Company: JLL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001037976-25-000071
Chunk: 49

Company: JONES LANG LASALLE INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 49
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 earnings$1.0 2.5 (1.5)(60%)(57)%Adjusted EBITDA$275.1 254.5 20.6 8 %7 %

Real Estate Management Services revenue growth for the third quarter and first nine months of 2025 was partially driven by continued strong performance in Workplace Management. Client wins outpaced mandate expansions for the quarter and for the first nine months of 2025. For both periods, incremental pass-through costs augmented mid single-digit management fee increases. Project Management revenue also meaningfully contributed to growth for both the three and nine months ended September 30, 2025, driven by new and expanded contracts primarily in the U.S. and Asia Pacific. Low double-digit management fee increases were supplemented by higher pass-through costs.

Operating expenses for the segment increased for the quarter and the year to date, primarily due to revenue-related expense growth and higher gross contract costs from increased client pass-through expenses. Higher expenses in 2025 also reflected the impact of incentive compensation accruals timing and certain discrete items, including incremental bad debt expense, which had a more significant impact on the third quarter than the nine-month period. Partially offsetting these drivers, the current-year quarter benefited from $8.2 million in lower gross receipts tax expense compared to 2024.

The increases in Adjusted EBITDA for both the current quarter and year-to-date periods were primarily driven by the strong top-line performance described above, which outpaced the aforementioned expense growth.

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Leasing Advisory

% ChangeThree Months Ended September 30,Change inin Local($ in millions)20252024U.S. dollarsCurrencyLeasing$719.1 665.4 53.7 8 %8 %Advisory, Consulting and Other22.8 26.1 (3.3)(13)(13)Revenue$741.9 691.5 50.4 7 %7 %Platform compensation and benefits$538.3 494.9 43.4 9 %8 %Platform operating, administrative and other64.2 55.5 8.7 1615Depreciation and amortization10.9 9.1 1.8 2020Segment platform operating expenses613.4 559.5 53.9 10 9 Gross contract costs3.1 9.7 (6.6)(68)(68)Segment operating expenses