Savills (LON:SVS) Posts Earnings Results

Key Points

• The group beat expectations, posting ~6% (nearly 8% cc) revenue growth, double‑digit underlying EBITDA and PBT expansion and proposing a 12% dividend increase, with profits above pre‑COVID 2019 levels.
• Savills is buying Eastdil Secured for £685m (60% cash/40% equity), a deal that immediately strengthens its US capital‑markets and large‑deal capabilities and is expected to deliver >£60m revenue and >£15m EBITDA synergies with low‑ to mid‑teens EPS accretion next year; the acquisition is partly funded by an arranged $800m facility, creating pro‑forma leverage of ~1.8x that management aims to reduce to ~1x by end‑2027.
• Near‑term risks include higher balance‑sheet and interest‑rate exposure from the financing, transactional volatility and regional concentrations (notably China, parts of Europe and APAC); the stock fell to GBX 931 on the news, though Shore Capital reiterated a Buy and consensus target is GBX 1,180.

Savills (LON:SVS - Get Free Report) issued its earnings results on Thursday. The company reported GBX 77.20 earnings per share for the quarter, Digital Look Earnings reports. Savills had a return on equity of 7.56% and a net margin of 2.21%.

Here are the key takeaways from Savills' conference call:

• The group beat expectations with profit overtaking pre-COVID 2019 levels, reporting ~6% (nearly 8% cc) revenue growth, double-digit underlying EBITDA and PBT growth, and a 12% proposed dividend increase.
• Savills is acquiring Eastdil Secured for GBP 685m (60% cash / 40% equity), which immediately boosts Savills into a top global position on large deals and brings leading U.S. capital markets, debt-placement and financing capabilities.
• The deal is funded partly with debt (an arranged $800m facility) leaving pro forma leverage of ~1.8x
• Management highlights strong cultural fit, no planned redundancies, equity lock-ups for Eastdil senior staff and conservative synergy guidance (>£60m revenue synergies, >£15m EBITDA), supporting low- to mid-teens% EPS accretion next year.
• Material risks remain from transactional volatility and regional exposures — notably China and parts of continental Europe and APAC — plus the potential macro/geopolitical impact of the Middle East conflict and ~£30m of past restructuring costs (with a small trailing charge into H1).

Savills Price Performance

SVS traded down GBX 71 during trading on Thursday, reaching GBX 931. 1,233,281 shares of the company traded hands, compared to its average volume of 783,280. Savills has a 12-month low of GBX 858.89 and a 12-month high of GBX 1,126. The firm has a fifty day simple moving average of GBX 1,032.45 and a 200 day simple moving average of GBX 994.30. The company has a debt-to-equity ratio of 102.42, a quick ratio of 1.22 and a current ratio of 1.15. The company has a market cap of £1.28 billion, a P/E ratio of 24.63, a PEG ratio of 2.09 and a beta of 1.25.

Wall Street Analyst Weigh In

Separately, Shore Capital Group reiterated a "buy" rating on shares of Savills in a research note on Thursday. One equities research analyst has rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of GBX 1,180.

Savills Company Profile

Founded in the UK in 1855, Savills is one of the world's leading property agents. Our experience and expertise spans the globe, with 600 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East. Our scale gives us wide-ranging specialist and local knowledge, and we take pride in providing best-in-class advice as we help individuals, businesses and institutions make better property decisions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.