Oct 22, 2026 earnings call — Onnec deal and data center infrastructure growth
CBRE expects critical infrastructure services revenue to reach $4.5 billion and total infrastructure services revenue to reach $7 billion in 2027.
Revenue $11.5B (est $11.8B) · EPS $2.05 (est $1.96)
Key quotes
"We expect critical infrastructure services to generate nearly $4.5 billion of revenue in 2027."
"The cap rates have gone up, deals that were under contract are getting retraded, deals that might have otherwise gone under contract aren't happening."
"We continue to prioritize M&A in areas benefiting from secular tailwinds with a particular focus on data centers and infrastructure."
Analyst Q&A 7
Path to 2027 growth and BOE issues
Q (Anthony Paolone · JPMorgan): They asked what will most likely drive reaching 2027 growth and how at risk the 15% target is. They also asked what changed in BOE and enterprise facilities and why recurring business is under pressure.
A: Management said resilient businesses, especially infrastructure services and data centers, are growing fast and offsetting capital markets pressure. They expect critical infrastructure revenue to reach $4.5 billion and infrastructure revenue to reach $7 billion in 2027, and said they are confident in the path to 15%. On BOE, they said a couple of problematic accounts require restructuring and will pressure fourth-quarter results.
"So if you put that all together, we are confident in our path to 15%." — Emma Giamartino (CFO)
Capital markets and project management slowdown
Q (Stephen Sheldon · William Blair): They asked what capital markets activity looked like late Q3 into early Q4 and whether deals are being delayed or cancelled. They also asked where project management spending is slowing and when that started.
A: Management said cap rates are higher, some deals are being retraded, and some expected sales are turning into refinancings. They expect Capital Markets to be roughly flat in Q4 and into the first half of next year until rates stabilize. On project management they said net revenue grew 11% and SOP ex one write-down grew 15%, and infrastructure growth is offsetting real estate slowdown.
"And going into Q4, we expect Capital Markets overall to be roughly flat and that to extend into, as Bob said, the first half of next year." — Emma Giamartino (CFO)
U.S. office leasing and Onnec pricing
Q (Steve Sakwa · Evercore): They wanted color on why U.S. office leasing was down 2% and whether that matches REIT activity. They also asked about Onnec pricing and how the earn-out and multiple were considered.
A: Management said some big leasing deals slipped into Q4 and they faced a tough compare from last year; they expect double-digit leasing growth in Q4 and mid- to high-single-digit leasing next year. On Onnec, they described a reasonable upfront payment plus a substantial earn-out; if the earn-out is fully achieved it would be a little over $1 billion and would drive strong growth.
"For -- if they earn the entirety of the earn-out, that would be a little over $1 billion." — Emma Giamartino (CFO)
Onnec footprint and more M&A
Q (Annabelle Ayer · Barclays): They asked whether any critical infrastructure capabilities or geographies are still missing after Onnec. They also asked how much more M&A is needed to build out the business.
A: Management said Onnec builds project capability in markets where they managed data centers but lacked project services. They said the business is still small compared to the total opportunity, the market is very fragmented, and they expect considerable additional M&A both in the U.S. and globally.
"We've now become very large relative to most players in this segment, but still very small relative to the size of the opportunity." — Robert Sulentic (CEO·CHAIR)
Rates spillover and data center land sales
Q (Jade Rahmani · KBW): They asked if higher interest rates are spilling into areas beyond Capital Markets, like BOE and project management capex. They also asked how much data center land remains, and whether site sales are recurring or one-time.
A: Management said higher rates and economic uncertainty affect many parts of the business, including potential pressure on new data center builds but more activity outside the U.S. and lots of refit work. They said data center land sales are recurring but not ratable, and they have more than 20 sites under control that could be sold as data center sites while they continue to source and entitle new sites.
"We've got more than 20 sites that we have under control that could end up being sold as data center sites." — Robert Sulentic (CEO·CHAIR)
Does 2027 outlook include Onnec and M&A
Q (Seth Bergey · Citi): They asked whether the path to 15% in 2027 includes Onnec and any future M&A. They also asked what sizes and returns the company targets for future deals.
A: Management confirmed the 2027 outlook includes Onnec and likely additional M&A. They said Onnec is a good example of the deal size and profile they target, and they aim for deals that deliver at least a 15% return and are immediately accretive.
"It includes the benefit from Onnec, and it likely includes additional M&A on top of that." — Emma Giamartino (CFO)
BOE contract issues and capital allocation
Q (Ronald Kamdem · Morgan Stanley): They asked what caused the BOE contract changes and how that compares to the local business. They also asked about leverage comfort and whether buybacks are sidelined by M&A.
A: Management said two specific large contracts do not work as structured now and are being restructured; this is not indicative of the broader business and local contracts are typically smaller and different in nature. On capital allocation, they said they prioritize M&A, slowed buybacks in Q3 anticipating the deal, expect that slowdown to continue through Q4, and repurchases will decline meaningfully if the deal pipeline converts.
"And you saw in Q3 that we did slow down our buyback somewhat in anticipation of this deal." — Emma Giamartino (CFO)