Jones Lang LaSalle Inc (JLL) Reports Q3 2023 Earnings: Revenue Down 2%, Net Income Drops 57%
Third-quarter revenue was $5.1 billion, down 2% in local currency
Net income attributable to common shareholders was $59.7 million, a 57% decrease from the same period last year
Adjusted EBITDA was $205.2 million, a 26% decrease from Q3 2022
Free Cash Flow was $276.2 million, a significant increase from $88.4 million in Q3 2022
On November 2, 2023, Jones Lang LaSalle Inc (NYSE:JLL) released its third-quarter earnings report for 2023. The company reported operating income of $119.1 million for the third quarter of 2023. Diluted earnings per share were $1.23 and Adjusted diluted earnings per share were $2.01 for the quarter.
Financial Performance
JLL's third-quarter revenue was $5.1 billion, a 2% decrease in local currency. Fee revenue was $1.8 billion, down 13% in local currency. The company's net income attributable to common shareholders was $59.7 million, a 57% decrease from the same period last year. Adjusted net income attributable to common shareholders was $97.5 million, a 41% decrease from Q3 2022.
Business Line Performance
Despite the overall decrease in revenue, JLL's resilient business lines helped offset the market-wide pullback in transaction activity. Property Management within Markets Advisory delivered double-digit growth, and Work Dynamics achieved broad-based growth across all service lines as new contract wins ramped up. However, Capital Markets were impacted by a dampened transaction market in a rising interest rate environment, and Leasing within Markets Advisory declined across asset classes.
Financial Highlights
Adjusted EBITDA for the quarter was $205.2 million, a 26% decrease from the same period last year. The company generated nearly $190 million incremental cash provided by operating activities for the quarter, despite lower net income. Free Cash Flow was $276.2 million, a significant increase from $88.4 million in Q3 2022.
Company's Outlook
Despite the challenging market conditions, JLL's CEO, Christian Ulbrich, expressed confidence in the company's ability to navigate the current environment. He stated,
Our investments in technology and the improved efficiency of our operating model position us to expand margins even if a slower transaction environment persists. When combined with our global scale and 'One JLL' approach, these factors will enable long-term growth and shareholder value creation."
Share Repurchase
In Q3 2023, the company repurchased 123,160 shares for $20.1 million. As of September 30, 2023, $1,115.5 million remained authorized for repurchase.
Explore the complete 8-K earnings release (here) from Jones Lang LaSalle Inc for further details.
This article first appeared on GuruFocus.
