CBRE Group Inc

Greetings, and welcome to the CBRE fourth quarter 2025 earnings conference call and webcast. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star 1 on your telephone keypad, and we ask that you please ask one question, one follow-up, then return to the queue. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star 0. It's now my pleasure to turn the call over to Chandni Luthra, Global Head of FP&A and Investor Relations. Please go ahead.

Good morning, everyone, and welcome to CBRE's fourth quarter 2025 earnings conference call. Earlier today, we posted a presentation deck on our website that you can use to follow along with our prepared remarks and an Excel file that contains additional supplemental materials. Today's presentation contains forward-looking statements, including, without limitation, statements concerning our business outlook, business plans, seasonality, and capital allocation strategy, as well as our earnings and cash flow outlook. These statements involve risks and uncertainties that may cause actual results and trends to differ materially. For a full discussion of the risks and other factors that may impact these statements, please refer to this morning's earnings release in our SEC filings. We've provided reconciliations of the non-GAAP financial measures discussed on our call to the most directly comparable GAAP measures, together with explanations of these measures in our presentation deck appendix. Throughout our remarks, when we cite financial performance relative to expectations, we are referring to actual results against the outlook we provided on our third quarter 2025 earnings call in October, unless otherwise noted. Also, as a reminder, our resilient businesses include facilities management, project management, property management, loan servicing, valuation, other portfolio services, and recurring investment management fees. Our transactional businesses comprise property sales, leasing, mortgage origination, carried interest, and incentive fee in the investment management business and development fees. I'm joined on today's call by Bob Selentik, our chair and CEO, and Emma Giammartino, our chief financial officer. Now, please turn to slide three as I turn the call over to Bob.

Thank you, Chaudhny, and good morning, everyone. We had a strong end to 2025. Fourth quarter revenue and core EPS rose by double digits with both reaching their highest levels ever for CBRE. Our strength was broad-based. We saw significant gains in sales and leasing in the U.S. and much of the rest of the world, and our resilient businesses continue to post double-digit revenue growth, a trend we see continuing. From a strategic perspective, we continue to build businesses that are benefiting from secular tailwinds. An example is the peer services acquisition in November, which expanded our technical services capabilities in the digital infrastructure market. Our data center solutions business is another example. We've created an integrated offering for the most important hyperscalers. This business consists of services related to a data center's technical infrastructure called the white space and the building operating systems called the gray space, along with traditional facilities management services. Revenue from this business is expected to reach $2 billion in 2026 and is growing at 20% per year. More broadly, data center and digital infrastructure work across our four business segments accounted for approximately 14% of our core EBITDA in 2025. CBRE is positioned for strong, sustained growth. We are taking advantage of this circumstance to streamline our operations while investing to ensure this growth continues further into the future. We expect another good year in 2026 with core EPS in the range of $7.30 to $7.60, reflecting 17% growth at the midpoint of the range. This will be driven by healthy growth in both our resilient and transactional businesses. Before I turn the call over to Emma, I want to address AI. We spend a lot of time thinking about this topic and we know it's top of mind for investors. I'll begin with how we are using AI in our business today, and we'll then walk through market facing risks and opportunities that we see related to AI. We are using AI today in two areas. The first is efficiency. We're deploying AI where its economic value clearly exceeds the economic value of traditional efficiency levers like offshoring. We're very disciplined about understanding the tradeoffs before pursuing efficiency-related AI investments. The second area is developing a knowledge advantage to differentiate our product offerings. CBRE has more real estate data than any company in the world. Historically, we have not been able to turn this enormous base of knowledge into a comparably large competitive advantage. With the use of AI, we are moving toward gaining advantages that are more in proportion to the data advantage that comes with our market position. We are encouraged in a balanced way by both of these AI-related opportunities. With regard to the market-facing risks and opportunities AI introduces to our business, we think about the risks in three broad areas. First, our transactional businesses. Second, the businesses in which we create and improve physical assets. And third, the businesses in which we operate assets. The transactional and investment work we do is most protected from AI disruption. For instance, we've known for some time that our opportunity in the brokerage business is enabled by but not anchored to market data. This same dynamic is in play in our REI businesses. Clients engage CBRE to plan and execute complex transactions because of our creativity, strategic thinking, negotiating skills, deep base of market knowledge, and broad relationships. None of this seems likely to be replaced by AI in the foreseeable future. The physical creation and improvement of assets, which relates to our development and project management businesses, entails a level of complexity across such things as site assemblage and entitlement, strategic planning, cost analysis, knowledge of vendor capabilities and pricing, construction supervision, negotiating skills, and more. Because of that complexity and the physical nature of this business, we believe what we do is materially protected from disintermediation. Finally, we have the operation of buildings, facilities, and property management, which inherently involves both large amounts of data and information and has a labor-intensive element to it. AI can both enable and disintermediate the data and knowledge side of this. We believe the scale and complexity of our client relationships is helpful in mitigating this risk. The labor-intensive side will not be easy for AI to disintermediate. On the market-facing side, we believe there is and will be massive opportunity with owners and operators of data centers and digital infrastructure. We serve those owners and operators in a myriad of ways. We have a strong start in building these capabilities as evidenced by the results we delivered in 2025. On balance, when you add all of this up, there will be risks, risk mitigants, and opportunities in our business associated with AI. We are optimistic that the net impact will benefit CBRE in the long run. Early empirical evidence is supportive of this view. With that, Emma will discuss our outlook and results for the quarter and the year in detail. Emma?