CBRE GROUP, INC.

CBRE

Business Summary

CBRE Group, Inc. is the world's largest commercial real estate services and investments firm based on 2025 revenue, serving clients in more than 100 countries. The company derives competitive advantage from its considerable scale and ability to offer integrated solutions for real estate investors and occupiers. Its clients included nearly 90% of Fortune 100 companies and many of the world's largest institutional real estate investors in 2025. The company's growth opportunity is enhanced by the large and expanding total addressable market for its services, and it is focused on cementing its leadership position with a strategy that achieves growth across four dimensions: geographies, clients, property types and services.

CBRE encounters a wide variety of competitors ranging from a handful of well-established globally diversified real estate services firms that are smaller than CBRE to many specialists that operate in specific geographies or business lines. Despite this competition, the company is the market leader in most of its business lines, with significant opportunities for continued growth. These opportunities result from the high value clients place on CBRE's scale, in-depth expertise, technology and data-led insights, as well as their increasing preference for consolidating the number of service providers, which plays to the company's advantage in delivering integrated solutions globally. Its leadership across a wide spectrum of asset classes, including secular growth sectors like logistics and data centers, provides a diversified platform that is resilient across market cycles, and its strong balance sheet enables significant investments in its platform, market-leading talent recruitment and transformational M&A execution.

CBRE generates revenue from both resilient sources and non-recurring sources, including commissions generated by transactions. Its revenue mix has become more weighted towards resilient revenue sources, particularly occupier outsourcing and project management, and it is less dependent on cyclical property sales and lease transaction revenue. The company serves clients through four business segments: Advisory Services, Building Operations & Experience (BOE), Project Management and Real Estate Investments (REI). Advisory Services provides a comprehensive range of services globally including leasing, capital markets (property sales and mortgage origination), loan servicing, and valuation. BOE provides a broad suite of integrated, contractually based outsourcing services to occupiers and owners of real estate, including facilities management and property management. Project Management delivers program management, project management and cost consultancy services across commercial real estate, infrastructure and natural resources sectors. REI is comprised of two business lines: investment management and real estate development.

Advisory Services provides a comprehensive range of services globally, including leasing, capital markets (property sales and mortgage origination), loan servicing, and valuation. For the year ended December 31, 2025, Advisory Services segment revenue was $8.840 billion ¹, with advisory leasing contributing $4.497 billion ², valuation contributing $815 million ³, loan servicing contributing $503 million ⁴, other portfolio services contributing $354 million ⁵, advisory sales contributing $2.120 billion ⁶, and commercial mortgage origination contributing $551 million ⁷. The segment reported operating income of $1.403 billion ⁸ and segment operating profit of $1.834 billion ⁹ for the year. Building Operations & Experience (BOE) segment revenue was $23.224 billion ¹⁰ for the year ended December 31, 2025, with facilities management contributing $20.645 billion ¹¹ and property management contributing $2.579 billion ¹². The BOE segment reported operating income of $703 million ¹³ and segment operating profit of $1.094 billion ¹⁴ for the year.

Project Management segment revenue was $7.657 billion ¹⁵ for the year ended December 31, 2025, with operating income of $432 million ¹⁶ and segment operating profit of $561 million ¹⁷. Real Estate Investments (REI) segment revenue was $879 million ¹⁸ for the year ended December 31, 2025, with investment management contributing $602 million ¹⁹ and development services contributing $277 million ²⁰. The REI segment reported operating income of $77 million ²¹ and segment operating profit of $324 million ²² for the year. As of December 31, 2025, CBRE Investment Management had $155.5 billion ²³ in assets under management, and Trammell Crow Company's in-process portfolio and pipeline totaled over $29.5 billion ²⁴ as of December 31, 2025.

In 2025, CBRE deployed approximately $2.7 billion ²⁵ of capital. The largest deployments were approximately $1.2 billion ²⁶ for the acquisition of Pearce Services, LLC, a leading provider of advanced technical services for digital and power infrastructure, and approximately $468 million ²⁷ to acquire the remaining 60% equity interest in Industrious National Management Company, LLC, a flexible-workplace solutions and workplace experience platform. The company also deployed $956 million ²⁸ in 2025 to repurchase 7,052,481 ²⁹ shares of its common stock. In November 2024, the Board authorized an additional $5.0 billion ³⁰ to the existing $4.0 billion ³¹ share repurchase program, bringing the total authorized amount to $9.0 billion ³² as of December 31, 2025, and extended the term through December 31, 2029 ³³. During the year ended December 31, 2025, the company repurchased 7,052,481 ³⁴ shares at an average price of $135.52 ³⁵ per share for an aggregate of $956 million ³⁶.

For the year ended December 31, 2025, total revenue was $40.550 billion ³⁷, an increase of 13.4% ³⁸ compared to $35.767 billion ³⁹ in 2024. Net income attributable to CBRE Group, Inc. was $1.157 billion ⁴⁰ compared to $968 million ⁴¹ in 2024. GAAP earnings per share (diluted) was $3.85 ⁴² compared to $3.14 ⁴³ in 2024. Core EBITDA was $3.308 billion ⁴⁴ compared to $2.704 billion ⁴⁵ in 2024, an increase of 22.3% ⁴⁶. Core EPS was $6.38 ⁴⁷ compared to $5.10 ⁴⁸ in 2024, an increase of 25.1% ⁴⁹. Operating income was $1.753 billion ⁵⁰ compared to $1.413 billion ⁵¹ in 2024. Net cash provided by operating activities totaled $1.559 billion ⁵² for the year ended December 31, 2025, compared to $1.708 billion ⁵³ in 2024.

Business Outlook

CBRE is focused on expanding its participation in secularly favored and resilient businesses and enlarging its total addressable market. Examples of this growth vector include the acquisition of Turner & Townsend, the global project management firm, in which the company holds a majority ownership interest; the acquisition of J&J Worldwide Services (now doing business as CBRE Government & Defense Services), which markedly increased the facilities-related services provided to the U.S. federal government; the acquisition of Direct Line Global, a provider of technical facilities management services to data centers; the full acquisition of Industrious National Management Company, LLC in January 2025, a flexible workplace solutions and workplace experience platform; and the acquisition of Pearce Services, LLC in November 2025, a leading provider of advanced technical services for digital and power infrastructure. The company has also increased its scale in certain geographies, such as Japan and India, and asset classes that are positioned for continued growth, such as data centers.

The company's growth is also driven by its focus on cementing its leadership position in each of its businesses with a strategy that achieves growth across four dimensions: geographies, clients, property types and services. The company is committed to deploying its resources and capital in parts of its business that benefit from secular tailwinds and/or are cyclically resilient across these four dimensions. The BOE segment benefits from multiple tailwinds, most notably an increased desire for large occupiers and investors to outsource and consolidate real estate services to optimize costs, operational efficiencies and workplace experiences. The Project Management segment's scale, highly diverse capabilities and investments in technology allow it to solve clients' needs in managing capital projects, ranging from billion-dollar-plus advanced manufacturing plants and sophisticated infrastructure projects to energy and sustainability solutions.

The filing does not contain explicit margin trajectory, cost structure evolution, or efficiency targets with exact figures for the upcoming period.

The filing does not contain explicit operational outlook details regarding supply chain posture, manufacturing capacity, or headcount strategy for the upcoming period.

The company's expected capital requirements for 2026 include up to $500 million ⁵⁴ of anticipated capital expenditures, net of tenant concessions. During the year ended December 31, 2025, the company incurred $366 million ⁵⁵ of capital expenditures. As of December 31, 2025, the company had $4.9 billion ⁵⁶ of capacity remaining under the 2024 share repurchase program. The company has not declared or paid any cash dividends on any class of its common stock since its inception on February 20, 2001, and any future determination to pay cash dividends will be at the discretion of the Board.

The operating environment for commercial real estate improved considerably in 2025, with markedly increased property leasing and sales activity compared with 2024 levels. Occupier demand for office, industrial and data center space in the U.S. was notably strong throughout the year. Broader capital availability, lower borrowing costs and improved occupancy market fundamentals buoyed investor sentiment and led to increased real estate sales and financing activity in 2025. However, the company's performance is significantly related to general economic, political and regulatory conditions, and periods of economic weakness or recession, fiscal or political uncertainty, market volatility, declining employment levels, declining demand for commercial real estate, falling real estate values, disruption to the global capital or credit markets, disputes with U.S. trading partners, unpredictable changes in U.S. trading policy, increased tariffs, inflationary pressures, significant rises in interest rates may materially and negatively affect the performance of some or all of its business lines.

The company faces structural headwinds including the potential for economic slowdowns, liquidity constraints, inflationary pressures, significant rises in interest rates, and possible subsequent downturns in commercial real estate asset values, property sales and leasing activities. The company also faces risks related to currency fluctuations, as approximately 43.6% ⁵⁷ of its revenue was transacted in foreign currencies during the year ended December 31, 2025. Additionally, the company's investment management, development services, capital markets and loan servicing businesses are sensitive to credit cost and availability as well as financial liquidity. The company's REI businesses, including its real estate investment programs and co-investment activities, subject it to performance and real estate investment risks which could cause fluctuations in its earnings and cash flow.

Risk Factors

The company's performance is significantly related to general economic, political and regulatory conditions, and periods of economic weakness or recession, fiscal or political uncertainty, market volatility, declining employment levels, declining demand for commercial real estate, falling real estate values, disruption to the global capital or credit markets, increased tariffs, inflationary pressures, and significant rises in interest rates may materially and negatively affect the performance of some or all of its business lines. As of December 31, 2025, the company had total debt, excluding notes payable on real estate and warehouse lines of credit, of $6.0 billion ⁵⁸, and interest expense for the year ended December 31, 2025 was $490 million ⁵⁹, exposing it to interest rate risk on its variable rate indebtedness. The company's REI businesses subject it to performance and real estate investment risks, with a net investment of approximately $375 million ⁶⁰ in co-investments in investment funds and committed $216 million ⁶¹ to fund future co-investments as of December 31, 2025. The company also faces risks related to its Telford Homes subsidiary, which had an estimated liability of approximately $321 million ⁶² as of December 31, 2025 related to fire safety remediation efforts. Additionally, approximately 43.6% ⁶³ of the company's revenue was transacted in foreign currencies during the year ended December 31, 2025, exposing it to currency fluctuation risks.

Management Priorities

Management's message emphasizes that the operating environment for commercial real estate improved considerably in 2025, with markedly increased property leasing and sales activity compared with 2024 levels. The company highlights that an improved operating environment supported strong growth for CBRE in 2025, with overall revenue increasing 13.4% ⁶⁴, GAAP net income of $1.2 billion ⁶⁵, Core EBITDA of $3.3 billion ⁶⁶ (up 22.3% ⁶⁷), GAAP EPS of $3.85 ⁶⁸ (up 22.6% ⁶⁹), and Core EPS of $6.38 ⁷⁰ (up 25.1% ⁷¹). Management's strategic priorities include cementing the company's leadership position in each of its businesses with a strategy that achieves growth across four dimensions: geographies, clients, property types and services. The company is committed to deploying its resources and capital in parts of its business that benefit from secular tailwinds and/or are cyclically resilient across these four dimensions, as demonstrated by acquisitions of Turner & Townsend, J&J Worldwide Services, Direct Line Global, Industrious, and Pearce Services.

View Source Annual Report on SEC.gov ↗

References

[1] Item 7, MD&A — Segment Operations, Advisory Services
[2] Item 7, MD&A — Segment Operations, Advisory Services
[3] Item 7, MD&A — Segment Operations, Advisory Services
[4] Item 7, MD&A — Segment Operations, Advisory Services
[5] Item 7, MD&A — Segment Operations, Advisory Services
[6] Item 7, MD&A — Segment Operations, Advisory Services
[7] Item 7, MD&A — Segment Operations, Advisory Services
[8] Item 7, MD&A — Segment Operations, Advisory Services
[9] Item 7, MD&A — Segment Operations, Advisory Services
[10] Item 7, MD&A — Segment Operations, Building Operations & Experience
[11] Item 7, MD&A — Segment Operations, Building Operations & Experience
[12] Item 7, MD&A — Segment Operations, Building Operations & Experience
[13] Item 7, MD&A — Segment Operations, Building Operations & Experience
[14] Item 7, MD&A — Segment Operations, Building Operations & Experience
[15] Item 7, MD&A — Segment Operations, Project Management
[16] Item 7, MD&A — Segment Operations, Project Management
[17] Item 7, MD&A — Segment Operations, Project Management
[18] Item 7, MD&A — Segment Operations, Real Estate Investments
[19] Item 7, MD&A — Segment Operations, Real Estate Investments
[20] Item 7, MD&A — Segment Operations, Real Estate Investments
[21] Item 7, MD&A — Segment Operations, Real Estate Investments
[22] Item 7, MD&A — Segment Operations, Real Estate Investments
[23] Item 1, Business — Business Segments, Real Estate Investments
[24] Item 1, Business — Business Segments, Real Estate Investments
[25] Item 7, MD&A — Capital Allocation
[26] Item 7, MD&A — Capital Allocation
[27] Item 7, MD&A — Capital Allocation
[28] Item 7, MD&A — Capital Allocation
[29] Item 7, MD&A — Capital Allocation
[30] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
[31] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
[32] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
[33] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
[34] Item 7, MD&A — Capital Allocation
[35] Item 7, MD&A — Capital Allocation
[36] Item 7, MD&A — Capital Allocation
[37] Item 7, MD&A — Results of Operations
[38] Item 7, MD&A — Results of Operations
[39] Item 7, MD&A — Results of Operations
[40] Item 7, MD&A — Results of Operations
[41] Item 7, MD&A — Results of Operations
[42] Item 7, MD&A — Results of Operations
[43] Item 7, MD&A — Results of Operations
[44] Item 7, MD&A — Non-GAAP Financial Measures
[45] Item 7, MD&A — Non-GAAP Financial Measures
[46] Item 7, MD&A — Results of Operations
[47] Item 7, MD&A — Non-GAAP Financial Measures
[48] Item 7, MD&A — Non-GAAP Financial Measures
[49] Item 7, MD&A — Results of Operations
[50] Item 7, MD&A — Results of Operations
[51] Item 7, MD&A — Results of Operations
[52] Item 7, MD&A — Historical Cash Flows
[53] Item 7, MD&A — Historical Cash Flows
[54] Item 7, MD&A — Liquidity and Capital Resources
[55] Item 7, MD&A — Liquidity and Capital Resources
[56] Item 7, MD&A — Liquidity and Capital Resources
[57] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
[58] Item 1A, Risk Factors — Risks Related to Our Indebtedness
[59] Item 1A, Risk Factors — Risks Related to Our Indebtedness
[60] Item 1A, Risk Factors — Risks Related to Our Operations
[61] Item 1A, Risk Factors — Risks Related to Our Operations
[62] Item 7, MD&A — Critical Accounting Policies and Estimates, Telford Fire Safety Remediation
[63] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
[64] Item 7, MD&A — Results of Operations
[65] Item 7, MD&A — Results of Operations
[66] Item 7, MD&A — Results of Operations
[67] Item 7, MD&A — Results of Operations
[68] Item 7, MD&A — Results of Operations
[69] Item 7, MD&A — Results of Operations
[70] Item 7, MD&A — Results of Operations
[71] Item 7, MD&A — Results of Operations
[72] Item 8, Consolidated Statements of Operations
[73] Item 8, Consolidated Statements of Operations
[74] Item 8, Consolidated Statements of Operations
[75] Item 8, Consolidated Statements of Operations
[76] Item 8, Consolidated Statements of Operations
[77] Item 8, Consolidated Statements of Operations
[78] Item 8, Consolidated Statements of Operations
[79] Item 8, Consolidated Statements of Operations
[80] Item 7, MD&A — Non-GAAP Financial Measures
[81] Item 7, MD&A — Non-GAAP Financial Measures
[82] Item 8, Consolidated Statements of Cash Flows
[83] Item 8, Consolidated Statements of Cash Flows
[84] Item 8, Consolidated Balance Sheets
[85] Item 1A, Risk Factors — Risks Related to Our Indebtedness
[86] Item 1A, Risk Factors — Risks Related to Our Indebtedness
[87] Item 7, MD&A — Results of Operations
[88] Item 7, MD&A — Results of Operations
[89] Item 7, MD&A — Results of Operations
[90] Item 7, MD&A — Results of Operations
[91] Item 7, MD&A — Results of Operations
[92] Item 7, MD&A — Results of Operations
[93] Item 7, MD&A — Segment Operations, Advisory Services
[94] Item 7, MD&A — Segment Operations, Advisory Services
[95] Item 7, MD&A — Segment Operations, Building Operations & Experience
[96] Item 7, MD&A — Segment Operations, Building Operations & Experience
[97] Item 7, MD&A — Segment Operations, Project Management
[98] Item 7, MD&A — Segment Operations, Project Management
[99] Item 7, MD&A — Segment Operations, Real Estate Investments
[100] Item 7, MD&A — Segment Operations, Real Estate Investments

Analysis on 6/22/2026

Recent Material Events

2026-07-29Material Event

CBRE Group, Inc. reported financial results for the second quarter ended June 30, 2026, with revenue increasing 16% to $11.2 billion and Core EPS rising 30% to $1.56. The company raised its full-year 2026 core earnings per share outlook to a range of $7.80 to $7.90 from the previous guidance of $7.60 to $7.80, reflecting anticipated 23% growth at the midpoint. Second-quarter GAAP net income was reported at $204 million, or $0.69 per share, which included a $168 million non-cash charge for fire-safety remediation reserves in the U.K.; excluding this item, GAAP EPS would have increased 57%. The firm generated nearly $1.4 billion in operating cash flow and reported a net leverage ratio of 1.60x as of quarter-end. CBRE Group operates in the commercial real estate services and investment industry.

View filing ↗

2026-06-23Material Event

CBRE Group, Inc. entered into a new 364-day senior unsecured revolving credit agreement with Wells Fargo Bank, National Association, providing an aggregate principal amount of up to $1 billion in commitments. The agreement replaces a previous facility, and loans will bear interest at a rate based on Term SOFR plus a margin of 0.645% to 1.125% or a base rate spread of 0% to 0.10%. The facility matures on June 22, 2027. CBRE Group, Inc. operates in the commercial real estate services industry.

View filing ↗

2026-05-22Material Event

CBRE Group, Inc. held its annual meeting of stockholders on May 21, 2026, resulting in the election of 10 directors and the ratification of KPMG LLP as the independent auditor. While executive compensation was approved, a stockholder proposal regarding the ability to call special meetings was rejected with 166,814,496 votes against and 85,999,804 votes in favor.

View filing ↗

2026-05-04Material Event

CBRE Group, Inc. has completed the offering of $750 million in 5.250% senior notes due 2036 through its wholly-owned subsidiary, CBRE Services, Inc. The company intends to use the net proceeds from this issuance to repay borrowings under its commercial paper program.

View filing ↗

2026-04-28Material Event

CBRE Group, Inc. entered into an underwriting agreement to issue $750 million of 5.250% senior notes due 2036. The company intends to use the net proceeds from this offering to repay borrowings under its commercial paper program.

View filing ↗