JLL Posts Record $6.85 Quarterly Earnings Per Share And Plans A $500 Million Accelerated Buyback
Leasing revenue climbed 27% and deal fees surged, and the real estate services firm raised its full-year adjusted earnings target.
JLL, the commercial real estate services and investment management firm, said Wednesday that third-quarter diluted earnings per share rose 49% to a record $6.85, up from $4.61 a year earlier. It also raised its full-year adjusted earnings target and said it intends to launch a new $500 million accelerated share repurchase imminently.
Leasing and deals drive the quarter
Revenue rose 12% to $7.3 billion, according to the company's earnings release. Net income to common shareholders was $319.8 million, up from $222.8 million, and adjusted EBITDA, an operating profit measure, rose 33% to $460.2 million. Adjusted diluted earnings per share was $6.76 against $4.50.
Leasing Advisory revenue rose 27% in local currency to $941.8 million, led by U.S. industrial, office and data center deals; U.S. leasing revenue grew 39%. Management said a meaningful rise in average deal size drove the U.S. growth. Segment adjusted EBITDA there climbed to $201.8 million from $136.9 million.
Capital Markets Services, which covers property sales and debt advice, rose 21% in local currency to $736.8 million. Investment sales grew 33%, against 9% for the broader market, according to JLL Research data cited by the company. Segment adjusted EBITDA reached $131.1 million, up from $89.9 million.
Facility management grows, fund fees fall
Real Estate Management Services, the largest segment at $5.5 billion of revenue, grew 9% in local currency, with Workplace Management up 10% and Project Management up 14%. Investment Management, the LaSalle fund business, fell 9% in dollars to $105.2 million as incentive and transaction fees dropped. Assets under management rose to $88.4 billion at September 30 from $86.8 billion at June 30.
Buyback and a thinner debt load
CEO Christian Ulbrich said JLL was "optimistic about a strong finish to 2026" and had raised its full-year adjusted earnings-per-share target range, reflecting 37% growth at the midpoint. The new $500 million repurchase would bring full-year buybacks to over $1 billion, and $2.5 billion remained authorized at September 30.
Net debt fell to $858.7 million from $1,190.3 million at June 30, a net leverage ratio of 0.5x versus 0.7x. Free cash flow for the quarter was $556.0 million, down from $567.6 million a year earlier.
Management held its earnings webcast at 9:00 a.m. Eastern on Wednesday, with the accelerated repurchase to follow.
