Latest news with #CoreEPS
Yahoo
01-08-2025
- Business
- Yahoo
Edison International Reports Second-Quarter 2025 Results
Second-quarter 2025 GAAP EPS of $0.89; Core EPS of $0.97 Eaton Fire investigations ongoing; SCE plans to launch Wildfire Recovery Compensation Program Confident that legislative action will ultimately enhance California's AB 1054 regulatory framework Continued strong regulatory progress: WMCE settlement approved; final decision issued in WM/VM proceeding; GRC proposed decision issued Reaffirmed 2025 Core EPS guidance of $5.94-$6.34 Continued confidence in delivering 5-7% Core EPS growth from 2025 to 2028 ($6.74-$7.14) ROSEMEAD, Calif., July 31, 2025--(BUSINESS WIRE)--Edison International (NYSE: EIX) today reported second-quarter net income of $343 million, or $0.89 per share, compared to net income of $439 million, or $1.14 per share, in the second quarter of last year. As adjusted, second-quarter core earnings were $374 million, or $0.97 per share, compared to core earnings of $475 million, or $1.23 per share, in the second quarter of last year. In the absence of a 2025 GRC decision, since January 1, 2025, and until a GRC decision is issued, SCE is recognizing revenue based on the 2024 authorized revenue requirement, adjusted to reflect the 2025 CPUC-authorized ROE. Southern California Edison's second-quarter 2025 core earnings per share (EPS) decreased year over year, primarily due to higher operations and maintenance expense and the net impact of regulatory decisions received in each period. Edison International Parent and Other's second-quarter 2025 core loss per share increased year over year, primarily due to higher interest expense. "We are encouraged by the continuing discussions with legislative leaders to enhance California's industry-leading AB 1054 regulatory framework," said Pedro J. Pizarro, president and CEO of Edison International. "We remain confident that policymakers will act to strengthen and restore confidence in California's wildfire framework during the current legislative session." Pizarro added, "The January wildfires underscore the importance of mitigation plans and the need for continuous and evolving tools to maintain infrastructure resiliency. SCE continues to invest in new and innovative solutions to reduce wildfire risk." Edison International uses core earnings internally for financial planning and analysis of performance. Core earnings are also used when communicating with investors and analysts regarding Edison International's earnings results to facilitate comparisons of the company's performance from period to period. Please see the attached tables to reconcile core earnings to basic GAAP earnings. 2025 Earnings Guidance The company reaffirmed its earnings guidance range for 2025 as summarized in the following chart. See the presentation accompanying the company's conference call for further information and assumptions. 2025 Earnings Guidance 2025 Earnings Guidance as of April 29, 2025 as of July 31, 2025 Low High Low High EIX Basic EPS $ 8.30 $ 8.70 $ 8.22 $ 8.62 Less: Non-core Items* 2.36 2.36 2.28 2.28 EIX Core EPS $ 5.94 $ 6.34 $ 5.94 $ 6.34 *There were $877 million, or $2.28 per share, of non-core items recorded for the six months ended June 30, 2025. Basic EPS guidance only incorporates non-core items to June 30, 2025. Second-Quarter 2025 Earnings Conference Call and Webcast Details When: Thursday, July 31, 1:30-2:30 p.m. (PDT) Telephone Numbers: 1-888-673-9780 (U.S.) and 1-312-470-0178 (Int'l) — Passcode: Edison Telephone Replay: 1-800-685-6667 (U.S.) and 1-203-369-3864 (Int'l) — Passcode:6728 Telephone replay available through Aug. 14 at 6 p.m. (PDT) Webcast: Edison International has posted its earnings conference call prepared remarks by the CEO and CFO, the teleconference presentation, and Form 10-Q to the company's investor relations website. These materials are available at About Edison International Edison International (NYSE: EIX) is one of the nation's largest electric utility holding companies, focused on providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Trio (formerly Edison Energy), a portfolio of nonregulated competitive businesses providing integrated sustainability and energy advisory services to large commercial, industrial and institutional organizations in North America and Europe. Appendix Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company's earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance of Edison International and Southern California Edison. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company's performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share. Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary's EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other. Safe Harbor Statement Statements contained in this release about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. These forward-looking statements represent our expectations only as of the date of this release, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Important factors that could cause different results include, but are not limited to the: ability of SCE to recover its costs through regulated rates, timely or at all, including uninsured wildfire-related and debris flow-related costs (including amounts paid for self-insured retention and co-insurance, and amounts not recoverable from the Wildfire Insurance Fund), and costs incurred for wildfire restoration efforts and to mitigate the risk of utility equipment causing future wildfires; the cybersecurity of Edison International's and SCE's critical information technology systems for grid control and business, employee and customer data, and the physical security of Edison International's and SCE's critical assets and personnel; risks associated with the operation and maintenance of electrical facilities, including worker, contractor, and public safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts; impact of affordability of customer rates on SCE's ability to execute its strategy, including the impact of affordability on SCE's ability to obtain regulatory approval of, or cost recovery for, operations and maintenance expenses, proposed capital investment projects, and increased costs due to supply chain constraints, tariffs, inflation and rising interest rates and the impact of legislative actions on affordability; ability of SCE to update its grid infrastructure to maintain system integrity and reliability, and meet electrification needs; ability of SCE to implement its operational and strategic plans, including its Wildfire Mitigation Plan and capital investment program, including challenges related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, changes in the California Independent System Operator's ("CAISO") transmission plans, and governmental approvals; risks of regulatory or legislative restrictions that would limit SCE's ability to implement operational measures to mitigate wildfire risk, including Public Safety Power Shutoff ("PSPS") and fast curve settings, when conditions warrant or would otherwise limit SCE's operational practices relative to wildfire risk mitigation; ability of SCE to obtain safety certifications from the Office of Energy Infrastructure Safety of the California Natural Resources Agency ("OEIS"); risk that California Assembly Bill 1054 ("AB 1054") or other new California legislation does not effectively mitigate the significant exposure faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are alleged to be a substantial cause, including the longevity of the Wildfire Insurance Fund and the California Public Utilities Commission ("CPUC") interpretation of and actions under AB 1054, including its interpretation of the prudency standard clarified by AB 1054; ability of Edison International and SCE to effectively attract, manage, develop and retain a skilled workforce, including its contract workers; decisions and other actions by the CPUC, the Federal Energy Regulatory Commission, and the United States Nuclear Regulatory Commission, the California legislature and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, approval of regulatory proceeding settlements, determinations of authorized rates of return or return on equity, the recoverability of wildfire-related and debris flow-related costs, issuance of SCE's wildfire safety certification, reforming wildfire-related liability protections available to California investor-owned utilities, wildfire mitigation efforts, approval and implementation of electrification programs, and delays in executive, regulatory and legislative actions; governmental, statutory, regulatory, or administrative changes or initiatives affecting the electricity industry, including the market structure rules applicable to each market adopted by the North American Electric Reliability Corporation, CAISO, Western Electricity Coordinating Council, and similar regulatory bodies in adjoining regions, and changes in the United States' and California's environmental priorities that lessen the importance placed on greenhouse gas reduction and other climate related priorities; potential for penalties or disallowances for non-compliance with applicable laws and regulations, including fines, penalties and disallowances related to wildfires where SCE's equipment is alleged to be associated with ignition; extreme weather-related incidents (including events caused, or exacerbated, by climate change), such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events and other natural disasters (such as earthquakes), which could cause, among other things, worker and public safety issues, property damage, outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs; risks associated with the decommissioning of San Onofre, including those related to worker and public safety, public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel and other radioactive material, delays, contractual disputes, and cost overruns; risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as Community Choice Aggregators ("CCA," which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses) and Electric Service Providers (entities that offer electric power and ancillary services to retail customers, other than electrical corporations (like SCE) and CCAs); actions by credit rating agencies to downgrade Edison International or SCE's credit ratings or to place those ratings on negative watch or negative outlook. Other important factors are discussed under the headings "Forward-Looking Statements", "Risk Factors" and "Management's Discussion and Analysis" in Edison International's Form 10-K and other reports filed with the Securities and Exchange Commission, which are available on our website: These filings also provide additional information on historical and other factual data contained in this release. Second Quarter Reconciliation of Basic Earnings Per Share to Core Earnings Per Share Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024 Change Earnings (loss) per share available to Edison International SCE $ 1.15 $ 1.36 $ (0.21 ) $ 5.22 $ 1.52 $ 3.70 Edison International Parent and Other (0.26 ) (0.22 ) (0.04 ) (0.60 ) (0.41 ) (0.19 ) Edison International 0.89 1.14 (0.25 ) 4.62 1.11 3.51 Less: Non-core items SCE (0.08 ) (0.09 ) 0.01 2.38 (1.26 ) 3.64 Edison International Parent and Other — — — (0.10 ) — (0.10 ) Total non-core items (0.08 ) (0.09 ) 0.01 2.28 (1.26 ) 3.54 Core earnings (loss) per share SCE 1.23 1.45 (0.22 ) 2.84 2.78 0.06 Edison International Parent and Other (0.26 ) (0.22 ) (0.04 ) (0.50 ) (0.41 ) (0.09 ) Edison International $ 0.97 $ 1.23 $ (0.26 ) $ 2.34 $ 2.37 $ (0.03 ) Note: Diluted earnings were $0.89 and $1.13 per share for the three months ended June 30, 2025 and 2024, respectively. Diluted earnings were $4.61 and $1.11 per share for the six months ended June 30, 2025 and 2024, respectively. Second Quarter Reconciliation of Basic Earnings to Core Earnings (in millions) Three Months Ended June 30, Six Months Ended June 30, (in millions) 2025 2024 Change 2025 2024 Change Net income (loss) available to Edison International SCE $ 443 $ 523 $ (80 ) $ 2,010 $ 588 $ 1,422 Edison International Parent and Other (100 ) (84 ) (16 ) (231 ) (160 ) (71 ) Edison International 343 439 (96 ) 1,779 428 1,351 Less: Non-core items SCE1,2,3 (31 ) (36 ) 5 916 (484 ) 1,400 Edison International Parent and Other4 — — — (39 ) (1 ) (38 ) Total non-core items (31 ) (36 ) 5 877 (485 ) 1,362 Core earnings (losses) SCE 474 559 (85 ) 1,094 1,072 22 Edison International Parent and Other (100 ) (84 ) (16 ) (192 ) (159 ) (33 ) Edison International $ 374 $ 475 $ (101 ) $ 902 $ 913 $ (11 ) 1. Includes net earnings recorded in the six months ended June 30, 2025 related to TKM Settlement Agreement, including ongoing activities after the initial implementation: $1,341 million ($966 million after-tax) of claim costs and $58 million ($42 million after-tax) of legal expenses authorized for recovery, partially offset by shareholder-funded wildfire mitigation expenses of $50 million ($36 million after-tax) and impairment of incremental restoration-related assets of $8 million ($6 million after-tax). Charges of $1 million ($1 million after-tax) and $4 million ($3 million after-tax) recorded in the three and six months ended June 30, 2025, respectively, and $11 million ($8 million after-tax) and $478 million ($344 million after-tax) recorded in the three and six months ended June 30, 2024, respectively, related to 2017/2018 Wildfire/Mudslide Events claim costs and related legal expenses, net of expected regulatory recoveries. 2. Includes charges for Other Wildfires claims and related legal expenses, net of expected insurance and regulatory recoveries of $6 million ($4 million after-tax) and $2 million ($2 million after-tax), for the three months ended June 30, 2025 and 2024, respectively. Includes net earnings of $6 million ($5 million after-tax) recorded in the six months ended June 30, 2025, which consisted of $14 million insurance reimbursements for costs incurred in previous years, partially offset by $8 million legal expenses, net of expected regulatory recoveries, and charges of $121 million ($88 million after-tax) recorded in the six months ended June 30, 2024, for Other Wildfire Events claims and related legal expenses, net of expected insurance and regulatory recoveries. 3. Includes amortization of SCE's Wildfire Insurance Fund expenses of $36 million ($26 million after-tax) and $37 million ($26 million after-tax) for the three months ended June 30, 2025 and 2024, respectively, and $72 million ($52 million after-tax) and $73 million ($52 million after-tax) for the six months ended June 30, 2025 and 2024, respectively. 4. Includes wildfire claims insured by EIS of $50 million ($39 million after-tax) and $1 million ($1 million after-tax) for the six months ended June 30, 2025 and 2024, respectively. Condensed Consolidated Statements of Income Edison International Edison International Three months ended June 30, Six months ended June 30, (in millions, except per-share amounts, unaudited) 2025 2024 2025 2024 Operating revenue $ 4,543 $ 4,336 $ 8,354 $ 8,414 Purchased power and fuel 1,157 1,234 2,204 2,242 Operation and maintenance 1,580 1,285 2,563 2,602 Wildfire-related claims, net of (recoveries) — — (1,305 ) 615 Wildfire Insurance Fund expense 36 37 72 73 Depreciation and amortization 826 726 1,568 1,428 Property and other taxes 168 154 334 309 Other 1 — 9 — Total operating expenses 3,768 3,436 5,445 7,269 Operating income 775 900 2,909 1,145 Interest expense (504 ) (480 ) (805 ) (924 ) Other income, net 113 148 220 286 Income before income taxes 384 568 2,324 507 Income tax (benefit) expense (14 ) 59 434 (54 ) Net income 398 509 1,890 561 Less: Preference stock dividend requirements of SCE 33 49 67 90 Preferred stock dividend requirements of Edison International 22 21 44 43 Net income available to Edison International common shareholders $ 343 $ 439 $ 1,779 $ 428 Basic earnings per share: Weighted average shares of common stock outstanding 385 385 385 385 Basic earnings per common share available to Edison International common shareholders $ 0.89 $ 1.14 $ 4.62 $ 1.11 Diluted earnings per share: Weighted average shares of common stock outstanding, including effect of dilutive securities 386 388 386 387 Diluted earnings per common share available to Edison International common shareholders $ 0.89 $ 1.13 $ 4.61 $ 1.11 Condensed Consolidated Balance Sheets Edison International Edison International (in millions, unaudited) June 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 140 $ 193 Receivables, less allowances of $314 and $352 for uncollectible accounts at respective dates 1,902 2,169 Accrued unbilled revenue 927 848 Inventory 523 538 Prepaid expenses 96 103 Regulatory assets 2,805 2,748 Wildfire Insurance Fund contributions 138 138 Other current assets 419 418 Total current assets 6,950 7,155 Nuclear decommissioning trusts 4,324 4,286 Other investments 63 57 Total investments 4,387 4,343 Utility property, plant and equipment, less accumulated depreciation and amortization of $14,587 and $14,207 at respective dates 60,797 59,047 Nonutility property, plant and equipment, less accumulated depreciation of $125 and $124 at respective dates 202 207 Total property, plant and equipment 60,999 59,254 Receivables, less allowances $47 and $43 for uncollectible accounts at respective dates 61 62 Regulatory assets (include $1,488 and $1,512 related to a Variable Interest Entity ("VIE") at respective dates) 10,487 8,886 Wildfire Insurance Fund contributions 1,809 1,878 Operating lease right-of-use assets 1,156 1,180 Long-term insurance receivables 365 418 Other long-term assets 2,599 2,403 Total other assets 16,477 14,827 Total assets $ 88,813 $ 85,579 Condensed Consolidated Balance Sheets Edison International Edison International (in millions, except share amounts, unaudited) June 30, 2025 December 31, 2024 LIABILITIES AND EQUITY Short-term debt $ 700 $ 998 Current portion of long-term debt 2,699 2,049 Accounts payable 1,962 2,000 Wildfire-related claims 169 60 Accrued interest 520 422 Regulatory liabilities 490 1,347 Current portion of operating lease liabilities 120 124 Other current liabilities 1,305 1,439 Total current liabilities 7,965 8,439 Long-term debt (includes $1,444 and $1,468 related to a VIE at respective dates) 34,971 33,534 Deferred income taxes and credits 7,884 7,180 Pensions and benefits 371 384 Asset retirement obligations 2,549 2,580 Regulatory liabilities 11,066 10,159 Operating lease liabilities 1,036 1,056 Wildfire-related claims 568 941 Other deferred credits and other long-term liabilities 3,542 3,566 Total deferred credits and other liabilities 27,016 25,866 Total liabilities 69,952 67,839 Preferred stock (50,000,000 shares authorized; 1,159,317 shares of Series A and 503,454 shares of Series B issued and outstanding at respective dates) 1,645 1,645 Common stock, no par value (800,000,000 shares authorized; 384,786,397 and 384,784,719 shares issued and outstanding at respective dates) 6,330 6,353 Accumulated other comprehensive income 2 — Retained earnings 8,709 7,567 Total Edison International's shareholders' equity 16,686 15,565 Noncontrolling interests – preference stock of SCE 2,175 2,175 Total equity 18,861 17,740 Total liabilities and equity $ 88,813 $ 85,579 Condensed Consolidated Statements of Cash Flows Edison International Edison International Six months ended June 30, (in millions, unaudited) 2025 2024 Cash flows from operating activities: Net income $ 1,890 $ 561 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 1,568 1,454 Equity allowance for funds used during construction (93 ) (96 ) Deferred income taxes 420 (52 ) Wildfire Insurance Fund amortization expense 72 73 Other 77 21 Nuclear decommissioning trusts (102 ) (41 ) Changes in operating assets and liabilities: Receivables 248 (66 ) Inventory 12 (10 ) Accounts payable 50 101 Other current assets and liabilities (247 ) (444 ) Derivative assets and liabilities, net 44 (25 ) Regulatory assets and liabilities, net (1,600 ) (106 ) Wildfire-related insurance receivable 53 — Wildfire-related claims (264 ) (148 ) Other noncurrent assets and liabilities (22 ) 150 Net cash provided by operating activities 2,106 1,372 Cash flows from financing activities: Long-term debt issued, net of discount and issuance costs of $49 and $34 for the respective periods 3,501 4,216 Long-term debt repaid (726 ) (1,725 ) Short-term debt issued 18 — Short-term debt repaid — (396 ) Common stock repurchased (29 ) — Preference stock issued, net of issuance cost — 345 Preferred stock repurchased — (378 ) Commercial paper (repayments) borrowing, net (1,012 ) 114 Dividends and distribution to noncontrolling interests (67 ) (88 ) Common stock dividends paid (637 ) (595 ) Preferred stock dividends paid (44 ) (45 ) Other (13 ) 117 Net cash provided by financing activities 991 1,565 Cash flows from investing activities: Capital expenditures (3,120 ) (2,700 ) Proceeds from sale of nuclear decommissioning trust investments 2,680 2,477 Purchases of nuclear decommissioning trust investments (2,580 ) (2,455 ) Other 18 8 Net cash used in investing activities (3,002 ) (2,670 ) Net increase in cash, cash equivalents and restricted cash 95 267 Cash, cash equivalents and restricted cash at beginning of period 684 532 Cash, cash equivalents and restricted cash at end of period $ 779 $ 799 View source version on Contacts Investor Relations: Sam Ramraj, (626) 302-2540Media Relations: (626) 302-2255News@
Yahoo
29-07-2025
- Business
- Yahoo
CBRE Group, Inc. Reports Financial Results for Second-Quarter 2025
DALLAS, July 29, 2025--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE: CBRE) today reported financial results for the second quarter ended June 30, 2025. Key Highlights: GAAP EPS up 71% to $0.72; Core EPS up 47% to $1.19 Revenue up 16% to $9.8 billion Resilient Businesses(1) revenue up 17% to $8.1 billion; Transactional Businesses(1) revenue up 15% to nearly $1.7 billion GAAP net income up 65% to $215 million; Core EBITDA up 30% to $658 million $1.4 billion net cash flow from operations and nearly $1.3 billion free cash flow, both on a trailing 12-month basis Liquidity increased by $1.2 billion during the quarter to $4.7 billion 2025 Core EPS outlook increased to $6.10 to $6.20 from $5.80 to $6.10 previously, reflecting better than 20% growth at the midpoint of the range. This forecast is based on constant currency and would increase by at least $0.10 based on today's forward FX curves. "The strong momentum we exhibited to start the year continued in the second quarter. Despite uncertainty in the macro environment, occupier and investor clients largely proceeded with executing their plans," said Bob Sulentic, CBRE's chair and chief executive officer. "Resilient revenue rose 17%, surpassing the 15% growth rate for transactional businesses. Resilient revenue growing faster than transactional revenue during a market recovery attests to the progress we've made with our resilient businesses." "In light of our outperformance in the year's first half and the pipelines across our business," Sulentic continued, "we have increased our earnings outlook for the year and expect to set a new peak just two years after the 2023 trough in the commercial real estate downturn. We anticipate this outcome even though capital markets activity remains well below prior peak levels." Consolidated Financial Results Overview The following table presents highlights of CBRE performance (dollars in millions, except per share data; totals may not add due to rounding): % Change Q2 2025 Q2 2024 USD LC (2) Operating Results Revenue $ 9,754 $ 8,391 16.2 % 15.1 % Adjusted net revenue (3) 5,668 4,971 14.0 % 12.9 % GAAP net income 215 130 65.4 % 63.1 % GAAP EPS 0.72 0.42 71.4 % 69.0 % Core adjusted net income (4) 358 248 44.4 % 42.7 % Core EBITDA (5) 658 505 30.3 % 28.9 % Core EPS (4) 1.19 0.81 46.9 % 45.7 % Cash Flow Results Cash flow provided by operations $ 57 $ 287 (80.1 )% Gain on disposition of real estate sales 19 — NM Less: Capital expenditures 74 67 10.4 % Free cash flow (6) $ 2 $ 220 (99.1 )% Advisory Services Segment The following table presents highlights of the Advisory Services segment performance (dollars in millions; totals may not add due to rounding): % Change Q2 2025 Q2 2024 USD LC Revenue $ 1,996 $ 1,744 14.4 % 13.8 % Adjusted net revenue 1,983 1,732 14.5 % 13.8 % Segment operating profit (7) 380 287 32.4 % 31.3 % Segment operating profit on revenue margin (8) 19.0 % 16.5 % 2.5 pts 2.6 pts Segment operating profit on adjusted net revenue margin (8) 19.2 % 16.6 % 2.6 pts 2.6 pts Note: all percent changes cited are vs. second-quarter 2024, except where noted. Leasing Global leasing revenue increased 14% (13% local currency), in line with expectations, reaching the highest level for any second quarter in company history. The United States saw leasing revenue rise 14% overall, led by office and industrial. Europe, the Middle East & Africa (EMEA) set the pace with leasing revenue growth of 18% (13% local currency), driven by the United Kingdom and Germany, while Asia Pacific (APAC) leasing revenue rose 12% (11% local currency), paced by India and Japan. Capital Markets Global property sales revenue rose 20% (19% local currency), exceeding expectations. Growth was strong around the world. The United States registered 25% growth, with notable strength in data centers, office and retail. APAC grew by 24% (21% local currency) and EMEA by 19% (13% local currency). Mortgage origination revenue rose 44% (same local currency), reflecting particularly strong lending by government agencies as well as debt funds and CMBS lenders. Other Advisory Business Lines Loan servicing revenue ticked up 1% (same local currency). The servicing portfolio totaled $443 billion, up 1% for the quarter and 4% over the past year. Valuations revenue increased 7% (5% local currency), with the United States showing the strongest growth. Building Operations & Experience (BOE) Segment The following table presents highlights of the BOE segment performance (dollars in millions; totals may not add due to rounding): % Change Q2 2025 Q2 2024 USD LC Revenue $ 5,764 $ 4,855 18.7 % 17.5 % Adjusted net revenue 2,630 2,228 18.0 % 16.9 % Segment operating profit 261 213 22.5 % 21.1 % Segment operating profit on revenue margin 4.5 % 4.4 % 0.1 pts 0.1 pts Segment operating profit on adjusted net revenue margin 9.9 % 9.6 % 0.3 pts 0.3 pts Note: all percent changes cited are vs. second-quarter 2024, except where noted. Facilities management revenue increased 17% (16% local currency) with strong growth across the Enterprise and Local businesses. In Enterprise, growth was led by data center hyperscalers as well as the technology, healthcare and industrial sectors. The Local business continued to expand its foothold in the United States while increasing its business base in the United Kingdom, its largest market. Property management revenue rose 30% (same local currency). Contributions from Industrious, the flexible workplace operator acquired in early January 2025, enhanced the growth rate. Project Management Segment The following table presents highlights of the Project Management segment performance (dollars in millions; totals may not add due to rounding): % Change Q2 2025 Q2 2024 USD LC Revenue $ 1,786 $ 1,563 14.3 % 12.9 % Adjusted net revenue (9) 847 782 8.3 % 6.6 % Segment operating profit 121 102 18.6 % 17.6 % Segment operating profit on revenue margin 6.8 % 6.5 % 0.3 pts 0.3 pts Segment operating profit on adjusted net revenue margin 14.3 % 13.0 % 1.3 pts 1.4 pts Note: all percent changes cited are vs. second-quarter 2024, except where noted. Project management revenue rose 14% (13% local currency), with broad-based growth globally. Turner & Townsend's legacy business delivered mid-teens revenue increases across most regions, with notable growth in its largest geography—the United Kingdom. Revenue rose by low double digits in the legacy CBRE Project Management business. Real Estate Investments (REI) Segment The following table presents highlights of the REI segment performance (dollars in millions): % Change Q2 2025 Q2 2024 USD LC Revenue $ 215 $ 232 (7.3 )% (9.1 )% Segment operating profit 25 10 150.0 % 140.0 % Note: all percent changes cited are vs. second-quarter 2024, except where noted. Investment Management Revenue fell 3% (5% local currency) to $144 million. Recurring asset management fees rose 5% (3% local currency). The overall revenue decline reflected the absence of significant carried interest in the current quarter versus the year-ago period. Investment Management operating profit(10) totaled $31 million versus $39 million in last year's second quarter, driven by the lower carried interest. Assets Under Management (AUM) totaled $155.3 billion, up $6.2 billion from first-quarter 2025, mainly driven by favorable foreign currency movement. Real Estate Development Global development swung to an operating profit(10) of $3 million from a $26 million operating loss in last year's second quarter. The portfolio of in-process projects and pipeline stood at $31.7 billion, up $0.6 billion for the quarter. Core Corporate Segment Core corporate operating loss increased by approximately $22 million. Capital Allocation Overview Free Cash Flow – Free cash flow totaled $2 million during the second quarter of 2025. This reflected cash provided by operating activities of $57 million and gains on sale of real estate of $19 million, adjusted for total capital expenditures of $74 million. On a trailing 12-month basis, free cash flow totaled nearly $1.3 billion. Stock Repurchase Program – The company has repurchased approximately 5.2 million shares for $663 million ($127.82 average price per share) since year-end 2024. There was approximately $5.2 billion of capacity remaining under the company's authorized stock repurchase program as of June 30, 2025. Acquisitions and Investments – The company did not make any material acquisitions during the second quarter of 2025. Leverage and Financing Overview Leverage – CBRE's net leverage ratio (net debt(11) to trailing twelve-month core EBITDA) was 1.47x as of June 30, 2025, which is substantially below the company's primary debt covenant of 4.25x. The net leverage ratio is computed as follows (dollars in millions): As of June 30, 2025 Total debt $ 5,773 Less: Cash and cash equivalents 1,395 Net debt (11) $ 4,378 Divided by: Trailing twelve-month Core EBITDA $ 2,972 Net leverage ratio 1.47x Liquidity – At the end of the second quarter, the company had approximately $4.7 billion of total liquidity, consisting of $1.4 billion in cash, plus the ability to borrow an aggregate of approximately $3.3 billion under its revolving credit facilities and commercial paper program. Total liquidity increased from approximately $3.5 billion at the end of the first quarter, reflecting new financing activity completed during the second quarter. Conference Call Details The company's second quarter earnings webcast and conference call will be held today, Tuesday, July 29, 2025 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call. Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on July 29, 2025. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13754375#. A transcript of the call will be available on the company's Investor Relations website at About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage serving, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts. Safe Harbor and Footnotes This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the economic outlook, the company's future growth momentum, operations and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients' willingness to make real estate or long-term contractual commitments and the cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in economic and commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new user and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect wholly-owned subsidiary, CBRE Capital Markets, Inc. to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our mortgage servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-ratings downgrade; our and our employees' ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control. Additional information concerning factors that may influence the company's financial information is discussed under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and "Cautionary Note on Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2024, our latest quarterly report on Form 10-Q, as well as in the company's press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company's website at or upon written request from CBRE's Investor Relations Department at investorrelations@ The terms "adjusted net revenue," "core adjusted net income," "core EBITDA," "core EPS," "business line operating profit (loss)," "segment operating profit on revenue margin," "segment operating profit on adjusted net revenue margin," "net debt" and "free cash flow," all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the "Non-GAAP Financial Measures" section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods. Totals may not sum in tables in millions included in this release due to rounding. Note: We have not reconciled the (non-GAAP) core earnings per share forward-looking guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, carried interest incentive compensation and financing costs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. (1) Resilient businesses include facilities management, project management, loan servicing, valuations, other portfolio services, property management and recurring investment management fees. Transactional businesses include property sales, leasing, mortgage origination, carry interest and incentive fees in the investment management business, and development fees. (2) Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results. (3) Adjusted net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. These costs are reimbursable by clients and generally have no margin. (4) Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from GAAP net income and GAAP earnings per diluted share as well as adjust the provision for income taxes and impact on non-controlling interest for such charges. Adjustments during the periods presented included non-cash amortization expense related to intangible assets and impairment charges of goodwill attributable to acquisitions, costs incurred related to legal entity restructuring, carried interest incentive compensation expense to align with the timing of associated revenue, write-off of financing costs on extinguished debt, integration and other costs related to acquisitions, charges and interest expense related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, and costs associated with business and finance transformation, efficiency and cost-reduction initiatives. It also removes the fair value changes and related tax impact of certain strategic non-core non-controlling equity investments that are not directly related to our business segments. (5) Core EBITDA represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, asset impairments, adjustments related to carried interest incentive compensation expense to align with the timing of associated revenue, costs incurred related to legal entity restructuring, integration and other costs related to acquisitions, costs associated with business and finance transformation, efficiency and cost-reduction initiatives, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, and charges related to indirect tax audits and settlements. It also removes the fair value changes, on a pre-tax basis, of certain strategic non-core non-controlling equity investments that are not directly related to our business segments. (6) Free cash flow is calculated as cash flow provided by operations, plus gain on sale of real estate assets, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows). (7) Segment operating profit is the measure reported to the chief operating decision maker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense to align with the timing of associated revenue, integration and other costs related to acquisitions, business and finance transformation, costs associated with efficiency and cost-reduction initiatives, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, and charges related to indirect tax audits and settlement. (8) Segment operating profit on revenue and adjusted net revenue margins represent segment operating profit divided by revenue and adjusted net revenue, respectively. (9) In second-quarter 2024, a small portion of facilities management adjusted net revenue was mischaracterized as project management, resulting in understated project management adjusted net revenue growth in second-quarter 2025. (10) Represents line of business profitability/losses, as adjusted. (11) Net debt is calculated as total debt (excluding non-recourse debt) less cash and cash equivalents. CBRE GROUP, INC. OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (in millions, except share and per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue: Adjusted net revenue $ 5,668 $ 4,971 $ 10,780 $ 9,415 Pass-through costs also recognized as revenue 4,086 3,420 7,883 6,911 Total revenue 9,754 8,391 18,663 16,326 Costs and expenses: Cost of revenue 7,942 6,793 15,207 13,268 Operating, administrative and other 1,275 1,191 2,467 2,302 Depreciation and amortization 182 161 359 319 Total costs and expenses 9,399 8,145 18,033 15,889 Gain on disposition of real estate 19 — 19 13 Operating income 374 246 649 450 Equity loss from unconsolidated subsidiaries (18 ) (15 ) (2 ) (73 ) Other income 5 6 7 15 Interest expense, net of interest income 59 63 108 99 Write-off of financing costs on extinguished debt 2 — 2 — Income before provision for income taxes 300 174 544 293 Provision for income taxes 61 32 113 3 Net income 239 142 431 290 Less: Net income attributable to non-controlling interests 24 12 53 34 Net income attributable to CBRE Group, Inc. $ 215 $ 130 $ 378 $ 256 Basic income per share: Net income per share attributable to CBRE Group, Inc. $ 0.72 $ 0.42 $ 1.26 $ 0.84 Weighted average shares outstanding for basic income per share 297,950,927 306,745,116 299,113,472 306,276,871 Diluted income per share: Net income per share attributable to CBRE Group, Inc. $ 0.72 $ 0.42 $ 1.25 $ 0.83 Weighted average shares outstanding for diluted income per share 300,008,422 308,035,211 301,455,253 ... 308,269,040 Core EBITDA $ 658 $ 505 $ 1,198 $ 930 CBRE GROUP, INC. SEGMENT RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2025 (in millions, totals may not add due to rounding) (Unaudited) Three Months Ended June 30, 2025 Advisory Services Building Operations & Experience Project Management Real Estate Investments Corporate (1) Total Core Other Total Consolidated Revenue: Adjusted net revenue $ 1,983 $ 2,630 $ 847 $ 215 $ (7 ) $ 5,668 $ — $ 5,668 Pass-through costs also recognized as revenue 13 3,134 939 — — 4,086 — 4,086 Total revenue 1,996 5,764 1,786 215 (7 ) 9,754 — 9,754 Costs and expenses: Cost of revenue 1,164 5,192 1,545 36 5 7,942 — 7,942 Operating, administrative and other 455 339 122 182 177 1,275 — 1,275 Depreciation and amortization 67 61 26 3 25 182 — 182 Total costs and expenses 1,686 5,592 1,693 221 207 9,399 — 9,399 Gain on disposition of real estate — — — 19 — 19 — 19 Operating income (loss) 310 172 93 13 (214 ) 374 — 374 Equity (loss) income from unconsolidated subsidiaries (1 ) (16 ) — (3 ) — (20 ) 2 (18 ) Other income 2 3 — — — 5 — 5 Add-back: Depreciation and amortization 67 61 26 3 25 182 — 182 Adjustments: Integration and other costs related to acquisitions — 41 2 — 32 75 — 75 Carried interest incentive compensation expense to align with the timing of associated revenue — — — 3 — 3 — 3 Net results related to the wind-down of certain businesses — — — 9 — 9 — 9 Impact of fair value non-cash adjustments related to unconsolidated equity investments 2 — — — — 2 — 2 Business and finance transformation — — — — 28 28 — 28 Total segment operating profit (loss) $ 380 $ 261 $ 121 $ 25 $ (129 ) $ 2 $ 660 Core EBITDA $ 658 _______________ (1) Includes elimination of inter-segment revenue. CBRE GROUP, INC. SEGMENT RESULTS—(CONTINUED) FOR THE THREE MONTHS ENDED JUNE 30, 2024 (in millions, totals may not add due to rounding) (Unaudited) Three Months Ended June 30, 2024 Advisory Services Building Operations & Experience Project Management Real Estate Investments Corporate (1) Total Core Other Total Consolidated Revenue: Adjusted net revenue $ 1,732 $ 2,228 $ 782 $ 232 $ (3 ) $ 4,971 $ — $ 4,971 Pass-through costs also recognized as revenue 12 2,627 781 — — 3,420 — 3,420 Total revenue 1,744 4,855 1,563 232 (3 ) 8,391 — 8,391 Costs and expenses: Cost of revenue 1,016 4,375 1,345 57 — 6,793 — 6,793 Operating, administrative and other 440 314 115 169 153 1,191 — 1,191 Depreciation and amortization 60 56 28 3 14 161 — 161 Total costs and expenses 1,516 4,745 1,488 229 167 8,145 — 8,145 Operating income (loss) 228 110 75 3 (170 ) 246 — 246 Equity income (loss) from unconsolidated subsidiaries — 3 — 4 — 7 (22 ) (15 ) Other (loss) income (1 ) 1 (1 ) (1 ) (1 ) (3 ) 9 6 Add-back: Depreciation and amortization 60 56 28 3 14 161 — 161 Adjustments: Integration and other costs related to acquisitions — 13 — — — 13 — 13 Carried interest incentive compensation expense to align with the timing of associated revenue — — — 1 — 1 — 1 Charges related to indirect tax audits and settlements — — — — 13 13 — 13 Costs associated with efficiency and cost-reduction initiatives — 30 — — 37 67 — 67 Total segment operating profit (loss) $ 287 $ 213 $ 102 $ 10 $ (107 ) $ (13 ) $ 492 Core EBITDA $ 505 _______________ (1) Includes elimination of inter-segment revenue. CBRE GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) June 30, 2025 December 31, 2024 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 1,395 $ 1,114 Restricted cash 137 107 Receivables, net 7,319 7,005 Warehouse receivables (1) 1,448 561 Contract assets 382 400 Prepaid expenses 420 332 Income taxes receivable 306 130 Other current assets 553 321 Total Current Assets 11,960 9,970 Property and equipment, net 972 914 Goodwill 6,410 5,621 Other intangible assets, net 2,485 2,298 Operating lease assets 1,986 1,198 Investments in unconsolidated subsidiaries 858 1,295 Non-current contract assets 103 89 Real estate under development 365 505 Non-current income taxes receivable 89 75 Deferred tax assets, net 656 538 Other assets 1,809 1,880 Total Assets $ 27,693 $ 24,383 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses $ 4,112 $ 4,102 Compensation and employee benefits payable 1,405 1,419 Accrued bonus and profit sharing 1,029 1,695 Operating lease liabilities 282 200 Contract liabilities 420 375 Income taxes payable 145 209 Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1) 1,432 552 Revolving credit facilities — 132 Other short-term borrowings 1,362 222 Current maturities of long-term debt 71 36 Other current liabilities 365 345 Total Current Liabilities 10,623 9,287 Long-term debt, net of current maturities 4,340 3,245 Non-current operating lease liabilities 2,053 1,307 Non-current tax liabilities 175 160 Deferred tax liabilities, net 258 247 Other liabilities 1,251 945 Total Liabilities 18,700 15,191 Mezzanine Equity: Redeemable non-controlling interests in consolidated entities 408 — Equity: CBRE Group, Inc. Stockholders' Equity: Class A common stock 3 3 Additional paid-in capital — — Accumulated earnings 9,393 9,567 Accumulated other comprehensive loss (1,143 ) (1,159 ) Total CBRE Group, Inc. Stockholders' Equity 8,253 8,411 Non-controlling interests 332 781 Total Equity 8,585 9,192 Total Liabilities and Equity $ 27,693 $ 24,383 _______________ (1) Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. CBRE GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 431 $ 290 Reconciliation of net income to net cash used in operating activities: Depreciation and amortization 359 319 Amortization of other assets 103 92 Net non-cash mortgage servicing rights and premiums on loan sales (74 ) (60 ) Deferred income taxes (3 ) (70 ) Stock-based compensation expense 63 69 Equity loss from investments 2 73 Other non-cash adjustments 4 (4 ) Changes in: Sale of mortgage loans 5,776 4,129 Origination of mortgage loans (6,646 ) (4,408 ) Warehouse lines of credit 880 295 Receivables, prepaid expenses and other assets (167 ) 75 Accounts payable, accrued liabilities and other liabilities (176 ) (64 ) Accrued compensation expenses (787 ) (788 ) Income taxes, net (254 ) (153 ) Net cash used in operating activities (489 ) (205 ) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (138 ) (135 ) Payments for business acquired, net of cash acquired (311 ) (1,051 ) Capital contributions related to investments (85 ) (73 ) Acquisition and development of real estate assets (134 ) (136 ) Other investing activities, net 201 88 Net cash used in investing activities (467 ) (1,307 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from revolving credit facility — 2,505 Repayment of revolving credit facility (132 ) (1,565 ) Proceeds from commercial paper, net 1,182 — Proceeds from long-term debt 1,674 495 Repayment of long-term debt (636 ) — Repurchase of common stock (680 ) (47 ) Other financing activities, net (248 ) (146 ) Net cash provided by financing activities 1,160 1,242 Effect of currency exchange rate changes on cash and cash equivalents and restricted cash 107 (68 ) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 311 (338 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD 1,221 1,371 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD $ 1,532 $ 1,033 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 226 $ 170 Income tax payments, net $ 351 $ 244 Non-cash investing and financing activities: Deferred and/or contingent consideration $ 27 $ 15 Non-GAAP Financial Measures The following measures are considered "non-GAAP financial measures" under SEC guidelines: (i) Adjusted net revenue (ii) Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as "core adjusted net income") (iii) Core EBITDA (iv) Core EPS (v) Business line operating profit/loss (vi) Segment operating profit on revenue and adjusted net revenue margins (vii) Net debt (viii) Free cash flow These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies. Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below. With respect to adjusted net revenue, adjusted net revenue is gross revenue less costs largely associated with subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company's overall financial performance because it excludes costs reimbursable by clients that generally have no margin, and as such provides greater visibility into the underlying performance of our business. We re-named this metric as adjusted net revenue to emphasize it is a non-GAAP measure. With respect to core EBITDA, core EPS, core adjusted net income, business line operating profit/loss, and segment operating profit on revenue and net revenue margins, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings and income tax and the accounting effects of capital spending. The presentation of core adjusted net income, excluding amortization of intangible assets acquired in business combinations, is useful to investors as a supplemental measure to evaluate the company's ongoing operating performance. While amortization expense of acquisition-related intangible assets is excluded from core adjusted net income, the revenue generated from the acquired intangible assets is not excluded. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of core EBITDA, this measure is not intended to be a measure of free cash flow for our management's discretionary use because it does not consider cash requirements such as tax and debt service payments. The core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs. With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations and real estate investment and development activities after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company's net leverage ratio. With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments that are not directly related to our business segments. These can be volatile and are often non-cash in nature. Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to CBRE Group, Inc. $ 215 $ 130 $ 378 $ 256 Adjustments: Non-cash amortization expense related to intangible assets and impairment charges of goodwill attributable to acquisitions 57 47 114 87 Interest expense related to indirect tax audits and settlements 3 8 3 8 Write-off of financing costs on extinguished debt 2 — 2 — Impact of adjustments on non-controlling interest 1 (6 ) — (6 ) Integration and other costs related to acquisitions 75 13 144 8 Carried interest incentive compensation expense to align with the timing of associated revenue 3 1 7 15 Charges related to indirect tax audits and settlements — 13 (1 ) 13 Net results related to the wind-down of certain businesses 9 — 14 — Impact of fair value non-cash adjustments related to unconsolidated equity investments 2 — 2 — Business and finance transformation 28 — 28 — Costs associated with efficiency and cost-reduction initiatives — 67 13 97 Costs incurred related to legal entity restructuring — — — 2 Net fair value adjustments on strategic non-core investments (2 ) 13 (22 ) 84 Tax impact of adjusted items and strategic non-core investments (35 ) (38 ) (64 ) (75 ) Core net income attributable to CBRE Group, Inc., as adjusted $ 358 $ 248 $ 618 $ 489 Core diluted income per share attributable to CBRE Group, Inc., as adjusted $ 1.19 $ 0.81 $ 2.05 $ 1.59 Weighted average shares outstanding for diluted income per share 300,008,422 308,035,211 301,455,253 308,269,040 Core EBITDA is calculated as follows (in millions, totals may not add due to rounding): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to CBRE Group, Inc. $ 215 $ 130 $ 378 $ 256 Net income attributable to non-controlling interests 24 12 53 34 Net income 239 142 431 290 Adjustments: Depreciation and amortization 182 161 359 319 Interest expense, net of interest income 59 63 108 99 Write-off of financing costs on extinguished debt 2 — 2 — Provision for income taxes 61 32 113 3 Integration and other costs related to acquisitions 75 13 144 8 Carried interest incentive compensation expense to align with the timing of associated revenue 3 1 7 15 Charges related to indirect tax audits and settlements — 13 (1 ) 13 Net results related to the wind-down of certain businesses 9 — 14 — Impact of fair value non-cash adjustments related to unconsolidated equity investments 2 — 2 — Business and finance transformation 28 — 28 — Costs associated with efficiency and cost-reduction initiatives — 67 13 97 Costs incurred related to legal entity restructuring — — — 2 Net fair value adjustments on strategic non-core investments (2 ) 13 (22 ) 84 Core EBITDA $ 658 $ 505 $ 1,198 $ 930 Core EBITDA for the trailing twelve months ended June 30, 2025 is calculated as follows (in millions): Trailing Twelve Months Ended June 30, 2025 Net income attributable to CBRE Group, Inc. $ 1,090 Net income attributable to non-controlling interests 86 Net income 1,176 Adjustments: Depreciation and amortization 714 Interest expense, net of interest income 226 Write-off of financing costs on extinguished debt 2 Provision for income taxes 292 Integration and other costs related to acquisitions 228 Carried interest incentive compensation reversal to align with the timing of associated revenue (1 ) Charges related to indirect tax audits and settlements 61 Net results related to the wind-down of certain businesses 15 Impact of fair value non-cash adjustments related to unconsolidated equity investments 11 Business and finance transformation 28 Costs associated with efficiency and cost-reduction initiatives 176 Provision associated with Telford's fire safety remediation efforts 33 Net fair value adjustments on strategic non-core investments 11 Core EBITDA $ 2,972 Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions): Three Months Ended June 30, Real Estate Investments 2025 2024 Investment management operating profit $ 31 $ 39 Global real estate development operating profit (loss) 3 (26 ) Segment overhead (and related adjustments) (9 ) (3 ) Real estate investments segment operating profit $ 25 $ 10 Below represents a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended June 30, 2025 (in millions): Q3 2024 Q4 2024 Q1 2025 Q2 2025 Trailing twelve months Cash Flow Results Cash flow provided by (used in) operations $ 573 $ 1,340 $ (546 ) $ 57 $ 1,424 (Losses) gains on disposition of real estate sales (1 ) 130 — 19 148 Less: Capital expenditures 79 93 64 74 310 Free cash flow $ 493 $ 1,377 $ (610 ) $ 2 $ 1,262 View source version on Contacts For further information: Chandni Luthra - Steve Iaco -
