Savills (LON:SVS) Posts Earnings Results

Savills (LON:SVS) announced its quarterly earnings data on Thursday. The company reported GBX 17.90 EPS for the quarter, Digital Look Earnings reports. Savills had a return on equity of 9.70% and a net margin of 2.78%.

Here are the key takeaways from Savills’ conference call:

• Strong first-half performance: Revenue rose 8.7% to more than £1.2 billion, underlying EBITDA increased 32% to nearly £74 million, and underlying PBT climbed 47% to £34.3 million, supported by market-share gains, improving transaction volumes and cost savings.
• Transactional revenues increased 14%, led by 22% growth in capital transactions and 23% growth in occupier advisory, particularly in North America. Savills said its U.K. capital transactions revenue rose 17% despite a 12% market decline, indicating significant market-share gains.
• The completed Eastdil Secured acquisition is expected to be earnings-enhancing and materially improve Savills’ exposure to the U.S. market. On a pro forma basis, combining first-half results would have increased underlying PBT by £21 million, or 60%, before synergies.
• U.K. residential remained challenging, with revenue down 9% and profits falling to £2.1 million, primarily because of the one-time revenue-recognition impact of the Renters’ Rights Act. Management expects the market to remain needs-based until greater policy clarity emerges.
• Management maintained its full-year 2026 expectations, citing strong pipelines and resilient less-transactional businesses, while cautioning that the timing of transaction completions remains difficult to predict. Restructuring and Eastdil-related integration costs are expected to remain elevated in the second half, while net debt to EBITDA is targeted at 1.5x or less by year-end.

Savills Stock Up 3.8%

Shares of LON:SVS traded up GBX 41.55 during trading on Friday, hitting GBX 1,129.55. 1,039,651 shares of the company were exchanged, compared to its average volume of 3,576,645. The firm’s 50 day moving average price is GBX 906.06 and its 200-day moving average price is GBX 906.30. Savills has a 12-month low of GBX 791.46 and a 12-month high of GBX 1,142. The company has a debt-to-equity ratio of 80.81, a current ratio of 1.17 and a quick ratio of 1.22. The stock has a market capitalization of £1.57 billion, a P/E ratio of 22.91, a PEG ratio of 2.09 and a beta of 1.24.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Shore Capital Group reissued a “buy” rating and issued a GBX 1,210 price objective on shares of Savills in a research report on Friday, May 8th. Berenberg Bank reiterated a “buy” rating and set a GBX 1,375 target price on shares of Savills in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 1,343 target price on shares of Savills in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of GBX 1,309.33.

Key Stories Impacting Savills

Here are the key news stories impacting Savills this week:

• Positive Sentiment: Profit growth supports the stock: Savills reported a substantial increase in adjusted first-half profit, while revenue also rose. Management maintained its full-year 2026 expectations, suggesting the improvement is currently viewed as sustainable. Savills shares rise as adjusted profit jumps; 2026 outlook unchanged
• Positive Sentiment: North America and Eastdil acquisition provide momentum: The first-half performance was helped by stronger North American activity, while the Eastdil Secured acquisition is expanding Savills’ global advisory platform and could support longer-term growth. Savills Lifts First-Half Earnings as Eastdil Secured Acquisition Expands Global Platform
• Positive Sentiment: Analysts remain bullish: Berenberg reaffirmed its “buy” rating and set a GBX 1,375 price target, while Deutsche Bank also reiterated “buy” with a GBX 1,343 target. Both targets imply further potential upside based on the recent trading level. Broker views on Savills
• Neutral Sentiment: Reported quarterly figures: Savills posted quarterly EPS of GBX 17.90, with a 2.78% net margin and 9.70% return on equity. The results reinforce the earnings update but provide limited additional information beyond the first-half announcement. Savills quarterly earnings report
• Negative Sentiment: Uncertainty remains a risk: Savills cautioned that market conditions remain uncertain, which could affect transaction volumes and property-related advisory demand despite the unchanged full-year outlook. Savills first-half profit rises on North America strength

Savills Company Profile

Founded in the UK in 1855, Savills is one of the world’s leading property agents. Our experience and expertise spans the globe, with 600 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East.

Our scale gives us wide-ranging specialist and local knowledge, and we take pride in providing best-in-class advice as we help individuals, businesses and institutions make better property decisions.