Cushman & Wakefield Q1 2025 Earnings Summary

Revenue and Profitability
- Revenue was $2.28 billion, up 5% (6% in local currency) compared to Q1 2024.
- Service line fee revenue was $1.54 billion, up 3% (4% in local currency).
- Leasing revenue rose 8% (9% in local currency), driven by strong office and industrial leasing in the Americas.
- Capital markets revenue grew 11% (11% in local currency), led by strength in the Americas and APAC.
- Net income was $1.9 million, compared to a net loss of $(28.8) million last year.
- Diluted earnings per share (EPS) was $0.01, compared to a loss per share of $(0.13) a year ago.
- Adjusted EBITDA was $96.2 million, up 23% (24% in local currency), with a margin improvement of 103 basis points to 6.2%.
- Adjusted diluted EPS was $0.09 compared to $0.00 in Q1 2024.

Segment Highlights
- **Americas**: Revenue grew 4%, with Leasing up 14% and Capital Markets up 4%. Net income turned positive to $6.6 million (versus a loss last year).
- **EMEA**: Revenue declined 8%, Leasing dropped 27%, but Capital Markets grew 15%. Net loss widened to $(15.3) million.
- **APAC**: Revenue increased 15%, Leasing rose 12%, and Capital Markets surged 61%. Net income rose to $10.6 million compared to a loss last year.

Operating Expenses
- Total costs and expenses increased 3% to $2.24 billion.
- Cost of services rose 4%, mainly from higher commissions and subcontractor costs.
- Operating, administrative, and other expenses increased 3%, partly due to higher stock-based compensation.

Balance Sheet and Liquidity
- Liquidity was $1.7 billion as of March 31, 2025 ($1.1 billion undrawn revolver + $0.6 billion cash).
- Net debt was $2.4 billion.
- The company prepaid $25 million of term loans in March 2025.

Cash Flow
- Net cash used in operating activities was $(162.0) million.
- Free cash flow was $(166.6) million.

Management Commentary
CEO Michelle MacKay emphasized strong organic growth across service lines, faster-than-expected Services business expansion, and significant margin improvements. Management continues to focus on disciplined execution and leveraging the firm’s global platform for long-term growth.

Cushman & Wakefield Plans Redomiciliation from the UK to Bermuda

On March 28, 2025, Cushman & Wakefield plc announced via a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC) that it intends to change the jurisdiction of incorporation of its parent holding company from England and Wales to Bermuda. This move, described as a “Redomiciliation,” is subject to shareholder approval and court confirmation under a UK scheme of arrangement.

The company emphasized that the move is not driven by tax strategy but by the desire to reduce the administrative costs and complexity of dual regulation in both the UK and the U.S. Additionally, the change would allow for a more flexible corporate structure aligned with Cushman & Wakefield’s largely U.S.-based investor base.

The Redomiciliation is expected to have minimal operational impact. The company’s shares will continue trading on the New York Stock Exchange under the ticker symbol “CWK,” and there will be no material changes to its management, operations, employee base, financial statements, or credit agreements. Its subsidiaries’ tax residency will remain unchanged.

Key benefits highlighted include:

- Reduced administrative burden and costs due to elimination of UK-specific financial reporting and governance requirements.
- Greater corporate governance flexibility under Bermuda law, including the ability to issue preference shares without shareholder approval and freedom from UK pre-emption rights.
- Enhanced capital management flexibility, such as no requirement for distributable reserves to authorize dividends or share buybacks.
- A corporate legal framework more familiar to U.S. investors.

A series of shareholder meetings, including court-ordered and general meetings, are planned to approve the proposed changes. A separate advisory vote will also be held regarding related governance provisions under Bermuda law.

If approved, the Redomiciliation is expected to be completed in the second half of 2025. The company has filed a preliminary proxy statement with the SEC and will distribute a definitive version ahead of the shareholder vote.

For more information, shareholders are advised to review the proxy statement once available on the SEC website and to contact Cushman & Wakefield’s investor relations team with any questions.

Cushman & Wakefield delivered strong financial performance in the fourth quarter of 2024, driven by robust growth in capital markets and leasing revenue. The company reported a 3% increase in total revenue to $2.6 billion, with capital markets revenue surging 35% and leasing revenue growing 6%, primarily due to strong office leasing activity in the Americas. Net income for the quarter increased by $43.1 million to $112.9 million, translating to diluted earnings per share of $0.48, up from $0.30 in the prior year. Adjusted EBITDA rose 4% to $222.3 million, with an 11.9% adjusted EBITDA margin.

For the full year, Cushman & Wakefield generated $9.4 billion in revenue, reflecting a slight decline of $47.2 million compared to 2023. Despite this, leasing revenue grew 7%, and capital markets revenue increased 4%, driven by industrial, retail, and office sectors. Net income saw a significant turnaround, reaching $131.3 million, compared to a net loss of $35.4 million in 2023. Diluted earnings per share improved to $0.56 from a loss of $0.16 in the prior year. Adjusted EBITDA increased 2% to $581.9 million, with a stable 8.8% margin.

Cash flow generation improved notably, with net cash from operations totaling $208 million and free cash flow rising by $65.8 million to $167 million. The company ended the year with $1.9 billion in liquidity, including $1.1 billion available under its undrawn revolving credit facility and $0.8 billion in cash.

CEO Michelle MacKay highlighted the company’s momentum heading into 2025, emphasizing improved investor and occupier sentiment and positioning for sustained growth in the commercial real estate sector.