Jones Lang LaSalle — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $7.3 billion for the quarter, up 12% in USD and local currency (LC) compared to the prior-year period; year-to-date revenue reached $20.6 billion, up 11% in USD and 10% in LC.
• Diluted earnings per share (EPS) were $6.85, up 49% in USD and 50% in LC; adjusted diluted EPS was $6.76, up 50% in USD and 52% in LC.
• Net income attributable to common shareholders grew 44% in USD and 45% in LC to $319.8 million for the quarter; year-to-date net income was $694.4 million, up 78% in USD and 82% in LC.
• Adjusted EBITDA increased 33% in USD and LC to $460.2 million for the quarter; year-to-date adjusted EBITDA was $1,120.1 million, up 30% in USD and 31% in LC.
• Cash flows from operating activities were $609.7 million for the quarter (down 1% in USD); year-to-date operating cash flow was $342.8 million, up 88% in USD.
• Free Cash Flow was $556.0 million for the quarter (down 2% in USD); year-to-date free cash flow was $174.2 million, up 297% in USD.
• Net debt was $858.7 million as of September 30, 2026, down from $1,190.3 million at June 30, 2026 and $1,098.6 million at September 30, 2025; net leverage ratio was 0.5x.
• Corporate liquidity was $3,567.3 million as of September 30, 2026.
• Effective tax rate was 19.3% for the quarter and 19.3% for the nine months ended September 30, 2026.

Guidance and Future Outlook:

• Management raised the full-year Adjusted EPS target range, reflecting 37% growth at the midpoint.
• CEO Christian Ulbrich expressed optimism about a strong finish to 2026, citing the strength of pipelines and operating trends.
• The company intends to execute a new $500 million accelerated share repurchase imminently, bringing full-year repurchases to over $1 billion.

Business Segments and Product Lines:

• Real Estate Management Services: Revenue increased 9% in LC to $5.5 billion, driven by Workplace Management (up 10% in LC) and Project Management (up 14% in LC). Adjusted EBITDA grew 13% in LC to $114.5 million.
• Leasing Advisory: Revenue accelerated 27% in LC to $941.8 million, led by U.S. growth in industrial, office, and data centers. Adjusted EBITDA surged 47% in USD to $201.8 million.
• Capital Markets Services: Revenue increased 21% in LC to $736.8 million, with Investment Sales up 33% (55% on a two-year stacked basis), debt advisory up 13%, and equity advisory up 39%. Adjusted EBITDA rose 46% in USD to $131.1 million.
• Investment Management: Revenue decreased 9% in USD to $105.2 million, driven by a 44% decline in incentive and transaction fees. Assets under management (AUM) increased 2% in both USD and LC to $88.4 billion as of September 30, 2026. Adjusted EBITDA fell 24% in USD to $17.9 million.

Market and Competitive Landscape:

• U.S. Leasing Advisory revenue growth (up 39%) significantly outpaced softness in certain Europe and Asia Pacific geographies.
• Office leasing revenue growth (up 18% in the U.S.) outperformed global office volumes (up 9% globally, up 5% in the U.S. per market data).
• U.S. industrial leasing revenue growth (up 56%) outpaced industrial market volumes (up 38%).
• Capital Markets Services investment sales revenue growth (33% globally, 34% in the U.S.) outpaced broader market growth (9% globally, 11% in the U.S.).

Risks and Challenges:

• Investment Management revenue declined due to lower incentive and transaction fees, offsetting growth from recent capital raising in the Americas by anticipated lower fees from funds in Asia Pacific.
• Segment platform operating expenses increased in Leasing Advisory and Capital Markets Services due to higher commission expenses driven by revenue growth and achievement of higher commission tiers.
• Restructuring and acquisition charges were $19.3 million for the quarter, up from $11.7 million in the prior-year period.

Management Commentary and Tone:

• CEO Christian Ulbrich stated that the record quarter reflected a track record of converting growth into margin-accretive profit.
• Management highlighted a focus on generating robust free cash flow and maintaining an agile financial profile to invest strategically for long-term growth while deploying capital opportunistically.
• The imminent $500 million accelerated share repurchase underscores conviction in the long-term strategy to build a more integrated and resilient JLL.

Other Key Points:

• Total share repurchases for the nine months ended September 30, 2026, were $551.7 million (1,720.0 thousand shares); $2.5 billion remained authorized for repurchase as of September 30, 2026.
• The company maintains a commercial paper program with $2.5 billion authorized; $113.5 million was outstanding as of September 30, 2026.
• Free Cash Flow improvement in the nine-month period was attributed to higher cash provided by earnings, partially offset by higher capital expenditures for technology infrastructure and workspace optimization.
• Net non-cash MSR and mortgage banking derivative activity contributed $10.3 million to revenue in the quarter, compared to a loss of $0.2 million in the prior-year quarter.