Colliers Reports Second Quarter Results

Executive Summary

• Colliers International Group Inc. reported second-quarter 2025 financial results, showing strong top-line growth driven by its diversified business model and strategic acquisitions.
• The company raised its full-year 2025 outlook, citing solid momentum across its three growth engines: Real Estate Services, Engineering, and Investment Management.
• Significant operational updates include the rebranding of the Investment Management division to Harrison Street Asset Management and the acquisition of a 60% stake in RoundShield Partners.

Key Details

• Q2 2025 Financial Performance:
  • Consolidated revenues: $1.35 billion (up 18% / 17% in local currency).
  • Net revenues: $1.19 billion (up 16% / 16% in local currency).
  • Adjusted EBITDA: $180.2 million (up 16% / 15% in local currency).
  • Adjusted EPS: $1.72 (up 26% year-over-year).
  • GAAP diluted net earnings per share: $0.08 (down from $0.73 in Q2 2024, primarily due to prior year contingent consideration reversals).
• Six Months Ended June 30, 2025:
  • Revenues: $2.49 billion (up 16% / 17% in local currency).
  • Net revenues: $2.18 billion (up 14% / 15% in local currency).
  • Adjusted EBITDA: $296.3 million (up 12% / 12% in local currency).
  • Adjusted EPS: $2.59 (up 22% year-over-year).
• Segment Performance (Q2 2025):
  • Real Estate Services: Revenues $785.4 million (up 4%); Adjusted EBITDA $87.0 million (down 1%). Capital Markets revenues up 17%; Leasing revenues down 5%.
  • Engineering: Revenues $436.0 million (up 67%); Adjusted EBITDA $46.3 million (up 145%), driven by acquisitions and margin expansion.
  • Investment Management: Revenues $126.1 million (flat); Adjusted EBITDA $50.0 million (down 1%). Assets Under Management (AUM) reached $103.3 billion (pro forma ~$108 billion including RoundShield).
• Strategic Actions & Acquisitions:
  • Completed acquisition of a 60% stake in RoundShield Partners, a European credit platform with $5 billion in AUM.
  • Completed four tuck-in acquisitions in Engineering and two in Real Estate Services.
  • Rebranded Investment Management division to "Harrison Street Asset Management."
  • Appointed Christopher Merrill as Global CEO, Zach Michaud as Global CFO, and Stephen Gordon as Global COO for Harrison Street.
• 2025 Outlook Update:
  • Raised guidance for full-year 2025: Low-teens percentage revenue growth (previously high single-digit to low teens), mid-teens Adjusted EBITDA growth (previously low-teens), and mid to high-teens Adjusted EPS growth (previously low-teens).
  • Outlook contingent on lower global trade uncertainty and lower interest rate volatility.
• Cash Flow & Balance Sheet:
  • Free cash flow conversion was 98% of adjusted net earnings over the past 12 months.
  • Total debt: $1.74 billion; Net debt/pro forma adjusted EBITDA ratio: 2.3x.

Notable Quotes

• "We exceeded expectations with our strong second quarter results, showcasing the exceptional performance of our Engineering division... We anticipate this positive trend to continue throughout the year, prompting us to raise our annual outlook despite ongoing macroeconomic uncertainties." — Jay S. Hennick, Chairman & CEO
• "Last week, we announced the rebranding of our Investment Management division as Harrison Street Asset Management... This week’s acquisition of a 60% stake in RoundShield Partners... further expands our credit, student housing and hospitality capabilities." — Jay S. Hennick, Chairman & CEO