Colliers International Group Inc.

Second-quarter consolidated revenue was $1.6 billion, up 16% year over year, and net revenue was $1.4 billion, also up 16%. Adjusted EBITDA increased 14% to $205 million, and adjusted EPS rose 6% to $1.83, with the EPS result tempered by higher interest expense. In commercial real estate, capital markets revenue grew 23% and leasing revenue grew 23%, with a segment net margin of 11.9%; engineering net revenue rose 27% with a 14.5% net margin; and investment management net revenue increased 15% with a 36.5% net margin. Management reaffirmed full-year 2026 outlook, said Q3 leasing revenue should be up in the mid-single-digit range and capital markets around 15% year over year, reiterated 2026 fundraising guidance of $6 billion to $9 billion, and expects year-end leverage in the 2.3x range after closing Ayesa.

Jay Stewart Hennick framed the quarter as evidence that Colliers is becoming a more resilient, higher-quality earnings story, citing broad revenue growth across all three platforms and saying roughly 70% of earnings now come from recurring revenue. He emphasized the strategic logic of combining commercial real estate, engineering, and Harrison Street to engage clients earlier and across more of the value chain, especially in areas like data centers and infrastructure. His tone was notably confident and expansionary, but he also acknowledged it has been hard to fully communicate the value of the integrated platform to investors.

Christian Mayer said results were in line with expectations and highlighted the hard numbers: $1.6 billion revenue, $1.4 billion net revenue, $205 million adjusted EBITDA, and $1.83 adjusted EPS. He pointed to 23% growth in both capital markets and leasing, 27% engineering net revenue growth, 15% investment management net revenue growth, $2.2 billion of Q2 capital commitments, and AUM of $110 billion at Harrison Street. On capital allocation, he said leverage ended at 2.8x after Ayesa, expects it to fall to about 2.3x by year-end, reiterated the 2026 fundraising target of $6 billion to $9 billion, and said the company may use buybacks if the share price stays depressed, while still prioritizing acquisition discipline.

Analysts focused on the durability of CRE momentum, engineering margins and seasonality, the timing of investment management fee conversion from recent fundraising, and the balance between buybacks and M&A. Management said industrial remained a historical strength, Q3 faces tougher comps, and CRE leasing/capital markets should still post solid growth; on engineering, they said internal growth was 5% year to date, Ayesa should reduce seasonality, and the business is still being integrated. On capital deployment, management said some of the $2.2 billion raised becomes fee-bearing immediately while other capital takes time to deploy, and clarified that leverage would not be pushed back up materially just to fund buybacks.