CBRE Group, Inc.

CBRE said Q3 2026 core EPS improved 28% on a 13% revenue increase. Advisory Services revenue rose 11%; Global Leasing increased 6%; Global property sales increased 28%; Mortgage origination rose 1%; Building Operations and Experience revenue increased 17%; Critical Infrastructure Services revenue increased 80%; Facilities Management revenue grew 13%; Project Management revenue grew 3%; and Real Estate Investments segment operating profit rose to $166 million from $73 million a year earlier. Investment Management operating profit declined 12%. Free cash flow totaled $1.8 billion on a trailing 12-month basis, and the company ended the quarter with more than $155 billion of AUM and about $2 billion of new capital raised, up from $1.6 billion in Q2. For full-year 2026, CBRE reaffirmed core EPS guidance of $7.80 to $7.90 and said it remains on track for free cash flow conversion within its 75% to 85% target range, with year-end net leverage expected to be slightly above 1 turn. Management also expects Q4 global leasing revenue to grow at a low double-digit rate and said Capital Markets overall should be roughly flat in Q4 and into the first half of next year.

Bob Sulentic emphasized that CBRE is benefiting from a deliberate shift toward resilient infrastructure-related businesses, especially critical infrastructure and data centers. He said the company now expects critical infrastructure services to reach nearly $4.5 billion of revenue in 2027 and total infrastructure services to reach nearly $7 billion, growing more than 40% from this year. His tone was confident but cautious: he repeatedly framed the business as balancing outsized infrastructure growth against pressure in interest-rate-sensitive capital markets businesses.

Emma Giamartino highlighted broad operating strength across the quarter, including 11% growth in Advisory Services revenue, 17% growth in BOE revenue, and 80% growth in Critical Infrastructure Services. She said free cash flow was $1.8 billion on a trailing 12-month basis, the company expects free cash flow conversion of 75% to 85% for the full year, and year-end net leverage should be slightly above 1 turn. On capital allocation, she said CBRE is prioritizing M&A in areas with secular tailwinds, noted Onnec as an example, and said buybacks slowed in Q3 and should decline meaningfully while deal activity remains strong.

Analysts focused on the 2027 path to 15% core EPS growth, the slowdown in capital markets, weakness in enterprise facilities management, and the Onnec acquisition. Management said the 15% target is supported by outsized growth in resilient businesses, roughly flat investment management, continued growth in BOE and Project Management, some monetization of development assets, and likely additional M&A. On the enterprise facilities issue, Bob Sulentic said two problematic accounts are being restructured and will pressure Q4 earnings, but that this is specific to a few contracts rather than the broader business.