Newmark Group (NMRK) Q4 2024 earnings summary

Executive summary

• Achieved double-digit top-line growth across all major business lines in Q4 and FY 2024, with Management and Servicing up 21%, Capital Markets up 20%, and Leasing up 15% year-over-year.

• Total revenues reached $888.3M in Q4 2024, up 18.8% year-over-year; FY 2024 revenues were $2.75B, up 11.5% from FY 2023.

• Record $1.1 billion in Management Services, Servicing, and Other revenues for FY 2024, supporting a $2 billion annual target within five years.

• Outpaced industry in Capital Markets, with significant volume increases in Mortgage Brokerage, Debt Placement, GSE/FHA origination, and Investment Sales.

• Leadership transition with Howard Lutnick's nomination as U.S. Secretary of Commerce, with succession plans in place.

Financial highlights

• Q4 2024 revenues grew 18.8% to $888.3 million year-over-year; FY 2024 revenues were $2,754.1 million, up 11.5%.

• Adjusted EPS increased 19.6% to $0.55 in Q4; FY 2024 Adjusted EPS grew 17.1% to $1.23.

• Adjusted EBITDA rose 10.1% to $182.9 million in Q4; FY 2024 Adjusted EBITDA was $445.3 million, up 11.8%.

• Excluding a $12.8M legal settlement in 2023, Adjusted EBITDA growth was 19.2% for Q4 and 15.5% for FY 2024.

• Repurchased 18.6 million shares/units for $224.9 million in 2024; ended year with $197.7 million in cash and 1.1x net leverage.

Outlook and guidance

• FY 2025 revenue guidance: $2.9B–$3.1B, representing 5%–13% growth over FY 2024.

• FY 2025 Adjusted EPS expected at $1.40–$1.50, up 14%–22%; Adjusted EBITDA guidance: $495M–$545M, up 11%–22%.

• Targeting at least $630M Adjusted EBITDA and $1.75 Adjusted EPS by 2026, with over 40% earnings growth in two years.

• 2025 outlook assumes 110 bps improvement in Adjusted EBITDA margin and continued growth in management and servicing.