Altus Group Limited (AIF) Q2 2025 Earnings Call

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WEBVTT 00:00:00.000 -- 00:00:05.440 Revenue in our appraisals and development advisory segment came in below guidance, reflecting 00:00:05.440 -- 00:00:09.080 softer market conditions across both businesses. 00:00:09.080 -- 00:00:14.440 The appraisals business, which operates exclusively in Canada, is particularly impacted 00:00:14.440 -- 00:00:20.680 by muted transaction activity and ongoing uncertainty related to tariffs. 00:00:20.680 -- 00:00:25.900 Despite these headwinds, our performance continues to improve, driven by a 00:00:25.900 -- 00:00:30.480 deliberate focus on higher margin value added engagements. 00:00:30.480 -- 00:00:33.960 Adjusted EBITDA increased by .6% 00:00:33.960 -- 00:00:39.540 with a 130 basis point expansion in margins, supported by enhanced delivery efficiency 00:00:39.540 -- 00:00:44.780 through our offshore global shared services team. 00:00:44.820 -- 00:00:49.580 The Canadian commercial real estate market remains stable through Q2, but continues to 00:00:49.580 -- 00:00:53.460 navigate a challenging environment shaped by tariff uncertainty, 00:00:53.460 -- 00:00:57.280 inflationary pressures, and evolving monetary policy. 00:00:57.280 -- 00:01:02.160 These factors are contributing to a more cautious lending landscape. 00:01:02.160 -- 00:01:05.160 While we anticipate stronger momentum in the U.S. 00:01:05.160 -- 00:01:09.960 market in the second half of the year, Canadian transaction activity is expected to remain 00:01:09.960 -- 00:01:13.560 subdued until market conditions stabilize. 00:01:13.560 -- 00:01:18.880 In the meantime, we remain focused on disciplined execution and driving margin improvements 00:01:18.880 -- 00:01:21.140 across the segment. 00:01:21.140 -- 00:01:26.440 Turning to the balance sheet. We ended the quarter with $38...