Colliers Reports Second Quarter Results

About this update from Colliers International Group Inc.

Diversified business model fuels outperformance Second quarter and year to date operating highlights: Three months ended Six months ended June 30 June 30 (in millions of US$, except EPS) 2025 2024 2025 2024 Revenues $ 1,347.6 $ 1,139.4 $ 2,488.8 $ 2,141.3 Net Revenues (note 1) 1,185.9 1,018.0 2,179.6 1,908.7 Adjusted EBITDA (note 2) 180.2 155.6 296.3 264.3 Adjusted EPS (note 3) 1.72 1.36 2.59 2.13 GAAP operating earnings 99.2 114.7 130.8 158.1 GAAP diluted net earnings (loss) per share 0.08 0.73 0.00 0.99 TORONTO, July 31, 2025 (GLOBE NEWSWIRE) -- Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced financial results for the second quarter ended June 30, 2025. All amounts are in US dollars. Second quarter consolidated revenues were $1.35 billion, up 18% (17% in local currency), net revenues were $1.19 billion, up 16% (16% in local currency) and Adjusted EBITDA (note 2) was $180.2 million, up 16% (15% in local currency) compared to the prior year quarter. Consolidated internal revenue growth measured in local currencies was 4% (note 5) versus the prior year quarter. Adjusted EPS (note 3) was $1.72, an increase of 26% over the prior year quarter. Adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. GAAP operating earnings were $99.2 million compared to $114.7 million in the prior year quarter. The GAAP diluted net earnings per share were $0.08 compared to $0.73 in the prior year quarter. Second quarter GAAP diluted net earnings per share would have been approximately $0.01 lower excluding foreign exchange impacts. For the six months ended June 30, 2025, revenues were $2.49 billion, up 16% (17% in local currency), net revenues were $2.18 billion, up 14% (15% in local currency) and adjusted EBITDA (note 2) was $296.3 million, up 12% (12% in local currency) versus the prior year period. Consolidated internal revenue growth measured in local currencies was 4% (note 5) versus the prior year period. Adjusted EPS (note 3) was $2.59, up 22% from $2.13 in the prior year period. Adjusted EPS would have been approximately $0.01 lower excluding foreign exchange impacts. The GAAP operating earnings were $130.8 million compared to $158.1 million in the prior year period, with the prior year favourably impacted by the reversal of contingent consideration expense related to an acquisition. The GAAP diluted net loss per share was nil compared to diluted net earnings per share of $0.99 in the prior year period. The GAAP diluted net earnings per share would have been approximately $0.01 lower excluding foreign exchange impacts. Over the past 12 months, 71% of the Company’s earnings came from recurring revenues. During the same period, free cash flow (note 4) was converted at a rate of 98% of adjusted net earnings – a strong performance and well in line with the Company’s target range. “We exceeded expectations with our strong second quarter results, showcasing the exceptional performance of our Engineering division,” stated Jay S. Hennick, Chairman & CEO of Colliers. "Our long-term strategy to build a diversified professional services and investment management company with high-quality, recurring revenue streams is clearly paying off. All three of our growth engines – Real Estate Services, Engineering, and Investment Management – demonstrated solid momentum this quarter, driven by organic growth, new revenue pipelines, and strategic acquisitions. We anticipate this positive trend to continue throughout the year, prompting us to raise our annual outlook despite ongoing macroeconomic uncertainties.” “Last week, we announced the rebranding of our Investment Management division as Harrison Street Asset Management (“Harrison Street”), reflecting the strength and global recognition of the Harrison Street brand. We also expanded our leadership team, appointing Co-Founder Christopher Merrill as Global CEO, along with Zach Michaud and Stephen Gordon as Managing Partners & Global CFO and COO, respectively. These changes position us to further scale our platform, unlock new opportunities and position ourselves for further value creation. This week’s acquisition of a 60% stake in RoundShield Partners, a leading European credit platform with $5 billion in assets under management, further expands our credit, student housing and hospitality capabilities. In addition to RoundShield, we also completed four tuck-in acquisitions in Engineering and two in Real Estate Services.” “With a 30-year track record of disciplined growth, visionary leadership, and three strong, high value growth engines, Colliers is a different kind of company that is exceptionally well-positioned to seize new opportunities and deliver enduring value for our shareholders,” Hennick concluded. About Colliers Colliers (NASDAQ, TSX: CIGI) is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering, and Investment Management – we have a proven business model, an enterprising culture, and a unique partnership philosophy that drives growth and value creation. For 30 years, Colliers has consistently delivered approximately 20% compound annual returns for shareholders, fuelled by visionary leadership, significant inside ownership and substantial recurring earnings. With over $5.0 billion in annual revenues, a team of 24,000 professionals, and more than $100 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors, and people worldwide. Learn more at corporate.colliers.com , X @Colliers or LinkedIn . Segmented Second Quarter Results Real Estate Services revenues totalled $785.4 million, up 4% (up 4% in local currency) versus the prior year quarter. Net revenues were $730.8 million, up 5% (up 4% in local currency). Capital Markets revenues were up 17% (16% in local currency) with solid growth across all asset classes, led by the US, Western Europe and debt finance. Leasing revenues declined 5% (5% in local currency) globally and were impacted by tariff-driven uncertainties especially in industrial, which more than offset robust growth in office leasing. Outsourcing revenues were up 6% (6% in local currency) with growth across all services. Adjusted EBITDA was $87.0 million, down 1% (1% in local currency) on revenue mix as well as continued investments in recruiting. The GAAP operating earnings were $66.9 million, relative to $64.3 million in the prior year quarter. Engineering revenues totalled $436.0 million, up 67% (65% in local currency) compared to the prior year quarter. Net revenues (excluding subconsultant and other direct costs) were $337.3 million, up 73% (70% in local currency) driven by the favourable impact of recent acquisitions and strong internal growth. Adjusted EBITDA was $46.3 million, up 145% (142% in local currency) over the prior year quarter, with margin expansion driven equally by acquisitions and improved productivity and efficiency in core operations. The GAAP operating earnings were $19.2 million relative to $9.6 million in the prior year quarter. Investment Management revenues were $126.1 million, flat (flat in local currency) relative to the prior year quarter. Net revenues (excluding pass-through performance fees) were $117.7 million, down 7% (down 7% in local currency) impacted by catch-up fees recognized in the prior year quarter. Adjusted EBITDA was $50.0 million, down 1% (down 1% in local currency) compared to the prior year quarter. GAAP operating earnings were $29.3 million in the quarter versus $55.0 million in the prior year quarter, with the prior year quarter impacted by a reversal of contingent acquisition consideration expense. AUM was $103.3 billion as of June 30, 2025 up from $100.3 billion at the end of the first quarter on solid fundraising, strong capital deployment activity and modest valuation increases during the quarter. Including RoundShield, proforma AUM is approximately $108 billion. Unallocated global corporate costs as reported in Adjusted EBITDA were $3.1 million relative to $1.9 million in the prior year quarter. The corporate GAAP operating loss was $16.2 million compared to $14.2 million in the prior year quarter. Updated 2025 Outlook The Company is updating and increasing its outlook for 2025 to reflect year to date operating results and the partial year impact of completed acquisitions, including RoundShield. On a consolidated basis, low-teens percentage revenue growth (previously high single-digit to low teens), mid-teens Adjusted EBITDA growth (previously low-teens) and mid to high-teens Adjusted EPS growth (previously low-teens) are expected.  The outlook remains contingent on (i) lower global trade uncertainty, and (ii) lower interest rate volatility in the second half of the year. The outlook drivers by segment have been updated accordingly and are discussed in the accompanying earnings call presentation. The financial outlook is based on the Company’s best available information as of the date of this press release, and remains subject to change based on numerous macroeconomic, geopolitical, international trade, health, social and related factors. The outlook does not include future acquisitions. Conference Call Colliers will be holding a conference call on Thursday, July 31, 2025 at 11:00 a.m. Eastern Time to discuss the quarter’s results. The call will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section. Forward-looking Statements This press release includes or may include forward-looking statements. Forward-looking statements include the Company’s financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where the business may be concentrated; commercial real estate and real asset values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in capitalization rates across different asset types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the ability to attract new clients and to retain clients and renew related contracts; the ability to attract new capital commitments to Investment Management funds and retain existing capital under management; the ability to retain and incentivize employees; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Company’s Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Company’s services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of global climate change; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities, war and terrorism on the Company’s operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations, including real estate investment management and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business. Additional information and risk factors identified in the Company’s other periodic filings with Canadian and US securities regulators are adopted herein and a copy of which can be obtained at www.sedarplus.ca . Forward looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Summary unaudited financial information is provided in this press release. This press release should be read in conjunction with the Company's consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca . This press release does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund. Colliers International Group Inc. Condensed Consolidated Statements of Earnings (Loss) (in thousands of US$, except per share amounts) Three months Six months ended June 30 ended June 30 (unaudited) 2025 2024 2025 2024 Revenues $ 1,347,649 $ 1,139,368 $ 2,488,819 $ 2,141,348 Cost of revenues 798,064 687,062 1,486,554 1,293,307 Selling, general and administrative expenses 372,657 302,934 720,950 602,894 Depreciation 18,703 15,460 37,350 30,882 Amortization of intangible assets 42,983 34,385 87,738 69,471 Acquisition-related items (1) 16,059 (15,221 ) 25,440 (13,281 ) Operating earnings 99,183 114,748 130,787 158,075 Interest expense, net 15,515 19,376 38,063 39,248 Equity earnings from non-consolidated investments (3,318 ) (796 ) (7,052 ) (1,232 ) Other income (2,229 ) (136 ) (3,069 ) (351 ) Earnings before income tax 89,215 96,304 102,845 120,410 Income tax 25,244 24,377 29,956 34,347 Net earnings 63,971 71,927 72,889 86,063 Non-controlling interest share of earnings 16,238 11,224 21,967 20,145 Non-controlling interest redemption increment 43,724 23,979 51,172 16,537 Net earnings (loss) attributable to Company $ 4,009 $ 36,724 $ (250 ) $ 49,381 Net earnings (loss) per common share Basic $ 0.08 $ 0.73 $ 0.00 $ 1.00 Diluted $ 0.08 $ 0.73 $ 0.00 $ 0.99 Adjusted EPS (2) $ 1.72 $ 1.36 $ 2.59 $ 2.13 Weighted average common shares (thousands) Basic 50,667 50,239 50,641 49,374 Diluted 50,891 50,479 50,641 49,671 Notes to Condensed Consolidated Statements of Earnings (1)   Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs. (2)   See definition and reconciliation below. Colliers International Group Inc. Condensed Consolidated Balance Sheets (in thousands of US$) June 30, December 31, June 30, (unaudited) 2025 2024 2024 Assets Cash and cash equivalents $ 183,343 $ 176,257 $ 162,625 Restricted cash (1) 51,054 41,724 78,060 Accounts receivable and contract assets 936,872 869,948 723,531 Mortgage warehouse receivables (2) 104,588 77,559 140,974 Prepaids and other assets 369,005 323,117 329,716 Warehouse fund assets 81,057 110,779 49,285 Current assets 1,725,919 1,599,384 1,484,191 Other non-current assets 232,551 220,299 212,301 Warehouse fund assets 186,602 94,334 286,171 Fixed assets 239,044 227,311 201,315 Operating lease right-of-use assets 408,419 398,507 380,699 Deferred tax assets, net 94,792 79,258 58,902 Goodwill and intangible assets 3,573,278 3,481,524 3,048,187 Total assets $ 6,460,605 $ 6,100,617 $ 5,671,766 Liabilities and shareholders' equity Accounts payable and accrued liabilities $ 1,075,674 $ 1,140,605 $ 966,978 Other current liabilities 97,287 109,439 97,862 Long-term debt - current 16,841 6,061 9,618 Mortgage warehouse credit facilities (2) 97,103 72,642 132,869 Operating lease liabilities - current 98,651 92,950 87,350 Liabilities related to warehouse fund assets 84,478 86,344 146,636 Current liabilities 1,470,034 1,508,041 1,441,313 Long-term debt - non-current 1,723,433 1,502,414 1,354,241 Operating lease liabilities - non-current 385,860 383,921 371,618 Other liabilities 143,627 135,479 123,691 Deferred tax liabilities, net 78,937 78,459 37,635 Liabilities related to warehouse fund assets 114,934 14,103 43,000 Redeemable non-controlling interests 1,157,773 1,152,618 1,105,008 Shareholders' equity 1,386,007 1,325,582 1,195,260 Total liabilities and equity $ 6,460,605 $ 6,100,617 $ 5,671,766 Supplemental balance sheet information Total debt (3) $ 1,740,274 $ 1,508,475 $ 1,363,859 Total debt, net of cash and cash equivalents (3) 1,556,931 1,332,218 1,201,234 Net debt / pro forma adjusted EBITDA ratio (4) 2.3 2.0 2.0 Notes to Condensed Consolidated Balance Sheets (1)   Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business. (2)   Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase. (3)   Excluding mortgage warehouse credit facilities. (4)   Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements. Colliers International Group Inc. Condensed Consolidated Statements of Cash Flows (in thousands of US$) Three months ended Six months ended June 30 June 30 (unaudited) 2025 2024 2025 2024 Cash provided by (used in) Operating activities Net earnings $ 63,971 $ 71,927 $ 72,889 $ 86,063 Items not affecting cash: Depreciation and amortization 61,686 49,845 125,088 100,353 Gains attributable to mortgage servicing rights (10,455 ) (3,712 ) (14,494 ) (5,027 ) Gains attributable to the fair value of loan premiums and origination fees (6,676 ) (3,424 ) (11,245 ) (5,623 ) Deferred income tax (5,366 ) (3,406 ) (14,550 ) (7,395 ) Other 17,744 1,686 37,093 15,148 120,904 112,916 194,781 183,519 Increase in accounts receivable, prepaid expenses and other assets (139,954 ) (98,930 ) (109,680 ) (94,289 ) Increase (decrease) in accounts payable, accrued expenses and other liabilities 11,456 43,740 (26,936 ) (2,902 ) Increase (decrease) in accrued compensation 51,518 59,914 (100,959 ) (87,018 ) Contingent acquisition consideration paid (5,680 ) (300 ) (7,948 ) (3,038 ) Mortgage origination activities, net 7,980 3,694 11,465 7,192 Sales to AR Facility, net (1,661 ) 20,155 (636 ) 110 Net cash provided by (used in) operating activities 44,563 141,189 (39,913 ) 3,574 Investing activities Acquisition of businesses, net of cash acquired (50,218 ) (17,772 ) (59,703 ) (17,772 ) Purchases of fixed assets (16,428 ) (12,480 ) (31,082 ) (29,353 ) Purchases of warehouse fund assets (110,921 ) (220,917 ) (121,734 ) (257,343 ) Proceeds from disposal of warehouse fund assets 62,914 71,494 62,914 76,438 Cash collections on AR Facility deferred purchase price 35,556 34,930 83,977 68,848 Other investing activities (22,469 ) (22,718 ) (45,764 ) (58,133 ) Net cash used in investing activities (101,566 ) (167,463 ) (111,392 ) (217,315 ) Financing activities Increase in long-term debt, net 118,878 106,528 260,786 1,476 Purchases of non-controlling interests, net (11,916 ) (7,083 ) (17,219 ) (9,737 ) Dividends paid to common shareholders - - (7,592 ) (7,132 ) Distributions paid to non-controlling interests (37,015 ) (38,521 ) (45,473 ) (48,827 ) Issuance of subordinate voting shares - - - 286,924 Other financing activities (6,263 ) 2,964 (7,440 ) 17,093 Net cash provided by financing activities 63,684 63,888 183,062 239,797 Effect of exchange rate changes on cash, cash equivalents and restricted cash (13,545 ) (2,386 ) (15,341 ) (4,446 ) Net change in cash and cash equivalents and restricted cash (6,864 ) 35,228 16,416 21,610 Cash and cash equivalents and restricted cash, beginning of period 241,261 205,457 217,981 219,075 Cash and cash equivalents and restricted cash, end of period $ 234,397 $ 240,685 $ 234,397 $ 240,685 Colliers International Group Inc. Segmented Results (in thousands of US dollars) Real Estate Investment (unaudited) Services Engineering Management Corporate Total Three months ended June 30 2025 Revenues $ 785,389 $ 435,977 $ 126,134 $ 149 $ 1,347,649 Net Revenues 730,801 337,260 117,734 149 1,185,944 Adjusted EBITDA 87,014 46,320 49,989 (3,114 ) 180,209 Operating earnings (loss) 66,887 19,170 29,287 (16,161 ) 99,183 2024 Revenues $ 751,875 $ 261,338 $ 126,051 $ 104 $ 1,139,368 Net Revenues 696,868 194,975 126,051 104 1,017,998 Adjusted EBITDA 88,063 18,934 50,489 (1,862 ) 155,624 Operating earnings (loss) 64,293 9,614 55,032 (14,191 ) 114,748 Real Estate Investment Services Engineering Management Corporate Total Six months ended June 30 2025 Revenues $ 1,422,361 $ 813,851 $ 252,336 $ 271 $ 2,488,819 Net Revenues 1,319,034 623,432 236,891 271 2,179,628 Adjusted EBITDA 126,093 70,344 105,085 (5,269 ) 296,253 Operating earnings (loss) 82,569 14,040 62,194 (28,016 ) 130,787 2024 Revenues $ 1,393,150 $ 499,399 $ 248,572 $ 227 $ 2,141,348 Net Revenues 1,289,325 373,603 245,572 227 1,908,727 Adjusted EBITDA 132,492 31,994 103,339 (3,506 ) 264,319 Operating earnings (loss) 81,109 12,914 93,912 (29,860 ) 158,075 Notes Non-GAAP Measures 1. Reconciliation of revenues to net revenues Net revenues are defined as revenues excluding subconsultant and other reimbursable direct costs in Real Estate Services and Engineering segments as well as historical pass-through performance fees in Investment Management segment to better reflect the operating performance of the business. Real Estate Investment Services Engineering Management Corporate Total Three months ended June 30 2025 Revenues $ 785,389 $ 435,977 $ 126,134 $ 149 $ 1,347,649 Subconsultant and other direct costs (54,588 ) (98,717 ) - - (153,305 ) Historical pass-through performance fees - - (8,400 ) - (8,400 ) Net Revenues $ 730,801 $ 337,260 $ 117,734 $ 149 $ 1,185,944 2024 Revenues $ 751,875 $ 261,338 $ 126,051 $ 104 $ 1,139,368 Subconsultant and other direct costs (55,007 ) (66,363 ) - - (121,370 ) Historical pass-through performance fees - - - - - Net Revenues $ 696,868 $ 194,975 $ 126,051 $ 104 $ 1,017,998 Real Estate Investment Services Engineering Management Corporate Total Six months ended June 30 2025 Revenues $ 1,422,361 $ 813,851 $ 252,336 $ 271 $ 2,488,819 Subconsultant and other direct costs (103,327 ) (190,419 ) - - (293,746 ) Historical pass-through performance fees - - (15,445 ) - (15,445 ) Net Revenues $ 1,319,034 $ 623,432 $ 236,891 $ 271 $ 2,179,628 2024 Revenues $ 1,393,150 $ 499,399 $ 248,572 $ 227 $ 2,141,348 Subconsultant and other direct costs (103,825 ) (125,796 ) - - (229,621 ) Historical pass-through performance fees - - (3,000 ) - (3,000 ) Net Revenues $ 1,289,325 $ 373,603 $ 245,572 $ 227 $ 1,908,727 2. Reconciliation of net earnings to Adjusted EBITDA Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other income; (iii) interest expense; (iv) depreciation and amortization, including amortization of mortgage servicing rights (“MSRs”); (v) gains attributable to MSRs; (vi) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (vii) restructuring costs and (viii) stock-based compensation expense, including related to the CEO’s performance-based long-term incentive plan (“LTIP”). We use Adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. We present Adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Company’s service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance of the consolidated Company under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below. Three months ended Six months ended June 30 June 30 (in thousands of US$) 2025 2024 2025 2024 Net earnings $ 63,971 $ 71,927 $ 72,889 $ 86,063 Income tax 25,244 24,377 29,956 34,347 Other income, including equity earnings from non-consolidated investments (5,547 ) (932 ) (10,121 ) (1,583 ) Interest expense, net 15,515 19,376 38,063 39,248 Operating earnings 99,183 114,748 130,787 158,075 Depreciation and amortization 61,686 49,845 125,088 100,353 Gains attributable to MSRs (10,455 ) (3,712 ) (14,494 ) (5,027 ) Equity earnings from non-consolidated investments 3,318 796 7,052 1,232 Acquisition-related items 16,059 (15,221 ) 25,440 (13,281 ) Restructuring costs 1,265 1,722 6,575 8,833 Stock-based compensation expense 9,153 7,446 15,805 14,134 Adjusted EBITDA $ 180,209 $ 155,624 $ 296,253 $ 264,319 3. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and Adjusted EPS Adjusted EPS is defined as diluted net earnings per share adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iii) gains attributable to MSRs; (iv) acquisition-related items; (v) restructuring costs and (vi) stock-based compensation expense, including related to the CEO’s LTIP. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below. Three months ended Six months ended June 30 June 30 (in thousands of US$) 2025 2024 2025 2024 Net earnings $ 63,971 $ 71,927 $ 72,889 $ 86,063 Non-controlling interest share of earnings (16,238 ) (11,224 ) (21,967 ) (20,145 ) Amortization of intangible assets 42,983 34,385 87,738 69,471 Gains attributable to MSRs (10,455 ) (3,712 ) (14,494 ) (5,027 ) Acquisition-related items 16,059 (15,221 ) 25,440 (13,281 ) Restructuring costs 1,265 1,722 6,575 8,833 Stock-based compensation expense 9,153 7,446 15,805 14,134 Income tax on adjustments (12,210 ) (9,606 ) (25,692 ) (20,733 ) Non-controlling interest on adjustments (7,008 ) (7,141 ) (14,634 ) (13,271 ) Adjusted net earnings $ 87,520 $ 68,576 $ 131,660 $ 106,044 Three months ended Six months ended June 30 June 30 (in US$) 2025 2024 2025 2024 Diluted net earnings (loss) per common share $ 0.08 $ 0.73 $ 0.00 $ 0.99 Non-controlling interest redemption increment 0.86 0.48 1.01 0.33 Amortization expense, net of tax 0.53 0.41 1.09 0.88 Gains attributable to MSRs, net of tax (0.12 ) (0.04 ) (0.16 ) (0.06 ) Acquisition-related items 0.21 (0.36 ) 0.32 (0.37 ) Restructuring costs, net of tax 0.02 0.02 0.09 0.14 Stock-based compensation expense, net of tax 0.14 0.12 0.24 0.22 Adjusted EPS $ 1.72 $ 1.36 $ 2.59 $ 2.13 Diluted weighted average shares for Adjusted EPS (thousands) 50,891 50,479 50,900 49,671 4. Reconciliation of net cash flow from operations to free cash flow Free cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay dividends to shareholders. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below. Three months ended Six months ended June 30 June 30 (in thousands of US$) 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 44,563 $ 141,189 $ (39,913 ) $ 3,574 Contingent acquisition consideration paid 5,680 300 7,948 3,038 Purchase of fixed assets (16,428 ) (12,480 ) (31,082 ) (29,353 ) Cash collections on AR Facility deferred purchase price 35,556 34,930 83,977 68,848 Distributions paid to non-controlling interests (37,015 ) (38,521 ) (45,473 ) (48,827 ) Free cash flow $ 32,356 $ 125,418 $ (24,543 ) $ (2,720 ) Trailing Twelve Months ended (in thousands of US$) June 30, 2025 2024 Annual free cash flow $ 330,244 Add: Free cash flow for six months ended June 30, 2025 (24,543 ) Less: Free cash flow for six months ended June 30, 2024 2,720 Trailing twelve months ended June 30, 2025 free cash flow $ 308,421 5. Local currency revenue and Adjusted EBITDA growth rate and internal revenue growth rate measures Percentage revenue and Adjusted EBITDA variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Percentage revenue variances presented on an internal growth basis are calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Company’s performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers. 6. Assets under management We use the term assets under management (“AUM”) as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development assets of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers. 7. Adjusted EBITDA from recurring revenue percentage Adjusted EBITDA from recurring revenue percentage is computed on a trailing twelve-month basis and represents the proportion of Adjusted EBITDA (note 2) that is derived from Engineering, Outsourcing and Investment Management service lines. All these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. Adjusted EBITDA for this purpose is calculated in the same manner as for our debt agreement covenant calculation purposes, incorporating the expected full year impact of business acquisitions and dispositions. COMPANY CONTACTS: Jay S. Hennick Chairman & Chief Executive Officer Christian Mayer Chief Financial Officer (416) 960-9500

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