CBRE

CBRE is reaccelerating on both sides of the house. FY2025 revenue grew 13.4% to $39.9B with operating income up 24.1% to $1.75B and diluted EPS up 22.6% to $3.85. The MD&A frames this as a regime shift — 'the operating environment for commercial real estate improved considerably in 2025,' with broader capital availability, lower borrowing costs and 'markedly increased property leasing and sales activity.' Critically, growth was balanced: 13.4% in resilient lines (facilities, project management, property management, loan servicing) and 13.6% in transactional (sales, leasing, mortgage origination). Resilient revenue now dominates the mix (Facilities Mgmt alone is 50.9% of sales), which dampens the historical cyclicality investors used to discount.

The headline 35x P/E looks stretched, but it overstates the burden: management cites Core EPS of $6.38 (+25.1%) and Core EBITDA of $3.3B (+22.3%), inflated D&A of $729M reflecting M&A purchase accounting (Pearce $1.2B; the remaining 60% of Industrious $468M deployed in 2025). On core EPS the multiple is ~21x for a business compounding earnings >20% with the cycle still in early innings — defensible. ROE of 13.0% on a $8.88B equity base, $1.56B of operating cash flow and $968M of buybacks (shares -1.6% YoY) all support shareholder yield.