CBRE’s second quarter results drew a positive response from the market, reflecting outperformance versus Wall Street expectations. Management credited growth in both resilient and transactional business segments, with particularly strong contributions from facilities management and project management. CEO Bob Sulentic emphasized the value of combining legacy business lines, noting that the Building Operations & Experience and Project Management segments delivered double-digit revenue growth. The company also highlighted robust leasing activity, especially in office and industrial sectors, as a major driver of the quarter’s successful performance.
Is now the time to buy CBRE? Find out in our full research report (it’s free).
CBRE (CBRE) Q2 CY2025 Highlights:
- Revenue: $9.75 billion vs analyst estimates of $9.35 billion (16.2% year-on-year growth, 4.3% beat)
- Adjusted EPS: $1.19 vs analyst estimates of $1.07 (11.2% beat)
- Adjusted EBITDA: $658 million vs analyst estimates of $636.5 million (6.7% margin, 3.4% beat)
- Operating Margin: 3.8%, in line with the same quarter last year
- Market Capitalization: $45.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CBRE’s Q2 Earnings Call
- Anthony Paolone (JPMorgan) asked about the sustainability of office leasing growth and the impact of tougher year-over-year comparisons. CEO Bob Sulentic explained that while growth rates may moderate, demand is broadening across markets.
- Julien Blouin (Goldman Sachs) questioned the integration benefits of Turner & Townsend. Sulentic highlighted both cost and revenue synergies and described efficiency gains from shared systems and resource allocation.
- Stephen Sakwa (Evercore ISI) inquired about the strength of capital markets activity amid stable interest rates. Sulentic and CFO Emma Giamartino stated that narrowing bid-ask spreads and strong pipelines are driving momentum, with no major changes expected from rate movements.
- Ronald Kamdem (Morgan Stanley) asked about the runway for operating leverage in Building Operations & Experience. Giamartino clarified that most additional benefits are expected to materialize in 2026, with current-year guidance reflecting completed cost work.
- Jade Rahmani (KBW) sought detail on CBRE’s infrastructure exposure and future investment plans. Sulentic confirmed that infrastructure is a growing area, but no specific allocation targets have been set.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be closely monitoring (1) signs of sustained leasing strength in both office and industrial segments, (2) the pace and scale of integration synergies from Turner & Townsend and other recent business combinations, and (3) the continued expansion of infrastructure services and investment management. Additionally, we will track the stability of capital markets activity and the company’s ability to convert a robust pipeline into new mandates and recurring revenue streams.
CBRE currently trades at $155, up from $146.68 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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