Savills plc

Savills reported revenue of more than GBP 1.2 billion, up 8.7%, underlying EBITDA of almost GBP 74 million, up 32%, underlying PBT of GBP 34.3 million, up 47% (almost 49% on a constant-currency basis), and underlying EPS of 17.9p, up 53%. The interim dividend was 7.8p, up about 5.5% year on year. Transactional revenues were up 14% overall and Less Transactional revenues were up 6%; Less Transactional revenue was GBP 776 million, or 63% of group revenue. Net debt finished the period at less than GBP 50 million, and the group moved back to a net cash position at the end of July ahead of Eastdil completion. For the full year, management said expectations remain unchanged; Eastdil’s contribution from August through December is expected to be broadly similar to its first-half profit performance, and the enlarged group is expected to reach net debt-to-EBITDA of 1.5x or less by year-end 2026 and around 1x by end-2027.

Simon Shaw described the first half as very strong despite difficult markets and said the business is at an “inflection point” after closing the Eastdil Secured transaction. He emphasized market share gains outside the U.S., the resilience of Less Transactional earnings, and the strategic value of combining Savills’ service lines with Eastdil’s scale in debt, equity, M&A and advisory. His tone was confident and upbeat, but he also stressed that execution timing remains hard to predict and that the company is keeping a close eye on costs and performance.

Nick Sanderson highlighted strong operating leverage, with underlying EBITDA up 32% and underlying PBT up 47% on revenue growth of 8.7%. He noted that first-half restructuring costs were GBP 7.2 million, including the previously guided GBP 3 million overhang from prior restructuring, and said a similar amount is expected in H2 as strategic restructuring and Eastdil-related integration continue. He also detailed acquisition financing for Eastdil, including an $800 million bridge facility, with $450 million already refinanced and the remaining $350 million expected to be refinanced within 12 months; expected all-in cost is between 5.5% and 6%. Management expects net debt-to-EBITDA of 1.5x or less by year-end 2026 and around 1x by end-2027, while maintaining the dividend policy and a low-leverage balance-sheet approach.

Analysts asked about market share gains, the post-deal acquisition pipeline, synergies, UK residential weakness, APAC, investment management, the Middle East, and Eastdil seasonality. Management said UK strength has come from disciplined advice, a flight to quality in tougher markets, and some halo effect from the Eastdil deal, while larger bolt-on M&A is likely to pause as the firm focuses on integrating Eastdil rather than pursuing a “hero style deal.” On UK residential, management pointed to the Renters’ Rights Act as a drag but said like-for-like leasing was up and that market clarity after the October budget would help; on Eastdil seasonality, Nick said its first-half weighting is typically higher than Savills’ historical pattern, but overall seasonality in the enlarged group should be lower going forward.