Press Release: Colliers Reports Fourth Quarter Results

Dow Jones
Feb 06, 2025

Colliers Reports Fourth Quarter Results

Robust revenue growth

Strengthened momentum across all business segments

Fourth quarter and full year operating highlights:

 
                     Three months ended      Twelve months ended 
                        December 31              December 31 
(in millions of 
US$, except EPS)         2024      2023          2024       2023 
-----------------      --------   -------      --------   -------- 
 
Revenues            $   1,501.6  $1,235.2   $   4,822.0  $ 4,335.1 
Adjusted EBITDA 
 (note 1)                 225.3     198.4         644.2      595.0 
Adjusted EPS 
 (note 2)                  2.26      2.00          5.75       5.35 
 
GAAP operating 
 earnings                 121.4     132.6         389.2      300.9 
GAAP diluted net 
 earnings per 
 share                     1.47      1.42          3.22       1.41 
-----------------      --------   -------      --------   -------- 
 

TORONTO, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) ("Colliers" or the "Company") today announced operating and financial results for the fourth quarter and year ended December 31, 2024. All amounts are in US dollars.

For the fourth quarter, revenues were $1.50 billion, up 22% (22% in local currency) and Adjusted EBITDA (note 1) was $225.3 million, up 14% (15% in local currency) versus the prior year quarter. Adjusted EPS (note 2) was $2.26, up 13% from $2.00 in the prior year quarter. Fourth quarter adjusted EPS would have been approximately $0.02 higher excluding foreign exchange impacts. The GAAP operating earnings were $121.4 million as compared to $132.6 million in the prior year quarter. The GAAP diluted net earnings per share were $1.47, up 4% from $1.42 in the prior year quarter. The fourth quarter GAAP diluted net earnings per share would have been approximately $0.02 higher excluding foreign exchange impacts.

For the full year, revenues were $4.82 billion, up 11% (11% in local currency) and adjusted EBITDA (note 1) was $644.2 million, up 8% (9% in local currency) versus the prior year. Adjusted EPS (note 2) was $5.75, relative to $5.35 in the prior year. Adjusted EPS would have been approximately $0.03 higher excluding foreign exchange impacts. The GAAP operating earnings were $389.2 million compared to $300.9 million in the prior year, favourably impacted by revenue growth as well as the reversal of contingent consideration expense related to an acquisition. The GAAP diluted net earnings per share were $3.22 compared to $1.41 in the prior year. The GAAP diluted net earnings per share would have been approximately $0.03 higher excluding foreign exchange impacts.

"In the fourth quarter, Colliers delivered robust revenue growth and strengthened momentum across all business segments. Engineering revenues recorded the highest percentage increase driven by recent acquisitions in Canada, the US and Australia. Real Estate Services performed strongly in both Capital Markets and Leasing, while Investment Management experienced modest growth compared to the previous year," said Jay S. Hennick, Chairman & CEO of Colliers.

"Over the past few years, Colliers has evolved into a stronger, more resilient company with three high-value growth engines -- Real Estate Services, Engineering, and Investment Management -- supported by recurring revenues that now account for 70% of our earnings."

"Looking ahead to 2025, we expect another year of solid growth. Our enterprising culture thrives with experienced operational leadership fully aligned with our shareholders. Our global Engineering platform, now boasting over 8,000 professionals, is underpinned by strong recurring revenues and robust contractual backlogs, offering significant growth opportunities internally and through acquisition. We are also seeing near-term catalysts: Capital Markets is showing a cyclical recovery as interest rates and asset valuations stabilize, and in Investment Management, improved institutional allocations and fundraising conditions, coupled with several new vintages of closed-end products launching this year, position us well for future growth. In addition, we have accelerated our plans to integrate and streamline our Investment Management operations. This sets the stage for future opportunities and creates optionality as we continue to build one of the world's leading mid-market alternative asset managers with nearly $100 billion in assets under management," he concluded.

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a global diversified professional services and investment management company. Operating through three industry-leading platforms -- Real Estate Services, Engineering, and Investment Management -- we have a proven business model, an enterprising culture, and a unique partnership philosophy that drives growth and value creation. For 30 years, Colliers has consistently delivered approximately 20% compound annual returns for shareholders, fuelled by visionary leadership, significant inside ownership and substantial recurring earnings. With annual revenues exceeding $4.8 billion, a team of 23,000 professionals, and $99 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors, and people worldwide. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

Consolidated Revenues by Line of Service

 
                           Three months ended    Change  Change   Twelve months ended    Change  Change 
(in thousands of US$)         December 31                             December 31 
                                                 ------  ------                          ------  ------ 
                                                 in US$  in LC                           in US$  in LC 
(LC = local currency)       2024        2023        %       %       2024        2023        %       % 
----------------------   ----------  ----------  ------  ------  ----------  ----------  ------  ------ 
 
Leasing                     359,364     318,706     13%     14%   1,157,484   1,063,355      9%      9% 
Capital Markets             255,705     207,423     23%     25%     765,297     702,472      9%     10% 
Outsourcing                 328,459  $  317,321      4%      4%   1,148,829   1,090,911      5%      6% 
                          ---------   ---------                   ---------   --------- 
Real Estate Services     $  943,528     843,450     12%     13%  $3,071,610  $2,856,738      8%      8% 
 
Engineering              $  421,361     262,482     61%     61%  $1,237,384  $  990,477     25%     25% 
 
Investment Management 
 (1)                     $  136,616     129,134      6%      6%  $  512,593  $  487,457      5%      5% 
 
Corporate                       112         102      NM      NM         437         469      NM      NM 
                          ---------   ---------                   ---------   --------- 
Total revenues           $1,501,617  $1,235,168     22%     22%  $4,822,024  $4,335,141     11%     11% 
-----------------------   ---------   ---------  ------  ------   ---------   ---------  ------  ------ 
(1) Investment Management local currency revenues, 
 excluding pass-through performance fees (carried interest), 
 were up 1% and 2% for the three and twelve-month periods 
 ended December 31, 2024, respectively. 
 

Fourth quarter consolidated revenues were up 22% on a local currency basis driven by robust growth across all service lines, particularly Engineering and Capital Markets. Consolidated internal revenue growth measured in local currencies was 10% (note 5) versus the prior year quarter.

For the full year, consolidated revenues increased 11% on a local currency basis, led by Engineering. Consolidated internal revenues measured in local currencies were up 6% (note 5).

Segmented Fourth Quarter Results

Real Estate Services revenues totalled $943.5 million, up 12% (13% in local currency) versus $843.4 million in the prior year quarter with strong growth in all service lines. Revenue growth was led by Capital Markets, which was up 23%, as transaction activity rebounded across all geographies, particularly Europe and the US, and most asset classes. Leasing momentum increased from earlier this year with several large office and industrial transactions in the quarter. Outsourcing revenues increased on a modest uptick in valuation activity. Adjusted EBITDA was $136.2 million, up 12% (14% in local currency) compared to $121.7 million in the prior year quarter with the margin flat due to continued strategic investments in recruiting in key markets. The GAAP operating earnings were $107.9 million, relative to $96.2 million in the prior year quarter.

Engineering revenues totalled $421.4 million, up 61% (61% in local currency) compared to $262.5 million in the prior year quarter. Net service revenues (note 4), which exclude sub-consultant and other pass-through expenses, were $300.2 million relative to $186.9 million in the prior year quarter, up 61% (61% in local currency) driven by the favourable impact of recent acquisitions and strong internal growth with the demand for technical and multi-disciplined professional services increasing across most end-markets. Adjusted EBITDA was $38.1 million, up 51% (51% in local currency) compared to $25.2 million in the prior year quarter. The GAAP operating earnings were $8.0 million relative to $11.9 million in the prior year quarter and were primarily impacted by higher intangible asset amortization expense related to recent acquisitions.

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February 06, 2025 07:00 ET (12:00 GMT)

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