- Strong Q4 Financial Performance Revenue of $1.6B increased 5% YoY, adjusted EBITDA of $245M rose 6% YoY.
- Commercial Real Estate Growth Segment net revenue up 7%, driven by 13% capital markets growth led by U.S. activity.
- Engineering Segment Expansion Net revenue grew 8% with acquisitions contributing; Ayesa acquisition to add 0.7x leverage.
- Investment Management Scale Net revenue rose 6%, managing $108B AUM; 2026 EBITDA from Ayesa expected at $6.3M.
- AI & Strategic Acquisitions AI to boost productivity and margins over 2–3 years; Ayesa expands into Europe/Latin America with 13% historical CAGR.
Segment Performance
The Engineering segment net revenue was up 8%, with recent acquisitions contributing to growth. Investment management net revenues increased 6%, driven by a recent acquisition, with $108,000,000,000 in assets under management. The company's acquisition of Ayesa Engineering is expected to add 0.7 turns of leverage and will be funded through a revolving credit facility.
Growth Prospects
For 2026, Colliers expects mid-teens growth in key operating metrics, with low-teens top-line growth in Commercial Real Estate, mid-single-digit internal growth in Engineering, and low-teens net revenue growth in Investment Management. The company sees AI as a productivity and growth enabler, helping to automate routine work, improve efficiency, and expand margins. As Christian Mayer, Colliers' executive, noted, "AI will be used to accelerate automation, increase efficiency, and provide more information to professionals."
Valuation Metrics
Colliers International's current valuation metrics indicate a P/E Ratio of 35.36, P/B Ratio of 2.87, and EV/EBITDA of 12.65. The company's ROE stands at 8.53%, and Net Debt / EBITDA is 3.66. Analysts estimate next year's revenue growth at 8.0%, indicating a stable growth trajectory.
Investment Management Business
In the investment management business, margins are expected to decline in 2026 to the high 30s and return to the mid-40s in 2027. The company's fundraising target is $6 billion to $9 billion, driven by various platforms, including infrastructure, alternatives, and credit. Fund performance has been strong, ranking in the top quartile across alts, credit, and infrastructure.
Acquisition Strategy
The acquisition of Ayesa provides a foothold in Europe and other markets, with expectations of growth through roll-up opportunities. The company's approach to AI is viewed as a tool to enhance its professionals' capabilities, not a disruptor. The company plans to deleverage over time, with a goal of returning to a 2x leverage ratio.