A global giant of commercial real estate, CBRE advises on leasing, manages buildings and investments, and runs construction projects worldwide, serving nearly all of America's biggest companies. Its name came from a 1998 merger of San Francisco's Coldwell Banker with London's Richard Ellis, a firm with roots back to 1773. That American branch began in 1906, when Colbert Coldwell opened shop amid the rubble of the San Francisco earthquake.
Q2 2026 net income fell 5.1% to $204M on a $168M Telford fire safety provision despite 15.5% revenue growth
A one-off Telford pushed quarterly profit down despite broad growth. Revenue rose 15.5% to $11.2B and fell 4.2% to $0.69 as a $168M fire-safety charge and higher costs offset double-digit gains across Advisory, BOE, and . The quarter shows the core business is growing while legacy liabilities still cut into earnings.
Key takeaways
attributable to CBRE fell 5.1% to $204M as operating expenses rose 20.5%, including a $168M for fire safety remediation under UK law — a one-off charge that reduced profit.
rose 15.5% to $11.2B with up 17.7% (leasing +23.5%, property sales +20.0%), up 14.6% on critical infrastructure work and the acquisition, and up 19.1%.
rose 33.5% to $836M after adjustments, reflecting growth particularly in and .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 15.5% to $11.2B, driven by Advisory, BOE, and Project Management, while net income fell 5.1% to $204M on higher costs and a Telford fire safety provision.
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Consolidated grew 15.5% to $11.2B, with double-digit growth in Advisory Services (17.7%), Building Operations & Experience (14.6%), and Project Management (19.1%), partially offset by a 10.2% decline in Real Estate Investments.
declined 10.2%, the only not growing, while rose 0.3 points to 18.6% and rose 142.1% to $138M from a $57M use a year earlier.
The company issued $750M in 5.250% due 2036 in May 2026, and rose 32.1% to $5,731M; $945M was deployed for share repurchases in H1 2026.
What changed
FY2025 flagged Q1 2026 Advisory property sales/leasing to see if 20.0%/15.5% gains hold: Q2 2026 property sales rose 20.0% and Advisory leasing rose 23.5%, so the gains held.
FY2025 flagged net trajectory given $5,050M debt: Q2 2026 rose to $5,731M after the $750M May note issuance, with no interest rate swaps outstanding per the filing.
FY2025 flagged BOE margin as and integrations proceed: Q2 2026 BOE rose 14.6% on critical infrastructure (+67.7%) and the Pearce acquisition, but margin detail was not reported.
Q1 2026 flagged Q2 to see if $825M use reverses: Q2 operating cash flow was $138M, a reversal to a source from the prior-quarter outflow.
Telford fire safety liability last estimated at $192.1M in FY2023 and carried as a flagged item: Q2 2026 added a $168M , a new charge beyond the prior estimate.
What to watch
Q3 2026 fire safety updates beyond the $168M Q2 charge as UK remediation law develops.
Q3 2026 net given $5,731M and the May 2026 $750M note issuance at 5.250%.
Next Global Investment Management disclosure and net flow direction after the $155.5B FY2025 figure.
Q3 2026 trend after the 10.2% Q2 decline.
Advisory leasing surged 23.5% globally, led by office and industrial, while property sales rose 20.0%, driven by the U.S. across industrial, multifamily, retail, and office.
BOE increased 14.6%, fueled by critical infrastructure (up 67.7%) from data center work and the acquisition, and facilities management growth in the Americas.
attributable to CBRE Group fell 5.1% to $204M, as higher operating expenses (up 20.5%) included a $168M provision for fire safety remediation, and cost of ex pass-throughs rose to 40.2% of revenue.
rose 33.5% to $836M, reflecting strong growth, particularly in Advisory Services and REI after adjustments.
Liquidity remained robust with $2.9B available under facilities and $1.5B cash; $945M was deployed for share repurchases in H1 2026, and $750M in 5.250% senior notes due 2036 were issued in May 2026.
Quantitative and Qualitative Disclosures About Market Risk
Foreign currency and interest rate exposures are managed via cross-currency swaps and debt mix; no interest rate swaps were outstanding as of June 30, 2026.
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Approximately 43% of was transacted in foreign currencies during the six months ended June 30, 2026, with the British pound and euro representing 13.6% and 9.8% of total revenue, respectively.
A hypothetical 10% strengthening of the U.S. dollar against the British pound would have increased by $17 million, while a similar move against the euro would have decreased pre-tax income by $12 million.
are used to hedge foreign exchange exposure on certain foreign investments and foreign-currency-denominated loans, with a total of $99 million in assets and $343 million in liabilities as of June 30, 2026.
Interest rate risk is managed through a mix of fixed- and variable-rate debt; a 100-basis-point increase in rates on variable-rate debt would reduce by $14 million.
The company does not use derivatives for trading or speculative purposes and had no interest rate swap agreements outstanding as of June 30, 2026.