Cushman & Wakefield Reports Financial Results for Second Quarter 2024

CHICAGO--(BUSINESS WIRE)-- Cushman & Wakefield (NYSE: CWK) today reported financial results for the second quarter of 2024.

“Our solid second quarter results, highlighted by our third consecutive quarter of leasing revenue growth and a meaningful improvement in free cash flow, are evidence of our execution against our strategic priorities,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield. “We are confident in our position and energized about the increase in market optimism. We continue to pursue our growth strategy from a place of strength and stability in our core business, combined with our fortified balance sheet.”

Second Quarter Results:

• Revenue of $2.3 billion for the second quarter of 2024 decreased 5% from the second quarter of 2023.
  
  • Leasing grew 2% driven by the Americas and APAC.
  • Services, Capital markets and Valuation and other declined 3%, 15% and 4%, respectively.
• Net income of $13.5 million for the second quarter of 2024 increased $8.4 million compared to net income of $5.1 million for the second quarter of 2023. Diluted earnings per share was $0.06 for the quarter.
  
  • Adjusted EBITDA of $138.9 million decreased 5% from the second quarter of 2023, with Adjusted EBITDA margin of 8.8% declining 18 basis points from the second quarter of 2023.
  • Adjusted diluted earnings per share was $0.20 for the quarter.
• In June 2024, we repriced $1.0 billion of the Company’s term loans due in 2030, reducing the applicable interest rate by 35 basis points to 1-month Term SOFR plus 3.00%. In addition, we elected to prepay $45.0 million of the Company’s term loans due in 2025.
• On June 18, 2024, we signed a definitive agreement to sell a non-core business that provides a third-party supplier network to support a small portion of our Services clients in the U.S. and Canada. This transaction will further the Company’s strategic focus on core long-term growth opportunities and is expected to accelerate optional debt repayment. The deal is expected to close during the third quarter.

Year-to-Date Results:

• Revenue of $4.5 billion for the first half of 2024 decreased 4% from the first half of 2023.
  
  • Solid Leasing growth of 3% was driven by broad strength across all segments.
  • Services, Capital markets and Valuation and other declined 3%, 9% and 1%, respectively.
• Net loss of $15.3 million for the first half of 2024 improved 79% compared to net loss of $71.3 million for the first half of 2023. Diluted loss per share for the first half of 2024 was $0.07.
  
  • Adjusted EBITDA of $217.0 million increased 5% from the first half of 2023, with Adjusted EBITDA margin of 7% expanding 44 basis points from the first half of 2023.
  • Adjusted diluted earnings per share of $0.20 was up from $0.18 in the first half of 2023.
• Net cash used in operating activities was $103.3 million for the first half of 2024.
  
  • Free cash flow for the first half of 2024 was a use of $125.6 million compared to a use of $258.9 million in the first half of 2023.
• Liquidity as of June 30, 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.

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