Cushman & Wakefield Reports Financial Results for First Quarter 2024

CHICAGO - Cushman & Wakefield (NYSE: CWK) today reported financial results for the first quarter ended March 31, 2024:

First Quarter 2024 Results:

• Revenue of $2.2 billion for the first quarter of 2024 decreased 3% from the first quarter of 2023. Service line fee revenue was flat compared to the first quarter of 2023.
  
  • Strong Leasing growth of 5% was driven by broad strength across segments, led by EMEA.
  • Valuation and other grew 1%, driven by the Americas and EMEA.
  • Services and Capital markets declined 3% and 1%, respectively.
• Net loss of $28.8 million for the first quarter of 2024 decreased 62% compared to net loss of $76.4 million for the first quarter of 2023. Diluted loss per share for the first quarter of 2024 was $0.13.
  
  • Adjusted EBITDA of $78.1 million increased 28% from the first quarter of 2023, with Adjusted EBITDA margin of 5.2% expanding 117 basis points from the first quarter of 2023.
• Net cash used in operating activities was $125.1 million for the first quarter of 2024.
  
  • Free cash flow for the quarter was a use of $135.6 million compared to a use of $231.5 million in the first quarter of 2023.
• In March 2024, we elected to prepay $50.0 million of the Company’s term loans due in 2025.
• Liquidity as of March 31, 2024 was $1.7 billion, consisting of availability on the Company’s undrawn revolving credit facility of $1.1 billion and cash and cash equivalents of $0.6 billion.

In April 2024, we repriced $1.0 billion of the Company’s term loans due in 2030, reducing the applicable interest rate spread on the term loan issued in August 2023 by 25 basis points from 1-month Term SOFR plus 4.00% to 1-month Term SOFR plus 3.75%. The Company estimates that the repricing, together with the March 2024 optional prepayment of debt, will result in cash interest expense savings of approximately $6.0 million annually.

“We reported strong first quarter results that demonstrate the breadth and strength of our service offerings as well as our commitment to executing consistently on our strategic priorities,” said Michelle MacKay, Cushman & Wakefield Chief Executive Officer. “Our teams across the globe generated another quarter of solid leasing growth and seized on opportunities in capital markets that resulted in a meaningful improvement in sales pace during the quarter. Additionally, we maintained our cost discipline to drive margin improvement and recently repaid and refinanced debt to reduce our annual interest expense. Looking forward, we will build upon this quarter’s momentum and continue to position ourselves to capitalize on growth opportunities as they arise.”

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