Altus Group Limited (AIF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Revenue in our appraisals and development advisory segment came in below guidance, reflecting softer market conditions across both businesses. The appraisals business, which operates exclusively in Canada, is particularly impacted by muted transaction activity and ongoing uncertainty related to tariffs. Despite these headwinds, our performance continues to improve, driven by a deliberate focus on higher margin value added engagements. Adjusted EBITDA increased by .6% with a 130 basis point expansion in margins, supported by enhanced delivery efficiency through our offshore global shared services team. The Canadian commercial real estate market remains stable through Q2, but continues to navigate a challenging environment shaped by tariff uncertainty, inflationary pressures, and evolving monetary policy. These factors are contributing to a more cautious lending landscape. While we anticipate stronger momentum in the U.S. market in the second half of the year, Canadian transaction activity is expected to remain subdued until market conditions stabilize. In the meantime, we remain focused on disciplined execution and driving margin improvements across the segment. Turning to the balance sheet. We ended the quarter with $382.7 million in cash and $157.3 million in bank debt, resulting in a funded debt to EBITDA ratio of 1.26x. We returned $101.7 million to shareholders through our share buyback program this quarter, fully utilizing our current NCIB and reducing our outstanding share count to $43.2 million. Year to date, we've repurchased approximately 3.3 million shares, representing $179 million in gross proceeds. We're pleased with the strength of our cash conversion, which continues to be driven by disciplined working capital management and a focused effort on improvi...