Colliers International Group Inc.: Transactional Businesses Drive 2Q Beat; IM Margin Pressure Until ‘27, But Capital Raising On Track; Guidance Maintained

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Colliers International Group Inc.: Transactional Businesses Drive 2Q Beat; IM Margin Pressure Until ‘27, But Capital Raising On Track; Guidance Maintained

~15% capital markets growth; this compares to our

+5% y/y and +10% y/y assumptions, respectively. The full year guidance remains at low

teens revenue growth with net EBITDA margins expected to be “up modestly,” which

compares to our 9% y/y revenue growth and 60bp margin expansion forecast.

• Engineering: Segment beats on top and bottom line. CIGI reported net revenue of

$359 million ( +28% y/y) for its Engineering segment, better than JPMe of $344 million

(+22% y/y). The segment was driven by outsized growth in critical infrastructure and

technical consulting services. Much of the revenue growth in the quarter can be attributed

to the Ayesa acquisition. Though, internal growth in the segment was at +5% YTD and

seems to be tracking with previous management comments. Management commented

that AI disintermediation of scaled players is unlikely, but smaller player

disintermediation is still possible. Such risk has made for better/lower valuations on

engineering acquisition targets.

Adj. EBITDA was $52 million (+28% y/y and vs. JPMe of +20% y/y) and Adj. EBITDA

margin of 14.5% was slightly better than JPMe of 14.2%. Adj. EBITDA incremental

margins were 14.8%, higher than JPMe of 13.3%. The margin expansion is best attributed

to Ayesa’s higher margin profile.

For the segment, it maintained its guide of +25% net revenue growth (vs. JPMe at +27%

y/y), with EBITDA margins “expected to increase” (vs. JPMe up 140bps y/y).

• Investment Management: Segment in line with expectations; Harrison Street

integration continues and will weigh on margins the rest of 2026. CIGI reported net

revenue of $135 million (+15% y/y and vs.