CBRE Group, Inc. Reports Financial Results for Q3 2026

CBRE Group, Inc. Reports Financial Results for Q3 2026 DALLAS--( BUSINESS WIRE)--CBRE Group, Inc. (NYSE: CBRE) today reported financial results for the third quarter ended September 30, 2026.

Key Highlights:

“CBRE produced another quarter of strong financial results and continued to make strategic gains in targeted areas of our business,” said Bob Sulentic, CBRE’s chair and chief executive officer. “Financially, core earnings per share improved 28% on a 13% revenue increase, with both resilient (1) and transactional (1) businesses growing by double digits. Strategically, we continued to advance both our Critical Infrastructure Services business line as well as the broader infrastructure services work we perform across the company.”

Consolidated Financial Results Overview

The following table presents highlights of CBRE performance (dollars in millions, except per share data):

% Change

Q3 2026

Q3 2025

USD

LC ( 2)

Operating Results

Revenue

11,517

10,221

12.7

12.9

Pass-through costs (3)

4,691

4,212

11.4

11.8

GAAP net income

443

363

22.0

23.4

Core adjusted net income (4)

599

481

24.5

25.6

GAAP EPS

1.52

1.21

25.6

27.3

Core EPS (4)

2.05

1.60

28.1

29.4

Core EBITDA (5)

1,001

779

28.5

29.1

Cash Flow Results

Cash flow provided by operations

869

827

5.1

Gain on disposition of real estate

184

411.1

Less: Capital expenditures

126

50.0

Free cash flow (6)

927

779

19.0

Advisory Services Segment

The following table presents highlights of the Advisory Services segment performance (dollars in millions):

% Change

Q3 2026

Q3 2025

USD

Revenue

2,441

2,199

11.0

11.2

Pass-through costs

14.3

Segment operating profit (7)

467

403

15.9

16.4

Building Operations & Experience (BOE) Segment

The following table presents highlights of the BOE segment performance (dollars in millions):

% Change

Q3 2026

Q3 2025

USD

Revenue

6,856

5,842

17.4

17.5

Pass-through costs

3,641

3,118

16.8

17.1

Segment operating profit

349

289

20.8

21.1

Project Management Segment

The following table presents highlights of the Project Management segment performance (dollars in millions):

% Change

Q3 2026

Q3 2025

USD

Revenue

2,035

1,978

2.9

3.2

Pass-through costs

1,034

1,080

(4.3

(3.8

Segment operating profit

162

148

9.5

Real Estate Investments (REI) Segment

The following table presents highlights of the REI segment performance (dollars in millions):

% Change

Q3 2026

Q3 2025

USD

Revenue

203

211

(3.8

(2.8

Segment operating profit

166

127.4

128.8

Real Estate Development

Investment Management

Core Corporate Segment

Core corporate operating loss increased by approximately $9 million for the quarter, primarily driven by higher incentive compensation, reflecting the company’s strong performance in 2026.

Capital Allocation Overview

Leverage and Financing Overview

As of

September 30, 2026

Total debt

6,978

Less: Cash and cash equivalents

1,683

Net debt (9)

5,295

Divided by: Trailing twelve-month Core EBITDA

3,902

Net leverage ratio

1.36x

Conference Call Details

The company’s third quarter earnings webcast and conference call will be held today, Thursday, October 22, 2026 at 8:30 a.m. Eastern Time. Investors are encouraged to access the webcast via this link or they can click this link beginning at 8:15 a.m. Eastern Time for automated access to the conference call.

Alternatively, investors may dial into the conference call using these operator-assisted phone numbers: 877.407.8037 (U.S.) or 201.689.8037 (International). A replay of the call will be available starting at 1:00 p.m. Eastern Time on October 22, 2026. The replay is accessible by dialing 877.660.6853 (U.S.) or 201.612.7415 (International) and using the access code: 13762549#. A transcript of the call will be available on the company’s Investor Relations website at https://ir.cbre.com.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.

Safe Harbor and Footnotes

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the economic outlook, the company’s future growth momentum, operations and business outlook. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results and performance in future periods to be materially different from any future results or performance suggested in forward-looking statements in this press release. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, the company expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If the company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Factors that could cause results to differ materially include, but are not limited to: disruptions in general economic, political and regulatory conditions and significant public health events, particularly in geographies or industry sectors where our business may be concentrated; volatility or adverse developments in the securities, capital or credit markets, interest rate increases and conditions affecting the value of real estate assets, inside and outside the United States; poor performance of real estate investments or other conditions that negatively impact clients’ willingness to make real estate or long-term contractual commitments; cost and availability of capital for investment in real estate; foreign currency fluctuations and changes in currency restrictions, trade sanctions and import/export and transfer pricing rules; our ability to compete globally, or in specific geographic markets or business segments that are material to us; our ability to identify, acquire and integrate accretive businesses; costs and potential future capital requirements relating to businesses we may acquire; integration challenges arising out of companies we may acquire; increases in unemployment and general slowdowns in economic or commercial activity; trends in pricing and risk assumption for commercial real estate services; the effect of significant changes in supply/demand and capitalization rates across different property types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect our revenues and operating performance; client actions to restrain project spending and reduce outsourced staffing levels; our ability to further diversify our revenue model to offset cyclical economic trends in the commercial real estate industry; our ability to attract new occupier and investor clients; our ability to retain major clients and renew related contracts; our ability to leverage our global services platform to maximize and sustain long-term cash flow; our ability to continue investing in our platform and client service offerings; our ability to maintain expense discipline; the emergence of disruptive business models and technologies; negative publicity or harm to our brand and reputation; the failure by third parties to comply with service level agreements or regulatory or legal requirements; the ability of our investment management business to maintain and grow assets under management and achieve desired investment returns for our investors, and any potential related litigation, liabilities or reputational harm possible if we fail to do so; our ability to manage fluctuations in net earnings and cash flow, which could result from poor performance in our investment programs, including our participation as a principal in real estate investments; the ability of our indirect wholly-owned subsidiary, CBRE Capital Markets, Inc. to periodically amend, or replace, on satisfactory terms, the agreements for its warehouse lines of credit; declines in lending activity of U.S. Government Sponsored Enterprises, regulatory oversight of such activity and our loan servicing revenue from the commercial real estate mortgage market; changes in U.S. and international law and regulatory environments (including relating to anti-corruption, anti-money laundering, trade sanctions, tariffs, currency controls and other trade control laws), particularly in Asia, Africa, Russia, Eastern Europe and the Middle East, due to the level of political instability in those regions; litigation and its financial and reputational risks to us; our exposure to liabilities in connection with real estate advisory and property management activities and our ability to procure sufficient insurance coverage on acceptable terms; our ability to retain, attract and incentivize key personnel; our ability to manage organizational challenges associated with our size; liabilities under guarantees, or for construction defects, that we incur in our development services business; our leverage under our debt instruments as well as the limited restrictions therein on our ability to incur additional debt, and the potential increased borrowing costs to us from a credit-rating downgrade; our and our employees’ ability to execute on, and adapt to, information technology strategies and trends; cybersecurity threats or other threats to our information technology networks, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our ability to comply with laws and regulations related to our global operations, including real estate licensure, tax, labor and employment laws and regulations, fire and safety building requirements and regulations, as well as data privacy and protection regulations, sustainability matters, and the anti-corruption laws and trade sanctions of the U.S. and other countries; changes in applicable tax or accounting requirements; any inability for us to implement and maintain effective internal controls over financial reporting; the effect of implementation of new accounting rules and standards or the impairment of our goodwill and intangible assets; and the performance of our equity investments in companies we do not control.

Additional information concerning factors that may influence the company’s financial information is discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2025, our quarterly reports on Form 10-Q, as well as in the company’s press releases and other periodic filings with the Securities and Exchange Commission (SEC). Such filings are available publicly and may be obtained on the company’s website at www.cbre.com or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.

The terms “core adjusted net income,” “core EBITDA,” “core EPS,” “business line operating profit (loss),” “net debt” and “free cash flow,” all of which CBRE uses in this press release, are non-GAAP financial measures under SEC guidelines, and you should refer to the footnotes below as well as the “Non-GAAP Financial Measures” section in this press release for a further explanation of these measures. We have also included in that section reconciliations of these measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.

(1)

Resilient Businesses include facilities management, critical infrastructure services, property management, project management, loan servicing, valuations, other portfolio services and recurring investment management fees. Transactional Businesses include property sales, leasing, mortgage origination, carried interest and incentive fees in the investment management business, and development fees.

(2)

Local currency percentage change is calculated by comparing current-period results at prior-period exchange rates versus prior-period results.

(3)

Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.

(4)

Core adjusted net income and core earnings per diluted share (or core EPS) exclude the effect of select items from U.S. GAAP net income and U.S. GAAP earnings per diluted share. Adjustments during the periods presented included non-cash amortization expense related to intangible assets attributable to acquisitions, interest expense related to indirect tax audits and settlements, write-off of financing costs on extinguished debt, impact of adjustments on non-controlling interest, the tax impact of adjusted items and strategic non-core investments, net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, costs associated with efficiency and cost-reduction initiatives, provision associated with Telford’s fire safety remediation efforts, and net fair value adjustments on strategic non-core investments.

(5)

Core EBITDA represents earnings before the portion attributable to non-controlling interests, depreciation and amortization, asset impairments, net interest expense, write-off of financing costs on extinguished debt, income taxes, further adjusted for net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, non-cash pension buy-out settlement loss, costs associated with efficiency and cost-reduction initiatives, provision associated with Telford’s fire safety remediation efforts and net fair value adjustments on strategic non-core investments.

(6)

Free cash flow is calculated as cash flow provided by operations, plus gain on sale of real estate assets, less capital expenditures (reflected in the investing section of the consolidated statement of cash flows).

(7)

Segment operating profit (SOP) is the measure reported to the chief operating decision maker (CODM) for purposes of assessing performance and allocating resources to each segment. SOP represents earnings, inclusive of non-controlling interests, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: net non-cash mortgage servicing rights, integration and other costs related to acquisitions, carried interest incentive compensation expense to align with the timing of associated revenue, charges related to indirect tax audits and settlements, net results related to the wind-down of certain businesses, the impact of fair value non-cash adjustments related to unconsolidated equity investments, business and finance transformation, costs associated with efficiency and cost-reduction initiatives, and provision associated with Telford’s fire safety remediation efforts.

(8)

Represents line of business profitability/losses, as adjusted.

(9)

Net debt is calculated as total debt (excluding non-recourse debt) less cash and cash equivalents.

(10)

Includes cash available for company use, as well as availability under the company’s revolving credit facilities and commercial paper program.

CBRE GROUP, INC.

OPERATING RESULTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(in millions, except share and per share data)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenue

11,517

10,221

33,270

28,813

Costs and expenses:

Cost of revenue

9,392

8,304

27,207

23,511

Operating, administrative and other

1,564

1,327

4,560

3,794

Depreciation and amortization

184

145

556

432

Total costs and expenses

11,140

9,776

32,323

27,737

Gain on disposition of real estate

184

490

Operating income

561

481

1,437

1,131

Equity income from unconsolidated subsidiaries

104

Other income

Interest expense, net of interest income

181

159

Write-off of financing costs on extinguished debt

—

Income before provision for income taxes

611

486

1,380

1,030

Provision for income taxes

131

311

203

Net income

480

396

1,069

827

Less: Net income attributable to non-controlling interests

104

Net income attributable to CBRE Group, Inc.

443

363

965

741

Basic income per share:

Net income per share attributable to CBRE Group, Inc.

1.53

1.22

3.31

2.48

Weighted-average shares outstanding for basic income per share

289,273,856

297,557,891

291,788,599

298,589,340

Diluted income per share:

Net income per share attributable to CBRE Group, Inc.

1.52

1.21

3.28

2.46

Weighted-average shares outstanding for diluted income per share

291,609,847

300,257,330

294,115,627

301,050,341

Core EBITDA

1,001

779

2,668

1,923

CBRE GROUP, INC.

SEGMENT RESULTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026

(in millions)

(Unaudited)

Three Months Ended September 30, 2026

Advisory Services

Building Operations & Experience

Project Management

Real Estate Investments

Corporate (1)

Total Core

Other

Total

Consolidated

Revenue

2,441

6,856

2,035

203

(18

)

11,517

—

11,517

Pass-through costs

3,641

1,034

—

4,691

—

4,691

Cost of revenue, excluding pass-through costs

1,482

2,507

710

)

4,701

—

4,701

Operating, administrative and other

486

407

132

331

201

1,557

1,564

Depreciation and amortization

110

184

—

184

Gain on disposition of real estate

—

172

184

—

184

Operating income (loss)

427

191

133

(219

)

568

)

561

Equity income (loss) from unconsolidated subsidiaries

—

101

—

105

)

104

Other income (loss)

—

)

Add-back: Depreciation and amortization

110

184

—

184

Adjustments:

Net non-cash mortgage servicing rights

—

Integration and other costs related to acquisitions

—

Carried interest incentive compensation expense to align with the timing of associated revenue

—

Net results related to the wind-down of certain businesses

—

Business and finance transformation

—

Total segment operating profit (loss)

467

349

162

166

(143

)

992

Core EBITDA

1,001

_______________

(1)

Includes elimination of inter-segment revenue and expense.

CBRE GROUP, INC.

SEGMENT RESULTS—(CONTINUED)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025

(in millions)

(Unaudited)

Three Months Ended September 30, 2025

Advisory Services

Building Operations & Experience

Project Management

Real Estate Investments

Corporate (1)

Total Core

Other

Total

Consolidated

Revenue

2,199

5,842

1,978

211

)

10,221

—

10,221

Pass-through costs

3,118

1,080

—

4,212

—

4,212

Cost of revenue, excluding pass-through costs

1,297

2,125

632

)

4,092

—

4,092

Operating, administrative and other

481

352

120

192

182

1,327

—

1,327

Depreciation and amortization

145

—

145

Gain on disposition of real estate

—

Operating income (loss)

374

182

119

(205

)

481

—

481

Equity income from unconsolidated subsidiaries

—

Other income (loss)

—

)

Add-back: Depreciation and amortization

145

—

145

Adjustments:

Net non-cash mortgage servicing rights

)

—

)

—

)

Integration and other costs related to acquisitions

—

Carried interest incentive compensation expense to align with the timing of associated revenue

—

Net results related to the wind-down of certain businesses

—

Business and finance transformation

—

Total segment operating profit (loss)

403

289

148

(134

)

—

779

Core EBITDA

779

_______________

(1)

CBRE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

September 30, 2026

December 31, 2025

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

1,683

1,864

Restricted cash

137

150

Receivables, net

9,048

8,284

Warehouse receivables (1)

945

1,630

Contract assets

565

462

Prepaid expenses

422

372

Income taxes receivable

186

175

Other current assets

679

552

Total Current Assets

13,665

13,489

Property and equipment, net

1,075

1,049

Goodwill

6,992

7,051

Other intangible assets, net

2,770

2,972

Operating lease assets

2,184

2,062

Investments in unconsolidated subsidiaries

913

870

Non-current contract assets

103

Real estate under development

1,048

646

Non-current income taxes receivable

122

106

Deferred tax assets, net

756

697

Other assets

1,733

1,832

Total Assets

31,329

30,877

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable and accrued expenses

5,006

4,838

Compensation and employee benefits payable

1,594

1,630

Accrued bonus and profit sharing

1,579

1,879

Operating lease liabilities

331

284

Contract liabilities

489

448

Income taxes payable

258

Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) (1)

936

1,609

Other short-term borrowings

1,199

856

Current maturities of long-term debt

Other current liabilities

399

447

Total Current Liabilities

11,678

12,320

Long-term debt, net of current maturities

5,710

5,050

Non-current operating lease liabilities

2,222

2,121

Non-current tax liabilities

213

183

Deferred tax liabilities, net

229

238

Other liabilities

1,800

1,339

Total Liabilities

21,852

21,251

Mezzanine Equity:

Redeemable non-controlling interests in consolidated entities

461

433

Equity:

CBRE Group, Inc. Stockholders’ Equity:

Class A common stock

Additional paid-in capital

—

Accumulated earnings

9,783

9,916

Accumulated other comprehensive loss

(1,114

)

(1,041

)

Total CBRE Group, Inc. Stockholders’ Equity

8,672

8,878

Non-controlling interests

344

315

Total Equity

9,016

9,193

Total Liabilities and Equity

31,329

30,877

_______________

(1)

Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities.

CBRE GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

Nine Months Ended September 30,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

1,069

827

Reconciliation of net income to net cash provided by operating activities:

Depreciation and amortization

556

432

Amortization of other assets

149

152

Net non-cash mortgage servicing rights and premiums on loan sales

(18

)

Deferred income taxes

(36

)

(69

)

Stock-based compensation expense

158

110

Equity income from investments

(99

)

(50

)

Gain on sale of real estate assets

(490

)

(55

)

Other non-cash adjustments

120

Sale of mortgage loans

10,747

9,984

Origination of mortgage loans

(10,045

)

(11,041

)

Changes in:

Warehouse lines of credit

(673

)

1,072

Receivables, prepaid expenses and other assets

(1,039

)

(419

)

Accounts payable, accrued liabilities and other liabilities

285

Accrued compensation expenses

(312

)

(431

)

Income taxes, net

(220

)

(204

)

Net cash provided by operating activities

182

338

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(321

)

(222

)

Payments for business acquired, net of cash acquired

)

(331

)

Capital contributions related to investments

(125

)

(93

)

Acquisition and development of real estate assets

(432

)

(240

)

Proceeds from disposition of real estate assets

436

104

Other investing activities, net

118

Net cash used in investing activities

(364

)

(664

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of revolving credit facility

—

(132

)

Proceeds from commercial paper, net

343

910

Proceeds from long-term debt

742

1,668

Repayment of long-term debt

(53

)

(651

)

Repurchase of common stock

(1,158

)

(680

)

Other financing activities, net

104

(283

)

Net cash (used in) provided by financing activities

(22

)

832

Effect of currency exchange rate changes on cash and cash equivalents and restricted cash

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(194

)

588

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD

2,014

1,221

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD

1,820

1,809

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Cash paid during the period for:

Interest

351

326

Income tax payments, net

549

457

Non-cash investing and financing activities:

Deferred and/or contingent consideration

)

Non-GAAP Financial Measures

The following measures are considered “non-GAAP financial measures” under SEC guidelines:

(i)

Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (which we also refer to as “core adjusted net income”)

(ii)

Core EBITDA

(iii)

Core EPS

(iv)

Business line operating profit/loss

(v)

Net debt

(vi)

Free cash flow

These measures are not recognized measurements under United States generally accepted accounting principles (GAAP). When analyzing our operating performance, investors should use these measures in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.

Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below.

With respect to core EBITDA, core EPS, core adjusted net income, and business line operating profit/loss, the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions, the effects of financings, income taxes and the accounting effects of capital spending. The presentation of core adjusted net income, excluding amortization of intangible assets acquired in business combinations, is useful to investors as a supplemental measure to evaluate the company’s ongoing operating performance. While amortization expense of acquisition-related intangible assets is excluded from core adjusted net income, the revenue generated from the acquired intangible assets is not excluded. All of these measures may vary for different companies for reasons unrelated to overall operating performance. In the case of core EBITDA, this measure is not intended to be a measure of free cash flow for our management’s discretionary use because it does not consider cash requirements such as tax and debt service payments. The core EBITDA measure calculated herein may also differ from the amounts calculated under similarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses segment operating profit and core EPS as significant components when measuring our operating performance under our employee incentive compensation programs.

With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations and real estate investment and development activities after accounting for cash outflows to support operations and capital expenditures. With respect to net debt, the company believes that investors use this measure when calculating the company’s net leverage ratio.

With respect to core EBITDA, core EPS and core adjusted net income, the company believes that investors may find these measures useful to analyze the underlying performance of operations without the impact of strategic non-core equity investments that are not directly related to our business segments. These can be volatile and are often non-cash in nature.

Core net income attributable to CBRE Group, Inc. stockholders, as adjusted (or core adjusted net income), and core EPS, are calculated as follows (in millions, except share and per share data):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net income attributable to CBRE Group, Inc.

443

363

965

741

Adjustments:

Non-cash amortization expense related to intangible assets attributable to acquisitions

172

169

Interest expense related to indirect tax audits and settlements

Write-off of financing costs on extinguished debt

—

Net non-cash mortgage servicing rights

)

Integration and other costs related to acquisitions

190

204

Carried interest incentive compensation expense to align with the timing of associated revenue

Charges related to indirect tax audits and settlements

—

)

Net results related to the wind-down of certain businesses

Impact of fair value non-cash adjustments related to unconsolidated equity investments

—

Business and finance transformation

105

Costs associated with efficiency and cost-reduction initiatives

—

Provision associated with Telford’s fire safety remediation efforts

—

168

—

Net fair value adjustments on strategic non-core investments

—

(22

)

Tax impact of adjusted items and strategic non-core investments

(48

)

(36

)

(160

)

(105

)

Core net income attributable to CBRE Group, Inc., as adjusted

599

481

1,536

1,111

Core diluted income per share attributable to CBRE Group, Inc., as adjusted

2.05

1.60

5.22

3.69

Weighted-average shares outstanding for diluted income per share

291,609,847

300,257,330

294,115,627

301,050,341

Core EBITDA is calculated as follows (in millions):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net income attributable to CBRE Group, Inc.

443

363

965

741

Net income attributable to non-controlling interests

104

Net income

480

396

1,069

827

Adjustments:

Depreciation and amortization

184

145

556

432

Interest expense, net of interest income

181

159

Write-off of financing costs on extinguished debt

—

Provision for income taxes

131

311

203

Net non-cash mortgage servicing rights

)

Integration and other costs related to acquisitions

190

204

Carried interest incentive compensation expense to align with the timing of associated revenue

Charges related to indirect tax audits and settlements

—

)

Net results related to the wind-down of certain businesses

Impact of fair value non-cash adjustments related to unconsolidated equity investments

—

Business and finance transformation

105

Costs associated with efficiency and cost-reduction initiatives

—

Provision associated with Telford’s fire safety remediation efforts

—

168

—

Net fair value adjustments on strategic non-core investments

—

(22

)

Core EBITDA

1,001

779

2,668

1,923

Core EBITDA for the trailing twelve months ended September 30, 2026 is calculated as follows (in millions):

Trailing

Twelve Months Ended September 30, 2026

Net income attributable to CBRE Group, Inc.

1,381

Net income attributable to non-controlling interests

138

Net income

1,519

Adjustments:

Depreciation and amortization

707

Interest expense, net of interest income

238

Provision for income taxes

425

Net non-cash mortgage servicing rights

Integration and other costs related to acquisitions

289

Carried interest incentive compensation expense to align with the timing of associated revenue

Net results related to the wind-down of certain businesses

Business and finance transformation

168

Non-cash pension buy-out settlement loss

147

Costs associated with efficiency and cost-reduction initiatives

)

Provision associated with Telford’s fire safety remediation efforts

300

Net fair value adjustments on strategic non-core investments

Core EBITDA

3,902

Below represents a reconciliation of REI business line operating profitability/loss to REI segment operating profit (in millions):

Three Months Ended September 30,

Real Estate Investments

2026

2025

Investment management operating profit

Global real estate development operating profit

128

Segment overhead (and related adjustments)

—

)

Real estate investments segment operating profit

166

Below represents a reconciliation of cash flow provided by (used in) operations to free cash flow for the trailing twelve months ended September 30, 2026 (in millions):

Q4 2025

Q1 2026

Q2 2026

Q3 2026

Trailing

Twelve Months

Cash Flow Results

Cash flow provided by (used in) operations

1,221

(825

)

138

869

1,403

Gains on disposition of real estate sales

404

301

184

894

Less: Capital expenditures

144

114

126

465

Free cash flow

1,481

(605

)

927

1,832