Colliers Reports Second Quarter Results

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeGlobeNewswireThis section is The content in this section is supplied by GlobeNewswire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by GlobeNewswire Colliers Reports Second Quarter ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Double-digit revenue growth across all three platforms; 2026 outlook reaffirmedTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSecond quarter operating highlights: Three months ended Six months ended June 30 June 30(in millions of US$, except EPS) 2026 2025 2026 2025 Revenues$1,572.5 $1,347.6 $2,886.0 $2,488.8Net Revenues (note 1) 1,386.3 1,185.9 2,536.4 2,179.6Adjusted EBITDA (note 2) 205.3 180.2 330.1 296.3Adjusted EPS (note 3) 1.83 1.72 2.74 2.59 GAAP operating earnings 98.4 99.2 133.4 130.8GAAP diluted net earnings per share 0.56 0.08 0.09 0.00TORONTO, 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.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“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.Colliers International Group Inc.Condensed Consolidated Statements of Earnings(in thousands of US$, except per share amounts) Three months Six months ended June 30 ended June 30(unaudited) 2026 2025 2026 2025 Revenues $1,572,499 $1,347,649 $2,885,971 $2,488,819 Cost of revenues 937,394 798,064 1,726,929 1,486,554 Selling, general and administrative expenses 436,752 372,657 841,800 720,950 Depreciation 20,964 18,703 41,265 37,350 Amortization of intangible assets 50,760 42,983 98,459 87,738 Acquisition-related items (1) 27,387 16,059 42,740 25,440 Loss on disposal of operations 800 – 1,331 – Operating earnings 98,442 99,183 133,447 130,787 Interest expense, net 26,417 15,515 49,285 38,063 Equity earnings from non-consolidated investments (4,164) (3,318) (11,435) (7,052)Other (income) expense 135 (2,229) 503 (3,069)Earnings before income tax 76,054 89,215 95,094 102,845 Income tax 26,838 25,244 35,099 29,956 Net earnings 49,216 63,971 59,995 72,889 Non-controlling interest share of earnings 16,094 16,238 20,385 21,967 Non-controlling interest redemption increment 4,613 43,724 35,131 51,172 Net earnings (loss) attributable to Company $28,509 $4,009 $4,479 $(250) Net earnings (loss) per common share Basic $0.56 $0.08 $0.09 $0.00 Diluted $0.56 $0.08 $0.09 $0.00 Adjusted EPS (2) $1.83 $1.72 $2.74 $2.59 Weighted average common shares (thousands) Basic 51,104 50,667 51,104 50,641 Diluted 51,158 50,891 51,232 50,641 Notes to Condensed Consolidated Statements of Earnings(1) Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs. (2) See definition and reconciliation below. Colliers International Group Inc. Condensed Consolidated Balance Sheets (in thousands of US$) June 30, December 31, June 30,(unaudited) 2026 2025 2025 Assets Cash and cash equivalents $265,191 $207,902 $183,343Restricted cash (1) 53,751 48,981 51,054Accounts receivable and contract assets 1,128,633 990,329 936,872Mortgage warehouse receivables (2) 189,341 140,095 104,588Prepaids and other assets 411,184 378,453 369,005Warehouse fund assets 62,817 56,050 81,057 Current assets 2,110,917 1,821,810 1,725,919Other non-current assets 282,550 249,040 232,551Warehouse fund assets 97,908 73,785 186,602Fixed assets 267,414 251,462 239,044Operating lease right-of-use assets 528,502 443,404 408,419Deferred tax assets, net 97,206 93,857 94,792Goodwill and intangible assets 4,565,663 3,855,109 3,573,278 Total assets $7,950,160 $6,788,467 $6,460,605Liabilities and shareholders’ equity Accounts payable and accrued liabilities $1,270,050 $1,267,118 $1,075,674Other current liabilities 133,790 112,963 97,287Long-term debt – current 19,162 8,119 16,841Mortgage warehouse credit facilities (2) 181,126 133,259 97,103Operating lease liabilities – current 102,930 99,696 98,651Liabilities related to warehouse fund assets 62,290 33,679 84,478 Current liabilities 1,769,348 1,654,834 1,470,034Long-term debt – non-current 2,486,537 1,625,392 1,723,433Operating lease liabilities – non-current 522,202 419,198 385,860Other liabilities 104,046 129,776 143,627Deferred tax liabilities, net 159,299 90,996 78,937Liabilities related to warehouse fund assets 52,515 48,782 114,934Redeemable non-controlling interests 1,311,530 1,285,046 1,157,773Shareholders’ equity 1,544,683 1,534,443 1,386,007 Total liabilities and equity $7,950,160 $6,788,467 $6,460,605 Supplemental balance sheet information Total debt (3) $2,505,699 $1,633,511 $1,740,274Total debt, net of cash and cash equivalents (3) 2,240,508 1,425,609 1,556,931Net debt / pro forma adjusted EBITDA ratio (4) 2.8 2.0 2.3 Notes to Condensed Consolidated Balance Sheets(1) Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business.(2) Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase.(3) Excluding mortgage warehouse credit facilities.(4) Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements. Colliers International Group Inc. Condensed Consolidated Statements of Cash Flows (in thousands of US$) Three months ended Six months ended June 30 June 30(unaudited) 2026 2025 2026 2025 Cash provided by (used in) Operating activities Net earnings $49,216 $63,971 $59,995 $72,889 Items not affecting cash: Depreciation and amortization 71,724 61,686 139,724 125,088 Gains attributable to mortgage servicing rights (13,873) (10,455) (25,189) (14,494) Gains attributable to the fair value of loan premiums and origination fees (8,405) (6,676) (19,195) (11,245) Deferred income tax (4,813) (5,366) (10,385) (14,550) Other 36,833 17,744 70,306 37,093 130,682 120,904 215,256 194,781 Increase in accounts receivable, prepaid expenses and other assets (137,427) (139,954) (213,936) (109,680)Increase (decrease) in accounts payable, accrued expenses and other liabilities 85,813 11,456 81,162 (26,936)Increase (decrease) in accrued compensation 34,012 51,518 (186,841) (100,959)Contingent acquisition consideration paid (6,257) (5,680) (9,227) (7,948)Mortgage origination activities, net 10,460 7,980 17,756 11,465 Sales to (purchases of) AR Facility, net 22,378 (1,661) 48,065 (636)Net cash provided by (used in) operating activities 139,661 44,563 (47,765) (39,913) Investing activities Acquisition of businesses, net of cash acquired (725,065) (50,218) (770,107) (59,703)Purchases of fixed assets (31,306) (16,428) (49,602) (31,082)Purchases of warehouse fund assets (19,000) (110,921) (31,475) (121,734)Proceeds from disposal of warehouse fund assets – 62,914 – 62,914 Cash collections on AR Facility deferred purchase price 66,927 35,556 118,242 83,977 Other investing activities (13,963) (22,469) (42,355) (45,764)Net cash used in investing activities (722,407) (101,566) (775,297) (111,392) Financing activities Increase in long-term debt, net 675,817 118,878 940,532 260,786 Sales (purchases) of non-controlling interests, net 10,283 (11,916) (10,103) (17,219)Dividends paid to common shareholders – – (7,665) (7,592)Distributions paid to non-controlling interests (30,282) (37,015) (41,404) (45,473)Other financing activities (4,157) (6,263) (7,959) (7,440)Net cash provided by financing activities 651,661 63,684 873,401 183,062 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,432 (13,545) 11,720 (15,341) Net change in cash and cash equivalents and restricted cash 70,347 (6,864) 62,059 16,416 Cash and cash equivalents and restricted cash, beginning of period 248,595 241,261 256,883 217,981 Cash and cash equivalents and restricted cash, end of period $318,942 $234,397 $318,942 $234,397 Colliers International Group Inc. Segmented Results(in thousands of US dollars) Commercial Investment (unaudited)Real Estate Engineering Management Corporate TotalThree months ended June 30 2026 Revenues$997,343 $427,805 $147,176 $175 $1,572,499 Net Revenues 891,402 359,444 135,325 175 1,386,346 Adjusted EBITDA 105,934 52,141 49,368 (2,105) 205,338 Operating earnings (loss) 83,016 20,719 20,227 (25,520) 98,442 2025(1) Revenues$893,177 $328,189 $126,134 $149 $1,347,649 Net Revenues 786,233 281,828 117,734 149 1,185,944 Adjusted EBITDA 92,730 40,604 49,989 (3,114) 180,209 Operating earnings (loss) 71,929 14,128 29,287 (16,161) 99,183 Commercial Investment Real Estate Engineering Management Corporate TotalSix months ended June 30 2026 Revenues$1,838,514 $764,652 $282,442 $363 $2,885,971 Net Revenues 1,627,658 643,786 264,591 363 2,536,398 Adjusted EBITDA 152,115 79,031 99,918 (924) 330,140 Operating earnings (loss) 99,465 23,180 35,626 (24,824) 133,447 2025(1) Revenues$1,634,153 $602,059 $252,336 $271 $2,488,819 Net Revenues 1,420,220 522,246 236,891 271 2,179,628 Adjusted EBITDA 131,717 64,720 105,085 (5,269) 296,253 Operating earnings (loss) 85,777 10,832 62,194 (28,016) 130,787 (1) Prior year results have been recast effective Q1 2026 to reflect local project management operations now being reported under the Commercial Real Estate segment, having previously been reported under the Engineering segment. Non-GAAP Measures1. Reconciliation of revenues to net revenuesNet 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. Commercial Investment Real Estate Engineering Management Corporate TotalThree months ended June 30 2026 Revenues$997,343 $427,805 $147,176 $175 $1,572,499 Subconsultant and other direct costs (105,941) (68,361) – – (174,302) Historical pass-through performance fees – – (11,851) – (11,851) Net Revenues$891,402 $359,444 $135,325 $175 $1,386,346 2025 Revenues$893,177 $328,189 $126,134 $149 $1,347,649 Subconsultant and other direct costs (106,944) (46,361) – – (153,305) Historical pass-through performance fees – – (8,400) – (8,400) Net Revenues$786,233 $281,828 $117,734 $149 $1,185,944 Commercial Investment Real Estate Engineering Management Corporate TotalSix months ended June 30 2026 Revenues$1,838,514 $764,652 $282,442 $363 $2,885,971 Subconsultant and other direct costs (210,856) (120,866) – – (331,722) Historical pass-through performance fees – – (17,851) – (17,851) Net Revenues$1,627,658 $643,786 $264,591 $363 $2,536,398 2025 Revenues$1,634,153 $602,059 $252,336 $271 $2,488,819 Subconsultant and other direct costs (213,933) (79,813) – – (293,746) Historical pass-through performance fees – – (15,445) – (15,445) Net Revenues$1,420,220 $522,246 $236,891 $271 $2,179,628 2. Reconciliation of net earnings to Adjusted EBITDAAdjusted 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. Three months ended Six months ended June 30 June 30(in thousands of US$)2026 2025 2026 2025 Net earnings$49,216 $63,971 $59,995 $72,889 Income tax 26,838 25,244 35,099 29,956 Other income, including equity earnings from non-consolidated investments (4,029) (5,547) (10,932) (10,121)Interest expense, net 26,417 15,515 49,285 38,063 Operating earnings 98,442 99,183 133,447 130,787 Loss on disposal of operations 800 – 1,331 – Depreciation and amortization 71,724 61,686 139,724 125,088 Gains attributable to MSRs (13,873) (10,455) (25,189) (14,494)Equity earnings from non-consolidated investments 4,164 3,318 11,435 7,052 Acquisition-related items 27,387 16,059 42,740 25,440 Restructuring, optimization and integration costs 7,356 1,265 16,139 6,575 Stock-based compensation expense 9,338 9,153 10,513 15,805 Adjusted EBITDA$205,338 $180,209 $330,140 $296,253 3. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and Adjusted EPSAdjusted EPS is defined as diluted net earnings per share adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) loss on disposal of operations; (iii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iv) gains attributable to MSRs; (v) acquisition-related items; (vi) restructuring, optimization and integration costs and (vii) stock-based compensation expense, including related to the CEO’s LTIP. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to Adjusted EPS appears below. Three months ended Six months ended June 30 June 30(in thousands of US$)2026 2025 2026 2025 Net earnings$49,216 $63,971 $59,995 $72,889 Non-controlling interest share of earnings (16,094) (16,238) (20,385) (21,967)Loss on disposal of operations 800 – 1,331 – Amortization of intangible assets 50,760 42,983 98,459 87,738 Gains attributable to MSRs (13,873) (10,455) (25,189) (14,494)Acquisition-related items 27,387 16,059 42,740 25,440 Restructuring, optimization and integration costs 7,356 1,265 16,139 6,575 Stock-based compensation expense 9,338 9,153 10,513 15,805 Income tax on adjustments (12,941) (12,210) (25,496) (25,692)Non-controlling interest on adjustments (8,336) (7,008) (17,587) (14,634)Adjusted net earnings$93,613 $87,520 $140,520 $131,660 Three months ended Six months ended June 30 June 30(in US$)2026 2025 2026 2025 Diluted net earnings per common share$0.56 $0.08 $0.09 $– Non-controlling interest redemption increment 0.09 0.86 0.69 1.01 Loss on disposal of operations, net of tax 0.02 – 0.02 – Amortization expense, net of tax 0.61 0.53 1.17 1.09 Gains attributable to MSRs, net of tax (0.16) (0.12) (0.28) (0.16)Acquisition-related items, net of tax 0.43 0.21 0.61 0.32 Restructuring, optimization and integration costs, net of tax 0.12 0.02 0.24 0.09 Stock-based compensation expense, net of tax 0.16 0.14 0.20 0.24 Adjusted EPS$1.83 $1.72 $2.74 $2.59 Diluted weighted average shares for Adjusted EPS (thousands) 51,158 50,891 51,232 50,900 4. Reconciliation of net cash flow from operations to free cash flowFree cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay dividends to shareholders. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below. Three months ended Six months ended June 30 June 30(in thousands of US$)2026 2025 2026 2025 Net cash provided by (used in) operating activities$139,661 $44,563 $(47,765) $(39,913)Contingent acquisition consideration paid 6,257 5,680 9,227 7,948 Purchases of fixed assets (31,306) (16,428) (49,602) (31,082)Cash collections on AR Facility deferred purchase price 66,927 35,556 118,242 83,977 Distributions paid to non-controlling interests (30,282) (37,015) (41,404) (45,473)Free cash flow$151,257 $32,356 $(11,302) $(24,543) Trailing twelve months ended(in thousands of US$) June 30, 2026 2025 Annual free cash flow $352,326 Add: Free cash flow for six months ended June 30, 2026 (11,302)Less: Free cash flow for six months ended June 30, 2025 24,543 Trailing twelve months ended June 30, 2026 free cash flow $365,567 5. Local currency revenue and Adjusted EBITDA growth rate and internal revenue growth rate measuresPercentage 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 managementWe 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 managementWe 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 percentageAdjusted 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 OfficerChristian MayerChief Financial Officer & Chief Executive Officer, Commercial Real Estate(416) 960-9500Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.