Walker & Dunlop (WD) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income rose 42% year-over-year to $44.8 million, with diluted EPS up 42% to $1.32, the highest since the onset of the Great Tightening.

• Q4 2024 transaction volume reached $13.4 billion, up 45% year-over-year; full-year volume was $39.9 billion, up 21%.

• Full-year 2024 diluted EPS was $3.19, flat year-over-year; adjusted core EPS was $4.97, up 6%; adjusted EBITDA was $328.5 million, up 9%.

• Revenues for 2024 grew 7% to $1.13 billion, with a strong finish closing the gap to annual targets after a slow start.

• Quarterly dividend for Q1 2025 set at $0.67 per share, a 3% increase and seventh consecutive annual increase.

Financial highlights

• Q4 agency loan originations totaled $4.9 billion; Fannie Mae lending was $3.2 billion, up 91% year-over-year.

• Mortgage servicing rights revenue rose 62% from Q4 2023; property sales transactions in Q4 were $3.5 billion, up 20% year-over-year.

• Apprise appraisal business revenues doubled from Q1 to Q4, totaling $13.3 million for 2024, up 43% year-over-year.

• Small balance lending revenues grew 20% in 2024.

• Servicing portfolio at year-end was $135.3 billion, up 4% from prior year.

Outlook and guidance

• 2025 guidance: diluted EPS expected to grow high single to double digits; adjusted EBITDA and core EPS flat to up high single digits.

• Transaction volumes, debt financing, and investment sales expected to grow in 2025, but market to remain choppy quarter-to-quarter.

• Interest earnings on cash and escrow deposits expected to decrease in 2025 due to lower short-term rates.

• Management expects the worst of the Great Tightening is behind, with the company well positioned for market recovery and increased transaction volumes in 2025.