filings.toolsCBRE Group 10-Q 2026-03-31
Filed 2026-04-23. 8 sections, 293K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2026
OR
| ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______________ to _______________
Commission File Number 001-32205
CBRE GROUP, INC.
(Exact name of registrant as specified in its charter)
___________________________________________________________
| Delaware | 94-3391143 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| 2121 North Pearl Street, Suite 300, Dallas, Texas | 75201 | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(214) 979-6100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Class A Common Stock, $0.01 par value per share | “CBRE” | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of Class A common stock outstanding at April 21, 2026 was 292,816,579.
FORM 10-Q
March 31, 2026
TABLE OF CONTENTS
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CBRE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in millions, except share data)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 1,664 | $ | 1,864 | |||||||
| Restricted cash | 131 | 150 | |||||||||
| Receivables, less allowance for doubtful accounts of $127 and $125 at March 31, 2026 and December 31, 2025, respectively | 8,404 | 8,284 | |||||||||
| Warehouse receivables | 950 | 1,630 | |||||||||
| Contract assets | 475 | 462 | |||||||||
| Prepaid expenses | 379 | 372 | |||||||||
| Income taxes receivable | 192 | 175 | |||||||||
| Other current assets | 539 | 552 | |||||||||
| Total Current Assets | 12,734 | 13,489 | |||||||||
| Property and equipment, net of accumulated depreciation and amortization of $2,204 and $2,137 at March 31, 2026 and December 31, 2025, respectively | 1,040 | 1,049 | |||||||||
| Goodwill | 7,024 | 7,051 | |||||||||
| Other intangible assets, net of accumulated amortization of $2,842 and $2,764 at March 31, 2026 and December 31, 2025, respectively | 2,915 | 2,972 | |||||||||
| Operating lease assets | 2,064 | 2,062 | |||||||||
| Investments in unconsolidated subsidiaries (with $414 and $421 at fair value at March 31, 2026 and December 31, 2025, respectively) | 844 | 870 | |||||||||
| Non-current contract assets | 101 | 103 | |||||||||
| Real estate under development | 822 | 646 | |||||||||
| Non-current income taxes receivable | 98 | 106 | |||||||||
| Deferred tax assets, net | 724 | 697 | |||||||||
| Other assets | 1,804 | 1,832 | |||||||||
| Total Assets | $ | 30,170 | $ | 30,877 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 4,725 | $ | 4,838 | |||||||
| Compensation and employee benefits payable | 1,623 | 1,630 | |||||||||
| Accrued bonus and profit sharing | 1,028 | 1,879 | |||||||||
| Operating lease liabilities | 293 | 284 | |||||||||
| Contract liabilities | 471 | 448 | |||||||||
| Income taxes payable | 271 | 258 | |||||||||
| Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 940 | 1,609 | |||||||||
| Other short-term borrowings | 1,922 | 856 | |||||||||
| Current maturities of long-term debt | 70 | 71 | |||||||||
| Other current liabilities | 410 | 447 | |||||||||
| Total Current Liabilities | 11,753 | 12,320 | |||||||||
| Long-term debt, net of current maturities | 5,021 | 5,050 | |||||||||
| Non-current operating lease liabilities | 2,112 | 2,121 | |||||||||
| Non-current income taxes payable | — | — | |||||||||
| Non-current tax liabilities | 196 | 183 | |||||||||
| Deferred tax liabilities, net | 239 | 238 | |||||||||
| Other liabilities | 1,542 | 1,339 | |||||||||
| Total Liabilities | 20,863 | 21,251 | |||||||||
| Mezzanine Equity: | |||||||||||
| Redeemable non-controlling interests in consolidated entities | 447 | 433 | |||||||||
| Equity: | |||||||||||
| CBRE Group, Inc. Stockholders’ Equity: | |||||||||||
| Class A common stock; $0.01 par value; 525,000,000 shares authorized; 292,840,522 and 295,731,478 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 3 | 3 | |||||||||
| Additional paid-in capital | — | — | |||||||||
| Accumulated earnings | 9,678 | 9,916 | |||||||||
| Accumulated other comprehensive loss | (1,161) | (1,041) | |||||||||
| Total CBRE Group, Inc. Stockholders’ Equity | 8,520 | 8,878 | |||||||||
| Non-controlling interests | 340 | 315 | |||||||||
| Total Equity | 8,860 | 9,193 | |||||||||
| Total Liabilities and Equity | $ | 30,170 | $ | 30,877 | |||||||
The accompanying notes are an integral part of these consolidated financial statements.
CBRE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in millions, except share and per share data)
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||
| Revenue | $ | 10,527 | $ | 8,875 | ||||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||
| Cost of revenue | 8,675 | 7,265 | ||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,460 | 1,192 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 182 | 142 | ||||||||||||||||||||||||||||||
| Total costs and expenses | 10,317 | 8,599 | ||||||||||||||||||||||||||||||
| Gain on disposition of real estate | 301 | — | ||||||||||||||||||||||||||||||
| Operating income | 511 | 276 | ||||||||||||||||||||||||||||||
| Equity (loss) income from unconsolidated subsidiaries | (9) | 16 | ||||||||||||||||||||||||||||||
| Other income | 11 | 1 | ||||||||||||||||||||||||||||||
| Interest expense, net of interest income | 59 | 50 | ||||||||||||||||||||||||||||||
| Income before provision for income taxes | 454 | 243 | ||||||||||||||||||||||||||||||
| Provision for income taxes | 112 | 52 | ||||||||||||||||||||||||||||||
| Net income | 342 | 191 | ||||||||||||||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 24 | 28 | ||||||||||||||||||||||||||||||
| Net income attributable to CBRE Group, Inc. | $ | 318 |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the three months ended March 31, 2026 should be read in conjunction with our consolidated financial statements and related notes included in our 2025 Annual Report on Form 10-K (2025 Annual Report) as well as the unaudited financial statements included elsewhere in this Quarterly Report.
In addition, the statements and assumptions in this Quarterly Report that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular, statements about our plans, strategies and prospects as well as estimates of industry growth for the next quarter and beyond. For important information regarding these forward-looking statements, please see the discussion below under the caption “Cautionary Note on Forward-Looking Statements.”
During the first quarter of 2026, we began reclassifying amortization associated with MSRs (mortgage servicing rights) to net against the related revenue (Commercial mortgage origination). Historically, the corresponding MSR intangible assets were amortized through amortization expense over the estimated mortgage service period. Prior year amounts have been reclassified to conform to the fiscal 2026 presentation.
Business Environment
The strong recovery of the commercial real estate market that began in 2025 continued in early 2026. This is evident in the continuation of markedly increased property leasing and sales activity during the first quarter. Occupier demand remained notably strong in the U.S. particularly for industrial, office and data center space in the U.S. During the quarter, investment sales and financing activity improved sharply in most global markets, buoyed by broad capital availability, improved occupancy market fundamentals and tighter bid-ask spreads. Large occupiers’ growing appetite for outsourcing services continued to underpin demand for facilities management and project management activities, while the outsized growth of Artificial Intelligence investments and data center buildouts fuels strong demand for critical infrastructure services. To date, the ongoing Middle East conflict has had limited impact on CBRE’s business except for a notable slowdown in fundraising from capital sources based in the region.
Capital Allocation
We deployed $538 million in 2026 to repurchase 3,639,682 shares as of April 21, 2026.
Results of Operations
The following table sets forth items derived from our consolidated statements of operations for the three months ended March 31, 2026 and 2025 (dollars in millions):
| Three Months Ended March 31, (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Facilities management | $ | 5,229 | 49.7 | % | $ | 4,469 | 50.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Property management | 684 | 6.5 | % | 586 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Critical infrastructure | 578 | 5.5 | % | 338 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Project management | 1,838 | 17.5 | % | 1,594 | 18.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Advisory leasing | 1,035 | 9.8 | % | 862 | 9.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Valuation | 200 | 1.9 | % | 183 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Loan servicing | 120 | 1.1 | % | 120 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Other portfolio services | 75 | 0.7 | % | 81 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Capital markets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Advisory sales | 513 | 4.9 | % | 360 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage origination | 81 | 0.8 | % | 53 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Investment management | 154 | 1.5 | % | 154 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Development services | 45 | 0.4 | % | 79 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate, other and eliminations | (25) | (0.2) | % | (4) | 0.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 10,527 | 100.0 | % | 8,875 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Pass-through costs (2) | 4,448 | 42.3 | % | 3,798 | 42.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 4,227 | 40.2 | % | 3,467 | 39.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,460 | 13.9 | % | 1,192 | 13.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 182 | 1.7 | % | 142 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
The information in this section should be read in connection with the information on market risk related to changes in interest rates and non-U.S. currency exchange rates in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our 2025 Annual Report and Note 8 – Derivatives and Hedging Activities to the Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report.
Our exposure to market risk primarily consists of foreign currency exchange rate fluctuations related to our international operations and changes in interest rates on debt obligations. We manage such risks primarily by managing the amount, sources, and duration of our debt funding and by using derivative financial instruments. See Note 7 – Fair Value Measurements and Note 8 – Derivatives and Hedging Activities of the Notes to Consolidated Financial Statements set forth in Item 1 of this Quarterly Report for additional information on fair value methodology used to value the swaps at March 31, 2026. We apply Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 815, “Derivatives and Hedging,” when accounting for derivative financial instruments. In all cases, we view derivative financial instruments as a risk management tool and, accordingly, do not use derivatives for trading or speculative purposes.
International Operations
We conduct a significant portion of our business and employ a substantial number of people outside the U.S. As a result, we are subject to risks associated with doing business globally. Our Investment Management business has significant euro and British pound denominated assets under management (AUM), as well as associated revenue and earnings in Europe. In addition, our BOE, Advisory and Project Management segments derive significant revenue and earnings in foreign currencies, particularly the euro and British pound sterling. Fluctuations in foreign currency exchange rates may produce corresponding changes in our AUM, revenue and earnings.
Our foreign operations expose us to fluctuations in foreign exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional (reporting) currency, which is the U.S. dollar. We use fixed to fixed and float to float cross-currency swaps to hedge our exposure to changes in foreign exchange rates on certain foreign investments as well as foreign currency denominated loans. As of March 31, 2026, we had thirty-four outstanding cross-currency swaps with a total fair value of $80 million included in other assets and $428 million included in other liabilities.
Our businesses could be adversely affected by rapid and unpredictable changes to U.S. trade policy, disputes with U.S. trading partners, increased tariffs, high interest rates, limited access to debt capital or liquidity constraints, downturns in general macroeconomic conditions, regulatory or financial market uncertainty, public health crises and geopolitical conflicts (or the perception that any such events may occur).
During the three months ended March 31, 2026, approximately 43.2% of our revenue was transacted in foreign currencies. The following table sets forth our revenue derived from our most significant currencies (dollars in millions):
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| United States dollar | $ | 5,983 | 56.8 | % | $ | 5,135 | 57.9 | % | |||||||||||||||||||||||||||||||||||||||
| British pound sterling | 1,444 | 13.7 | % | 1,234 | 13.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Euro | 1,025 | 9.7 | % | 766 | 8.6 | % | |||||||||||||||||||||||||||||||||||||||||
| Canadian dollar | 325 | 3.1 | % | 252 | 2.8 | % | |||||||||||||||||||||||||||||||||||||||||
| Indian rupee | 238 | 2.3 | % | 214 | 2.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Australian dollar | 223 | 2.1 | % | 182 | 2.1 | % | |||||||||||||||||||||||||||||||||||||||||
| Japanese yen | 153 | 1.5 | % | 125 | 1.4 | % | |||||||||||||||||||||||||||||||||||||||||
| Singapore dollar | 122 | 1.2 | % | 102 | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||
| Swiss franc | 120 | 1.1 | % | 112 | 1.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Chinese yuan | 102 | 1.0 | % | 106 | 1.2 | % | |||||||||||||||||||||||||||||||||||||||||
| Other currencies (1) | 792 | 7.5 | % | 647 | 7.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 10,527 | 100.0 | % | $ | 8,875 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
(1)Approximately 47 and 46 currencies comprise 7.5% and 7.3% of our revenues for the three months ended March 31, 2026 and 2025, respectively.
Although we operate globally, we report our results in U.S. dollars. As a result, the strengthening or weakening of the U.S. dollar will negatively or positively impact our reported results. A hypothetical 10% increase in the value of the U.S. dollar relative to the British pound sterling during the three months ended March 31, 2026, would have decreased pre-tax income by $4 million. A hypothetical 10% increase in the value of the U.S. dollar relative to the euro would have decreased pre-tax income by $5 million. These hypothetical calculations estimate the impact of translating results into U.S. dollars and do not include an estimate of the impact that a 10% change in the U.S. dollar against other currencies would have had on our foreign operations.
Foreign currency exchange rate changes may have a materially adverse effect on our financial condition and operating results. Due to our exposure to constantly changing currency rates, we cannot predict how currency exchange rate changes may affect future operating results. In addition, currency exchange volatility may make it more difficult to perform period-to-period comparisons of our reported results of operations. Our international operations are also subject to political instability and changes in tax, trade and regulatory policies, among other things, which may adversely affect our future financial performance. We monitor these risks and may add more oversight of our business activities in foreign countries where such risks and costs are particularly significant.
Interest Rates
We manage our interest expense by using a combination of fixed and variable rate debt. We may also enter into interest rate swap agreements to attempt to hedge the variability of future interest payments due to changes in interest rates. No interest rate swap agreements were outstanding as of March 31, 2026 or December 31, 2025.
We utilize sensitivity analyses to assess the potential effect on our variable rate debt. If interest rates were to increase 100 basis points on our outstanding variable rate debt as of March 31, 2026, the net impact of the additional interest cost would be a decrease of $8 million on pre-tax income for the three months ended March 31, 2026.
For additional information on the estimated fair value and carrying value of our long-term debt, see Note 12 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements set forth in Item 8 included in our 2025 Annual Report and Note 10 – Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
Rule 13a-15(e) and 15d-15(e) of the Securities and Exchange Act of 1934, as amended, requires that we conduct an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report, and we have a disclosure policy in furtherance of the same. This evaluation is designed to ensure that all corporate disclosure is complete and accurate in all material respects. The evaluation is further designed to ensure that all information required to be disclosed in our SEC reports is accumulated and communicated to management to allow timely decisions regarding required disclosures and that information is recorded, processed, summarized and reported within the time periods and in the manner specified in the SEC’s rules and forms. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our Chief Executive Officer and Chief Financial Officer supervise and participate in this evaluation, and they are assisted by members of our Disclosure Committee. Our Disclosure Committee consists of our Chief Legal & Administrative Officer, our Deputy Chief Financial Officer, our senior officers of significant business lines and other select employees.
We conducted the required evaluation, and our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined by Securities Exchange Act Rule 13a-15(e)) were effective as of March 31, 2026 to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting during the fiscal quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
There have been no material changes to our legal proceedings as previously disclosed in our 2025 Annual Report.
Item 1A. Risk Factors
There have been no material changes to our risk factors as previously disclosed in our 2025 Annual Report.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Open market share repurchase activity during the three months ended March 31, 2026 was as follows (dollars in millions, except per share amounts):
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | |||||||||||||
| January 1, 2026 - January 31, 2026 | 458,234 | $ | 166.86 | 458,234 | |||||||||||||
| February 1, 2026 - February 28, 2026 | 2,601,948 | 147.70 | 2,601,948 | ||||||||||||||
| March 1, 2026 - March 31, 2026 | 522,105 | 133.78 | 522,105 | ||||||||||||||
| 3,582,287 | $ | 148.12 | 3,582,287 | $ | 4,336 |
(1)In November 2024, our Board authorized an additional $5.0 billion to our existing $4.0 billion share repurchase program (as amended, the 2024 program) bringing the total authorized amount under the 2024 program to a total of $9.0 billion as of March 31, 2026. The Board also extended the term of the 2024 program through December 31, 2029. During the first quarter of 2026, we repurchased an aggregate of $531 million of our common stock under the 2024 program. The remaining $4.3 billion in the table represents the amount available to repurchase shares under the 2024 program as of March 31, 2026.
Our stock repurchase program does not obligate us to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Our stock repurchases have been funded with cash on hand and we intend to continue funding future repurchases with existing cash. We may utilize our stock repurchase programs to continue offsetting the impact of our stock-based compensation program and on a more opportunistic basis if we believe our stock presents a compelling investment compared to other discretionary uses. The timing of any future repurchases and the actual amounts repurchased will depend on a variety of factors, including the market price of our common stock, general market and economic conditions and other factors.
Item 5. Other Information
During the three months ended March 31, 2026, none of our officers or directors adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”
Supplemental Unaudited Recasted Consolidated and Segment Results
The following tables set forth supplemental recasted consolidated and segment results for each of the three years ended December 31, 2025, 2024 and 2023, reflecting the following changes (dollars in millions):
-
Reclassification of amortization associated with MSRs (mortgage servicing rights) to net against the related revenue (Commercial mortgage origination), as described in Note 1 – Basis of Presentation of the Notes to the Consolidated Financial Statements (Unaudited), set forth in Item 1 of this Quarterly Report.
-
Transfer of the data center project work that is integrated with our Data Center Services facilities management business from the Project Management segment to the BOE segment.
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Advisory leasing | $ | 4,497 | $ | 3,895 | $ | 3,468 | ||||||||||||||
| Advisory sales | 2,120 | 1,767 | 1,606 | |||||||||||||||||
| Valuation | 815 | 751 | 716 | |||||||||||||||||
| Loan servicing | 503 | 497 | 440 | |||||||||||||||||
| Commercial mortgage origination | 405 | 292 | 157 | |||||||||||||||||
| Other portfolio services | 354 | 389 | 376 | |||||||||||||||||
| Advisory Services | 8,694 | 7,591 | 6,763 | |||||||||||||||||
| Facilities management | 19,161 | 17,301 | 15,437 | |||||||||||||||||
| Property management | 2,579 | 1,976 | 1,676 | |||||||||||||||||
| Critical Infrastructure (1) | 1,717 | 1,106 | 858 | |||||||||||||||||
| Building Operations & Experience | 23,457 | 20,383 | 17,971 | |||||||||||||||||
| Project Management | 7,424 | 6,634 | 6,136 | |||||||||||||||||
| Investment management | 602 | 650 | 592 | |||||||||||||||||
| Development services | 277 | 388 | 360 | |||||||||||||||||
| Real Estate Investments | 879 | 1,038 | 952 | |||||||||||||||||
| Corporate, other and eliminations | (50) | (17) | (17) | |||||||||||||||||
| Total revenue | $ | 40,404 | $ | 35,629 | $ | 31,805 | ||||||||||||||
| Pass-through costs | $ | 16,746 | $ | 14,899 | $ | 13,673 |
(1)A new line of business was established within the BOE segment called Critical Infrastructure.
Summarized financial information by segment is as follows (dollars in millions):
| Year Ended December 31, 2025 | Advisory Services | Building Operations & Experience | Project Management | Real Estate Investments | Corporate, other and eliminations (2) | Consolidated | ||||||||||||||||||||||||||||||||
| Revenue | $ | 8,694 | $ | 23,457 | $ | 7,424 | $ | 879 | $ | (50) | $ | 40,404 | ||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
| Pass-through costs | 50 | 12,711 | 3,985 | — | — | 16,746 | ||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 5,247 | 8,389 | 2,434 | 161 | 7 | 16,238 | ||||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,866 | 1,369 | 485 | 1,061 | 762 | 5,543 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 128 | 269 | 104 | 12 | 70 | 583 | ||||||||||||||||||||||||||||||||
| Total costs and expenses | 7,291 | 22,738 | 7,008 | 1,234 | 839 | 39,110 | ||||||||||||||||||||||||||||||||
| Gain on disposition of real estate | — | — | — | 432 | 27 | 459 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 1,403 | 719 | 416 | 77 | (862) | 1,753 | ||||||||||||||||||||||||||||||||
| Equity (loss) income from unconsolidated subsidiaries | — | (11) | — | 48 | 3 | 40 | ||||||||||||||||||||||||||||||||
| Other income | 6 | 11 | 2 | — | — | 19 | ||||||||||||||||||||||||||||||||
| Add-back: Depreciation and amortization | 128 | 269 | 104 | 12 | 70 | 583 | ||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Other segment adjustments (1) | 146 | 124 | 21 | 187 | 285 | 763 | ||||||||||||||||||||||||||||||||
| Segment operating profit (loss) | $ | 1,683 | $ | 1,112 | $ | 543 | $ | 324 | $ | (504) | $ | 3,158 | ||||||||||||||||||||||||||
| Net fair value adjustments on strategic non-core investments | (1) | |||||||||||||||||||||||||||||||||||||
| Core EBITDA | $ | 3,157 |
| Year Ended December 31, 2024 | Advisory Services | Building Operations & Experience | Project Management | Real Estate Investments | Corporate, other and eliminations (2) | Consolidated | ||||||||||||||||||||||||||||||||
| Revenue | $ | 7,591 | $ | 20,383 | $ | 6,634 | $ | 1,038 | $ | (17) | $ | 35,629 | ||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
| Pass-through costs | 61 | 11,302 | 3,536 | — | — | 14,899 | ||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 4,416 | 7,083 | 2,163 | 224 | 26 | 13,912 | ||||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,793 | 1,207 | 426 | 862 | 723 | 5,011 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 121 | 234 | 111 | 13 | 57 | 536 | ||||||||||||||||||||||||||||||||
| Total costs and expenses | 6,391 | 19,826 | 6,236 | 1,099 | 806 | 34,358 | ||||||||||||||||||||||||||||||||
| Gain on disposition of real estate | — | — | — | 142 | — | 142 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 1,200 | 557 | 398 | 81 | (823) | 1,413 | ||||||||||||||||||||||||||||||||
| Equity (loss) income from unconsolidated subsidiaries | (8) | 6 | — | 117 | (134) | (19) | ||||||||||||||||||||||||||||||||
| Other income | 2 | 4 | 2 | 6 | 25 | 39 | ||||||||||||||||||||||||||||||||
| Add-back: Depreciation and amortization | 121 | 234 | 111 | 13 | 57 | 536 | ||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Other segment adjustments (1) | 64 | 104 | (22) | 44 | 305 | 495 | ||||||||||||||||||||||||||||||||
| Segment operating profit (loss) | $ | 1,379 | $ | 905 | $ | 489 | $ | 261 | $ | (570) | $ | 2,464 | ||||||||||||||||||||||||||
| Net fair value adjustments on strategic non-core investments | 117 | |||||||||||||||||||||||||||||||||||||
| Core EBITDA | $ | 2,581 |
| Year Ended December 31, 2023 | Advisory Services | Building Operations & Experience | Project Management | Real Estate Investments | Corporate, other and eliminations (2) | Consolidated | ||||||||||||||||||||||||||||||||
| Revenue | $ | 6,763 | $ | 17,971 | $ | 6,136 | $ | 952 | $ | (17) | $ | 31,805 | ||||||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||||||||
| Pass-through costs | 51 | 10,304 | 3,318 | — | — | 13,673 | ||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 3,945 | 5,908 | 1,966 | 186 | (3) | 12,002 | ||||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,769 | 1,094 | 455 | 784 | 460 | 4,562 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 128 | 158 | 121 | 15 | 56 | 478 | ||||||||||||||||||||||||||||||||
| Total costs and expenses | 5,893 | 17,464 | 5,860 | 985 | 513 | 30,715 | ||||||||||||||||||||||||||||||||
| Gain on disposition of real estate | — | — | — | 27 | — | 27 | ||||||||||||||||||||||||||||||||
| Operating income (loss) | 870 | 507 | 276 | (6) | (530) | 1,117 | ||||||||||||||||||||||||||||||||
| Equity income from unconsolidated subsidiaries | 2 | 2 | 1 | 216 | 27 | 248 | ||||||||||||||||||||||||||||||||
| Other income | 38 | 8 | 2 | — | 13 | 61 | ||||||||||||||||||||||||||||||||
| Add-back: Depreciation and amortization | 128 | 158 | 121 | 15 | 56 | 478 | ||||||||||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||||
| Other segment adjustments (1) | 103 | 49 | 21 | 14 | 66 | 253 | ||||||||||||||||||||||||||||||||
| Segment operating profit (loss) | $ | 1,141 | $ | 724 | $ | 421 | $ | 239 | $ | (368) | $ | 2,157 | ||||||||||||||||||||||||||
| Net fair value adjustments on strategic non-core investments | (32) | |||||||||||||||||||||||||||||||||||||
| Core EBITDA | $ | 2,125 |
(1)Other segment adjustments, as defined in Note 16 – Segments of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report.
(2)Eliminations represent revenue from transactions between operating segments.
Item 6. Exhibits
- Denotes a management contract or compensatory arrangement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CBRE GROUP, INC. | |||||
| Date: April 23, 2026 | /s/ EMMA E. GIAMARTINO | ||||
| Emma E. Giamartino Chief Financial Officer and Chief Investment Officer (Principal Financial Officer) | |||||
| Date: April 23, 2026 | /s/ ANDREW S. HORN | ||||
| Andrew S. Horn Deputy Chief Financial Officer (Principal Accounting Officer) |