On October 30, 2023, Cushman & Wakefield PLC (CWK, Financial) released its financial results for the third quarter of 2023. The company reported a year-to-date revenue of $6.9 billion, a decrease of 7% compared to the same period in 2022. The net loss for the nine months ended September 30, 2023, was $105.2 million.
Financial Performance
For the third quarter of 2023, Cushman & Wakefield PLC (CWK, Financial) reported a revenue of $2.3 billion, a decrease of 9% from the third quarter of 2022. The net loss for the third quarter of 2023 was $33.9 million. Adjusted EBITDA of $150.0 million was down 26% from the third quarter of 2022. Adjusted diluted earnings per share of $0.21 was down from $0.43 in the third quarter of 2022.
Year-to-Date Results
For the nine months ended September 30, 2023, the company's revenue was $6.9 billion, a decrease of 7% from the same period in 2022. The net loss for this period was $105.2 million. Adjusted EBITDA of $357.0 million was down 47% from the nine months ended September 30, 2022. Adjusted diluted earnings per share of $0.39 was down from $1.54 in the nine months ended September 30, 2022.
Company's Commentary
“In the third quarter we continued to execute on our strategy by refinancing more than $1 billion in debt, improving our free cash flow and accelerating our cost efficiency efforts, resulting in sequential EBITDA and margin improvement despite the challenging operating backdrop,” said Michelle MacKay, Cushman & Wakefield Chief Executive Officer.
Financial Tables
The company's revenue from Property, facilities and project management remained flat compared to the prior period. However, Leasing, Capital markets and Valuation and other declined 16%, 33% and 17%, respectively. The company's liquidity as of September 30, 2023, was $1.7 billion, consisting of availability on the Company's undrawn revolving credit facility of $1.1 billion and cash and cash equivalents of $0.6 billion.
Analysis
The decrease in revenue and net loss for the third quarter and year-to-date results can be attributed to the challenging macroeconomic environment and interest rate uncertainty which continue to adversely affect commercial real estate transaction volumes and delay occupier decision making. Despite these challenges, the company has been able to execute its strategy of refinancing debt, improving free cash flow and accelerating cost efficiency efforts.
Explore the complete 8-K earnings release (here) from Cushman & Wakefield PLC for further details.
