Summary of Colliers International (CIGI) Q3 2025 Earnings Call

1Key Financial Results and Metrics

Revenue: $1.46 billion, up 23% year-over-year.

Adjusted EBITDA: $191 million, a 24% increase from last year.

Internal Growth: 13% overall, with Engineering segment up 36% and Real Estate Services up 13%.

Investment Management: Net revenues increased 5%, but net margin declined slightly to 42.3% due to integration costs.

Assets Under Management: $108.3 billion, a 10% increase from last year.

Capital Raised: $1 billion in new capital commitments during the quarter, totaling $4.4 billion year-to-date.

2Strategic Updates and Business Highlights

Engineering Growth: Driven by strategic acquisitions (7 completed in 2025) and strong organic performance, now generating over $1.7 billion in annual revenue.

Real Estate Services: Strong performance in leasing and capital markets, particularly in the U.K., Japan, and Canada.

Investment Management: Transitioning to unify operations under the Harrison Street Asset Management brand, expected to enhance long-term shareholder value.

Acquisition Strategy: Continued focus on expanding capabilities and geographic presence, particularly in Engineering and Real Estate Services.

3Forward Guidance and Outlook

Full-Year Outlook: Confident in meeting full-year guidance, with potential to exceed expectations in Real Estate Services and Engineering, while Investment Management may fall slightly short due to integration costs.

Organic Growth: Expected to remain in the mid to high single-digit range for the full year.

Capital Markets: Anticipate a gradual recovery as interest rates stabilize, with a solid pipeline for Q4.

4Bad News, Challenges, or Points of Concern

Investment Management Margins: Anticipated headwinds from integration costs expected to impact margins for the next 2-3 quarters.

Engineering Margins: Slight decline in net margin due to service mix and pass-through costs.

Market Recovery: While capital markets are showing signs of improvement, there remains uncertainty in Europe and Asia, with investor confidence not fully restored.

Construction Activity: New construction remains soft, particularly in condominiums, which may pose challenges for future growth.

5Notable Q&A Insights

Organic Growth in Engineering: Year-to-date organic growth is around 8%, with expectations for continued growth driven by infrastructure-oriented markets.

Client Feedback on Integration: Positive feedback received regarding the unification under Harrison Street, with clients appreciating streamlined fundraising capabilities.

Market Dynamics: Leasing activity is improving, particularly in the U.S., with expectations for continued growth in Q4.

Data Centers Strategy: Colliers is positioned to benefit from the growing data center market through a full-cycle capability, unlike competitors focusing solely on traditional real estate services.

Hiring and Talent Acquisition: Ongoing recruitment efforts are crucial for filling gaps in geographic regions and asset classes, impacting margins but viewed as necessary for long-term growth. Overall, Colliers International reported strong financial results and maintained a positive outlook, despite facing challenges related to integration costs and market uncertainties. The company continues to focus on strategic growth initiatives and enhancing its service capabilities across various segments.