Cushman & Wakefield outlook revised to positive by S&P on improved metrics
Investing.com -- S&P Global Ratings has revised its outlook for Cushman & Wakefield to positive from stable while affirming its ’BB-’ credit rating, citing improved credit metrics driven by rebounding commercial real estate (CRE) transaction activity.
The company’s adjusted net debt to EBITDA ratio dropped to 3.6x for the 12 months ended September 30, 2025, down from 4.2x at the end of 2024 and 5.3x at the end of 2023. This improvement reflects stronger operating performance, with S&P-adjusted EBITDA rising to $722 million for the period, compared to $569 million a year earlier.
EBITDA margins expanded by nearly 200 basis points year over year to 10.5% from 8.7%, underscoring the company’s improved profitability and credit profile.
The positive outlook reflects S&P’s expectation that Cushman & Wakefield will maintain leverage of 3x-4x due to improved CRE leasing and capital markets activity. The rating agency also noted the company’s top-three market position in CRE services, sufficient liquidity, and absence of near-term refinancing risk.
A sustained pickup in leasing and capital markets transaction activity supported EBITDA growth. In the third quarter of 2025, leasing and capital markets fee revenue rose 9% and 20% year over year, respectively. The company recently hired 45 additional advisers, which S&P expects will accelerate growth in 2026.
Cushman & Wakefield has focused on deleveraging through various capital management efforts. In the past quarter, the company repriced its tranche-2 term loan due 2030, reducing the applicable rate by 50 basis points to SOFR+275, while prepaying $150 million in principal outstanding under its tranche-1 term loan. The company also repriced its tranche-1 term loan, reducing the rate by 25 basis points to SOFR+250, and paid down an additional $100 million under its tranche-2 term loan, bringing this year’s total prepayments to $300 million.
S&P’s base-case forecast assumes Cushman & Wakefield’s fee revenue will increase by 7.5% in 2025 and 7.0% in 2026, with adjusted EBITDA margin of 9%-10% in both years.
The rating agency indicated it could upgrade Cushman & Wakefield in the next 12 months if it operates with leverage well below 4x on a sustained basis. Conversely, the outlook could be revised to stable if operating performance weakens to such a degree that leverage exceeds 4.0x on a sustained basis.
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