Strong Q1 Performance: CBRE reported a robust first quarter with a 27% increase in core EBITDA and a 10% rise in core EPS year-over-year. Excluding the prior year's one-time tax benefit, core EPS grew by 39%. Resilient businesses saw net revenue growth of 17%, almost matching the transactional businesses' 18% growth, highlighting strong operational performance across both segments.
Project Management Segment Growth: The newly integrated Project Management and Building Operations & Experience segments performed well, with the Project Management segment seeing a 9% revenue increase and positive margin growth of 14%. Expectations suggest that this integrated model can achieve margins typical of Turner & Townsend's mid- to high-teen range over time, supported by enhanced operational efficiencies.
Outlook and Guidance Maintenance: Despite strong Q1 results, CBRE maintained its full-year core EPS guidance of $5.80 to $6.10, citing increased uncertainty around tariffs and the risk of economic slowdown. While solid business pipelines exist, conservative outlook reflects caution amidst macroeconomic volatility.