CBRE Group, Inc. Reports Financial Results for Q4 and Full Year 2025
DALLAS--( BUSINESS WIRE)--CBRE Group, Inc. (NYSE: CBRE) today reported financial results for the fourth quarter ended December 31, 2025.
Key Highlights:
“We had a strong end to 2025, with fourth-quarter revenue and core earnings-per-share rising by double digits and both reaching their highest levels ever for CBRE,” said Bob Sulentic, CBRE’s chair and chief executive officer. “Our strength was broad-based. We saw significant gains in sales and leasing in the U.S. and much of the rest of the world and our resilient businesses continued to post double-digit revenue growth, a trend we see continuing.”
“CBRE is positioned for strong sustained growth,” Mr. Sulentic continued. “We are taking advantage of this circumstance to streamline our operations, while investing to ensure this growth continues further into the future.”
Consolidated Financial Results Overview
The following table presents highlights of CBRE performance (dollars in millions, except per share data):
% Change
% Change
Q4 2025
Q4 2024
USD
LC ( 2)
FY 2025
FY 2024
USD
LC ( 2)
Operating Results
Revenue
$
11,629
$
10,404
11.8
%
10.4
%
$
40,550
$
35,767
13.4
%
12.7
%
Pass-through costs (3)
4,651
4,270
8.9
%
7.4
%
16,746
14,899
12.4
%
11.7
%
GAAP net income
416
487
(14.6
)%
(13.8
)%
1,157
968
19.5
%
19.4
%
Core adjusted net income (4)
818
712
14.9
%
14.5
%
1,920
1,571
22.2
%
21.6
%
GAAP EPS
1.39
1.58
(12.0
)%
(11.4
)%
3.85
3.14
22.6
%
22.3
%
Core EPS (4)
2.73
2.32
17.7
%
17.2
%
6.38
5.10
25.1
%
24.5
%
Core EBITDA (5)
1,288
1,086
18.6
%
17.4
%
3,308
2,704
22.3
%
21.4
%
Cash Flow Results
Cash flow provided by operations
$
1,221
$
1,340
(8.9
)%
$
1,559
$
1,708
(8.7
)%
Gain on disposition of real estate
404
130
210.8
%
459
142
223.2
%
Less: Capital expenditures
144
93
54.8
%
366
307
19.2
%
Free cash flow (6)
$
1,481
$
1,377
7.6
%
$
1,652
$
1,543
7.1
%
Advisory Services Segment
The following table presents highlights of the Advisory Services segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
2,915
$
2,577
13.1
%
12.2
%
$
8,840
$
7,729
14.4
%
14.0
%
Pass-through costs
11
17
(35.3
)%
(35.3
)%
50
61
(18.0
)%
(19.7
)%
Segment operating profit (7)
709
622
14.0
%
12.8
%
1,834
1,502
22.1
%
21.5
%
Building Operations & Experience (BOE) Segment
The following table presents highlights of the BOE segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
6,311
$
5,509
14.6
%
13.0
%
$
23,224
$
20,208
14.9
%
14.2
%
Pass-through costs
3,382
3,054
10.7
%
9.1
%
12,529
11,168
12.2
%
11.5
%
Segment operating profit
332
277
19.9
%
18.1
%
1,094
894
22.4
%
21.4
%
Project Management Segment
The following table presents highlights of the Project Management segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
2,213
$
2,044
8.3
%
7.0
%
$
7,657
$
6,809
12.5
%
11.7
%
Pass-through costs
1,258
1,199
4.9
%
3.8
%
4,167
3,670
13.5
%
12.9
%
Segment operating profit
175
168
4.2
%
1.8
%
561
500
12.2
%
11.0
%
Real Estate Investments (REI) Segment
The following table presents highlights of the REI segment performance (dollars in millions):
% Change
% Change
Q4 2025
Q4 2024
USD
LC
FY 2025
FY 2024
USD
LC
Revenue
$
220
$
275
(20.0
)%
(21.5
)%
$
879
$
1,038
(15.3
)%
(16.4
)%
Segment operating profit
201
150
34.0
%
34.7
%
324
261
24.1
%
23.8
%
Real Estate Development
Investment Management
Core Corporate Segment
Capital Allocation Overview
Leverage and Financing Overview
As of
December 31, 2025
Total debt
$
5,977
Less: Cash and cash equivalents
1,864
Net debt (9)
$
4,113
Divided by: Trailing twelve-month Core EBITDA
$
3,308
Net leverage ratio
1.24x
Conference Call Details
The company’s fourth quarter earnings webcast and conference call will be held today, Thursday, February 12, 2026 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 February 12, 2026. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13757978#. A transcript of the call will be available on the company’s Investor Relations website at https://ir.cbre.com.
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 2025 revenue). The company has more than 155,000 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 servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, data center solutions); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com. 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 https://ir.cbre.com. 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; 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 or commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in supply/demand and 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 loan 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 quarterly reports 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 www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.
The terms “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “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)
Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
(4)
Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from U.S. GAAP net income and U.S. GAAP earnings per diluted share. Adjustments during the periods presented included non-cash amortization expense related to intangible assets attributable to acquisitions, interest expense related to indirect tax audits and settlements, write-off of financing costs on extinguished debt, impact of adjustments on non-controlling interest, and the tax impact of adjusted items and strategic non-core investments, integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges 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, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, net fair value adjustments on strategic non-core investments, and provision associated with Telford’s fire safety remediation efforts.
(5)
Core EBITDA represents earnings before the portion attributable to non-controlling interests, depreciation and amortization, asset impairments, net interest expense, write-off of financing costs on extinguished debt, income taxes, further adjusted for integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges 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, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, net fair value adjustments on strategic non-core investments, and provision associated with Telford’s fire safety remediation efforts.
(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 (SOP) is the measure reported to the chief operating decision maker (CODM) for purposes of assessing performance and allocating resources to each segment. SOP represents earnings, inclusive of non-controlling interests, 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: integration and other costs related to acquisitions, carried interest incentive compensation (reversal) expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, the impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, costs incurred related to legal entity restructuring, and provision associated with Telford’s fire safety remediation efforts.
(8)
Represents line of business profitability/losses, as adjusted.
(9)
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 TWELVE MONTHS ENDED DECEMBER 31, 2025 AND 2024
(in millions, except share and per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2025
2024
2025
2024
Revenue
$
11,629
$
10,404
$
40,550
$
35,767
Costs and expenses:
Cost of revenue
9,474
8,290
32,984
28,811
Operating, administrative and other
1,747
1,473
5,543
5,011
Depreciation and amortization
189
177
729
674
Total costs and expenses
11,410
9,940
39,256
34,496
Gain on disposition of real estate
404
130
459
142
Operating income
623
594
1,753
1,413
Equity (loss) income from unconsolidated subsidiaries
(10
)
58
40
(19
)
Other income
8
14
19
39
Interest expense, net of interest income
57
53
216
215
Write-off of financing costs on extinguished debt
—
—
2
—
Income before provision for income taxes
564
613
1,594
1,218
Provision for income taxes
114
112
317
182
Net income
450
501
1,277
1,036
Less: Net income attributable to non-controlling interests
34
14
120
68
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Basic income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.40
$
1.60
$
3.88
$
3.16
Weighted-average shares outstanding for basic income per share
296,877,195
304,638,633
298,157,861
305,859,458
Diluted income per share:
Net income per share attributable to CBRE Group, Inc.
$
1.39
$
1.58
$
3.85
$
3.14
Weighted-average shares outstanding for diluted income per share
299,868,912
307,299,709
300,751,541
308,033,612
Core EBITDA
$
1,288
$
1,086
$
3,308
$
2,704
CBRE GROUP, INC.
SEGMENT RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2025
(in millions)
(Unaudited)
Three Months Ended December 31, 2025
Advisory Services
Building Operations & Experience
Project Management
Real Estate Investments
Corporate (1)
Total Core
Other
Total
Consolidated
Revenue
$
2,915
$
6,311
$
2,213
$
220
$
(30
)
$
11,629
$
—
$
11,629
Pass-through costs
11
3,382
1,258
—
—
4,651
—
4,651
Cost of revenue, excluding pass-through costs
1,844
2,275
655
41
8
4,823
—
4,823
Operating, administrative and other
502
370
136
519
220
1,747
—
1,747
Depreciation and amortization
71
73
26
4
15
189
—
189
Gain on disposition of real estate
—
—
—
380
24
404
—
404
Operating income (loss)
487
211
138
36
(249
)
623
—
623
Equity income (loss) from unconsolidated subsidiaries
—
3
(1
)
8
—
10
(20
)
(10
)
Other income (loss)
2
4
1
(1
)
2
8
—
8
Add-back: Depreciation and amortization
71
73
26
4
15
189
—
189
Adjustments:
Integration and other costs related to acquisitions
—
32
11
—
57
100
—
100
Net results related to the wind-down of certain businesses
—
8
—
22
—
30
—
30
Business and finance transformation
15
1
—
—
46
62
—
62
Non-cash pension buy-out settlement loss
147
—
—
—
—
147
—
147
Costs associated with efficiency and cost-reduction initiatives
(13
)
—
—
—
—
(13
)
—
(13
)
Provision associated with Telford’s fire safety remediation efforts
—
—
—
132
—
132
—
132
Total segment operating profit (loss)
$
709
$
332
$
175
$
201
$
(129
)
$
(20
)
$
1,268
Core EBITDA
$
1,288
Includes elimination of inter-segment revenue.
CBRE GROUP, INC.
SEGMENT RESULTS—(CONTINUED)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2024
(in millions)
(Unaudited)
Three Months Ended December 31, 2024
Advisory Services
Building Operations & Experience
Project Management
Real Estate Investments
Corporate (1)
Total Core
Other
Total
Consolidated
Revenue
$
2,577
$
5,509
$
2,044
$
275
$
(1
)
$
10,404
$
—
$
10,404
Pass-through costs
17
3,054
1,199
—
—
4,270
—
4,270
Cost of revenue, excluding pass-through costs
1,475
1,901
559
63
22
4,020
—
4,020
Operating, administrative and other
490
309
118
276
280
1,473
—
1,473
Depreciation and amortization
66
66
28
3
14
177
—
177
Gain on disposition of real estate
—
—
—
130
—
130
—
130
Operating income (loss)
529
179
140
63
(317
)
594
—
594
Equity income (loss) from unconsolidated subsidiaries
—
1
—
88
—
89
(31
)
58
Other income
1
2
—
—
5
8
6
14
Add-back: Depreciation and amortization
66
66
28
3
14
177
—
177
Adjustments:
Integration and other costs related to acquisitions
—
4
—
—
59
63
—
63
Carried interest incentive compensation reversal to align with the timing of associated revenue
—
—
—
(4
)
—
(4
)
—
(4
)
Charges related to indirect tax audits and settlements
—
—
—
—
37
37
—
37
Costs associated with efficiency and cost-reduction initiatives
26
25
—
—
71
122
—
122
Total segment operating profit (loss)
$
622
$
277
$
168
$
150
$
(131
)
$
(25
)
$
1,061
Core EBITDA
$
1,086
Includes elimination of inter-segment revenue.
CBRE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
December 31, 2025
December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents
$
1,864
$
1,114
Restricted cash
150
107
Receivables, net
8,284
7,005
Warehouse receivables (1)
1,630
561
Contract assets
462
400
Prepaid expenses
372
332
Income taxes receivable
175
130
Other current assets
552
321
Total Current Assets
13,489
9,970
Property and equipment, net
1,049
914
Goodwill
7,051
5,621
Other intangible assets, net
2,972
2,298
Operating lease assets
2,062
1,198
Investments in unconsolidated subsidiaries
870
1,295
Non-current contract assets
103
89
Real estate under development
646
505
Non-current income taxes receivable
106
75
Deferred tax assets, net
697
538
Other assets
1,832
1,880
Total Assets
$
30,877
$
24,383
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued expenses
$
4,838
$
4,102
Compensation and employee benefits payable
1,630
1,419
Accrued bonus and profit sharing
1,879
1,695
Operating lease liabilities
284
200
Contract liabilities
448
375
Income taxes payable
258
209
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1)
1,609
552
Revolving credit facilities
—
132
Other short-term borrowings
856
222
Current maturities of long-term debt
71
36
Other current liabilities
447
345
Total Current Liabilities
12,320
9,287
Long-term debt, net of current maturities
5,050
3,245
Non-current operating lease liabilities
2,121
1,307
Non-current tax liabilities
183
160
Deferred tax liabilities, net
238
247
Other liabilities
1,339
945
Total Liabilities
21,251
15,191
Mezzanine Equity:
Redeemable non-controlling interests in consolidated entities
433
—
Equity:
CBRE Group, Inc. Stockholders’ Equity:
Class A common stock
3
3
Additional paid-in capital
—
—
Accumulated earnings
9,916
9,567
Accumulated other comprehensive loss
(1,041
)
(1,159
)
Total CBRE Group, Inc. Stockholders’ Equity
8,878
8,411
Non-controlling interests
315
781
Total Equity
9,193
9,192
Total Liabilities and Equity
$
30,877
$
24,383
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)
Twelve Months Ended December 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
1,277
$
1,036
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization
729
674
Amortization of other assets
199
195
Net non-cash mortgage servicing rights and premiums on loan sales
(187
)
(162
)
Deferred income taxes
(269
)
(194
)
Stock-based compensation expense
120
146
Equity (income) loss from investments
(40
)
19
Gain on sale of real estate assets
(459
)
(142
)
Other non-cash adjustments
227
8
Changes in:
Sale of mortgage loans
15,135
12,817
Origination of mortgage loans
(16,163
)
(12,668
)
Warehouse lines of credit
1,057
(114
)
Receivables, prepaid expenses and other assets
(882
)
(597
)
Accounts payable, accrued liabilities and other liabilities
570
566
Accrued compensation expenses
285
206
Income taxes, net
(40
)
(82
)
Net cash provided by operating activities
1,559
1,708
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(366
)
(307
)
Payments for business acquired, net of cash acquired
(1,374
)
(1,067
)
Capital contributions related to investments
(161
)
(136
)
Acquisition and development of real estate assets
(390
)
(389
)
Proceeds from disposition of real estate assets
509
235
Other investing activities, net
155
150
Net cash used in investing activities
(1,627
)
(1,514
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility
—
4,173
Repayment of revolving credit facility
(132
)
(4,041
)
Proceeds from commercial paper, net
677
175
Proceeds from long-term debt
2,410
495
Repayment of long-term debt
(670
)
(9
)
Repurchase of common stock
(968
)
(627
)
Other financing activities, net
(521
)
(387
)
Net cash provided by (used in) financing activities
796
(221
)
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash
65
(123
)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
793
(150
)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD
1,221
1,371
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD
$
2,014
$
1,221
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest
$
448
$
396
Income tax payments, net
$
599
$
467
Non-cash investing and financing activities:
Deferred and/or contingent consideration
$
183
$
19
Non-GAAP Financial Measures
The following measures are considered “non-GAAP financial measures” under SEC guidelines:
(i)
Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”)
(ii)
Core EBITDA
(iii)
Core EPS
(iv)
Business line operating profit/loss
(v)
Net debt
(vi)
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 core EBITDA, core EPS, core adjusted net income, and business line operating profit/loss, 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, income taxes 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
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Adjustments:
Non-cash amortization expense related to intangible assets attributable to acquisitions
57
54
226
199
Interest expense related to indirect tax audits and settlements
1
5
4
16
Write-off of financing costs on extinguished debt
—
—
2
—
Impact of adjustments on non-controlling interest
—
(6
)
—
(18
)
Integration and other costs related to acquisitions
100
63
303
93
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
—
(4
)
10
8
Charges related to indirect tax audits and settlements
—
37
(1
)
76
Net results related to the wind-down of certain businesses
30
—
74
—
Impact of fair value non-cash adjustments related to unconsolidated equity investments
—
—
2
9
Business and finance transformation
62
—
101
—
Non-cash pension buy-out settlement loss
147
—
147
—
Costs associated with efficiency and cost-reduction initiatives
(13
)
122
—
259
Costs incurred related to legal entity restructuring
—
—
—
2
Net fair value adjustments on strategic non-core investments
20
25
(1
)
117
Provision associated with Telford’s fire safety remediation efforts
132
—
132
33
Tax impact of adjusted items and strategic non-core investments
(134
)
(71
)
(236
)
(191
)
Core net income attributable to CBRE Group, Inc., as adjusted
$
818
$
712
$
1,920
$
1,571
Core diluted income per share attributable to CBRE Group, Inc., as adjusted
$
2.73
$
2.32
$
6.38
$
5.10
Weighted-average shares outstanding for diluted income per share
299,868,912
307,299,709
300,751,541
308,033,612
Core EBITDA is calculated as follows (in millions):
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
Net income attributable to CBRE Group, Inc.
$
416
$
487
$
1,157
$
968
Net income attributable to non-controlling interests
34
14
120
68
Net income
450
501
1,277
1,036
Adjustments:
Depreciation and amortization
189
177
729
674
Interest expense, net of interest income
57
53
216
215
Write-off of financing costs on extinguished debt
—
—
2
—
Provision for income taxes
114
112
317
182
Integration and other costs related to acquisitions
100
63
303
93
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue
—
(4
)
10
8
Charges related to indirect tax audits and settlements
—
37
(1
)
76
Net results related to the wind-down of certain businesses
30
—
74
—
Impact of fair value non-cash adjustments related to unconsolidated equity investments
—
—
2
9
Business and finance transformation
62
—
101
—
Non-cash pension buy-out settlement loss
147
—
147
—
Costs associated with efficiency and cost-reduction initiatives
(13
)
122
—
259
Costs incurred related to legal entity restructuring
—
—
—
2
Net fair value adjustments on strategic non-core investments
20
25
(1
)
117
Provision associated with Telford’s fire safety remediation efforts
132
—
132
33
Core EBITDA
$
1,288
$
1,086
$
3,308
$
2,704
Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions):
Three Months Ended December 31,
Real Estate Investments
2025
2024
Investment management operating profit
$
25
$
27
Global real estate development operating profit
179
123
Segment overhead (and related adjustments)
(3
)
—
Real estate investments segment operating profit
$
201
$
150
Below represents a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended December 31, 2025 (in millions):
Q1 2025
Q2 2025
Q3 2025
Q4 2025
2025
Cash Flow Results
Cash flow (used in) provided by operations
$
(546
)
$
57
$
827
$
1,221
$
1,559
Gains on disposition of real estate sales
—
19
36
404
459
Less: Capital expenditures
64
74
84
144
366
Free cash flow
$
(610
)
$
2
$
779
$
1,481
$
1,652