Cushman & Wakefield Q2 Earnings Call Highlights

Key Points

• Record Q2 performance: Cushman & Wakefield reported revenue of $2.8 billion, up 11% year over year, while adjusted EBITDA rose 13% and adjusted EPS increased 17% to $0.35.
• Leasing and services drove growth: Global leasing revenue climbed 27%, led by a 35% increase in the Americas, while services revenue rose 7%. Data center-related revenue surged 83% year to date, making the segment a major investment priority.
• Debt reduction and outlook improved: Net leverage fell to 3.0 times, with approximately $650 million of debt repaid since early 2024. The company raised its 2026 adjusted EPS growth outlook to 18%–23%, from 15%–20% previously.

Cushman & Wakefield NYSE: CWK reported record second-quarter revenue and raised its full-year adjusted earnings outlook, citing broad-based leasing strength, continued services growth and progress reducing debt.

CEO Michelle MacKay said the commercial real estate services company recorded its highest second-quarter total revenue, leasing and services revenue, as well as its lowest gross debt balance in company history. The quarter also marked Cushman & Wakefield’s sixth consecutive quarter of double-digit adjusted earnings-per-share growth, she said.

Second-quarter revenue totaled $2.8 billion, rising 11% from a year earlier in local currency, according to CFO Neil Johnston. Adjusted EBITDA increased 13% to $184 million, while adjusted EPS rose 17% to $0.35. Year-to-date adjusted EPS was $0.50, up 28% from the first half of 2025.

Leasing growth offsets capital markets softness

Brokerage revenue, consisting of leasing and capital markets activity, rose 19% during the quarter. Global leasing revenue increased 27%, led by a 35% gain in the Americas. Johnston said leasing growth in the region was broad-based across deal sizes and most major markets.

Office leasing benefited from demand for higher-quality space, particularly among legal, accounting, insurance and technology-sector clients in major gateway markets. Industrial leasing was also strong, supported by activity across transaction sizes and data center-related assignments. Johnston identified Chicago, New Jersey and the West Coast as particularly strong industrial markets.

Outside the Americas, APAC leasing rose 6%, aided by Greater China. EMEA leasing declined 6%, however, due to deal-timing differences and heightened macroeconomic uncertainty. Johnston later said leasing weakness in EMEA was concentrated primarily in the U.K. and Ireland and that the company does not expect a rapid recovery in the region during the third quarter.

Capital markets revenue declined 1% globally after six straight quarters of growth. Americas capital markets revenue fell 6%, reflecting industry weakness in office and midsize multifamily transactions, where Cushman & Wakefield has greater exposure. Johnston said the company had seen encouraging, broadly based activity early in the third quarter, though he noted it remained early in the period.

MacKay characterized the quarter’s capital markets result as an “air pocket,” saying transaction activity over the prior 12 weeks had been unusually concentrated in large institutional portfolio trades in major metropolitan areas. The company has hired about 100 capital markets professionals over the past 18 months, beginning in the first quarter of 2025, but MacKay said it can take roughly 18 months for new hires to begin ramping meaningfully.

APAC and EMEA capital markets revenue increased 50% and 11%, respectively, with strength in Singapore, Greater China, Sweden and the Netherlands.

Services and data centers remain growth priorities

Services revenue expanded 7% globally, including gains of 5% in the Americas, 21% in EMEA and 10% in APAC. Project management revenue grew 20%, while facilities management rose 8%.

Johnston said the company sees resilient demand and favorable pipelines across its services businesses over the coming 12 months. He said facilities management, property management and integrated facilities management were performing well globally, while project management had been “exceptionally strong.” Cushman & Wakefield has added management in project management operations in the U.S. and internationally over the last 18 months, he said.

Data centers are a central area of investment. MacKay said data center-related revenue was up 83% year to date, with integrated facilities management representing the company’s largest data center business. Data center-related opportunities now account for 25% of the broader integrated facilities management pipeline, she said.

The company is investing organically in sales and delivery capabilities and has added leadership in the area. MacKay said acquisitions or other external additions of expertise also remain under consideration. Johnston said the company’s strategy is to move toward more technical data center work, including specialized services that carry higher margins.

Debt reduction and raised outlook

Cushman & Wakefield ended the quarter with net leverage of 3 times, down from 3.7 times a year earlier. Since April, it repaid an additional $150 million of debt, including $50 million of its 2028 senior secured notes. Total debt repayment has reached approximately $650 million since the start of 2024.

During the quarter, the company amended and extended $850 million of term loans to 2033 and reduced the interest rate spread by 50 basis points to SOFR plus 225 basis points. It also increased the term loan by $350 million and used the proceeds to redeem an equal amount of its 2028 senior secured notes. The company has $150 million remaining on those notes and intends to redeem them fully by mid-2027.

Trailing 12-month free cash flow was $249 million, up $123 million from the prior-year period. That represented 79% conversion of adjusted net income, at the high end of the company’s stated 60% to 80% target range. Cushman & Wakefield finished the quarter with about $500 million in cash and cash equivalents and total liquidity of $1.5 billion.

For 2026, the company now expects revenue growth at the mid- to high end of its prior 6% to 8% range. It raised its annual adjusted EPS growth target to 18% to 23%, from its prior outlook of 15% to 20%.

MacKay said future capital allocation could include further deleveraging, organic growth investments, accretive acquisitions and potential shareholder returns. The company continues to target investment-grade credit status, she said.

About Cushman & Wakefield (NYSE:CWK)

Cushman & Wakefield is a leading global commercial real estate services firm headquartered in Chicago. The company provides a wide range of services to occupiers and investors, specializing in transaction management, property management, facilities management and project management. Its clientele spans corporate occupiers, landlords, investors and government entities seeking solutions to optimize their real estate portfolios and operations.

The firm's core offerings include leasing advisory for office, industrial, retail and multifamily properties, as well as capital markets advice on acquisitions, dispositions and debt and equity placements.

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