- Price
- $11.30
- Fair value
- $15.00
- Discount
- 24.7%
- Uncertainty
- High
- LSEG rating
- 2.17
- Moat
- None
- Next earnings
- 2026-11-05
- Next earnings is estimate
- Yes
- Company name
- Cushman & Wakefield
- Sector
- Commercial real estate services
- About
- Cushman & Wakefield is a global commercial real estate services firm. It has about 53,000 employees in more than 350 offices in nearly 60 countries. It earns revenue from four service lines: Services, such as facilities and project management, Leasing, Capital markets, which arranges property sales and financing, and Valuation and other. It reports three segments: Americas, EMEA and APAC. Revenue was $10.3 billion in 2025. The company also owns 40% of Cushman Wakefield Greystone, a joint venture that makes and services multifamily loans, and 35% of the Onewo joint venture. The company is incorporated in Bermuda.
- Thesis
- The market prices Cushman & Wakefield for cyclical deal revenue, high debt and losses in its Greystone joint venture. Capital markets revenue in the Americas fell 6% in Q2 2026, mainly because of fewer mid-sized deals in multifamily property. Net debt was $2.1 billion at June 30, 2026, and free cash flow was negative $210 million in the first half of 2026. In Q4 2025, the company recorded a $177 million impairment of its Greystone investment, and the joint venture has loss-sharing and indemnity obligations to Fannie Mae and Freddie Mac on some loans. For the gap to close, three things must be true. Adjusted EPS must grow 18% to 23% in 2026, as the company now expects. Leasing and Services must keep growing, so that adjusted EBITDA keeps rising and full-year free cash flow turns positive. The company must keep reducing debt, as the upgrades from Moody's and S&P in September and October 2026 assume, and the Greystone losses must stop growing. The Q3 2026 report, estimated for about November 5, 2026, gives the next test. The full-year 2026 report in February 2027 is the main test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a new slowdown in property sales and financing, which higher interest rates can cause.
- Risks
- Leasing and Capital markets revenue depend on property deals, which fall when interest rates rise or the economy slows. Capital markets revenue in the Americas fell 6% in Q2 2026.
The Greystone joint venture shares losses on some multifamily loans with Fannie Mae and Freddie Mac. The company recorded a $177 million impairment of the investment in Q4 2025, and further loan loss provisions can reduce its earnings.
Most of the debt is term loans with floating interest rates. Higher interest rates increase interest expense, which was $108.7 million net of interest income in the first half of 2026.
Free cash flow is usually weak in the first half of the year. It was negative $210 million in the first half of 2026, so the full-year result depends on the second half.
- Balance sheet
- Cash: $500M
Debt: $2.6B
Net debt: $2.1B
EBITDA, last 12 months: $693M
Net debt / EBITDA: 3.1× (medium)
Interest cover: 1.8×
Undrawn credit line: $1.0B, to October 2030
Last debt due: 2033
Ratings: Moody's Ba3 (stable outlook), S&P BB (stable outlook)
Cushman & Wakefield funds its operations with secured term loans and secured notes. At June 30, 2026, debt principal was $2.64 billion: $838 million of term loans due 2030, $1.2 billion of term loans due 2033, $200 million of 6.750% notes due 2028 and $400 million of 8.875% notes due 2031. On August 4, 2026, the company redeemed $50 million more of the 2028 notes. The company states net debt of $2.1 billion. EBITDA is adjusted EBITDA for the 12 months to June 30, 2026. Interest cover is operating income divided by interest expense net of interest income for the first half of 2026. The $1.0 billion revolving credit facility was undrawn and matures in October 2030. The credit agreement has a net leverage limit of 5.0 times, which applies only when the revolving facility is used above a threshold. The company also sells trade receivables under a securitization program, with $431 million outstanding at June 30, 2026, and these are not in debt. Moody's rates the company Ba3 and S&P rates it BB, both with stable outlooks.
As of 2026-06-30.
- Checkpoints
- Nov 5, 2026 (estimate): Q3 2026 earnings: leasing and capital markets. Pending. Watch: Continued growth in Leasing and Services revenue, higher adjusted EBITDA and no new Greystone impairment pass; a fall in adjusted EBITDA or a new large Greystone loss fails.
Feb 2027 (estimate): Full-year 2026 results: EPS growth and cash flow. Pending. Watch: Adjusted EPS growth of 18% to 23% for 2026, positive full-year free cash flow and lower net debt pass; EPS growth below the guidance or higher net debt fails.
- Recent events
- 2026-10-06: S&P Global Ratings upgraded the company's issuer credit rating to BB from BB- and changed the outlook to stable from positive.
2026-09-28: Moody's upgraded the company's corporate family rating to Ba3 from B1, with a stable outlook. The company said that this is the highest rating that Moody's has given it since its IPO in 2018.
2026-09-10: Laurida Sayed, the Chief Accounting Officer, resigned effective September 25, 2026, to take a new job. Neil Johnston, the Chief Financial Officer, also became the principal accounting officer.
2026-08-05: Cushman & Wakefield reported Q2 2026 results. Revenue rose 11% to $2.8 billion. Leasing revenue rose 27% and Services revenue rose 8%, but Capital markets revenue fell 1%. Adjusted EBITDA rose 14% to $183.6 million and adjusted EPS rose 17% to $0.35. The company raised its 2026 adjusted EPS growth guidance to 18% to 23%. On August 4, 2026, it redeemed a further $50 million of its notes due 2028.
2026-06-15: The company amended its credit agreement. It cut the interest rate on a term loan by 0.50 percentage points, extended its maturity to 2033 and increased it by $352.5 million. It used the money to redeem $350 million of its 6.750% notes due 2028, after a $100 million redemption in May 2026.