Latest news with #KarenBrennan
Yahoo
18 hours ago
- Business
- Yahoo
JLL Q1 Earnings Call: Management Highlights Resilient Growth and Market Uncertainty
Real estate firm JLL (NYSE:JLL) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 12.1% year on year to $5.75 billion. Its non-GAAP profit of $2.31 per share was 5.8% above analysts' consensus estimates. Is now the time to buy JLL? Find out in our full research report (it's free). Revenue: $5.75 billion vs analyst estimates of $5.52 billion (12.1% year-on-year growth, 4.1% beat) Adjusted EPS: $2.31 vs analyst estimates of $2.18 (5.8% beat) Adjusted EBITDA: $224.8 million vs analyst estimates of $210.7 million (3.9% margin, 6.7% beat) Operating Margin: 2.1%, in line with the same quarter last year Market Capitalization: $11.27 billion JLL's first quarter results were driven by broad-based gains across both resilient and transactional business lines, building on momentum from the second half of last year. CEO Christian Ulbrich credited strength in leasing and debt advisory activities, which benefited from increased market activity and growing demand for end-to-end real estate management. The newly restructured real estate management services segment also contributed meaningfully, with workplace management and project management both seeing growth from client wins and expanded mandates. Management cited ongoing investments in technology and human capital as supporting factors for these outcomes, though they acknowledged some incremental costs tied to integrating property management operations. The company noted that market fundamentals, especially in office and industrial leasing, continued to improve, with office leasing revenue surpassing 2019 levels. However, management indicated that some client decision-making slowed late in the quarter amidst rising macroeconomic and policy uncertainty. Looking ahead, JLL's guidance reflects confidence in its diversified platform, but management expressed caution given shifting economic conditions and policy volatility. CEO Christian Ulbrich stated, 'the current environment has increased the uncertainty and has decreased the visibility,' emphasizing that continued policy changes—such as rolling tariff extensions—could impact client activity and transaction timing. CFO Karen Brennan noted the potential for slower workplace management growth as the firm laps strong prior-year contract wins, and flagged that certain clients are delaying decisions in response to macro developments. Management maintained its full-year adjusted EBITDA target, but highlighted that moderation in economic growth or shifts in interest rates could affect both transaction volumes and capital raising activity. While the company's sales pipelines remain healthy, leadership stressed that the timing and pace of deal closings will be influenced by external factors beyond JLL's control. Management attributed the quarter's results to robust client demand for integrated real estate solutions, strong performance in debt advisory, and continued expansion of its resilient business lines. Recent investments in technology and platform integration were also highlighted as key contributors. Leasing and debt advisory momentum: The company's leasing and investment sales operations experienced double-digit growth, with debt advisory revenues up over 45% year-over-year, driven by improved liquidity and higher client activity in the U.S. and select global markets. Real estate management services expansion: Workplace management and project management both contributed to revenue growth, supported by new client wins, mandate expansions, and ongoing investments in technology—including artificial intelligence—to enhance service delivery. The integration of property management into this segment was accompanied by some transitional costs. Capital markets activity: JLL's capital markets segment saw increased investor demand, particularly in debt and equity advisory, with strong fundraising for credit strategies in the U.S. Management noted that capital flows and client interest in alternative financing have diversified revenue streams and supported margin stability. Office sector recovery: Office leasing showed signs of recovery, with U.S. office revenue exceeding pre-pandemic levels and large lease transactions increasing. Management observed that downsizing rates on lease renewals have moderated, indicating strengthening fundamentals for high-quality office assets. Leadership transition: The company announced CFO Karen Brennan will move to lead the global Leasing Advisory business, while Kelly Howe, formerly CFO of Leasing Advisory, will succeed her as Chief Financial Officer. Management emphasized continuity and strategic focus during this transition. JLL expects future performance to hinge on sustained demand for outsourcing, stabilization in capital markets, and the ability to navigate ongoing economic and policy uncertainty. Outsourcing and platform investments: Management sees continued growth opportunities from clients seeking to outsource real estate operations, but expects near-term revenue growth in workplace management to moderate as the company laps significant prior-year contract wins. Technology investment, especially in AI and workflow tools, remains a priority for driving efficiency and differentiation. Capital markets and transaction timing: The company's guidance assumes healthy pipelines in investment sales and debt advisory, but acknowledges that the pace of deal closings could be affected by interest rate trends and broader economic conditions. Management is monitoring variability in bid activity and underwriting assumptions among investors, which could introduce unpredictability in transaction volumes. Macro and policy risks: Management cited heightened uncertainty from shifting tariff policies and macroeconomic volatility, warning that these factors may slow client decision-making and impact growth, particularly in transactional business lines. However, JLL's diversified revenue base and disciplined cost management are expected to provide some resilience against these headwinds. In the coming quarters, the StockStory team will monitor (1) pace of client decision-making and deal closings in transactional segments, (2) trends in office and industrial leasing momentum, and (3) progress on technology-driven efficiency initiatives within real estate management. Updates on capital raising activity and successful integration of property management will also be important markers for JLL's execution. JLL currently trades at a forward P/E ratio of 14.3×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-04-2025
- General
- Yahoo
Free breakfast club trial 'will make life easier'
Parents and teachers at a Sheffield primary school have welcomed the beginning of a scheme offering government-funded breakfast clubs. High Green Primary School is one of 750 schools in England taking part in a pilot allowing parents to access half an hour of free childcare each morning. The pilot will run until July, after which the programme is expected to be rolled out nationally. Karen Brennan, who previously paid for her daughter to attend the breakfast club two days each week, said: "We couldn't afford for her to come every day before, but now she can. "It means we are a lot freer as a family and she really enjoys it." The school said it previously could not make its breakfast club free for all pupils due to staffing and food costs. Dan Emery, whose daughter attends the sessions, said: "We have a little one too, so having the club will make life a lot easier when her mum goes back to work. "I love having her at home, but it is helpful from a work perspective to be able to drop her off earlier - it's good for her development too and to give her time with her friends." Pupils at the school, on Wortley Road, High Green, are provided with toast, cereal, yogurt or fruit. They can also make use of craft tables, jigsaws, books and play table football. Dawn Aldridge, the school's business manager, said: "The fact we have had children come to school hungry is a horrendous fact, it's shocking. "Now, everybody's got a full tummy." She continued: "They get to play with their friends and have a nice steady start to the morning - they are loving it." Ms Aldridge said she expected to see a reduction in pupil absences as the club ensured children are in school on time. "They are learning about healthy eating and sticking to schedules – it's all good, and it's about that early intervention," she added. Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North Free breakfast clubs to open at 750 schools Department for Education
