CBRE’s first quarter results for 2025 reflected broad-based growth across its core business lines, with particular strength in U.S. leasing and capital markets. Management attributed this performance to increased activity in office and industrial leasing, as well as rising transaction volumes in multifamily and industrial asset sales. CEO Bob Sulentic highlighted the company’s “strong business pipelines and improved operational leverage,” while CFO Emma Giamartino pointed to the benefits of recent cost efficiency initiatives, especially in facilities and property management. The quarter’s results were also shaped by the recent integration of new business segments and strategic acquisitions, which contributed to both top- and bottom-line improvements.
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CBRE (CBRE) Q1 CY2025 Highlights:
- Revenue: $8.91 billion vs analyst estimates of $8.86 billion (12.3% year-on-year growth, 0.5% beat)
- Adjusted EPS: $0.86 vs analyst estimates of $0.77 (11.2% beat)
- Adjusted EBITDA: $540 million vs analyst estimates of $503.4 million (6.1% margin, 7.3% beat)
- Operating Margin: 3.1%, in line with the same quarter last year
- Market Capitalization: $39.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions CBRE’s Q1 Earnings Call
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Anthony Paolone (JPMorgan) asked about recent shifts in the business pipeline due to tariffs. CEO Bob Sulentic explained that activity remains strong but has moderated, especially in capital raising and some large project management mandates.
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Julien Blouin (Goldman Sachs) questioned how resilient earnings would be in a recession. CFO Emma Giamartino responded that the mix of recurring profit is now much higher than in previous downturns, reducing earnings volatility.
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Ronald Kamdem (Morgan Stanley) inquired about margin improvement in project management and the tools available to protect them. Giamartino pointed to anticipated cost synergies from business integration and a target of mid- to high-teen margins over time.
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Stephen Sheldon (William Blair) asked about the sustainability of industrial leasing growth given tariff uncertainty. Sulentic noted that while growth may moderate, demand from third-party logistics providers (3PLs) is expected to keep activity stable.
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Peter Abramowitz (Jefferies) sought clarification on interest rate sensitivity for capital markets activity. Giamartino indicated that transaction activity should remain steady as long as rates stay below 5% and remain stable.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will monitor (1) the pace of leasing and capital markets activity in the U.S. and internationally, (2) progress on integrating recent acquisitions and realizing cost synergies, and (3) the resilience of recurring revenue streams amid tariff and macroeconomic uncertainty. We will also watch for updates on new project management mandates and the impact of interest rate trends on transaction volumes.
CBRE currently trades at $133.49, up from $121.96 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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