Key Highlights

  • Adjusted EPS rose 28% to USD 0.37, above the USD 0.36 estimate, while GAAP diluted EPS stayed at USD 0.22.
  • Revenue increased 8% to USD 2.808 billion, topping the USD 2.78 billion estimate on leasing and Capital Markets gains.
  • Leasing Revenue grew 15% and capital markets revenue grew 18%, with Americas growth of 19% and 24%.
  • Adjusted EBITDA climbed 15% to USD 183.7 million, and net Debt stood at USD 2.1 billion.

Cushman & Wakefield (NYSE:CWK) reported third quarter revenue of USD 2.808 billion, up 8% from USD 2.606 billion and ahead of the USD 2.78 billion estimate. Adjusted EPS of USD 0.37 compared with USD 0.29 a year earlier and the USD 0.36 estimate. GAAP diluted EPS was USD 0.22, flat with the prior year, on Net Income of USD 52.1 million versus USD 51.4 million.

Revenue by Service Line

Leasing revenue rose 15% to USD 625.9 million, led by 19% growth in the Americas across all deal sizes, with continued strength in office and industrial leasing, including data centers. Capital markets revenue grew 18% to USD 241.3 million, driven by 24% growth in the Americas across all major asset classes.

Services revenue, the largest line, rose 5% to USD 1.822 billion, with gains across segments. Global facilities management revenue increased about USD 53 million through new client wins and expanded mandates, and project management revenue also rose, especially in EMEA and APAC. Valuation and other revenue was flat at USD 118.9 million. Over nine months, revenue was USD 8.106 billion, up 10%, with leasing up 20%.

Profitability, Costs and Balance Sheet

Operating income rose 21% to USD 129.9 million, and adjusted EBITDA increased 15% to USD 183.7 million from USD 159.6 million. Adjusted net income was USD 87.8 million, up 29%. Cost of services provided to clients grew 13%, with about USD 119 million of the increase tied to employment costs, including higher commissions. Operating, administrative and other expenses rose 3% to USD 329.6 million.

Interest expense, net of interest income, fell 12% to USD 49.2 million after term Loan prepayments and partial redemptions of the 2028 notes. Income tax was a USD 31.6 million provision, against a USD 6.3 million benefit a year ago, which held net income growth to 1%. CEO Michelle MacKay noted seven straight quarters of double-digit adjusted EPS growth and USD 800 million of debt paydowns since 2024.

Liquidity was USD 1.5 billion, made up of USD 1.0 billion on the undrawn revolver and USD 0.5 billion in cash. Term loans were USD 2.0 billion and senior secured notes USD 0.6 billion, for net debt of USD 2.1 billion. On October 21 the company redeemed the remaining USD 150 million of 2028 notes, leaving no long-term debt maturing before 2030.

Guidance and Cash Flow

The company maintained full year 2026 adjusted EPS guidance of 18% to 23% growth. Nine month adjusted EPS was USD 0.87, up 28% from USD 0.68, while nine month net income of USD 92.2 million fell 17%, reflecting a USD 17.2 million pension buy-out settlement loss in the UK and a servicing Liability tied to receivables securitization.

On a trailing twelve month basis, operating Cash Flow was USD 281.7 million and free cash flow was USD 200.2 million. Quarterly free cash flow was negative USD 34.1 million, compared with positive USD 58.7 million in the prior-year quarter.

Reference Points for Investors

Third quarter adjusted EPS of USD 0.37 compares with USD 0.87 for nine months, and the guided 18% to 23% growth range applies to the full year. Adjusted EBITDA of USD 183.7 million compares with USD 478.6 million for nine months, up 15% in both periods. Net debt of USD 2.1 billion compares with cash of USD 489.0 million, down from USD 784.2 million at year end. Revenue growth of 8% in the quarter compares with 10% over nine months.