Cushman & Wakefield — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $2,807.8 million, an 8% increase year-over-year in USD and local currency.
• Total revenue for the nine months ended September 30, 2026, was $8,106.2 million, a 10% increase in USD and 9% in local currency compared to the prior year.
• Diluted EPS was $0.22 for the third quarter, flat with the prior year; for the nine months, diluted EPS was $0.39, down 17% from $0.47.
• Adjusted EPS was $0.37 for the third quarter, up 28% year-over-year; for the nine months, Adjusted EPS was $0.87, up 28% from $0.68.
• Adjusted EBITDA was $183.7 million for the third quarter, a 15% increase year-over-year; for the nine months, Adjusted EBITDA was $478.6 million, a 15% increase.
• Net income was $52.1 million for the third quarter (up 1%) and $92.2 million for the nine months (down 17%).
• Adjusted net income was $87.8 million for the third quarter (up 29%) and $206.2 million for the nine months (up 30%).
• Free cash flow for the trailing twelve months ended September 30, 2026, was $200.2 million; net cash provided by operating activities for the same period was $281.7 million.
• Net debt as of September 30, 2026, was $2.1 billion, calculated from $2.6 billion in total debt ($2.0 billion term loans, $0.6 billion senior secured notes) less $0.5 billion in cash and cash equivalents.
• Liquidity was $1.5 billion, consisting of $1.0 billion available on the undrawn revolving credit facility and $0.5 billion in cash and cash equivalents.

Guidance and Future Outlook:

• The company maintained its full-year 2026 Adjusted EPS guidance range of 18%-23% growth.
• Management highlighted the completion of debt paydowns totaling $800 million since 2024, resulting in no long-term debt arrangements maturing prior to 2030 following the full redemption of the 2028 Notes on October 21, 2026.

Business Segments and Product Lines:

• Services Revenue: Increased 5% in the third quarter (7% year-to-date), driven by global facilities management revenue growth of approximately $53.0 million in the quarter and $186.0 million year-to-date, alongside project management revenue growth in EMEA and APAC.
• Leasing Revenue: Increased 15% in the third quarter (20% year-to-date), driven by broad-based strength in the Americas across all deal sizes, with continued strength in office, industrial, and data center leasing.
• Capital Markets Revenue: Increased 18% in the third quarter (10% year-to-date), primarily due to 24% growth in the Americas across all major asset classes.
• Valuation and Other Revenue: Remained relatively flat in the third quarter (0% change) and increased 6% year-to-date.
• Americas Segment: Revenue increased 7% in the third quarter and 9% year-to-date; Adjusted EBITDA increased 18% in the quarter and 21% year-to-date.
• EMEA Segment: Revenue increased 4% in the third quarter and 15% year-to-date; Adjusted EBITDA decreased 15% in the quarter and 7% year-to-date.
• APAC Segment: Revenue increased 15% in the third quarter and 13% year-to-date; Adjusted EBITDA increased 34% in the quarter but decreased 2% year-to-date.

Market and Competitive Landscape:

• Demand for high-quality assets remained strong in the Americas, driving growth across all deal sizes in leasing.
• The company noted continued strength in office and industrial leasing, including data centers.
• Growth in the Americas capital markets was attributed to ongoing investments in hiring top talent and strengthening the platform.

Risks and Challenges:

• Net income was negatively impacted by a $17.2 million non-cash pension buy-out settlement loss in the U.K. and a $11.8 million non-cash servicing liability related to an A/R Securitization amendment.
• Higher income tax expense was driven by higher earnings before income taxes, changes in jurisdictional mix, and discrete tax adjustments.
• Costs of services increased 8% in the third quarter and 10% year-to-date, primarily due to a $119.0 million increase in employment costs (including commissions and salaries) in the quarter and $332.0 million year-to-date.
• Operating, administrative, and other expenses increased due to higher salaries, bonuses, strategic investments, cost inflation, higher technology costs, and higher occupancy costs.
• Other expense, net included a $4.8 million higher net unrealized loss on real estate investments in the third quarter and a $17.2 million pension buy-out settlement loss year-to-date.
• Earnings from equity method investments were impacted by provisions for credit losses in the Greystone JV and Onewo JV.

Management Commentary and Tone:

• CEO Michelle MacKay stated the company reported its seventh consecutive quarter of double-digit adjusted earnings per share growth, showcasing the power of their balanced platform and strategy.
• Management emphasized that the balance sheet has been transformed with $800 million in debt paydowns since 2024, entering the next stage of growth with increased strength, stability, and optionality.
• The company described itself as a more agile and future-ready entity built over three years, with an opportunity that management believes has never been greater.
• Management expressed a focus on converting built strength into durable, profitable long-term growth.

Other Key Points:

• On October 21, 2026, the company fully redeemed the remaining $150.0 million principal amount of the 2028 Notes, eliminating the nearest debt maturity.
• The company recorded a non-cash servicing liability of $11.8 million related to the A/R Securitization amendment in March 2026, which will be amortized through March 2029.
• The company does not intend to pay cash dividends.
• The Greystone JV recorded a non-cash provision for loan losses of $3.5 million in the third quarter of 2026 and $21.1 million for the nine months, with the company's 40% equity interest recognized as $1.4 million and $8.4 million respectively.
• The company reported $4.2 million in legal settlements and related costs for the third quarter and $4.7 million for the nine months.
• Stock-based compensation expense included a portion of non-cash expense associated with unique performance-based equity awards granted to four executive officers in 2024, which management excluded from non-GAAP measures.