CBRE Group Reports $35.8 Billion Revenue and Strategic Acquisitions for Fiscal Year 2024

CBRE Group, Inc. reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $35.8 billion, a 12% increase from the previous year. The company's net income was $968 million, reflecting a slight decrease of 1.8% compared to $986 million in 2023. The growth in revenue was primarily driven by robust performance in both resilient and transactional business segments, with net revenue from resilient businesses growing by 14.1% and transactional businesses by 14.3%. Core EBITDA also saw a significant increase of 22.4%, reaching $2.7 billion.

In terms of strategic developments, CBRE made notable acquisitions, including J&J Worldwide Services, which enhances its capabilities in providing services to the U.S. federal government, and Direct Line Global, which strengthens its data center management services. The company also announced plans to combine its project management business with Turner & Townsend, increasing its ownership stake to 70%. This merger will result in the establishment of a new Project Management segment, alongside the creation of a Building Operations & Experience segment following the acquisition of Industrious, a flexible workplace solutions provider.

Operationally, CBRE's workforce expanded to over 140,000 employees globally, including those from Turner & Townsend. The company reported a significant increase in its facilities management and project management services, with net revenue from the Global Workplace Solutions segment rising by 41.1% to $25.1 billion. The Advisory Services segment also performed well, with net revenue increasing by 13% to $9.5 billion. The company’s focus on geographic expansion and diversification across property types and services has contributed to its resilience in a fluctuating market.

The filing also highlighted challenges, including a 44.3% increase in interest expenses due to higher borrowing costs and new debt issuance. Additionally, CBRE recorded an equity loss of $19 million from unconsolidated subsidiaries, a significant decline from the previous year's equity income of $248 million, primarily due to a large asset disposition in early 2023 that did not recur. The company’s effective tax rate decreased to 15% from 19.5%, attributed to the reversal of unrecognized tax positions.

Looking ahead, CBRE remains optimistic about its growth trajectory, bolstered by a favorable economic outlook and increased demand for its services. The company plans to continue investing in strategic acquisitions and expanding its service offerings, particularly in sectors positioned for growth, such as facilities management and project management. The establishment of new business segments is expected to enhance operational efficiency and drive further revenue growth in the coming years.