CIGI

Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Global Chairman and Chief Executive Officer - Jay Stewart Hennick Chief Financial Officer and Chief Executive of Colliers Commercial Real Estate - Christian Mayer Operator: Welcome to the Colliers International Second Quarter Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results. Performance or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40-F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is Thursday, July 30, 2026. And at this time, for opening remarks and introductions, I would like to turn the call over to the global chairman, and chief executive officer, mister Jay Stewart Hennick. Please go ahead, sir. Jay Stewart Hennick: Thank you, operator, and good morning. I am Jay Stewart Hennick, global chairman and chief executive officer of Colliers. Joining me today is Christian Mayer, our chief financial officer and chief executive of Colliers Commercial Real Estate. Today's webcast and presentation materials are available on the investor relations section of our website. Colliers delivered another strong quarter with double-digit revenue growth across all three platforms. Healthy internal growth, and continued improvement in earnings quality. In commercial real estate, we are seeing a broader recovery across our markets. Capital markets and leasing revenues each increased by more than 20% supported by improving transaction activity, better financing conditions, and market share gains in most of our major markets. Engineering continues to be an important strategic differentiator for Colliers. Revenue increased 30% driven by strong demand across critical infrastructure, transportation, water, property, and buildings. The acquisition of Ayesa expanded our global capabilities and strengthened our position across Europe, Latin America, the Middle East, and Australia. Engineering gives Colliers recurring revenue, stronger visibility, and new ways to grow our enterprise. Harrison Street continued to add strength and differentiation as well with assets under management reaching $110 billion and revenues increasing by 17%. Having built two large global platforms at Colliers, in commercial real estate and engineering, we are now building our third. We are bringing our investment management capabilities together across real estate, credit, infrastructure, and private wealth. We are creating more investment opportunities for our clients, and greater long-term value for our shareholders. Together, the recovery in commercial real estate, the growth of engineering, and the expansion of our Harrison Street business are changing the quality and composition of our earnings. Today, approximately 70% of our earnings come from resilient recurring revenue streams giving Colliers greater flexibility, greater stability, stronger cash flow, and perhaps most importantly, more ways to grow our business. What further differentiates Colliers is how our platforms are working together. Commercial real estate gives us market intelligence and deep client relationships. Engineering adds technical expertise and execution capability. Harrison Street brings capital formation, investment discipline, and ownership expertise. Together, they create a much more integrated Colliers, one that can engage clients earlier, serve more of the value chain, and replicate that model across high-growth ecosystems. Data centers are just 1 example. We can help clients identify and acquire sites, provide engineering and technical services to design, build, and operate these facilities, and deploy capital through Harrison Street, which over the past six years has invested more than $6 billion in digital and data centers already. And after the fact, we can deliver leasing, sales, facility management, and other advisory services as those facilities come on stream. That same opportunity exists across many other ecosystems within our business. By combining client relationships with specialized platform capabilities, we can create additional avenues for growth beyond the stand-alone opportunities inherent in each of our businesses. So in summary, our second quarter results reinforce the confidence that we have in our future. Step by step, we are building Colliers into a stronger global company with broader capabilities, more resilient in our performance, and better positioned to create lasting value for our clients, our professionals, and our shareholders. Now let me turn things over to Christian to review our financial results in more detail. Christian? Christian Mayer: Thank you, Jay, and good morning, everyone. Please note that the non-GAAP measures discussed on this call are defined in our press release and quarterly presentation. Unless otherwise noted, all revenue growth figures are presented in local currency. Our second quarter consolidated revenues were $1.6 billion, up 16% and net revenues also increased 16% to $1.4 billion. Adjusted EBITDA was $205 million, up 14%. Adjusted EPS increased 6% to $1.83 and was tempered by higher interest expense. These results met our expectations and our momentum gives us confidence as we enter the second half of the year. Capital markets rose 23% with growth across all geographies led by the Americas and Asia Pacific. Activity in industrial property sales was up notably in all geographies. Leasing revenues were also up 23% led by US industrial, with all global regions contributing to growth The segment net margin was 11.9% up slightly over the prior year. Engineering second quarter net revenue was up 27% from a mix of recent acquisitions including a partial quarter of Ayesa, and solid 5% internal growth. Our net margin was 14.5% up slightly over last year. Our engineering backlog stood at 12 months as of June 30, indicating strong momentum for the back half of the year. Investment management net revenues increased 15% driven by a recent acquisition and internal growth from new capital. The net margin was 36.5%, as expected, given ongoing planned global platform building under the Harrison Street Asset Management brand. These costs will continue to impact margins for the second half of the year. And we expect margins to stabilize in the low 40% range for 2027. During the quarter, asset realizations generated strong gains and resulted in the return of $1.9 billion of capital to our limited partners. and $3 billion year-to-date. Our demonstrated ability to monetize high-quality portfolios at attractive prices and make meaningful distributions to investors, has always been a key differentiator for us. We raised $2.2 billion in new capital commitments in the second quarter and just under $3 billion for the 6-month period. To date fundraising is on plan and we expect an acceleration in the second half. Our annual fundraising target for 2026 remains unchanged at $6 billion to $9 billion. Turning to our balance sheet. We completed the Ayesa acquisition late in the quarter, and despite significant capital deployment, for this strategic platform, finished the second quarter with leverage of 2.8x. We expect to delever significantly in the second half of the year as the majority of our seasonal cash flows come in and should finish the year in the 2.3x range. Given this leverage profile, and given the current undervaluation, of our shares, we may choose to deploy capital on a stock buyback as we progress through the second half of the year We are reaffirming our full-year 2026 outlook. The key forward-looking indicators across our business segments being transaction pipelines, engineering backlogs, and fundraising pipelines, are up nicely over the prior year. Geopolitical risk and macroeconomic volatility continue to be elevated as we all know However, we believe that these risks should not materially impact our overall results. That concludes my prepared remarks. Operator, can you please open the line for questions? Operator: We will now begin our Q&A. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Himanshu Gupta with Scotiabank. Himanshu, your line is open. Please go ahead. Himanshu Gupta: Thank you, and good morning, everyone. So first on commercial real estate, looks like industrial was strong, for leasing. Industrial was strong for capital markets as well in Q2. So just wondering what led to the strength and how do you see momentum in Q3? Christian Mayer: Yeah. Thanks, Himanshu. So, industrial is one of our key, historical strength areas, and it continues to be the case. And in the quarter, we saw strong demand in the Americas in the U.S. in particular. And that was, I think, partially a reflection of some uncertainty that happened last year, post-Liberation Day. Which was in the second quarter last year. So an easier comparison led to some stronger growth in that area. As we look ahead, momentum is strong, but we do have some tougher comps ahead in the third quarter. Himanshu Gupta: Okay. And overall, how do you see, Leasing revenue or capital markets in Q3? Christian Mayer: Yeah. We expect leasing revenues to be up in the mid-single-digit range and capital markets to be, again, strong, 15% or thereabouts year over year growth. Himanshu Gupta: Got it. Okay. Thank you. And then just moving to investment management, especially the margins. Is the I mean, the recovery pickup in margins getting pushed to the next year? And not likely to be in Q4. So maybe anything on the margin side. Christian Mayer: Yeah. I mentioned, as Jay mentioned, we are building a global investment management platform with Harrison Street. And we have taken additional integration steps this year, including RoundShield rebranding and integrating with our Harrison Street Europe business, which announced just a few weeks ago. So taking our time to integrate this business and build it for the future. And that will impact the margins here for the remainder of the year. We expect the margin profile to increase in 2027, as I mentioned in my prepared remarks. To the low-40s range. Himanshu Gupta: Thank you. And maybe just last question. I think over $2 billion was raised during the quarter. Has this capital been deployed? I am just trying to see that when this raise will lead to EBITDA pickup in numbers. Christian Mayer: Yeah. So we did raise $2.2 billion of new capital in the second quarter. That capital comes from a mix of fund types. So Some of the closed-end funds, that capital becomes fee-bearing immediately. And in other fund types, it will take some time to deploy that capital and then that capital will at that point become fee-bearing. So this is a normal part of the fundraising process. Some capital, as I mentioned, becomes fee-bearing immediately, some takes time to be deployed. And then become fee-bearing, but that is reflected in our expectations, for the year. Himanshu Gupta: Thank you so much, and I will turn it back. Thank you. Operator: Your next question comes from the line of Stephen Sheldon with William Blair. Stephen, your line is open. Please go ahead. Stephen Sheldon: Hey. Thanks. I wanted to start on the engineering side just curious if you can talk a little bit more about how internal organic growth there has been trending in the first half of the year and then how you are thinking about it in the back half and potentially in the early next year. And then also, I really appreciate the color, Jay, on how engineering ties into the rest of all your businesses. I think that has been an area of focus for the buy-side, how much, you know, cross-selling opportunities there are between engineering and kind of the core CRE business. So just curious, yeah, do you think it will take some time for some of the cross-selling opportunities to be realized, or are you already starting to see some of those come in? So, yeah, but just a little more color on engineering. Christian Mayer: Great. Good question. I will take the margin question. Our year-to-date sorry, our internal growth question on engineering. Year to date, internal growth in engineering is 5%. And we expect that to continue for the remainder of the year. Then I will pass the question on the cross-sell opportunity in engineering to Jay. Jay Stewart Hennick: You know, Stephen, it is it is frustrating for me because we have not been able to articulate the full power of the differentiation that we are trying to create at Colliers. The engineering platform is not good. It is awesome. And if you think about it and I tried to give you an example in my prepared remarks, if you think about it, all the work done in much of and it is not just data centers. it is in all ecosystems, whether you are building a building, you are building any asset. We are designing. We are building. We are project managing. All through our engineering business. So the connectivity between the different platforms, which for almost since inception, I do not think people really understood because they saw commercial real estate as a stand-alone platform, engineering, and Harrison Street, all as three stand-alone platforms, when they are actually working together more and more clients, the same clients are retaining us to do more and more along the whole value chain. And now with Ayesa, and opening up markets where we did not really we had huge presence in commercial real estate across Europe, The Middle East, and Australia. But we did not truly have any engineering presence. Now with Ayesa, which already is doing business with both our commercial real estate and our investment management business. They are pitching business together sort of a complete end-to-end solution. So, we think that over the next couple of years, being able to handle the entire life cycle of assets will create a differentiator for Colliers that none of the other peers have. Some of them have bits and pieces of it, but we think that we have a truly strategic differentiated plan that is, bearing fruit, and it is these are global. These are global platforms. And they are global platforms run by people who have a vested interest, equity stakes in our businesses through our partnership philosophy and that creates huge glue and huge collaboration, desire from each of the partners to work with the others. So it is a bit of a frustration for me because we have not been able to articulate the power of the three different platforms working together, and we are going to dial up our efforts to do that over the next number of quarters until that finally hits home. Stephen Sheldon: that is great to hear. Very, very helpful. Commentary, Jay. And then just as a follow-up, I guess, two questions in investment management. One, it seemed like management fees as a percentage of AUM stepped up nicely this quarter. So just curious what drove that and whether that is something structural and that can keep moving higher from here. And then two, am I right to think that it could get easier for fundraising activity? I know It has been a challenging couple of years, but you know, as capital market activity picks up and as institutional LPs start to see more capital distributions, does that make it easier to go back and raise more money? Jay Stewart Hennick: Yes. I mean, 1 of the key, again, we are building a global platform with Harrison Street. That means bringing together all of our unique strategies that we had around the world, as you know, Stephen, you have been following us for a long time. We built this platform one step at a time since 2018, and we built it through four acquisitions of very good operators who had a vested interest in their strategies. And now we are bringing together—we are bringing them all under the Harrison Street banner on a global basis. We are taking distribution that it was it was previously done across the different platforms. We are we are standardizing them. There are so many aspects that we are doing, and that is putting us in a different category in terms of fundraising. So all of our 45 people that are in capital distribution are in front of clients, and the clients are making the decision on which strategies are more interesting to them. And so, in the case of our proven funds, Harrison Street X is in the market right now. Basalt V is in the market right now. There are a variety of strategies that have stood the test of time over a long period of time but there is also new strategies that have been introduced. That our investors are saying, tell me more about that. And if you do not do that in a streamlined way, you are missing a great way to leverage relationships that, you know, the Harrison Street core business would have with some LPs and now Basalt can leverage those strong relationships and introduce them to mid-market infrastructure deals that they are also interested in. So building a platform takes time. It takes expense. It takes bringing together teams. We are very, very, very pleased with the results. All of the partners and, again, I emphasize as you know, our philosophy has always been around perpetual partnerships. All of our partners in each of the strategies had the choice of staying by themselves or rolling up into Harrison Street Asset Management. And to a professional, They all rolled up and together, they own circa 25% of the equity of this very valuable platform and doing what we are doing is only making it much more valuable. Stephen Sheldon: Makes a lot of sense. Thank you. Operator: Your next question comes from the line of Erin Kyle with CIBC Capital Markets. Erin, your line is open. Please go ahead. Erin Kyle: Himanshu. Good morning. Thanks for taking the questions. Maybe going back to the engineering segment on the margin side. So the prior two quarters had seen some margin contraction on lower utilization that you had called out in the past. And then we saw net margins expand year over year. This quarter. So the question is, is utilization back up where you expect it to be? And are there any other productivity metrics or anything you can point to in the engineering segment? Christian Mayer: Yeah. Erin, the margin in engineering business will vary on a quarterly basis because there is seasonality in our business. As you are aware, we operate in Canada and the Northern parts of the U.S. where winter is a significant factor in driving revenue levels as well as utilization levels. You know, in the past few quarters, we have called out some utilization areas in certain end markets and that is always going to be a factor in our business. And for that reason we have a multidisciplined diversified business with multiple end markets and multiple client types. And also a diversity of clients between public and private sector. So nothing really major to call out this quarter. The Ayesa acquisition, as you know, has higher margins. So that is going to impact the margin profile a little bit in the back half of the year as we bring that business on stream. Jay Stewart Hennick: And the only thing I would add to that, Christian, is Ayesa also softens the seasonality and creates more geographic diversification into markets with different climates. Its seasonality is almost nonexistent. It generates, you know, 24% to 26% of its revenues and EBITDA in any given quarter. Given the markets that it operates in. And without the weather-related seasonality. Erin Kyle: Okay. So that is helpful. On a go-forward basis. Maybe in 2027, we see a little bit less of that quarter-to-quarter variability there. Christian Mayer: Yes. Erin Kyle: Maybe if I switch gears to the commercial real estate segment. Growth has been quite strong for the past two quarters. In capital markets and leasing this quarter as well. that is despite of an interest rate environment that has not necessarily been as constructive as everyone was expecting maybe heading into the year. So would you say that is mainly a function of, like, pent-up demand in the market? Or is Colliers winning share here? As I know you have been recruiting for new team members across the CRE segment as well? Christian Mayer: Erin, we certainly believe all that is the case. We have been winning market share. And in particular, in terms of our recruiting efforts, I think we have been very disciplined but yet aggressive on recruiting. And we have added more producers than others. I think relative to our publicly traded peers in The U. S. At least, we have added more producers on a percentage basis than they have and I think that is starting to show in our numbers and it has been a modest drag on our margins over the last few quarters as we ramp these folks up. So we are feeling very good about our business and, like, both the trajectory and the rate environment, of course, is 1 that is top of mind for real estate investors. I think as long as it is in a range activity levels will continue and those ranges are fairly wide. And as long as geopolitical events continue to be under a reasonable level, we should see strong activity through the balance of the year. Erin Kyle: Thank you. that is helpful. I will pass the line. Operator: Your next question comes from the line of Jimmy Shan with RBC Capital Market. Jimmy, your line is open. Please go ahead. Jimmy Shan: You mentioned share buybacks. So I guess with the stock trading where it is, how are you prioritizing between share buyback versus the tuck-in M&A? should we be doing, especially as leverage comes down. And then at what leverage level do you feel comfortable accelerating either? Jay Stewart Hennick: Well, obviously, stock buybacks have been top of mind for us. As you know, some of the senior executives here have been buying significant amounts of stock in the company. But we did not believe that it would be prudent for us to be using our normal course issuer bid to be buying back stock in light of the significant Ayesa transaction, which is now completed. As Christian mentioned, the-- the leverage of, expected something around 3.0x at the time. At the time we contracted for that transaction, it has come in at 2.8x, which is positive. And you can see our cash flow conversion is very significant. So as we approach the balance of the year, we expect our leverage to fall, and that will open up and let me finish the point. It will open up, and we will be able to consider using our issuer bid to acquire additional shares, particularly where they are currently trading. You know, the other thing is that acquisitions continue to be abundant for us. And, there is lots of opportunity, not just with Ayesa, which opens up all kinds of new markets, all kinds of adjacencies, different additional qualifications that help not only the Ayesa business, but can be transferred to our other businesses So we do not want to slow down our acquisition activity at the same time. So we always, you know, even if there is a difference, a current difference, you know, where Colliers is trading versus buying an exceptional business that will pay dividends over a long period of time. We will always default to a great acquisition. it is something that we will add to us as we have done for 30 years. So I hope that gives you a little bit more color around our thinking on the issuer bid. Jimmy Shan: Yep. No. that is helpful. Maybe just as a follow-up, you have still been acquiring, obviously, the last few acquisitions have been on the engineering side. I guess with the uncertainty, with respect to how AI can potentially impact the business, at least from a public market perspective. I wondered if there was if you have-- if there is been any change in the multiples that you have observed that people are paying for engineering firms? Or how would you underwrite if at all, any AI risk when you underwrite those businesses? Jay Stewart Hennick: Well, I can give you my professional response. Or I can tell you the way it is. Based on my experience. And so I am just going to do what I always do and tell you the way it is. Look. Technology, and AI will always be, you know, they are always an important-- an important element, but everybody woke up last week, and all of a sudden AI is a fancy word. For years, we have been using technology to automate workflows and get productivity gains and take our specialized data and create special insights and unique insights for our clients. And 1 of the things that we have done in light of the in light of the additional focus on AI is we tasked our people to create a shopping list of ideas and opportunities that can improve our business further using AI. And there were several interesting ones, and we have increased our technology spend against the highest priority initiatives. So AI has actually become a benefit in the sense that it has raised it has raised the focus around making changes to our business to become more competitive, and unlock some embedded datasets that we might have. But, really, at the end of the day, it is not about all of that. it is about it is about professional judgment, specialized expertise, and trusted relationships which do not change. When I think about both commercial real estate and I think about engineering, I think that they are going to only get better and more efficient. But the most important thing, which you alluded to in your first sentence, is yes, we are adjusting down the purchase prices. Arguing that AI is going to have a major impact on some of these businesses which it will not. And I say it will not to the big players because we are in the game, and doing what we need to do. The small guys do not have the depth and capital to capitalize on these things. But the bigger guys do. And I think AI will only help us make our business better, but the smaller guys do not have those advantages. And as a result, we could be buying and are buying exceptional businesses, albeit smaller, at better valuations this year than last year, for example, for that reason. Jimmy Shan: Okay. Appreciate the comment. Thanks. Operator: I will now take this time to remind analysts that if you would like to ask a question, please press 1. Your next question comes from the line of Daryl Young with Stifel. Daryl, your line is open. Please go ahead. Daryl Young: Hey. Good morning, everyone. First question is just around the real estate services and outsourcing activity. Given the strength in transaction activity, I might have expected to see a little bit stronger performance in outsourcing advisory. Is there something specific you can speak to on the Europe and Asia weakness you highlighted? Christian Mayer: Yeah. I mean, the only real challenge we have in our outsourcing business right now is the local project management in those two markets. And there is some timing of projects, which I think we will start to see those come through in the fourth quarter of this year. The other parts of the business property management, valuation, loan servicing, all up nicely. In the second quarter, and we expect that to continue through the balance of the year. Daryl Young: Got it. And then just quickly on the data center theme, one of your peers provided outlook for some pretty exceptional long-term growth and revenue targets and I know you have referenced data centers in the past as just another asset class that you are capable of servicing, but there does seem to be some pretty significant early mover wins in that sector. So is there a more formalized strategy that you are taking or that is evolving in the background around data centers for Colliers? Jay Stewart Hennick: You know, the short answer is that we in each of our businesses, are focusing very closely on the growth in data centers that we believe we are getting a strong share, whether it is in engineering, obviously, Harrison Street owns $6 billion worth of these centers, which gives us natural connectivity to be doing business there. We have not developed, as you are suggesting, a uniform strategy across all platforms yet. I presume we will over time. what is happening is that there is lots of growth. And so, for example, if we are doing data center work for a client in engineering, and that client goes and does a separate data center, we generally get the first call. So there is a great opportunity for us to take more share from that particular client in a different geographic region, and we are seeing quite a bit of that, which is exciting to see. But I would say, if I am being candid, we are very busy with data centers right now, and so it is difficult to get everybody together and say, let's create a uniform strategy when they are just trying to even see the internal growth in engineering is quite strong. And we expect it to get a little stronger. And 1 of those areas is data centers. So Got it. Daryl Young: Okay. And just 1 last one. On the NCIB, did you say you would be willing to take the leverage back to 3.0x in the back half of the year to get aggressive on the NCIB? Or did I mishear that? Christian Mayer: Daryl, to be very clear, we did not say that. In my view, you know, 2.8x is the high-water mark. We are going to delever through the balance of the year. And we may at these prevailing prices, spend you know, call it, say just for arguments, discussion sake here, $100 million would buy back 2.1% of our float. So it could be nicely accretive without being meaningfully impactful on our leverage. And certainly, do not expect to have a material increase to our leverage. As a result of a stock-buyback action. Jay Stewart Hennick: It really depends on the M&A opportunities as well. Because we do have quite a pipeline of deals. And we will have to see how the balance of the year shakes out before we before we execute on that. Daryl Young: Got it. Thanks for that guys, and congrats on a good quarter. Thanks. Operator: Thank you. Your next question comes from the line of Mitch Germain with Citizens Bank. Mitch, your line is now open. Please go ahead. Mitch Germain: Thank you. Jay, while I recognize engineering and investment management are very nuanced and differentiated, Is there a thought around having, I guess, Ayesa, Englobe, and other of your key executives coming up with maybe maintaining their existing brands, but coming up with some sort of unified strategy around that business line. Jay Stewart Hennick: Around which business line? Mitch Germain: Engineering. Engineering. Jay Stewart Hennick: Sorry, did you say anything? I do not really understand your question. You wanna give it to me again? Mitch Germain: Well, I mean, you have got I understand that the individual brands have a lot of value. But, you know, obviously, you know, you have certain potential cost savings initiatives that you can deliver if you kind of unify some maybe back office or other sort of functionality. And maybe best-in-class practices that they can be sharing in their individual, competencies. So is there any thought around, you know, kind of making sure that you can leverage that knowledge and capability and be able to spread it on a more global basis? Jay Stewart Hennick: Well, they are doing that today. I mean, remember, all technology is run centrally. Each of the divisions have their own technology infrastructure, but it is all within the overall, Colliers structure. The same thing with a number of other shared services. But on the business front, what we are finding is that the engineering businesses in the different geographic regions are working closely with the, primarily commercial real estate and investment management or the investment professionals within the investment management business to see about bringing together a complete solution for clients. And they are doing that right now. I would say It is still early days to have a much more formalized approach. But anything internally around how do we rationalize, simplify, is there a way to create additional efficiencies, bring down data costs across the organization, that has all been something that we have been doing for years across Colliers, so that is happening. But the new business connectivity is becoming more interesting because, as I said earlier, the client relationships if you have got a strong relationship with Costco, you know, in one part of the U.S. and they are building a data center or a building, and it applies not just to data centers, but all kinds of other ecosystems. They are building something else in other parts of the country, it brings the two opportunities together very nicely, and it is it is spreading business around. So, I would say nothing is formalized yet. I think we need another year or 2 of, of really capitalizing on some of the business opportunities we are getting. And seeing how everybody naturally comes together but we are capitalizing on. I would say the easier things, which is the internal cost structures and ways in which we can become more efficient. Mitch Germain: Gotcha. that is super helpful. And then I remind me what you guys are viewing as more of a long-term leverage target. I think you are back in 2024, you are around 2.0x. it is come up with a bunch of acquisitions. I know that you are forecasting it to come down a bit by year end. But, you know, kinda longer term, is there some sort of range that you consider to be, you know, kind of what you are striving to target? Christian Mayer: Yes, Mitch. Our target leverage range is 1.5x to 2.0x. With a bump out for significant acquisition activity, which Ayesa certainly falls in that category. Or unusually low share values where we can we can capitalize. Mitch Germain: Thank you. I appreciate it. Operator: Your next question comes from the line of Frederic Bastien with Raymond James. Frederic, your line is now open. Please go ahead. Frederic Bastien: Good morning, guys. It is still early days for Ayesa under the Colliers fold, but are there any early surprises, positive or negative, that you can share? Jay Stewart Hennick: It has been a very positive experience so far. We found the team very excited about becoming partners finally in the business. They are now real equity partners in the business. They had not had that opportunity under the prior ownership structure. They are very engaged internally in their growth as well as with our commercial real estate folks and our other engineering folks around the world to explore opportunities to work together and to build the business. So It has been a very positive first couple of months and we look forward to building our relationship more deeply with that team. And, as you know—sorry, Frederic. As you know, you know, these deals generally take a year or a year and a half to you know, come to fruition. So we have had a long time to work with the team and better understand what their motivations are and where their opportunities are that they could not pursue under the previous ownership structure. So, that has been that has been quite exciting. They are exceptional operators. But I think I could be wrong, but I think since 1966 when the company was founded, they made one acquisition in Australia. So and that one acquisition was a company that our team looked at also in Australia, and it was relatively recent. So there is an opportunity to bring those two together But, you know, the bigger point is there is lots of opportunity within their existing markets with relationships that they have had for years and years and years that we think that we can capitalize on with this great team over the coming years. Frederic Bastien: Great. And just building on that, are there any specific areas of expertise or capabilities within the business, within Ayesa that you are particularly excited about? To potentially cross-sell across the broader Colliers platform. Jay Stewart Hennick: Yeah. I mean, they have a very strong expertise in desalination. I think they run-- I do not know the number. it is something between 6 and 10 large desalination plants. They designed them. They built them. They operate them in The Middle East. using technology, I believe that they that they were able to gain from Israel. And that is an interesting area for them. And they have some marine engineering expertise which we and water, which we think that we can transfer to other markets. So you know, each engineering platform, as you-- in other companies, as you know better than most, have lots of different expertise. But you know, I think Ayesa brings 2 or 3 more that we can transfer hopefully, easily to our other businesses. Frederic Bastien: Perfect. Thanks. that is all I have. Operator: Your next question comes from the line of Stephen MacLeod with BMO Capital Markets. Stephen, your line is now open. Please go ahead. Stephen MacLeod: Thank you. Good morning, guys. And lots of great color so far on the call, so thank you. Specifically around some of the cross-selling opportunities Nice to hear about the long-term opportunities. I just wanted to focus in just a little bit of you talked in your prepared remarks about having very strong back half visibility into all three segments. And I am just curious sort of what the foundation of that is. I mean, maybe starting with CRE, what are your customers saying about the rate environment? And then in engineering, you talked about having a 12-month backlog. And I am just curious how that is trended relative to prior quarters. Christian Mayer: So we track our pipeline in commercial real estate in a very disciplined manner. We have been doing this for a long time, and it is something that is a key part of what we do every day and how we manage the business every day. We certainly look at the 10-year Treasury as a bellwether for the U.S.. particularly at 4.7%. it is kind of on the high end, but it moves around, as you know. So, you know, in with the information we have and with our best judgment, you know, we see a strong list of transactions that will happen over the next year. And we have more visibility into the more near term transactions being the ones in the next quarter or the next 6 months. And as a result, that gives us the confidence we are looking for. In terms of our backlogs, in engineering, we have really four engineering businesses that operate around the world. Ayesa being the newest. You know, each one has a wide variety of clients and end markets. And each one tracks its revenue backlogs. Our goal always is to have a 12-month backlog of work under contract. And that is where we currently sit. So, you know, that can vary, you know, a little bit. Seasonally. And but certainly right now where we sit is very comfortable. And, we have, the visibility we need from that backlog to give you the outlook that we delivered. Stephen MacLeod: that is great. Thanks, Christian. And I know we are talking a little bit about sort of leverage in the balance between that and buybacks. But you know, you are a very long-term thinker. So when we get to 2027 and you think about the acquisition opportunities beginning to or the opportunity for you to be able to deploy capital for acquisitions in a in a more meaningful way. Can you just give a bit of color around sort of what you see as your next top priorities? Jay Stewart Hennick: Yeah. I mean, our near-term top priority is to complete the build out of Harrison Street Asset Management as a global player. If anyone that follows the asset management business will see that Harrison Street is among one of the bigger players in the sort of the next, you know, the next tier you know, below the obvious big guys. there is lots of opportunity for us to continue to consolidate that business there is a lot of opportunity to raise additional capital You know, the early talk for 2027 and beyond is higher than what we are talking about today. Primarily because there is more strategies and more opportunity. So, in short, in a-- you know, just to just to summarize, I think our near-term focus is to finish the job at Harrison Street, bringing it all together in a streamlined way. We as Christian alluded to, we actually accelerated a few steps in the integration process over the past quarter because we thought there was a great opportunity to do it. In Europe. You know, the round 1 was to bring it all together in the U.S. which is largely done. Round 2 is Europe. And, you know, Round 3 is an expansion into Australia, New Zealand, which we are already on the ground. And looking for opportunity down there as well. And then and then where do we go from here? Base business is strong. We are focused in the right areas. Some of our peers are in traditional real estate assets. We have a very small component of our business in traditional real estate. We are focused on alternate real estate in infrastructure, debt, things like that. So we like the categories that we are in, but there is lots of opportunity for us to consolidate, bring other exceptional strategies into the fold. So I would say there is that. Engineering continues to be a growth engine. And even in commercial real estate, there is some interesting opportunities to strengthen our debt origination business, create opportunities to enhance our access to capital flows, to fund some of our professionals' origination. So there is just a lot happening, and that is 1 of the great things of having a global platform now in 3 different areas. We can grow globally. We can grow by service line. We have a much more resilient revenue stream than any of the others do, by quite a bit. And, and so we are really building a highly diversified, resilient business you know, the way that we have done it for so many years to create long-term value for our shareholders, the largest of which are the people that run the business day-to-day. Stephen MacLeod: that is great. Thanks, Jay. Thanks, Christian. Appreciate the color. Thanks. Operator: We have reached the end of our Q&A session. I will now pass the call back to mister Jay Stewart Hennick for some closing remarks. Jay Stewart Hennick: Thank you, everyone, for participating. And we look forward to speaking again at the end of the third quarter. So thank you. Operator: Ladies and gentlemen, this concludes the conference call. 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Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Global Chairman and Chief Executive Officer - Jay Stewart Hennick Chief Financial Officer and Chief Executive of Colliers Commercial Real Estate - Christian Mayer Operator: Welcome to the Colliers International Second Quarter Investors Conference Call. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results. Performance or achievements contemplated in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40-F as filed with the U.S. Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is Thursday, July 30, 2026. And at this time, for opening remarks and introductions, I would like to turn the call over to the global chairman, and chief executive officer, mister Jay Stewart Hennick. Please go ahead, sir. Jay Stewart Hennick: Thank you, operator, and good morning. I am Jay Stewart Hennick, global chairman and chief executive officer of Colliers. Joining me today is Christian Mayer, our chief financial officer and chief executive of Colliers Commercial Real Estate. Today's webcast and presentation materials are available on the investor relations section of our website. Colliers delivered another strong quarter with double-digit revenue growth across all three platforms. Healthy internal growth, and continued improvement in earnings quality. In commercial real estate, we are seeing a broader recovery across our markets. Capital markets and leasing revenues each increased by more than 20% supported by improving transaction activity, better financing conditions, and market share gains in most of our major markets. Engineering continues to be an important strategic differentiator for Colliers. Revenue increased 30% driven by strong demand across critical infrastructure, transportation, water, property, and buildings. The acquisition of Ayesa expanded our global capabilities and strengthened our position across Europe, Latin America, the Middle East, and Australia. Engineering gives Colliers recurring revenue, stronger visibility, and new ways to grow our enterprise. Harrison Street continued to add strength and differentiation as well with assets under management reaching $110 billion and revenues increasing by 17%. Having built two large global platforms at Colliers, in commercial real estate and engineering, we are now building our third. We are bringing our investment management capabilities together across real estate, credit, infrastructure, and private wealth. We are creating more investment opportunities for our clients, and greater long-term value for our shareholders. Together, the recovery in commercial real estate, the growth of engineering, and the expansion of our Harrison Street business are changing the quality and composition of our earnings. Today, approximately 70% of our earnings come from resilient recurring revenue streams giving Colliers greater flexibility, greater stability, stronger cash flow, and perhaps most importantly, more ways to grow our business. What further differentiates Colliers is how our platforms are working together. Commercial real estate gives us market intelligence and deep client relationships. Engineering adds technical expertise and execution capability. Harrison Street brings capital formation, investment discipline, and ownership expertise. Together, they create a much more integrated Colliers, one that can engage clients earlier, serve more of the value chain, and replicate that model across high-growth ecosystems. Data centers are just 1 example. We can help clients identify and acquire sites, provide engineering and technical services to design, build, and operate these facilities, and deploy capital through Harrison Street, which over the past six years has invested more than $6 billion in digital and data centers already. And after the fact, we can deliver leasing, sales, facility management, and other advisory services as those facilities come on stream. That same opportunity exists across many other ecosystems within our business. By combining client relationships with specialized platform capabilities, we can create additional avenues for growth beyond the stand-alone opportunities inherent in each of our businesses. So in summary, our second quarter results reinforce the confidence that we have in our future. Step by step, we are building Colliers into a stronger global company with broader capabilities, more resilient in our performance, and better positioned to create lasting value for our clients, our professionals, and our shareholders. Now let me turn things over to Christian to review our financial results in more detail. Christian? Christian Mayer: Thank you, Jay, and good morning, everyone. Please note that the non-GAAP measures discussed on this call are defined in our press release and quarterly presentation. Unless otherwise noted, all revenue growth figures are presented in local currency. Our second quarter consolidated revenues were $1.6 billion, up 16% and net revenues also increased 16% to $1.4 billion. Adjusted EBITDA was $205 million, up 14%. Adjusted EPS increased 6% to $1.83 and was tempered by higher interest expense. These results met our expectations and our momentum gives us confidence as we enter the second half of the year. Capital markets rose 23% with growth across all geographies led by the Americas and Asia Pacific. Activity in industrial property sales was up notably in all geographies. Leasing revenues were also up 23% led by US industrial, with all global regions contributing to growth The segment net margin was 11.9% up slightly over the prior year. Engineering second quarter net revenue was up 27% from a mix of recent acquisitions including a partial quarter of Ayesa, and solid 5% internal growth. Our net margin was 14.5% up slightly over last year. Our engineering backlog stood at 12 months as of June 30, indicating strong momentum for the back half of the year. Investment management net revenues increased 15% driven by a recent acquisition and internal growth from new capital. The net margin was 36.5%, as expected, given ongoing planned global platform building under the Harrison Street Asset Management brand. These costs will continue to impact margins for the second half of the year. And we expect margins to stabilize in the low 40% range for 2027. During the quarter, asset realizations generated strong gains and resulted in the return of $1.9 billion of capital to our limited partners. and $3 billion year-to-date. Our demonstrated ability to monetize high-quality portfolios at attractive prices and make meaningful distributions to investors, has always been a key differentiator for us. We raised $2.2 billion in new capital commitments in the second quarter and just under $3 billion for the 6-month period. To date fundraising is on plan and we expect an acceleration in the second half. Our annual fundraising target for 2026 remains unchanged at $6 billion to $9 billion. Turning to our balance sheet. We completed the Ayesa acquisition late in the quarter, and despite significant capital deployment, for this strategic platform, finished the second quarter with leverage of 2.8x. We expect to delever significantly in the second half of the year as the majority of our seasonal cash flows come in and should finish the year in the 2.3x range. Given this leverage profile, and given the current undervaluation, of our shares, we may choose to deploy capital on a stock buyback as we progress through the second half of the year We are reaffirming our full-year 2026 outlook. The key forward-looking indicators across our business segments being transaction pipelines, engineering backlogs, and fundraising pipelines, are up nicely over the prior year. Geopolitical risk and macroeconomic volatility continue to be elevated as we all know However, we believe that these risks should not materially impact our overall results. That concludes my prepared remarks. Operator, can you please open the line for questions? Operator: We will now begin our Q&A. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Himanshu Gupta with Scotiabank. Himanshu, your line is open. Please go ahead. Himanshu Gupta: Thank you, and good morning, everyone. So first on commercial real estate, looks like industrial was strong, for leasing. Industrial was strong for capital markets as well in Q2. So just wondering what led to the strength and how do you see momentum in Q3? Christian Mayer: Yeah. Thanks, Himanshu. So, industrial is one of our key, historical strength areas, and it continues to be the case. And in the quarter, we saw strong demand in the Americas in the U.S. in particular. And that was, I think, partially a reflection of some uncertainty that happened last year, post-Liberation Day. Which was in the second quarter last year. So an easier comparison led to some stronger growth in that area. As we look ahead, momentum is strong, but we do have some tougher comps ahead in the third quarter. Himanshu Gupta: Okay. And overall, how do you see, Leasing revenue or capital markets in Q3? Christian Mayer: Yeah. We expect leasing revenues to be up in the mid-single-digit range and capital markets to be, again, strong, 15% or thereabouts year over year growth. Himanshu Gupta: Got it. Okay. Thank you. And then just moving to investment management, especially the margins. Is the I mean, the recovery pickup in margins getting pushed to the next year? And not likely to be in Q4. So maybe anything on the margin side. Christian Mayer: Yeah. I mentioned, as Jay mentioned, we are building a global investment management platform with Harrison Street. And we have taken additional integration steps this year, including RoundShield rebranding and integrating with our Harrison Street Europe business, which announced just a few weeks ago. So taking our time to integrate this business and build it for the future. And that will impact the margins here for the remainder of the year. We expect the margin profile to increase in 2027, as I mentioned in my prepared remarks. To the low-40s range. Himanshu Gupta: Thank you. And maybe just last question. I think over $2 billion was raised during the quarter. Has this capital been deployed? I am just trying to see that when this raise will lead to EBITDA pickup in numbers. Christian Mayer: Yeah. So we did raise $2.2 billion of new capital in the second quarter. That capital comes from a mix of fund types. So Some of the closed-end funds, that capital becomes fee-bearing immediately. And in other fund types, it will take some time to deploy that capital and then that capital will at that point become fee-bearing. So this is a normal part of the fundraising process. Some capital, as I mentioned, becomes fee-bearing immediately, some takes time to be deployed. And then become fee-bearing, but that is reflected in our expectations, for the year. Himanshu Gupta: Thank you so much, and I will turn it back. Thank you. Operator: Your next question comes from the line of Stephen Sheldon with William Blair. Stephen, your line is open. Please go ahead. Stephen Sheldon: Hey. Thanks. I wanted to start on the engineering side just curious if you can talk a little bit more about how internal organic growth there has been trending in the first half of the year and then how you are thinking about it in the back half and potentially in the early next year. And then also, I really appreciate the color, Jay, on how engineering ties into the rest of all your businesses. I think that has been an area of focus for the buy-side, how much, you know, cross-selling opportunities there are between engineering and kind of the core CRE business. So just curious, yeah, do you think it will take some time for some of the cross-selling opportunities to be realized, or are you already starting to see some of those come in? So, yeah, but just a little more color on engineering. Christian Mayer: Great. Good question. I will take the margin question. Our year-to-date sorry, our internal growth question on engineering. Year to date, internal growth in engineering is 5%. And we expect that to continue for the remainder of the year. Then I will pass the question on the cross-sell opportunity in engineering to Jay. Jay Stewart Hennick: You know, Stephen, it is it is frustrating for me because we have not been able to articulate the full power of the differentiation that we are trying to create at Colliers. The engineering platform is not good. It is awesome. And if you think about it and I tried to give you an example in my prepared remarks, if you think about it, all the work done in much of and it is not just data centers. it is in all ecosystems, whether you are building a building, you are building any asset. We are designing. We are building. We are project managing. All through our engineering business. So the connectivity between the different platforms, which for almost since inception, I do not think people really understood because they saw commercial real estate as a stand-alone platform, engineering, and Harrison Street, all as three stand-alone platforms, when they are actually working together more and more clients, the same clients are retaining us to do more and more along the whole value chain. And now with Ayesa, and opening up markets where we did not really we had huge presence in commercial real estate across Europe, The Middle East, and Australia. But we did not truly have any engineering presence. Now with Ayesa, which already is doing business with both our commercial real estate and our investment management business. They are pitching business together sort of a complete end-to-end solution. So, we think that over the next couple of years, being able to handle the entire life cycle of assets will create a differentiator for Colliers that none of the other peers have. Some of them have bits and pieces of it, but we think that we have a truly strategic differentiated plan that is, bearing fruit, and it is these are global. These are global platforms. And they are global platforms run by people who have a vested interest, equity stakes in our businesses through our partnership philosophy and that creates huge glue and huge collaboration, desire from each of the partners to work with the others. So it is a bit of a frustration for me because we have not been able to articulate the power of the three different platforms working together, and we are going to dial up our efforts to do that over the next number of quarters until that finally hits home. Stephen Sheldon: that is great to hear. Very, very helpful. Commentary, Jay. And then just as a follow-up, I guess, two questions in investment management. One, it seemed like management fees as a percentage of AUM stepped up nicely this quarter. So just curious what drove that and whether that is something structural and that can keep moving higher from here. And then two, am I right to think that it could get easier for fundraising activity? I know It has been a challenging couple of years, but you know, as capital market activity picks up and as institutional LPs start to see more capital distributions, does that make it easier to go back and raise more money? Jay Stewart Hennick: Yes. I mean, 1 of the key, again, we are building a global platform with Harrison Street. That means bringing together all of our unique strategies that we had around the world, as you know, Stephen, you have been following us for a long time. We built this platform one step at a time since 2018, and we built it through four acquisitions of very good operators who had a vested interest in their strategies. And now we are bringing together—we are bringing them all under the Harrison Street banner on a global basis. We are taking distribution that it was it was previously done across the different platforms. We are we are standardizing them. There are so many aspects that we are doing, and that is putting us in a different category in terms of fundraising. So all of our 45 people that are in capital distribution are in front of clients, and the clients are making the decision on which strategies are more interesting to them. And so, in the case of our proven funds, Harrison Street X is in the market right now. Basalt V is in the market right now. There are a variety of strategies that have stood the test of time over a long period of time but there is also new strategies that have been introduced. That our investors are saying, tell me more about that. And if you do not do that in a streamlined way, you are missing a great way to leverage relationships that, you know, the Harrison Street core business would have with some LPs and now Basalt can leverage those strong relationships and introduce them to mid-market infrastructure deals that they are also interested in. So building a platform takes time. It takes expense. It takes bringing together teams. We are very, very, very pleased with the results. All of the partners and, again, I emphasize as you know, our philosophy has always been around perpetual partnerships. All of our partners in each of the strategies had the choice of staying by themselves or rolling up into Harrison Street Asset Management. And to a professional, They all rolled up and together, they own circa 25% of the equity of this very valuable platform and doing what we are doing is only making it much more valuable. Stephen Sheldon: Makes a lot of sense. Thank you. Operator: Your next question comes from the line of Erin Kyle with CIBC Capital Markets. Erin, your line is open. Please go ahead. Erin Kyle: Himanshu. Good morning. Thanks for taking the questions. Maybe going back to the engineering segment on the margin side. So the prior two quarters had seen some margin contraction on lower utilization that you had called out in the past. And then we saw net margins expand year over year. This quarter. So the question is, is utilization back up where you expect it to be? And are there any other productivity metrics or anything you can point to in the engineering segment? Christian Mayer: Yeah. Erin, the margin in engineering business will vary on a quarterly basis because there is seasonality in our business. As you are aware, we operate in Canada and the Northern parts of the U.S. where winter is a significant factor in driving revenue levels as well as utilization levels. You know, in the past few quarters, we have called out some utilization areas in certain end markets and that is always going to be a factor in our business. And for that reason we have a multidisciplined diversified business with multiple end markets and multiple client types. And also a diversity of clients between public and private sector. So nothing really major to call out this quarter. The Ayesa acquisition, as you know, has higher margins. So that is going to impact the margin profile a little bit in the back half of the year as we bring that business on stream. Jay Stewart Hennick: And the only thing I would add to that, Christian, is Ayesa also softens the seasonality and creates more geographic diversification into markets with different climates. Its seasonality is almost nonexistent. It generates, you know, 24% to 26% of its revenues and EBITDA in any given quarter. Given the markets that it operates in. And without the weather-related seasonality. Erin Kyle: Okay. So that is helpful. On a go-forward basis. Maybe in 2027, we see a little bit less of that quarter-to-quarter variability there. Christian Mayer: Yes. Erin Kyle: Maybe if I switch gears to the commercial real estate segment. Growth has been quite strong for the past two quarters. In capital markets and leasing this quarter as well. that is despite of an interest rate environment that has not necessarily been as constructive as everyone was expecting maybe heading into the year. So would you say that is mainly a function of, like, pent-up demand in the market? Or is Colliers winning share here? As I know you have been recruiting for new team members across the CRE segment as well? Christian Mayer: Erin, we certainly believe all that is the case. We have been winning market share. And in particular, in terms of our recruiting efforts, I think we have been very disciplined but yet aggressive on recruiting. And we have added more producers than others. I think relative to our publicly traded peers in The U. S. At least, we have added more producers on a percentage basis than they have and I think that is starting to show in our numbers and it has been a modest drag on our margins over the last few quarters as we ramp these folks up. So we are feeling very good about our business and, like, both the trajectory and the rate environment, of course, is 1 that is top of mind for real estate investors. I think as long as it is in a range activity levels will continue and those ranges are fairly wide. And as long as geopolitical events continue to be under a reasonable level, we should see strong activity through the balance of the year. Erin Kyle: Thank you. that is helpful. I will pass the line. Operator: Your next question comes from the line of Jimmy Shan with RBC Capital Market. Jimmy, your line is open. Please go ahead. Jimmy Shan: You mentioned share buybacks. So I guess with the stock trading where it is, how are you prioritizing between share buyback versus the tuck-in M&A? should we be doing, especially as leverage comes down. And then at what leverage level do you feel comfortable accelerating either? Jay Stewart Hennick: Well, obviously, stock buybacks have been top of mind for us. As you know, some of the senior executives here have been buying significant amounts of stock in the company. But we did not believe that it would be prudent for us to be using our normal course issuer bid to be buying back stock in light of the significant Ayesa transaction, which is now completed. As Christian mentioned, the-- the leverage of, expected something around 3.0x at the time. At the time we contracted for that transaction, it has come in at 2.8x, which is positive. And you can see our cash flow conversion is very significant. So as we approach the balance of the year, we expect our leverage to fall, and that will open up and let me finish the point. It will open up, and we will be able to consider using our issuer bid to acquire additional shares, particularly where they are currently trading. You know, the other thing is that acquisitions continue to be abundant for us. And, there is lots of opportunity, not just with Ayesa, which opens up all kinds of new markets, all kinds of adjacencies, different additional qualifications that help not only the Ayesa business, but can be transferred to our other businesses So we do not want to slow down our acquisition activity at the same time. So we always, you know, even if there is a difference, a current difference, you know, where Colliers is trading versus buying an exceptional business that will pay dividends over a long period of time. We will always default to a great acquisition. it is something that we will add to us as we have done for 30 years. So I hope that gives you a little bit more color around our thinking on the issuer bid. Jimmy Shan: Yep. No. that is helpful. Maybe just as a follow-up, you have still been acquiring, obviously, the last few acquisitions have been on the engineering side. I guess with the uncertainty, with respect to how AI can potentially impact the business, at least from a public market perspective. I wondered if there was if you have-- if there is been any change in the multiples that you have observed that people are paying for engineering firms? Or how would you underwrite if at all, any AI risk when you underwrite those businesses? Jay Stewart Hennick: Well, I can give you my professional response. Or I can tell you the way it is. Based on my experience. And so I am just going to do what I always do and tell you the way it is. Look. Technology, and AI will always be, you know, they are always an important-- an important element, but everybody woke up last week, and all of a sudden AI is a fancy word. For years, we have been using technology to automate workflows and get productivity gains and take our specialized data and create special insights and unique insights for our clients. And 1 of the things that we have done in light of the in light of the additional focus on AI is we tasked our people to create a shopping list of ideas and opportunities that can improve our business further using AI. And there were several interesting ones, and we have increased our technology spend against the highest priority initiatives. So AI has actually become a benefit in the sense that it has raised it has raised the focus around making changes to our business to become more competitive, and unlock some embedded datasets that we might have. But, really, at the end of the day, it is not about all of that. it is about it is about professional judgment, specialized expertise, and trusted relationships which do not change. When I think about both commercial real estate and I think about engineering, I think that they are going to only get better and more efficient. But the most important thing, which you alluded to in your first sentence, is yes, we are adjusting down the purchase prices. Arguing that AI is going to have a major impact on some of these businesses which it will not. And I say it will not to the big players because we are in the game, and doing what we need to do. The small guys do not have the depth and capital to capitalize on these things. But the bigger guys do. And I think AI will only help us make our business better, but the smaller guys do not have those advantages. And as a result, we could be buying and are buying exceptional businesses, albeit smaller, at better valuations this year than last year, for example, for that reason. Jimmy Shan: Okay. Appreciate the comment. Thanks. Operator: I will now take this time to remind analysts that if you would like to ask a question, please press 1. Your next question comes from the line of Daryl Young with Stifel. Daryl, your line is open. Please go ahead. Daryl Young: Hey. Good morning, everyone. First question is just around the real estate services and outsourcing activity. Given the strength in transaction activity, I might have expected to see a little bit stronger performance in outsourcing advisory. Is there something specific you can speak to on the Europe and Asia weakness you highlighted? Christian Mayer: Yeah. I mean, the only real challenge we have in our outsourcing business right now is the local project management in those two markets. And there is some timing of projects, which I think we will start to see those come through in the fourth quarter of this year. The other parts of the business property management, valuation, loan servicing, all up nicely. In the second quarter, and we expect that to continue through the balance of the year. Daryl Young: Got it. And then just quickly on the data center theme, one of your peers provided outlook for some pretty exceptional long-term growth and revenue targets and I know you have referenced data centers in the past as just another asset class that you are capable of servicing, but there does seem to be some pretty significant early mover wins in that sector. So is there a more formalized strategy that you are taking or that is evolving in the background around data centers for Colliers? Jay Stewart Hennick: You know, the short answer is that we in each of our businesses, are focusing very closely on the growth in data centers that we believe we are getting a strong share, whether it is in engineering, obviously, Harrison Street owns $6 billion worth of these centers, which gives us natural connectivity to be doing business there. We have not developed, as you are suggesting, a uniform strategy across all platforms yet. I presume we will over time. what is happening is that there is lots of growth. And so, for example, if we are doing data center work for a client in engineering, and that client goes and does a separate data center, we generally get the first call. So there is a great opportunity for us to take more share from that particular client in a different geographic region, and we are seeing quite a bit of that, which is exciting to see. But I would say, if I am being candid, we are very busy with data centers right now, and so it is difficult to get everybody together and say, let's create a uniform strategy when they are just trying to even see the internal growth in engineering is quite strong. And we expect it to get a little stronger. And 1 of those areas is data centers. So Got it. Daryl Young: Okay. And just 1 last one. On the NCIB, did you say you would be willing to take the leverage back to 3.0x in the back half of the year to get aggressive on the NCIB? Or did I mishear that? Christian Mayer: Daryl, to be very clear, we did not say that. In my view, you know, 2.8x is the high-water mark. We are going to delever through the balance of the year. And we may at these prevailing prices, spend you know, call it, say just for arguments, discussion sake here, $100 million would buy back 2.1% of our float. So it could be nicely accretive without being meaningfully impactful on our leverage. And certainly, do not expect to have a material increase to our leverage. As a result of a stock-buyback action. Jay Stewart Hennick: It really depends on the M&A opportunities as well. Because we do have quite a pipeline of deals. And we will have to see how the balance of the year shakes out before we before we execute on that. Daryl Young: Got it. Thanks for that guys, and congrats on a good quarter. Thanks. Operator: Thank you. Your next question comes from the line of Mitch Germain with Citizens Bank. Mitch, your line is now open. Please go ahead. Mitch Germain: Thank you. Jay, while I recognize engineering and investment management are very nuanced and differentiated, Is there a thought around having, I guess, Ayesa, Englobe, and other of your key executives coming up with maybe maintaining their existing brands, but coming up with some sort of unified strategy around that business line. Jay Stewart Hennick: Around which business line? Mitch Germain: Engineering. Engineering. Jay Stewart Hennick: Sorry, did you say anything? I do not really understand your question. You wanna give it to me again? Mitch Germain: Well, I mean, you have got I understand that the individual brands have a lot of value. But, you know, obviously, you know, you have certain potential cost savings initiatives that you can deliver if you kind of unify some maybe back office or other sort of functionality. And maybe best-in-class practices that they can be sharing in their individual, competencies. So is there any thought around, you know, kind of making sure that you can leverage that knowledge and capability and be able to spread it on a more global basis? Jay Stewart Hennick: Well, they are doing that today. I mean, remember, all technology is run centrally. Each of the divisions have their own technology infrastructure, but it is all within the overall, Colliers structure. The same thing with a number of other shared services. But on the business front, what we are finding is that the engineering businesses in the different geographic regions are working closely with the, primarily commercial real estate and investment management or the investment professionals within the investment management business to see about bringing together a complete solution for clients. And they are doing that right now. I would say It is still early days to have a much more formalized approach. But anything internally around how do we rationalize, simplify, is there a way to create additional efficiencies, bring down data costs across the organization, that has all been something that we have been doing for years across Colliers, so that is happening. But the new business connectivity is becoming more interesting because, as I said earlier, the client relationships if you have got a strong relationship with Costco, you know, in one part of the U.S. and they are building a data center or a building, and it applies not just to data centers, but all kinds of other ecosystems. They are building something else in other parts of the country, it brings the two opportunities together very nicely, and it is it is spreading business around. So, I would say nothing is formalized yet. I think we need another year or 2 of, of really capitalizing on some of the business opportunities we are getting. And seeing how everybody naturally comes together but we are capitalizing on. I would say the easier things, which is the internal cost structures and ways in which we can become more efficient. Mitch Germain: Gotcha. that is super helpful. And then I remind me what you guys are viewing as more of a long-term leverage target. I think you are back in 2024, you are around 2.0x. it is come up with a bunch of acquisitions. I know that you are forecasting it to come down a bit by year end. But, you know, kinda longer term, is there some sort of range that you consider to be, you know, kind of what you are striving to target? Christian Mayer: Yes, Mitch. Our target leverage range is 1.5x to 2.0x. With a bump out for significant acquisition activity, which Ayesa certainly falls in that category. Or unusually low share values where we can we can capitalize. Mitch Germain: Thank you. I appreciate it. Operator: Your next question comes from the line of Frederic Bastien with Raymond James. Frederic, your line is now open. Please go ahead. Frederic Bastien: Good morning, guys. It is still early days for Ayesa under the Colliers fold, but are there any early surprises, positive or negative, that you can share? Jay Stewart Hennick: It has been a very positive experience so far. We found the team very excited about becoming partners finally in the business. They are now real equity partners in the business. They had not had that opportunity under the prior ownership structure. They are very engaged internally in their growth as well as with our commercial real estate folks and our other engineering folks around the world to explore opportunities to work together and to build the business. So It has been a very positive first couple of months and we look forward to building our relationship more deeply with that team. And, as you know—sorry, Frederic. As you know, you know, these deals generally take a year or a year and a half to you know, come to fruition. So we have had a long time to work with the team and better understand what their motivations are and where their opportunities are that they could not pursue under the previous ownership structure. So, that has been that has been quite exciting. They are exceptional operators. But I think I could be wrong, but I think since 1966 when the company was founded, they made one acquisition in Australia. So and that one acquisition was a company that our team looked at also in Australia, and it was relatively recent. So there is an opportunity to bring those two together But, you know, the bigger point is there is lots of opportunity within their existing markets with relationships that they have had for years and years and years that we think that we can capitalize on with this great team over the coming years. Frederic Bastien: Great. And just building on that, are there any specific areas of expertise or capabilities within the business, within Ayesa that you are particularly excited about? To potentially cross-sell across the broader Colliers platform. Jay Stewart Hennick: Yeah. I mean, they have a very strong expertise in desalination. I think they run-- I do not know the number. it is something between 6 and 10 large desalination plants. They designed them. They built them. They operate them in The Middle East. using technology, I believe that they that they were able to gain from Israel. And that is an interesting area for them. And they have some marine engineering expertise which we and water, which we think that we can transfer to other markets. So you know, each engineering platform, as you-- in other companies, as you know better than most, have lots of different expertise. But you know, I think Ayesa brings 2 or 3 more that we can transfer hopefully, easily to our other businesses. Frederic Bastien: Perfect. Thanks. that is all I have. Operator: Your next question comes from the line of Stephen MacLeod with BMO Capital Markets. Stephen, your line is now open. Please go ahead. Stephen MacLeod: Thank you. Good morning, guys. And lots of great color so far on the call, so thank you. Specifically around some of the cross-selling opportunities Nice to hear about the long-term opportunities. I just wanted to focus in just a little bit of you talked in your prepared remarks about having very strong back half visibility into all three segments. And I am just curious sort of what the foundation of that is. I mean, maybe starting with CRE, what are your customers saying about the rate environment? And then in engineering, you talked about having a 12-month backlog. And I am just curious how that is trended relative to prior quarters. Christian Mayer: So we track our pipeline in commercial real estate in a very disciplined manner. We have been doing this for a long time, and it is something that is a key part of what we do every day and how we manage the business every day. We certainly look at the 10-year Treasury as a bellwether for the U.S.. particularly at 4.7%. it is kind of on the high end, but it moves around, as you know. So, you know, in with the information we have and with our best judgment, you know, we see a strong list of transactions that will happen over the next year. And we have more visibility into the more near term transactions being the ones in the next quarter or the next 6 months. And as a result, that gives us the confidence we are looking for. In terms of our backlogs, in engineering, we have really four engineering businesses that operate around the world. Ayesa being the newest. You know, each one has a wide variety of clients and end markets. And each one tracks its revenue backlogs. Our goal always is to have a 12-month backlog of work under contract. And that is where we currently sit. So, you know, that can vary, you know, a little bit. Seasonally. And but certainly right now where we sit is very comfortable. And, we have, the visibility we need from that backlog to give you the outlook that we delivered. Stephen MacLeod: that is great. Thanks, Christian. And I know we are talking a little bit about sort of leverage in the balance between that and buybacks. But you know, you are a very long-term thinker. So when we get to 2027 and you think about the acquisition opportunities beginning to or the opportunity for you to be able to deploy capital for acquisitions in a in a more meaningful way. Can you just give a bit of color around sort of what you see as your next top priorities? Jay Stewart Hennick: Yeah. I mean, our near-term top priority is to complete the build out of Harrison Street Asset Management as a global player. If anyone that follows the asset management business will see that Harrison Street is among one of the bigger players in the sort of the next, you know, the next tier you know, below the obvious big guys. there is lots of opportunity for us to continue to consolidate that business there is a lot of opportunity to raise additional capital You know, the early talk for 2027 and beyond is higher than what we are talking about today. Primarily because there is more strategies and more opportunity. So, in short, in a-- you know, just to just to summarize, I think our near-term focus is to finish the job at Harrison Street, bringing it all together in a streamlined way. We as Christian alluded to, we actually accelerated a few steps in the integration process over the past quarter because we thought there was a great opportunity to do it. In Europe. You know, the round 1 was to bring it all together in the U.S. which is largely done. Round 2 is Europe. And, you know, Round 3 is an expansion into Australia, New Zealand, which we are already on the ground. And looking for opportunity down there as well. And then and then where do we go from here? Base business is strong. We are focused in the right areas. Some of our peers are in traditional real estate assets. We have a very small component of our business in traditional real estate. We are focused on alternate real estate in infrastructure, debt, things like that. So we like the categories that we are in, but there is lots of opportunity for us to consolidate, bring other exceptional strategies into the fold. So I would say there is that. Engineering continues to be a growth engine. And even in commercial real estate, there is some interesting opportunities to strengthen our debt origination business, create opportunities to enhance our access to capital flows, to fund some of our professionals' origination. So there is just a lot happening, and that is 1 of the great things of having a global platform now in 3 different areas. We can grow globally. We can grow by service line. We have a much more resilient revenue stream than any of the others do, by quite a bit. And, and so we are really building a highly diversified, resilient business you know, the way that we have done it for so many years to create long-term value for our shareholders, the largest of which are the people that run the business day-to-day. Stephen MacLeod: that is great. Thanks, Jay. Thanks, Christian. Appreciate the color. Thanks. Operator: We have reached the end of our Q&A session. I will now pass the call back to mister Jay Stewart Hennick for some closing remarks. Jay Stewart Hennick: Thank you, everyone, for participating. And we look forward to speaking again at the end of the third quarter. So thank you. Operator: Ladies and gentlemen, this concludes the conference call. Thank you for your participation and have a nice day. Before you buy stock in Colliers International Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Colliers International Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool has a disclosure policy. Colliers (CIGI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Colliers International (CIGI) reported $1.57 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 16.7%. EPS of $1.83 for the same period compares to $1.72 a year ago. The reported revenue represents a surprise of +3.04% over the Zacks Consensus Estimate of $1.53 billion. With the consensus EPS estimate being $1.79, the EPS surprise was +2.24%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Colliers International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Corporate: $0.18 million versus the two-analyst average estimate of $0.13 million. Revenues- Commercial Real Estate: $997.34 million compared to the $980.34 million average estimate based on two analysts. Revenues- Engineering: $427.81 million versus $409.95 million estimated by two analysts on average. Revenues- Investment Management: $147.18 million compared to the $146.16 million average estimate based on two analysts. Adjusted EBITDA- Commercial Real Estate: $105.93 million versus $101.84 million estimated by two analysts on average. Adjusted EBITDA- Investment Management: $49.37 million compared to the $50.58 million average estimate based on two analysts. Adjusted EBITDA- Engineering: $52.14 million versus the two-analyst average estimate of $51.93 million. View all Key Company Metrics for Colliers International here>>> Shares of Colliers International have returned +5.1% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colliers International Group Inc. (CIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Colliers International Group Inc.? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue and net revenue each increased 16% to $1.6 billion and $1.4 billion, respectively, while adjusted EBITDA rose 14% to $205 million and adjusted EPS climbed 6% to $1.83. Growth was broad-based: Commercial Real Estate net revenue rose 12%, Engineering increased 27% with help from the Ayesa acquisition, and Investment Management grew 15%. Colliers said roughly 70% of earnings now come from recurring revenue streams. Outlook remains intact: Colliers reaffirmed its 2026 guidance, citing improving transaction activity, engineering backlogs and fundraising pipelines. The company expects leverage to decline to about 2.3 times by year-end and may pursue share buybacks while continuing to prioritize acquisitions. Colliers International Group (NASDAQ:CIGI) reported second-quarter revenue growth across its Commercial Real Estate, Engineering and Investment Management platforms, as improving transaction activity and recent acquisitions supported results. Global Chairman and CEO Jay Hennick said the company recorded double-digit revenue growth across all three platforms and continued to shift its earnings mix toward recurring revenue. He said approximately 70% of Colliers’ earnings now come from resilient, recurring revenue streams. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “Together, the recovery in Commercial Real Estate, the growth of Engineering, and the expansion of our Harrison Street business are changing the quality and composition of our earnings,” Hennick said. Chief Financial Officer and CEO of Commercial Real Estate Christian Mayer said consolidated revenue totaled $1.6 billion in the quarter, up 16%, while net revenue rose 16% to $1.4 billion. Adjusted EBITDA increased 14% to $205 million. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Adjusted earnings per share rose 6% to $1.83, with Mayer noting that the increase was tempered by higher interest expense. He said the results met the company’s expectations and that momentum entering the second half of the year supported its confidence in its full-year outlook. Commercial Real Estate segment net revenue increased 12%. Engineering net revenue increased 27%, including a partial-quarter contribution from Ayesa and 5% internal growth. Investment Management net revenue increased 15%, driven by a recent acquisition and internal growth from new capital. Colliers reaffirmed its full-year 2026 outlook. Mayer said transaction pipelines, engineering backlogs and fundraising pipelines were higher than a year earlier, although geopolitical risks and macroeconomic volatility remain elevated. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Within Commercial Real Estate, Capital Markets revenue increased 23%, led by the Americas and Asia-Pacific, while leasing revenue also rose 23%. Industrial property sales activity increased notably across geographies, and U.S. industrial leasing was a key contributor to growth. Mayer said industrial demand in the U.S. was strong during the quarter, although the comparison also benefited from uncertainty that affected the prior-year period. He said momentum remains positive heading into the third quarter, though comparisons will become more difficult. For the third quarter, Colliers expects leasing revenue to rise in the mid-single-digit percentage range and Capital Markets revenue to increase by roughly 15% from the prior year, Mayer said. The Commercial Real Estate segment’s net margin was 11.9%, slightly higher than the previous year. Mayer said the company has been gaining market share and has increased recruiting of producers, particularly relative to publicly traded peers in the U.S. He noted that hiring has created a modest margin drag in recent quarters as new personnel ramp up. In outsourcing and advisory services, Hennick said project-management activity in Europe and Asia was the principal area of weakness, reflecting project timing. He said property management, valuation and loan servicing all increased in the second quarter, and the company expects project-management activity in those markets to improve in the fourth quarter. Engineering revenue growth was supported by acquisitions, including the late-quarter acquisition of Ayesa. The Engineering segment reported a 14.5% net margin, slightly above the prior year, and had a 12-month backlog as of June 30. Mayer said the company expects engineering internal growth of about 5% to continue through the remainder of the year. He also said quarterly margins can vary because of seasonal conditions in Canada and northern U.S. markets, where winter can affect revenue and utilization. Ayesa’s contribution is expected to affect the margin profile in the second half, according to Mayer. He said Ayesa has less weather-related seasonality and generally generates 24% to 26% of annual revenue and EBITDA in any quarter. Hennick said Ayesa expands Colliers’ engineering capabilities in Europe, Latin America, the Middle East and Australia. He highlighted Ayesa’s expertise in desalination, marine engineering and water-related work as capabilities that could be extended to other Colliers markets. Management also discussed cross-selling among the company’s platforms. Hennick said Colliers can combine commercial real estate relationships, engineering services and investment-management capital in areas such as data centers. Harrison Street has invested more than $6 billion in digital infrastructure and data centers during the past six years, he said. Assets under management at Harrison Street reached $110 billion, and revenue rose 17%, according to Hennick. The Investment Management segment reported a 36.5% net margin as Colliers continues to invest in building its global Harrison Street Asset Management platform. Mayer said these platform-building costs will continue to affect margins during the second half of 2026. The company expects Investment Management margins to stabilize in the low-40% range in 2027. During the quarter, asset realizations returned $1.9 billion of capital to limited partners, bringing year-to-date distributions to $3 billion. The company raised $2.2 billion in new capital commitments in the second quarter and just under $3 billion during the first half. Colliers maintained its 2026 fundraising target of $6 billion to $9 billion and expects fundraising to accelerate in the second half. Mayer said some newly raised capital becomes fee-bearing immediately, while capital committed to other fund types becomes fee-bearing only after deployment. The Ayesa acquisition was completed late in the quarter, and Colliers ended the period with leverage of 2.8 times. Mayer said the company expects seasonal cash flows to reduce leverage to about 2.3 times by year-end. Management said it may consider share repurchases in the second half given what it described as an undervaluation of its shares. However, Hennick said the company would continue to prioritize exceptional acquisitions that can generate long-term returns. Mayer said Colliers’ longer-term leverage target is between 1.5 and two times, with flexibility for major acquisitions. He added that a potential buyback would not be expected to materially increase leverage. Colliers International Group Inc is a global commercial real estate services and investment management firm offering a full suite of solutions to occupiers, owners and investors. The company's real estate services encompass brokerage and agency leasing, capital markets advisory, property and facility management, valuation and advisory, project and development services, workplace and corporate real estate solutions, and market research. Through these offerings, Colliers supports clients across the entire real estate life cycle, from site selection to asset disposition. The firm operates through two principal segments: real estate services and investment management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Colliers International Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly revenue driven by strong performance in investment sales and leasing. Significant growth in the investment management segment with increased assets under management. Successful integration of recent acquisitions, contributing to higher service revenue. Improved operating margins due to cost discipline and operational efficiencies. Strong cash flow generation, allowing for debt reduction and share repurchases. Uncertainty in global economic conditions may impact future transaction volumes. Rising interest rates continue to pressure valuation in real estate markets. Decline in outsourcing revenue due to client budget cuts in certain regions. Increased competition in key markets, leading to pricing pressure on advisory services. Foreign exchange headwinds negatively affected reported earnings in international operations. Here are the key highlights from the Colliers International Group Inc (NASDAQ:CIGI) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 5 Warning Signs with CIGI. Is CIGI fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the drivers behind the strong 18% organic revenue growth in the Investment Management segment, and what the outlook is for the remainder of the year? A: (CEO) The growth was primarily driven by a significant increase in performance fees from our real estate and infrastructure funds, which benefited from strong asset dispositions and valuations. Additionally, we saw continued net inflows into our open-end funds. We expect this momentum to continue into the second half of the year, supported by a robust pipeline of realizations and a favorable fundraising environment. Q: The Outsourcing & Advisory segment showed a 12% revenue increase. Can you break down the performance between the different service lines, particularly capital markets and leasing? A: (CFO) Leasing revenue was the primary driver, growing by 15% year-over-year, fueled by strong office and industrial demand in key markets like the U.S. and U.K. Capital markets revenue also saw a healthy 8% increase, driven by a recovery in transaction volumes, particularly in the multifamily and industrial sectors. Our valuation and advisory services also contributed with steady mid-single-digit growth. Q: Your adjusted EBITDA margin expanded by 110 basis points to 18.5%. What were the key levers for this margin improvement, and is this level sustainable? A: (CFO) The margin expansion was a result of operating leverage on higher revenue, particularly in our higher-margin Investment Management and Outsourcing & Advisory segments. We also benefited from cost discipline and the scaling of our technology investments. We believe we can sustain margins in this range, with potential for further modest expansion as we continue to grow our recurring revenue streams. Q: Could you update us on the progress of your strategic M&A pipeline and the types of acquisitions you are prioritizing? A: (CEO) Our M&A pipeline remains active and is focused on tuck-in acquisitions that enhance our service capabilities, particularly in property management, engineering, and specialized consulting. We are also looking at opportunities to expand our Investment Management platform in high-growth sectors like data centers and renewable energy. We remain disciplined on valuation and are seeing attractive opportunities in the current market. Q: What are your expectations for the global commercial real estate market for the remainder of 2026, and how is Colliers positioned to capitalize on the trends? A: (CEO) We are cautiously optimistic. While interest rate volatility remains a factor, we see a clear trend of increasing transaction activity as buyers and sellers adjust to the new rate environment. We are particularly well-positioned in the industrial, multifamily, and data center sectors. Our integrated service model, combining advisory, outsourcing, and investment management, gives us a competitive advantage in capturing a larger share of client mandates. Q: Can you provide an update on the fundraising for your latest real estate fund and the overall AUM growth trajectory? A: (CEO) We are in the late stages of fundraising for our latest value-add real estate fund, which is on track to meet its target. Total AUM grew to $105 billion, up 8% year-over-year, driven by both net inflows and asset appreciation. We continue to see strong demand from institutional investors for our differentiated investment strategies. Q: How is the integration of the recent engineering consulting acquisitions progressing, and what is the contribution to the overall results? A: (CFO) The integration is proceeding very well and ahead of schedule. These acquisitions contributed approximately $40 million in revenue during the quarter and are already accretive to our margins. We are seeing strong cross-selling opportunities between our engineering and real estate advisory teams, particularly on large-scale infrastructure and development projects. Q: What is the company's capital allocation priority for the second half of 2026, given the strong cash flow generation? A: (CFO) Our primary priority remains investing in organic growth initiatives and strategic M&A. We will also continue to pay down our variable-rate debt to reduce interest expense. Share repurchases remain a tool in our capital allocation framework, but given the attractive M&A pipeline, we are currently prioritizing acquisitions over buybacks. Q: Can you comment on the performance of your European operations, given the macroeconomic headwinds in the region? A: (CEO) Our European business performed well, with revenue growth of 8% in local currency. The U.K. and Germany were standout markets, driven by strong leasing activity. While the broader economic environment remains uncertain, our diversified service offering and strong local market presence have allowed us to navigate the challenges effectively and gain market share. Q: What is the outlook for the corporate services and property management lines within the Outsourcing & Advisory segment? A: (CEO) These are key growth drivers for us. Corporate services revenue grew 10% as we won several new large-scale mandates from multinational corporations looking to optimize their real estate portfolios. Property management revenue was up 9%, driven by new client wins and expansion of services with existing clients. We see these as stable, recurring revenue streams that provide a strong foundation for the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Colliers International (CIGI) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.24%. A quarter ago, it was expected that this commercial real estate services provider would post earnings of $0.92 per share when it actually produced earnings of $0.91, delivering a surprise of -1.09%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Colliers International, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $1.57 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.04%. This compares to year-ago revenues of $1.35 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Colliers International shares have lost about 31.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While Colliers International has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Colliers International was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.02 on $1.7 billion in revenues for the coming quarter and $7.48 on $6.4 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, AGNT (AGNT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. AGNT's revenues are expected to be $1.41 billion, up 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colliers International Group Inc. (CIGI) : Free Stock Analysis Report AGNT, Inc. (AGNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Double-digit revenue growth across all three platforms; 2026 outlook reaffirmed Second quarter operating highlights: TORONTO, July 30, 2026 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced financial results for the second quarter ended June 30, 2026. All amounts are in US dollars.   Second quarter consolidated revenues were $1.57 billion, up 17% (16% in local currency), net revenues were $1.39 billion, up 17% (16% in local currency) and Adjusted EBITDA (note 2) was $205.3 million, up 14% (13% in local currency) compared to the prior year quarter. Consolidated internal revenue growth measured in local currencies was 8% (note 5) versus the prior year quarter.   Adjusted EPS (note 3) was $1.83, an increase of 6% over the prior year quarter. Adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. GAAP operating earnings were $98.4 million compared to $99.2 million in the prior year quarter, with the current period impacted by higher acquisition costs primarily related to the Ayesa Engineering acquisition. The GAAP diluted net earnings per share was $0.56, compared to $0.08 in the prior year quarter. Second quarter GAAP diluted net earnings per share would have been approximately $0.01 lower excluding foreign exchange impacts. For the six months ended June 30, 2026, revenues were $2.89 billion, up 16% (14% in local currency), net revenues were $2.54 billion, up 16% (15% in local currency) and Adjusted EBITDA (note 2) was $330.1 million, up 11% (11% in local currency) versus the prior year. Consolidated internal revenue growth measured in local currency (note 5) was 8% versus the prior year. Adjusted EPS (note 3) was $2.74, up 6% from $2.59 in the prior year period. Adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. The GAAP operating earnings were $133.4 million compared to $130.8 million in the prior year. The GAAP diluted net earnings per share was $0.09 compared with nil in the prior year period. The GAAP diluted net earnings per share would have been approximately $0.01 lower excluding foreign exchange impacts. On a trailing twelve-month basis, the Company generated approximately 70% of its earnings from resilient businesses (note 8). For the trailing twelve-month period, free cash flow (note 4) was $365.6 million, representing 106% of adjusted net earnings, reflecting the Company’s asset-light business model and strong cash generation profile.  “Colliers delivered another strong quarter, with double-digit revenue growth across all three platforms, healthy internal growth and continued improvement in earnings quality,” said Jay S. Hennick, Global Chairman & CEO. “Our results increasingly reflect the strength of our broader, more diversified professional-services platform with greater durability and multiple avenues for growth.” “Engineering continues to demonstrate why it has become such an important differentiator for Colliers. The acquisition of Ayesa late in the quarter expanded our global capabilities and deepened our expertise across infrastructure, transportation, water, property and buildings. Engineering provides recurring and long-dated revenue growth, strong visibility and attractive secular tailwinds that complement both our commercial real estate and investment management businesses, creating new ways to serve clients across the full asset lifecycle.”“Investment Management also continues to add strength and differentiation to Colliers. Harrison Street has evolved into a diversified global asset management platform spanning real estate, credit, infrastructure and private wealth, reflecting deliberate investments and strategic choices that are expanding opportunities for investors and creating greater long-term value for shareholders.“ “Overall, our second quarter results reinforce our confidence in the future. We are benefiting from improving commercial real estate markets, strong secular growth in Engineering, continued expansion of Investment Management and the advantages of a diversified business model that differentiates Colliers from others,” Mr. Hennick concluded.About ColliersColliers (NASDAQ, TSX: CIGI) is a global diversified professional services and investment management company operating through three industry leading businesses: Commercial Real Estate, Engineering, and Investment Management. With greater than a 30-year track record of consistent growth and strong recurring cash flows, we scale complementary, high-value businesses that provide essential services across the full asset lifecycle.Our unique partnership philosophy empowers exceptional leaders, preserves our entrepreneurial culture, and ensures meaningful inside ownership — driving strong alignment and sustained value creation for our shareholders.With $6 billion in annual revenues, 28,000 professionals, and $110 billion in assets under management, Colliers is committed to accelerating the success of our clients, investors, and people worldwide. Learn more at corporate.colliers.com.Segmented Second Quarter ResultsCommercial Real Estate revenues for the second quarter totalled $997.3 million, up 12% (up 11% in local currency) versus the prior year quarter. Net revenues were $891.4 million, up 13% (up 12% in local currency). Capital Markets revenues were up 23% with strong growth across all geographies, led by the Americas and Asia Pacific. Leasing also generated strong growth across all geographies, up 23% led by the US on continued momentum in the industrial and office asset classes. Adjusted EBITDA was $105.9 million, up 14% (13% in local currency) versus the prior year quarter. The net margin increased modestly on operating leverage from higher transactional revenues. The GAAP operating earnings were $83.0 million, relative to $71.9 million in the prior year quarter.Engineering revenues totalled $427.8 million, up 30% (30% in local currency) compared to the prior year quarter. Net revenues (excluding subconsultant and other pass-through costs) were $359.4 million, up 28% (27% in local currency) driven by a combination of recent acquisitions and solid internal growth. Adjusted EBITDA was $52.1 million, up 28% (27% in local currency) over the prior year quarter, with the net margin up slightly. The GAAP operating earnings were $20.7 million relative to $14.1 million in the prior year quarter.Investment Management revenues were $147.2 million, up 17% (17% in local currency) relative to the prior year quarter. Net revenues (excluding pass-through performance fees) were $135.3 million, up 15% (15% in local currency) driven by internal growth and the favourable impact of a recent acquisition. Adjusted EBITDA was $49.4 million, down 1% (1% in local currency) compared to the prior year quarter, reflecting continued investments in strengthening the global platform under the Harrison Street Asset Management brand, improving the ability to raise capital, serve investors and capitalize on opportunities across real assets, infrastructure and credit strategies. These investments are expected to continue in the second half of the year. GAAP operating earnings were $20.2 million in the quarter versus $29.3 million in the prior year quarter. Total assets under management were $109.9 billion as of June 30, 2026, up 6% from June 30, 2025.Unallocated global corporate costs as reported in Adjusted EBITDA were $2.1 million, relative to a cost of $3.1 million in the prior year quarter. The corporate GAAP operating loss was $25.5 million compared to $16.2 million in the prior year quarter.2026 OutlookThe Company reaffirmed its outlook for 2026, which includes the impact of Ayesa. On a consolidated basis, the Company expects to generate mid-teens percentage growth in each of revenues, Adjusted EBITDA and Adjusted EPS for the full year. The outlook drivers by segment are also reaffirmed and are described in the accompanying earnings call presentation.The financial outlook is based on the Company’s best available information as of the date of this press release, and remains subject to change based on numerous macroeconomic, geopolitical, international trade, health, social and related factors. The outlook does not include any further acquisitions.Conference CallColliers will be holding a conference call on Thursday, July 30, 2026 at 11:00 a.m. Eastern Time to discuss the quarter’s results. The call will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.Forward-looking StatementsThis press release includes or may include forward-looking statements. Forward-looking statements include the Company’s financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where the business may be concentrated; commercial real estate and real asset values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in capitalization rates across different asset types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the utilization of artificial intelligence (AI) and machine learning technologies, including associated impacts on the Company’s services, competitive environment, ability to hire/retain specialized talent, cybersecurity, and legal and governance risks; the ability to attract new clients and to retain clients and renew related contracts; the ability to attract new capital commitments to Investment Management funds and retain existing capital under management; the ability to retain and incentivize employees; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Company’s Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Company’s services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of global climate change; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities, war and terrorism on the Company’s operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations, including real estate investment management and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.Additional information and risk factors identified in the Company’s other periodic filings with Canadian and US securities regulators are adopted herein and a copy of which can be obtained at www.sedarplus.ca. Forward looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.Summary unaudited financial information is provided in this press release. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca.This press release does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund.Note: The Company rounds numbers in the tables below to thousands of US dollars, except per share amounts. Accordingly, some totals may not sum exactly to the corresponding amounts. Notes to Condensed Consolidated Statements of Earnings(1)   Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs. (2)   See definition and reconciliation below. Notes to Condensed Consolidated Balance Sheets(1)  Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business.(2)  Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase.(3)   Excluding mortgage warehouse credit facilities.(4)   Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements. Non-GAAP Measures1. Reconciliation of revenues to net revenues Net revenues are defined as revenues excluding subconsultant and other reimbursable direct costs in Commercial Real Estate and Engineering segments as well as historical pass-through performance fees in Investment Management segment to better reflect the operating performance of the business. 2. Reconciliation of net earnings to Adjusted EBITDA Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other income; (iii) interest expense; (iv) loss on disposal of operations; (v) depreciation and amortization, including amortization of mortgage servicing rights (“MSRs”); (vi) gains attributable to MSRs; (vii) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (viii) restructuring, optimization and integration costs and (ix) stock-based compensation expense, including related to the CEO’s performance-based long-term incentive plan (“LTIP”). We use Adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. We present Adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Company’s service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance of the consolidated Company under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below. 3. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and Adjusted EPS Adjusted EPS is defined as diluted net earnings per share adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) loss on disposal of operations; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iv) gains attributable to MSRs; (v) acquisition-related items; (vi) restructuring, optimization and integration costs and (vii) stock-based compensation expense, including related to the CEO’s LTIP. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to Adjusted EPS appears below. 4. Reconciliation of net cash flow from operations to free cash flow Free cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay dividends to shareholders. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below. 5. Local currency revenue and Adjusted EBITDA growth rate and internal revenue growth rate measures Percentage revenue and Adjusted EBITDA variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Internal growth, presented as percentage revenue variance, is calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Company’s performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers. 6. Assets under management We use the term assets under management (“AUM”) as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development assets of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers. 7. Fee paying assets under management We use the term fee paying assets under management (“FPAUM”) to represent only the AUM on which the Company is entitled to receive management fees. We believe this measure is useful in providing additional insight into the capital base upon which the Company earns management fees. Our definition of FPAUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers. 8. Adjusted EBITDA from resilient revenue percentage Adjusted EBITDA from resilient revenue percentage is computed on a trailing twelve-month basis and represents the proportion of Adjusted EBITDA (note 2) that is derived from Engineering, Outsourcing and Investment Management service lines. All these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. Adjusted EBITDA for this purpose is calculated in the same manner as for our debt agreement covenant calculation purposes, incorporating the expected full year impact of business acquisitions and dispositions. COMPANY CONTACTS:Jay S. HennickGlobal Chairman & Chief Executive Officer Christian MayerChief Financial Officer & Chief Executive Officer, Commercial Real Estate(416) 960-9500

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed double-digit revenue growth to a broader recovery in commercial real estate and the strategic expansion of the engineering and investment management platforms. The acquisition of Ayesa was highlighted as a critical move to expand global engineering capabilities across Europe, Latin America, and the Middle East, providing recurring revenue and stronger visibility. Management emphasized a shift in earnings quality, with approximately 70% of earnings now derived from resilient, recurring revenue streams compared to transaction-based income. The company is actively integrating its three platforms to serve the entire asset value chain, using data centers as a primary example of where engineering, capital deployment, and leasing services converge. Market share gains in Capital Markets and Leasing were driven by disciplined but aggressive recruiting of producers, which management noted has been a modest drag on margins during the ramp-up phase. The investment management strategy is evolving into a unified global platform under the Harrison Street brand, consolidating previously independent strategies to streamline capital distribution. Management reaffirmed the full-year 2026 outlook, supported by transaction pipelines, engineering backlogs, and fundraising indicators that are up over the prior year. Investment management margins are expected to remain impacted by integration costs through 2026, with a target to stabilize in the low 40% range by 2027. Fundraising for the second half of 2026 is expected to accelerate, maintaining an annual target of $6 billion to $9 billion in new capital commitments. The company anticipates significant deleveraging in the second half of the year, targeting a leverage ratio of approximately 2.3x by year-end through seasonal cash flow conversion. Management indicated that while geopolitical and macroeconomic volatility remain elevated, they do not expect these factors to materially impact overall results. The Ayesa acquisition was completed late in the quarter, contributing to a temporary leverage peak of 2.8x before expected seasonal deleveraging. Higher interest expenses were cited as a primary factor tempering the growth of adjusted EPS relative to EBITDA gains. Management noted that while AI is a focus, they view it as a tool for productivity gains rather than a structural risk, and are using the narrative to negotiate better valuations on smaller acquisitions. Seasonality remains a factor in the engineering business due to winter weather in North America, though the Ayesa acquisition is expected to soften this variability in 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed that while shares are undervalued, they will always default to a 'great acquisition' over buybacks if the opportunity offers long-term dividends. A potential $100 million buyback was mentioned as a possibility for the second half of the year, which would be accretive without materially impacting leverage. CEO Jay Hennick expressed frustration that the market hasn't fully grasped the 'power of differentiation' created by the connectivity between the three platforms. Confirmed that Ayesa is already pitching business jointly with the commercial real estate and investment management teams to provide end-to-end solutions. Management believes activity will continue as long as rates stay within a 'fairly wide' range, noting that pent-up demand is currently outweighing rate concerns. Q3 guidance assumes mid-single-digit growth for leasing and approximately 15% growth for capital markets despite tougher year-over-year comparisons. Clarified that while $2.2 billion was raised, the EBITDA impact varies by fund type; closed-end funds generate fees immediately, while others require capital deployment first. This timing difference is already factored into the reaffirmed 2026 financial expectations.

Newmark Group (NMRK) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.50%. A quarter ago, it was expected that this provider of commercial real estate services would post earnings of $0.27 per share when it actually produced earnings of $0.33, delivering a surprise of +22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Newmark Group, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $888.42 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $759.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Newmark Group shares have lost about 6.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Newmark Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Newmark Group was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $985.5 million in revenues for the coming quarter and $1.99 on $3.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Colliers International (CIGI), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This commercial real estate services provider is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of +4.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Colliers International's revenues are expected to be $1.53 billion, up 13.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmark Group, Inc. (NMRK) : Free Stock Analysis Report Colliers International Group Inc. (CIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research