CBRE Group, Inc.

What they do

CBRE provides integrated real estate services to investors and occupiers across four segments: Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments. Services include leasing, property sales, mortgage origination and servicing, valuations, facilities and property management, project management, and investment management. The company emphasizes resilient revenue sources such as occupier outsourcing and project management while still generating transaction-based revenue from sales and leasing.

Revenue drivers

• Facilities management — Largest revenue line, $20.6 billion in 2025 (50.9% of total revenue), up from $18.2 billion in 2024.
• Project management — $7.7 billion in 2025 (18.9% of total), up from $6.8 billion in 2024, driven by large occupier demand for outsourcing.
• Advisory leasing — $4.5 billion in 2025 (11.1% of total), up from $3.9 billion in 2024; cyclical and historically strongest in Q4.
• Capital markets (Advisory sales, mortgage origination) — Advisory sales $2.1 billion and commercial mortgage origination $551 million in 2025, together about 6.6% of total revenue; sensitive to interest rates and transaction activity.

Recent performance

For Q2 2026, revenue rose 15.5% to $11.2 billion and Core EPS rose 30% to $1.56. GAAP EPS fell 4.2% to $0.69 and GAAP net income declined 5.1% to $204 million, largely due to a $168 million non-cash reserve increase for U.K. fire-safety remediation. Each of the four segments achieved segment operating profit growth of more than 25%, with Advisory up 29%, global leasing up 24%, and property sales up 20%. For full-year 2025, revenue rose 13.4% to $40.6 billion and GAAP net income rose 19.5% to $1.2 billion.

Strategy

CBRE is deploying capital into secularly favored and cyclically resilient businesses, including recent acquisitions of Pearce (advanced technical services for digital and power infrastructure), Industrious (flexible workplace), J&J Worldwide Services (government facilities services), Direct Line Global (data center facilities management), and majority ownership of Turner & Townsend (project management). The company also increased scale in Japan and India and in data centers. In 2025, it deployed approximately $2.7 billion of capital, including $1.2 billion for Pearce and $468 million for the remaining 60% of Industrious, and repurchased 7,052,481 shares for $956 million. In 2026 through July 27, it repurchased 6,984,186 shares for $988 million. Management states it is directing resources into areas that drive current and long-term growth.

Risks

• Economic and real estate cycle exposure — Economic slowdowns, liquidity constraints, rising interest rates, or downturns in commercial real estate values can reduce transaction and leasing revenue.
• Geopolitical and regulatory uncertainty — Disputes with U.S. trading partners, tariffs, political instability, or public health events can negatively affect business and client activity.
• Interest rate and capital market sensitivity — Higher borrowing costs or reduced capital availability can slow property sales, mortgage origination, and investment management fundraising.
• Fixed-cost and pass-through margin pressure — Pass-through costs represented 41.3% of 2025 revenue, and cost of revenue excluding pass-through rose as a percentage of revenue, which can compress margins.

Outlook

Management raised its 2026 core EPS outlook to $7.80–$7.90 from $7.60–$7.80, implying 23% growth at the midpoint. The company cited continued momentum with Core EPS up 30% in Q2 2026 and strong growth across all segments. It highlighted ongoing demand for outsourcing, critical infrastructure services tied to AI and data center buildouts, and improved transaction activity.