Colliers International Group Inc. Q4 2025 Earnings Call Summary

Colliers International Group Inc. Q4 2025 Earnings Call Summary Moby Intelligence Sat, February 14, 2026 at 5:31 AM GMT+8 3 min read In this article:

CIGI -4.09%

Colliers International Group Inc. Q4 2025 Earnings Call Summary - Moby

Strategic Performance and Operational Context

• Achieved a milestone shift toward recurring revenue, with over 70% of earnings now derived from resilient professional services businesses.

• Attributed Capital Markets growth to a rebound in the US market, driven by strategic recruiting and increased multi-market connectivity despite a slow broader recovery.

• Positioned the Ayesa acquisition as a rare opportunity to scale the engineering segment into a top 30 global firm with new footprints in Europe, Latin America, and the Middle East.

• Framed AI as a productivity enabler rather than a disruptor, focusing on automating mundane tasks to allow professionals to prioritize high-value, judgment-based advisory.

• Maintained a partnership-based ownership model to ensure management alignment with shareholders while providing permanent capital for acquired firms to scale.

• Noted that while leasing activity remains steady, growth is being led by specific demand in office, industrial, and data center asset classes.

2026 Outlook and Strategic Assumptions

• Projecting mid-teens growth across all key operating metrics, supported by a healthy pipeline and ongoing contributions from recent acquisitions.

• Anticipating low-teens growth in Commercial Real Estate based on a continuing recovery in transaction velocity, though volumes are expected to remain below prior peaks.

• Targeting $6,000,000,000 to $9,000,000,000 in new investment management capital commitments, driven by flagship infrastructure and alternative funds.

• Expecting Engineering revenue to grow over 25% in 2026, fueled by the Ayesa closing and favorable trends in energy transition and urbanization.

• Forecasting a return to mid-40s net margins in Investment Management by 2027 once current integration and platform unification efforts are finalized.

Strategic Risks and Structural Adjustments

• Identified temporary margin pressure in Investment Management through the first half of 2026 due to strategic investments in IT systems and brand unification.

• Flagged a temporary slowdown in certain project management operations in EMEA and Asia Pacific during Q4, which impacted overall engineering productivity.

• Planned a pro forma leverage increase to 2.7 times following the $700,000,000 Ayesa acquisition, with a commitment to deleverage toward 2.0 times via organic cash flow.

• Increased IT capital expenditure to record levels to accelerate AI integration and data-driven insights through an exclusive partnership with Google Cloud.

Q&A Session Highlights

Impact of AI on billable hours and fee structures

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• Management dismissed concerns regarding fee pressure, stating that AI enhances margins by automating non-billable mundane tasks in design and valuation.

• Emphasized that complex transactions require human judgment, licensure, and relationships that AI cannot replace.

Capital allocation priorities and potential for share buybacks

• CEO Jay Hennick expressed interest in buybacks but prioritized capital for a robust M&A pipeline, including the Ayesa deal and subsequent 'tuck-in' opportunities.

• Reiterated a commitment to avoiding equity offerings that would dilute long-term shareholder value.

Macroeconomic assumptions regarding interest rate cuts

• The 2026 outlook for capital markets does not rely on interest rate cuts; instead, it is predicated on pent-up supply and a necessity for market participants to transact.

Strategic rationale for the Ayesa Engineering acquisition

• The deal provides a platform for geographic roll-ups in Spain and Mexico, similar to the successful Englobe strategy in Canada.

• Management highlighted cross-selling opportunities in specialized niches like desalination and water infrastructure across the global network.

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