middle East, and Africa (EMEA) faced macroeconomic headwinds.

Looking ahead, management’s guidance remains steady, although they acknowledged heightened economic uncertainty could affect the pace of recovery. CFO Neil Johnston reaffirmed full-year revenue targets but flagged a wider range of potential economic outcomes, stating, “We will remain flexible and watchful at the operating environment and make any necessary adjustments.” The company’s approach is to balance continued investment in talent and technology with ongoing debt reduction as it seeks to capitalize on what it sees as the early stages of a multi-year commercial real estate recovery.

Key Insights from Management’s Remarks

Cushman & Wakefield’s management attributed Q1’s outperformance to a combination of internal operational improvements and recovering client demand, particularly in leasing and capital markets. They highlighted specific initiatives and end-market trends affecting each region and service line.

• Leasing and Capital Markets Growth: The Americas showed double-digit growth in both leasing and capital markets. Leasing activity was buoyed by return-to-office trends and stable demand for quality office and industrial space, while capital markets benefited from robust activity in Japan and the UK.

• Service Line Diversification: The company’s global occupier services and facilities management businesses achieved mid-single-digit organic growth, supported by new contract wins and strong client retention, especially in Asia-Pacific.

• Talent Acquisition and Retention: Management reported accelerated hiring of high-performing teams in capital markets and leasing, with more new brokers onboarded in the Americas year-to-date than in all of last year, aiming to further solidify market share.

• EMEA Headwinds and Green Shoots: EMEA performance lagged due to macroeconomic weakness and the unwind of project management work. However, property management in the region grew and UK capital markets showed signs of recovery after interest rate cuts.

• Balanced Capital Allocation: The company continued to reduce debt, paying down $25 million this quarter, and refinanced a portion of its term loan at a lower rate, while maintaining investment in growth initiatives.