Cushman & Wakefield plc

Thank you, and welcome to Cushman & Wakefield's third quarter 2025 earnings conference call. Earlier today, we issued a press release announcing our financial results for the period. This release, along with today's presentation, can be found on our investor relations website at ir.cushmanwakefield.com. Please turn to the page in our presentation labeled Cautionary Note on Forward-Looking Statements. Today's presentation contains forward-looking statements based on our current forecast and estimates of future events. These statements should be considered estimates only, and actual results may differ materially. During today's call, we will refer to non-GAAP financial measures as outlined by FDC guidelines. Reconciliations of GAAP to non-GAAP financial measures, definitions of non-GAAP financial measures, and other related information are found within the financial tables of our earnings release and the appendix of today's presentation. Also, please note that throughout the presentation, comparisons and growth rates are to the comparable periods of 2024 and the local currency unless otherwise stated. All revenue figures refer to fee revenue unless otherwise noted, and any reference to organic growth excludes the impact of last year's divestiture of our non-core services business. And with that, I'd like to turn the call over to our CEO, Michelle McKay.

Good morning, everyone, and thank you for joining us today. What you will see in our results is momentum across all areas of the business. as our unique runway puts us in a position to continue to grow organically. This quarter, we delivered the largest third quarter leasing revenue in the history of the company. We set a new high watermark for third quarter cash flow generation. We announced an additional $100 million debt prepayment, bringing our total debt pay down to $500 million in a two-year period. Year to date, we have improved adjusted EBITDA margin by 70 basis points compared to last year. We have continued to drive down our cost of capital with our recent term loan repricing achieving the lowest credit spread in the history of the company and the recent amendment of our revolver, which further lowered our borrowing costs. These actions have fueled strong year-to-date earnings growth, and today we are raising our 2025 adjusted earnings per share guidance for the second consecutive quarter to 30% to 35% growth. And while this is outstanding performance, consider that we have accomplished it while building out our data and AI infrastructure and continuing to invest organically for growth. We have onboarded new institutional capital markets advisors with total average gross revenue more than 200% higher than those recruited in all of 2024, hiring over 45 advisors in key markets to expand our global capital markets platform. We are investing in our services platforms, accelerating our third quarter organic growth to 7%. We are investing in our project management platform where EMEA revenues surged by 30% this quarter. We are investing and retaining our top leasing talent, driving a year-to-date increase in the number of large and mega deals by over 40%, underscoring our success in penetrating high-value opportunities. The performance is clear evidence of the accelerated pace at which we are executing our strategy. simultaneously expanding earnings and reducing leverage precisely as we committed to at the onset of our journey two years ago. Now, I'll hand the call over to Neil to provide a more detailed review of our third quarter results.

Thank you, Michelle, and good morning, everyone. Before I get started, a quick reminder, all comparisons are to the prior year and in local currency, and organic figures exclude the impact of last year's divestiture of our non-core services business. Unless otherwise noted, all revenue figures refer to fee revenue. Our third quarter results highlight three key themes. First, we are seeing clear momentum in our business as revenues expanded across our segments. Second, with improved execution, we are translating this accelerated growth into consistent bottom-line performance, delivering our fifth consecutive quarter of year-over-year adjusted EPS growth. And third, this momentum and execution have allowed us to accelerate our balance sheet transformation, repaying $250 million of debt since July. Q3 revenue of $1.8 billion increased 8%, with organic revenue of 9%. Adjusted EBITDA rose 11% to $160 million, and adjusted EBITDA margin expanded 23 basis points to 9%. Our year-to-date adjusted EBITDA margin growth of roughly 70 basis points reflects strong operating leverage and effective expense management aligned with our growth strategy. For the quarter, adjusted EPS grew by 26% year-over-year to $0.29 from $0.23 a year ago. Now turning to revenue performance by service line. Our leasing business, which grew 9% in the quarter, continues to exceed expectations. In the Americas, leasing grew 11%, driven by a flight to quality in office and industrial. In both sectors, flight to quality remains a key theme and continues to lift average revenue per lease. Office activity remained robust and is becoming increasingly broad-based. High occupancy in premium buildings is driving rents higher and prompting tenants to consider the next tier of quality assets. This healthy underlying demand is also creating opportunities in areas such as project management, as owners work to make their buildings more competitive. In industrial, demand is higher for modern facilities. For example, newer properties built after 2020 I've recorded 196 million square feet of net absorption so far this year, accounting for virtually all of the industrial net absorption. In EMEA, leasing grew 9% as the UK and Spain both performed well. In APAC, where leasing revenue declined 6%, strong performance in Singapore and Australia helped mitigate a tough comparison in Greater China. Overall, investment in the APAC region remained steady. and we believe the underlying outsourcing and development trends that have driven the region's success are still intact. Shifting to capital markets, the business continues to scale meaningfully, delivering 20% year-over-year growth. In the Americas, revenue grew 16%, with double-digit growth across all asset classes and deal sizes, reflecting the depth and breadth of the market, supported by healthy fundamentals and sustained momentum. Multifamily and office transactions were both particularly active, while industrial benefited from an increase in average deal size. Our work to enhance our capital markets platform has created strong momentum in this business line. Internationally, capital markets also performed well, with a mere revenue of 14%, driven in large part by the Netherlands, where we executed a large debt financing deal. APAC capital markets revenue grew 84%, with the largest contributions coming from India and Japan, where transactional markets remain healthy and institutional funds continue to flow. Turning to services, the Americas posted 6% organic services revenue growth, driven primarily by the expansion of current mandates in facility services and facilities management. In EMEA, services grew 17%, as we've accelerated growth in our retooled project management business, winning new and expanding existing contracts in France and Italy. APAC recorded 6% services growth, driven largely by new wins and expansions of existing business in project and facilities management, particularly in India and greater China. Now I want to briefly address our earnings from equity method investments. In the third quarter, we reported an $8.6 million loss, down from a $12 million contribution a year ago. This year-over-year decline was impacted by two factors. First, a roughly $5 million decline in earnings from our OneWork joint venture in China due primarily to quarterly earnings timing. For the full year, we expect OneWork's revenue to be relatively flat versus the prior year. Second, we recorded higher non-cash MSR and loan loss provisions in our Greystone joint venture. As we noted last quarter, our adjusted net income and adjusted EBITDA now exclude non-cash items related to Greystone, to better reflect the JV's underlying performance. Excluding these non-cash items, Bracestone's core business generated $13 million of EBITDA this quarter, driven by solid underlying production volumes, which were up 18% versus the prior year. Moving to our balance sheet, we ended the quarter with net leverage of 3.4 times, the lowest it's been since Q4 2022. Training 12-month free cash flow was $165 million, representing an approximately 61% conversion rate. We continue to expect to exit the year within our targeted range of 60 to 80% free cash flow conversion. We've also continued the significant progress we've made in reducing our interest burden. During the third quarter, we prepaid $150 million and repriced approximately $950 million of our 2030 term loan debt. lowering the applicable interest rate by 50 basis points to SOFA plus 275. Shortly after quarter end, we repriced an additional $840 million of 2030 term loan debt, lowering the applicable interest rate by 25 basis points to SOFA plus 250, the most favorable credit spread in our history as a public company. And yesterday, we made an additional $100 million debt repayment, bringing our total debt repayment in the past two years to $500 million. which represents a 15% reduction in our gross debt balance from just two years ago. Looking ahead, we now expect full-year leasing revenue to grow towards the high end of our 6% to 8% guidance range. We continue to expect mid-single-digit services revenue growth, and we continue to expect full-year capital markets revenue to grow in the mid to high teens. Finally, we are raising our expectations for adjusted EPS, and now anticipate full-year 2025 adjusted EPS growth of 30% to 35% ahead of our previously provided 25% to 35% target range. In summary, we are seeing strong momentum in our business with solid market trends, bolstered by our strategic growth investments, and improved operational performance. With that, I'll turn the call back over to Michelle.