CBRE Group (CBRE 7.84%), the global leader in commercial real estate services, reported its financial results for the second quarter of fiscal 2025 on July 29, 2025. The company delivered strong growth in both revenue and earnings, outpacing analyst expectations with non-GAAP earnings per share of $1.19 versus the $1.07 consensus, and GAAP revenue of $9.8 billion against the $9.46 billion forecast. GAAP net income surged 65.4% year over year. However, free cash flow fell sharply, dropping to $2 million compared to $220 million in Q2 2024. Overall, the quarter highlighted resilient growth across major segments and continued progress on strategic initiatives, even as cash generation showed increased volatility.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.19 | $1.07 | $0.81 | 46.9 % |
| Revenue (GAAP) | $9.75 billion | $9,455.94 million | $8.39 billion | 16.2% |
| Net Income (GAAP) | $215 million | $130 million | 65.4 % | |
| Core EBITDA | $658 million | $505 million | 30.3 % | |
| Free Cash Flow (Non-GAAP) | $2 million | $220 million | (99.1 % decrease) |
Source: Analyst estimates for the quarter provided by FactSet.
About CBRE Group and Key Business Drivers
CBRE Group is a global commercial real estate services and investment firm operating in over 100 countries with a broad client base that includes nearly 90% of Fortune 100 companies in 2024. Its integrated platform spans property leasing, capital markets, mortgage servicing, valuation, property management, project management, and real estate investment management. The company is recognized for its scale and ability to provide bundled solutions to clients across regions and asset types.
Recent strategic focuses include expanding recurring, or “resilient,” revenue streams, diversifying across markets and business lines, and investing in technology and talent. Strategic acquisitions, such as Turner & Townsend for project management and Industrious for flexible office space, have broadened its service portfolio. Key factors influencing CBRE Group’s success are its global reach, ability to cross-sell integrated services, and continued growth in reliable service lines such as facilities management and asset management fees.
Quarter Performance: Segment Results, Growth Drivers, and Notable Events
In Advisory Services, revenue climbed to $1.996 billion, up 14.4% year over year, and segment operating profit increased 32.4% to $380 million. Operating margin on advisory revenues rose 2.5 percentage points to 19.0%. Key areas contributed to this growth: global leasing revenue jumped 14% in the second quarter, capital markets revenue rose 20%, and mortgage origination revenue grew 44%. Loan servicing revenue edged up 1%, and valuations revenue gained 7%.
The Building Operations & Experience (BOE) segment reported revenue of $5.764 billion, reflecting an 18.7 % year-over-year increase. Segment operating profit increased 22.5% to $261 million. Facilities management revenue rose 17%, with particular strength from clients in the data center, technology, healthcare, and industrial sectors. Property management revenue surged 30%, aided by the recent Industrious acquisition, which enhanced flexible office space offerings.
Project Management, which includes both direct oversight of projects and consulting, generated $1.786 billion in revenue, up 14.3%. Segment operating profit reached $121 million, an 18.6% improvement year over year. The majority of growth originated from Turner & Townsend, reflecting mid-teens revenue increases, particularly in the United Kingdom and global infrastructure projects.
The Real Estate Investments segment saw revenue decrease 7.3% to $215 million. However, segment operating profit improved to $25 million, up from $10 million in Q2 2024. Investment management recurring asset fees climbed 5%, while global assets under management reached $155.3 billion, marking a $6.2 billion increase from the prior quarter, largely due to currency movements. The segment saw a positive swing in development profit.
No material new acquisitions occurred during the quarter, though management reported a robust pipeline for future mergers and acquisitions. There were no declared dividends or changes in dividend policy during the quarter.
Financial Health, Cash Flow Trends, and Capital Allocation
Liquidity at quarter-end increased to $4.7 billion, up $1.2 billion from the prior quarter, providing a strong base for ongoing investments and capital returns. CBRE Group’s net leverage ratio stood at 1.47 times as of June 30, 2025, comfortably below its 4.25 times covenant ceiling. Year to date, the company repurchased $663 million in shares at an average price of $127.82, with $5.2 billion remaining under its share repurchase authorization.
The quarter’s most notable downside was free cash flow, which dropped to $2 million in free cash flow from $220 million in the prior year quarter. This sharp decline resulted from a combination of lower operating cash flow, higher capital expenditures, and timing effects around asset dispositions. While management explained that trailing twelve-month free cash flow remains strong at nearly $1.3 billion for the period ended, the weaker quarterly result will be an important metric to watch in coming periods.
Forward Outlook and What to Watch
Looking ahead, Management raised its full-year 2025 core earnings per share (EPS) outlook to a range of $6.10 to $6.20, and expects to set a new earnings peak in 2025, even though overall capital markets activity continues to operate below historic highs. Guidance remains based on constant currency expectations, with a possible $0.10 per share upside to 2025 Core EPS guidance if current currency rates persist.
Management identified ongoing macroeconomic uncertainty and market volatility as key risks, noting that transactional business activity is improving but not fully recovered. CBRE Group continues to prioritize investment in resilient revenue sources, integration of recent acquisitions, and rigorous cost management. Investors should monitor future cash flow performance, margin discipline, and any developments in the company’s acquisition pipeline.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
