07/05/2025 - Jones Lang LaSalle Inc.: JLL Reports Financial Results for First-Quarter 2025 (Form 8-K)

JLL Reports Financial Results for First-Quarter 2025

Broad-based increases in resilient and transactional revenues drove fourth consecutive quarter of double-digit revenue growth

CHICAGO, May 7, 2025 - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported operating performance for the first quarter of 2025 with diluted earnings per share of $1.14 (down 19%, driven by non-cash losses) and adjusted diluted earnings per share1 of $2.31 (up 28%). Growth momentum of Resilient4 and Transactional4 revenues continued as both achieved double-digit increases again this quarter.

•First-quarter revenue was $5.7 billion, up 13% in local currency1 with Transactional4 revenues up 14% and Resilient4 revenues up 13%

◦Real Estate Management Services' momentum continued, up 14%, driven by Workplace Management and Project Management

◦Leasing, within Leasing Advisory, increased 15% with broad-based growth across all asset classes, led by the U.S.

◦Capital Markets Services achieved 16% growth highlighted by performance of the debt advisory and investment sales businesses

•Bottom-line performance reflected revenue growth and improved platform leverage partially offset by incremental investments in technology

•Previously announced changes in the company's reporting segments took effect January 1

"Broad-based revenue growth and the 28% increase in Adjusted EPS in the first quarter are a reflection of JLL's multi-year focus on platform differentiation, efficiency and resiliency," said Christian Ulbrich, JLL CEO. "As we enter the second quarter with a notably more volatile market backdrop, our pipelines are healthy and we have conviction in both the long-term fundamentals supporting our industry and the agility we have developed across our organization. Looking ahead, our ongoing investments to further unify our data, technology and people position us well to navigate real estate cycles and continue to deliver superior client outcomes."

Summary Financial Results ($ in millions, except per share data, "LC" = local currency)			Three Months Ended March 31,
			2025						2024			% Change in USD			% Change in LC
Revenue			$	5,746.4					$	5,124.5		12		%	13		%
Net income attributable to common shareholders			$	55.3					$	66.1		(16)		%	(19)		%
Adjusted net income attributable to common shareholders1			111.6						86.0			30			28
Diluted earnings per share			$	1.14					$	1.37		(17)		%	(19)		%
Adjusted diluted earnings per share1			2.31						1.78			30			28
Adjusted EBITDA1			$	224.8					$	187.1		20		%	20		%
Cash flows from operating activities			$	(767.6)					$	(677.5)		(13)		%	n/a
Free Cash Flow6			(812.1)						(720.7)			(13)		%	n/a

Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release.

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Consolidated First-Quarter 2025 Performance Highlights:

Consolidated ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Real Estate Management Services			$	4,569.4					$	4,069.2					12		%				14		%
Leasing Advisory			586.1						520.4						13						13
Capital Markets Services			435.3						377.6						15						16
Investment Management			98.5						103.4						(5)						(4)
Software and Technology Solutions			57.1						53.9						6						6
Total revenue			$	5,746.4					$	5,124.5					12		%				13		%
Gross contract costs6			$	3,942.3					$	3,498.7					13		%				14		%
Platform operating expenses			1,664.4						1,509.9						10						11
Restructuring and acquisition charges5			19.7						1.7						n.m.						n.m.
Total operating expenses			$	5,626.4					$	5,010.3					12		%				14		%
Net non-cash MSR and mortgage banking derivative activity1			$	(12.9)					$	(9.0)					(43)		%				(43)		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

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Revenue

Revenue increased 13% compared with the prior-year quarter. Several businesses with Resilient revenues, collectively up 13%, continued to deliver strong growth, highlighted by (i) Workplace Management, up 15%, and (ii) Project Management, up 16%, both within Real Estate Management Services, as well as (iii) Software and Technology Solutions, up 6%. The collective 14% increase in Transactional revenue was led by Leasing, within Leasing Advisory, up 15%, and Investment Sales, Debt/Equity Advisory and Other, within Capital Markets Services, up 22% (excluding the impact of non-cash MSR and mortgage banking derivative activity).

Refer to segment performance highlights for additional detail.

The following chart reflects the year-over-year change in revenue for each of the trailing eight quarters (QTD revenues, on a local currency basis). The chart shows the change in Transactional, Resilient and total revenue. Refer to Footnote 4 for the definitions of Resilient and Transactional revenues.

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Net income and Adjusted EBITDA:

($ in millions, except per share data, "LC" = local currency)			Three Months Ended March 31,
			2025						2024			% Change in USD			% Change in LC
Net income attributable to common shareholders			$	55.3					$	66.1		(16)		%	(19)		%
Adjusted net income attributable to common shareholders1			111.6						86.0			30			28
Diluted earnings per share			$	1.14					$	1.37		(17)		%	(19)		%
Adjusted diluted earnings per share1			2.31						1.78			30			28
Adjusted EBITDA1			$	224.8					$	187.1		20		%	20		%
Effective tax rate ("ETR")			19.5		%				19.5		%	0 bps			n/a

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Cash Flows and Capital Allocation:

($ in millions)			Three Months Ended March 31,
			2025						2024			Change in USD
Cash flows from operating activities			$	(767.6)					$	(677.5)		(13)		%
Free Cash Flow6			(812.1)						(720.7)			(13)		%

Incremental cash outflow in the first quarter was primarily attributable to (i) the timing of Net reimbursables activity, and (ii) higher commission payments in the first quarter of 2025 compared with the prior-year quarter (reflecting higher transactional revenue activity in Q4 2024 compared with Q4 2023). These drivers were partially offset by greater cash provided by earnings.

Share repurchase activity is noted in the following table. As of March 31, 2025, $993.4 million remained authorized for repurchase.

			Three Months Ended March 31,
			2025			2024
Total number of shares repurchased (in thousands)			75.3			110.7
Total paid for shares repurchased (in millions)			$	19.8		$	20.1

Net Debt, Leverage and Liquidity6:

			March 31, 2025						December 31, 2024						March 31, 2024
Total Net Debt (in millions)			$	1,754.0					$	800.6					$	1,900.8
Net Leverage Ratio			1.4x						0.7x						1.9x
Corporate Liquidity (in millions)			$	3,312.4					$	3,616.3					$	2,301.7

The increase in Net Debt from December 31, 2024 reflected (i) typical seasonality largely attributable to annual incentive compensation payments made in the first quarter and (ii) the $100 million investment in JLL Income Property Trust, an Investment Management flagship fund, made in January 2025. The Net Debt reduction from March 31, 2024, reflected improved cash flows from operations over the trailing twelve months ended March 31, 2025, compared with the twelve-month period ended March 31, 2024.

In addition to the Corporate Liquidity detailed above, the company maintains a commercial paper program (the "Program") with $2.5 billion authorized for issuance. As of March 31, 2025, there was $900.0 million outstanding under the Program.

Change in External Reporting Segments:

In September 2024, the company announced an organizational change that brings together all building operation groups to address client needs and the changing dynamics of the real estate industry. As a result of these changes, effective January 1, 2025, the company reports Property Management (historically included in Markets Advisory, which was renamed Leasing Advisory) within Real Estate Management Services (formerly referred to as Work Dynamics). Prior-period financial information was recast to conform with this presentation. Also effective January 1, 2025, Capital Markets was renamed Capital Markets Services, LaSalle was renamed Investment Management and JLL Technologies was renamed Software and Technology Solutions; there are no reporting changes within these three segments.

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Real Estate Management Services First-Quarter 2025 Performance Highlights:

Real Estate Management Services ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Revenue			$	4,569.4					$	4,069.2					12		%				14		%
Workplace Management			3,263.6						2,871.7						14						15
Project Management			747.5						656.4						14						16
Property Management			445.6						429.7						4						5
Portfolio Services and Other			112.7						111.4						1						2
Segment operating expenses			$	4,532.6					$	4,027.2					13		%				14		%
Segment platform operating expenses			602.3						558.1						8						10
Gross contract costs6			3,930.3						3,469.1						13						15
Adjusted EBITDA1			$	66.3					$	71.4					(7)		%				(9)		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Real Estate Management Services revenue growth was driven by continued strong performance in Workplace Management, largely from a balanced mix of client wins and mandate expansions, as incremental pass-through costs augmented high single-digit management fee growth. Higher Project Management revenue was led by the U.S. and Asia Pacific, as a near-double-digit management fee increase was supplemented by higher pass-through costs.

The change in Adjusted EBITDA and margin was primarily due to i) continued investments in our technology platform (including in artificial intelligence and project management capabilities) and ii) incremental human capital investments in the latter half of 2024, most notably in Project Management, to support future business growth.

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Leasing Advisory First-Quarter 2025 Performance Highlights:

Leasing Advisory ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Revenue			$	586.1					$	520.4					13		%				13		%
Leasing			566.1						497.3						14						15
Advisory, Consulting and Other			20.0						23.1						(13)						(12)
Segment operating expenses			$	501.2					$	454.9					10		%				11		%
Segment platform operating expenses			499.2						448.5						11						12
Gross contract costs6			2.0						6.4						(69)						(68)
Adjusted EBITDA1			$	97.0					$	74.8					30		%				29		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Compared with the prior-year quarter, increased revenue was driven by broad-based Leasing growth across asset classes, led by growth in office together with accelerated momentum from industrial. Many geographies achieved double-digit Leasing revenue growth for the quarter, most notably the U.S., Canada, Greater China2 and Germany. U.S. office leasing increased for the fifth consecutive quarter, exceeding first-quarter 2019 levels, partially driven by an increase in the number of large leasing deals across nearly all asset classes. Globally, office leasing grew 18% over the prior-year quarter, outperforming market volume growth of 9%, according to JLL Research.

Higher Adjusted EBITDA and margin were largely driven by the revenue growth described above as well as continued improvement in platform leverage.

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Capital Markets Services First-Quarter 2025 Performance Highlights:

Capital Markets Services ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Revenue			$	435.3					$	377.6					15		%				16		%
Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR(a)			325.5						267.7						22						22
Net non-cash MSR and mortgage banking derivative activity (a)			(12.9)						(9.0)						(43)						(43)
Value and Risk Advisory			81.6						80.2						2						4
Loan Servicing			41.1						38.7						6						6
Segment operating expenses			$	420.2					$	378.4					11		%				12		%
Segment platform operating expenses			419.1						364.8						15						16
Gross contract costs6			1.1						13.6						(92)						(92)
Equity earnings			$	1.6					$	0.1					n.m.						n.m.
Adjusted EBITDA1			$	48.6					$	25.0					94		%				90		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
(a) Historically, net non-cash MSR and mortgage banking derivative activity was included in the Investment Sales, Debt/Equity Advisory and Other caption. Effective beginning Q2 2024, the net non-cash MSR and mortgage banking derivative activity revenue is separately presented in the above table and prior period financial information was recast to conform with this presentation.

Capital Markets Services top-line growth was fueled by debt advisory and investment sales, most notably in the United States. Debt advisory grew over 45% for the quarter while investment sales were up approximately 15%. The residential sector demonstrated the most significant improvement over the prior-year quarter, while hotels and industrial also contributed to the current-quarter growth. Specifically, Investment sales in the U.S. grew approximately 46% for the quarter, outperforming the broader market volume for U.S. investment sales, which grew 42% for the quarter, according to JLL Research.

Adjusted EBITDA and margin improvements for the quarter were largely attributable to transactional revenue growth described above, together with continued improvement in platform leverage.

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Investment Management First-Quarter 2025 Performance Highlights:

Investment Management ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Revenue			$	98.5					$	103.4					(5)		%				(4)		%
Advisory fees			89.3						92.3						(3)						(2)
Transaction fees and other			8.5						8.9						(4)						(4)
Incentive fees			0.7						2.2						(68)						(67)
Segment operating expenses			$	85.7					$	84.6					1		%				2		%
Segment platform operating expenses			77.5						76.2						2						3
Gross contract costs6			8.2						8.4						(2)						(3)
Adjusted EBITDA1			$	15.8					$	21.0					(25)		%				(22)		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Investment Management advisory fees declined primarily due to lower assets under management ("AUM"), reflecting asset dispositions on behalf of certain clients in the fourth quarter of 2024.

The changes in Adjusted EBITDA and margin were largely attributable to the overall reduction in revenue, foreign currency transaction losses in the current quarter, and the timing of certain expenses.

AUM3 decreased 7% in USD (4% in local currency) during the quarter, and decreased 8% in USD (6% in local currency) over the trailing twelve months. Changes in AUM are detailed in the tables below (in billions):

Quarter-to-date
Beginning balance (December 31, 2024)			$	88.8
Asset acquisitions/takeovers			2.2
Asset dispositions/withdrawals			(3.7)
Valuation changes			0.2
Foreign currency translation			(2.8)
Change in uncalled committed capital and cash held			(2.4)
Ending balance (March 31, 2025)			$	82.3

Trailing Twelve Months
Beginning balance (March 31, 2024)			$	89.7
Asset acquisitions/takeovers			5.3
Asset dispositions/withdrawals			(7.0)
Valuation changes			(0.1)
Foreign currency translation			(2.2)
Change in uncalled committed capital and cash held			(3.4)
Ending balance (March 31, 2025)			$	82.3

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Software and Technology Solutions First-Quarter 2025 Performance Highlights:

Software and Technology Solutions ($ in millions, "LC" = local currency)			Three Months Ended March 31,												% Change in USD						% Change in LC
			2025						2024
Revenue			$	57.1					$	53.9					6		%				6		%
Segment operating expenses			$	67.0					$	63.5					6		%				6		%
Segment platform operating expenses, excluding Carried interest			68.7						62.4						10						10
Carried interest benefit(a)			(2.4)						(0.1)						n.m.						n.m.
Gross contract costs6			0.7						1.2						(42)						(35)
Adjusted EBITDA1			$	(2.9)					$	(5.1)					43		%				37		%
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
(a) Carried interest expense/benefit is associated with equity earnings/losses on Spark Venture Funds investments.

Software and Technology Solutions revenue growth was due to increased bookings from software, partially offset by technology solutions.

The improvement in Adjusted EBITDA and margin was primarily attributable to the year-over-year change in carried interest benefit and higher revenue, partially offset by growth in revenue-related expenses.

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About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 112,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Connect with us

Live Webcast						Conference Call
Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, May 7, 2025, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available. The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com.						The conference call can be accessed live over the phone by dialing (888) 660-6392; the conference ID number is 5398158. Listeners are asked to please dial in 10 minutes prior to the call start time and provide the conference ID number to be connected.
Supplemental Information						Contact
Supplemental information regarding the first quarter 2025 earnings call has been posted to the Investor Relations section of JLL's website: ir.jll.com.						If you have any questions, please contact Sean Coghlan, Head of Investor Relations.
						Phone:			+1 312 252 8943
						Email:			JLLInvestorRelations@jll.com