Savills (LON:SVS) Releases Quarterly Earnings Results

Key Points

• Savills delivered strong first-half results: Revenue rose 8.7% to more than £1.2 billion, while underlying EBITDA increased 32% and underlying PBT rose 47% to £34.3 million. Growth was driven by market-share gains, higher transaction volumes and cost savings.
• The Eastdil Secured acquisition is expected to materially boost earnings and U.S. exposure: On a pro forma basis, the deal would have increased first-half underlying PBT by £21 million, or 60%, before synergies. However, U.K. residential remained weak, with revenue down 9% amid the impact of the Renters’ Rights Act.
• Management maintained its full-year 2026 outlook despite uncertainty over transaction timing and elevated restructuring and integration costs. Savills shares rose 10.9%, while analysts maintained a consensus “Buy” rating with a GBX 1,292.50 target price.

Savills (LON:SVS - Get Free Report) posted its quarterly earnings data on Thursday. The company reported GBX 17.90 EPS for the quarter, Digital Look Earnings reports. Savills had a return on equity of 9.70% and a net margin of 2.78%.

Here are the key takeaways from Savills' conference call:

• Strong first-half performance: Revenue rose 8.7% to more than £1.2 billion, underlying EBITDA increased 32% to nearly £74 million, and underlying PBT climbed 47% to £34.3 million, supported by market-share gains, improving transaction volumes and cost savings.
• Transactional revenues increased 14%, led by 22% growth in capital transactions and 23% growth in occupier advisory, particularly in North America. Savills said its U.K. capital transactions revenue rose 17% despite a 12% market decline, indicating significant market-share gains.
• The completed Eastdil Secured acquisition is expected to be earnings-enhancing and materially improve Savills’ exposure to the U.S. market. On a pro forma basis, combining first-half results would have increased underlying PBT by £21 million, or 60%, before synergies.
• U.K. residential remained challenging, with revenue down 9% and profits falling to £2.1 million, primarily because of the one-time revenue-recognition impact of the Renters’ Rights Act. Management expects the market to remain needs-based until greater policy clarity emerges.
• Management maintained its full-year 2026 expectations, citing strong pipelines and resilient less-transactional businesses, while cautioning that the timing of transaction completions remains difficult to predict. Restructuring and Eastdil-related integration costs are expected to remain elevated in the second half, while net debt to EBITDA is targeted at 1.5x or less by year-end.

Savills Stock Up 10.9%

Shares of SVS traded up GBX 107 during trading hours on Thursday, hitting GBX 1,088. 843,618 shares of the company were exchanged, compared to its average volume of 3,592,792. The company has a debt-to-equity ratio of 80.81, a quick ratio of 1.22 and a current ratio of 1.17. The company has a market cap of £1.51 billion, a PE ratio of 22.07, a PEG ratio of 2.09 and a beta of 1.24. The firm's 50 day moving average is GBX 894.77 and its 200-day moving average is GBX 904.59. Savills has a 52 week low of GBX 791.46 and a 52 week high of GBX 1,126.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on SVS shares. Shore Capital Group reaffirmed a "buy" rating and set a GBX 1,210 target price on shares of Savills in a report on Friday, May 8th. Berenberg Bank reissued a "buy" rating and issued a GBX 1,375 price target on shares of Savills in a report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of GBX 1,292.50.

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.

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