Colliers International Group (NASDAQ:CIGI) executives said 2025 was “an exceptional year” for the company, citing growth across its diversified platform and an increasing mix of recurring professional services that management characterized as more resilient than traditional transaction-driven lines.
On a fourth-quarter earnings call held February 13, 2026, Global Chairman and CEO Jay Hennick and CFO Christian Mayer said more than 70% of Colliers’ earnings now come from these recurring businesses, “approaching 75% once recent acquisitions are included.” The quarter’s results were described as in line with expectations and higher than the prior year, which management noted was itself a strong comparison period.
Quarterly results and segment performance
In the Commercial Real Estate segment, fourth-quarter net revenue increased 7%, with margin expansion. Mayer said:
- Capital Markets revenue rose 13%, led by the U.S. and supported by recruiting investments and “multi-market connectivity,” which management said is helping the company gain market share as the market recovers.
- Leasing revenue increased 3%, also led by the U.S., with strength in office and industrial.
- Outsourcing grew 8%, with valuation driving the increase.
- Segment net margin was 15.8%, up 50 basis points year-over-year, which Mayer attributed to operating leverage from higher transactional revenue.
The Engineering segment posted fourth-quarter net revenue growth of 8%, led by acquisitions. Mayer said end-market demand remained strong, particularly in infrastructure, transportation, and environmental consulting, though the quarter saw a “temporary slowdown” in certain project management operations. Segment net margin was 12.4%, slightly lower than the prior year due to lower overall productivity. Management emphasized a strong backlog and said it provides “excellent visibility” for the year ahead. In the Q&A, Mayer said engineering internal growth was roughly flat in the quarter and 5% for the full year, and clarified that internal growth was discussed on a net revenue basis.
In Investment Management, net revenue increased 6%, driven by a recent acquisition. Net margin slipped to 42.5% as the company continues integrating operations under the Harrison Street Asset Management brand. Mayer said the integration work is expected to pressure margins through the first half of 2026.
Ayesa acquisition and engineering strategy
Hennick highlighted Colliers’ agreement to acquire Ayesa Engineering, describing it as a “rare opportunity at this scale.” He said the acquisition is expected to expand Colliers’ growth avenues, support further M&A, and enable cross-selling engineering capabilities across Colliers’ client base. After closing, management said Colliers Engineering would rank among the top 30 global engineering firms and have expanded presence in Europe, Latin America, and the Middle East.
Mayer said the Ayesa acquisition price is approximately $700 million (USD equivalent) and will be funded from the company’s revolving credit facility, which he said had more than $1.1 billion of available capacity. He said the borrowing will be euro-denominated at an interest rate of about 4%. Leverage was 2x as of December 31, helped by seasonal cash flows, and Mayer said Ayesa will add about 0.7 turns of leverage on a pro forma basis. On deleveraging, Mayer said Colliers’ plan is to use cash flow and organic EBITDA growth to reduce leverage, similar to prior larger acquisitions.
Management also discussed the underlying engineering model and demand dynamics. Hennick said roughly 60% of the engineering business is design work, which is not priced directly on hourly rates even if labor is managed hourly, while the remainder is closer to project management and can be long-duration. Both Hennick and Mayer pointed to a shortage of qualified engineers as a factor supporting pricing.
On Ayesa’s profile, management cited a 13% CAGR over the last 10 years and said organic growth going forward is expected to be “high single digits.” They attributed Ayesa’s margin profile to high-value services in sophisticated projects and end markets such as public transit, water, energy, and energy transition, including desalination work in the Middle East. Management also said it evaluates skill transferability in acquisitions and noted water expertise as an example of capabilities that can be leveraged across geographies.
Investment management: fundraising and margin outlook
Mayer said the Investment Management segment raised $2.1 billion in new capital commitments during the fourth quarter and $5.3 billion for the full year, which he said was in line with expectations. The company’s fundraising target for 2026 is $6 billion to $9 billion, driven by several funds in the market, including a flagship infrastructure fund launched in December and continued fundraising for Harrison Street’s “Fund 10,” as well as contributions from open-ended vehicles and newer products, including credit.
Ending AUM was $108 billion, which Hennick and Mayer said reflects investor confidence across the Harrison Street platform. Mayer said AUM was flat versus September 30 as new capital raised was offset by asset sales in older vintage funds and related returns of capital to limited partners, adding that management expects LPs to reinvest “a significant portion” of returned capital into new funds.
When asked about margin progression, Mayer said investment management net margins are expected to decline into the high-30% range in 2026, then return to the company’s historical average in the mid-40% range in 2027. He attributed the near-term margin pressure to ongoing work such as IT systems integration, headcount additions, and planned efficiencies expected to produce run-rate savings later in the year.
2026 outlook: growth tied to capital markets recovery and acquisitions
For 2026, management introduced an outlook calling for “mid-teens growth” across the company’s key operating metrics, driven by internal growth, contributions from acquisitions, and an expected uplift once Ayesa closes. Mayer said Colliers is forecasting:
- Commercial Real Estate: low-teens top-line growth and a modest increase in net margin, predicated on continued recovery in Capital Markets (while noting activity would remain well below prior peaks). In Q&A, Mayer said Capital Markets growth is expected to be high teens and Leasing growth mid- to high-single digits.
- Engineering: mid-single-digit internal growth, with acquisitions (including Ayesa) driving total growth of over 25%. Mayer said this is supported by backlog and trends including infrastructure, urbanization, energy transition, and rising data center demand.
- Investment Management: low-teens net revenue growth led by management fees as fundraising accelerates.
On the macro backdrop for Capital Markets, management said its outlook does not assume additional rate cuts. Hennick described the recovery as driven by pent-up transaction supply and demand following several slow years, and said the company expects more transactions “at all price points across all markets.” Management also said the U.S. represents about 50% of Colliers’ Capital Markets business.
AI and capital allocation comments
Hennick said Colliers views AI as a “productivity and growth enabler” that can automate routine work, improve efficiency, support margin expansion, and strengthen insights by combining Colliers’ proprietary datasets with third-party capabilities, including an exclusive partnership with Google Cloud that management said provides unique commercial real estate data resources. He emphasized that AI is expected to enhance—not replace—services that rely on judgment, licensure, accountability, and relationships, and said the company’s IT capital spending in 2026 is the largest in its history. In response to questions, Hennick said he does not expect AI-driven fee pressure and instead views AI as additive over the long term.
On capital allocation, Hennick said he would “love to buy back stock right now,” but noted the company is prioritizing capital for opportunities in the pipeline, including Ayesa, and reiterated that equity issuance to fund growth and dilute shareholders “has never been our MO.”
About Colliers International Group (NASDAQ:CIGI)
Colliers International Group Inc is a global commercial real estate services and investment management firm offering a full suite of solutions to occupiers, owners and investors. The company’s real estate services encompass brokerage and agency leasing, capital markets advisory, property and facility management, valuation and advisory, project and development services, workplace and corporate real estate solutions, and market research. Through these offerings, Colliers supports clients across the entire real estate life cycle, from site selection to asset disposition.
The firm operates through two principal segments: real estate services and investment management.
