Savills (SVS) H2 2025 & Acquisition earnings summary

Executive summary

• Delivered results exceeding expectations, with FY25 revenue up 6.1% and underlying profit before tax up 11.4%, surpassing pre-COVID 2019 profit levels and driven by growth in both transactional and less transactional business lines.

• Strong finish to the year supported by less transactional business lines, operational leverage, and benefits from prior restructuring.

• Acquisition of Eastdil Secured for GBP 685 million (enterprise value £827m) positions the group as a global leader in real estate investment banking, significantly enhancing U.S. and global capital markets presence.

• Strategic focus on high-performance culture, targeted growth in key markets, and expanding both transactional and less transactional service lines.

• Dividend per share increased by 11.9%, reflecting improved profitability.

Financial highlights

• FY25 revenue reached £2,550.9m, up 6.1% year-over-year, with nearly 8% constant currency growth.

• Underlying EBITDA rose 10.6% to £214.9m, and underlying profit before tax increased 11.4% to £145.3m.

• Reported profit before tax grew 14.4% to £101.0m; reported basic EPS up 32% to 52.0p.

• EPS growth and strong cash generation supported a proposed 12% dividend increase to 33.8p per share.

• Restructuring costs of just over GBP 30 million incurred, expected to yield further benefits in the coming year.

Outlook and guidance

• Positive momentum expected to continue in 2026, with strong pipelines at the start of the new year in most regions except China and a stable UK residential market.

• Less transactional businesses are expected to deliver growth in line with strategy, with a focus on cost management and operational leverage.

• Cautious outlook due to geopolitical risks, particularly the Middle East conflict, but confident in ability to improve performance in 2026.

• Medium-term targets set for margin improvement and double-digit annualized total shareholder returns over 3-5 years.

• Too early to assess the impact of Middle East geopolitical developments.