Real estate giant, Savills, experiences a decrease in sales, despite an increase in overall profits
In the first half of 2025, real estate giant Savills demonstrated a solid performance, with revenue increasing by 6% year-on-year to £1,127.8 million. This growth was underpinned by the strong performance of the company's digital businesses and operational improvements, which led to a reduction in exceptional costs.
The underlying profit before tax rose by 10% to £23.3 million, while the reported profit before tax surged by 78% to £15.8 million. However, the underlying basic earnings per share (EPS) dipped slightly by 3% to 11.7p, though reported EPS rose 11% to 6.8p from 6.1p the previous year. The company also increased its interim dividend by 4% to 7.4p.
Market trends by region and capital markets showed a mixed picture. The strong first quarter was driven by a progressive recovery in most markets. However, the second quarter experienced a slowdown in transactional activity due to geopolitical tensions and trade policy uncertainties, particularly affecting the EMEA (Europe, Middle East, and Africa) and Asia Pacific regions where Savills has a strong capital markets presence. Exposure to North American capital market transactions remained relatively low, moderating overall growth.
Despite the slowdown in Q2, Savills indicated confidence in transactional pipelines strengthening again in H2 2025, expecting the slowdown to be temporary.
The real estate market in the UK experienced a 13% reduction in investment, while the US industrial market was impacted by economic headwinds that affected occupier's confidence in pursuing leases for large lots in the office market. However, Savills' flexible office market business, Workthere, doubled its revenue.
Assets under management (AUM) for Savills remained stable at £22.1bn. The company also enhanced its presence in Northern Ireland through the acquisition of Osborne King & Megran Limited.
The auction business sold over £420m worth of commercial and residential property, an 8% increase. Non transactional businesses provided a resilient earnings stream for Savills during the period.
Despite the positive results, Savills' share price dropped 0.8% to 967p. The company maintains its full-year guidance, pending recovery in transactional activity later in the year.
[1] Savills plc Half Year Results 2025, Savills plc, [Link to the official report] [3] Savills plc Interim Management Statement 2025, Savills plc, [Link to the official statement] [5] Savills plc Trading Update 2025, Savills plc, [Link to the official update]
- The increase in Savills' revenue in the first half of 2025, despite a slowdown in the second quarter, indicates a resilient performance in the face of geopolitical tensions and trade policy uncertainties impacting various markets.
- The low exposure to North American capital market transactions and the acquisition of Osborne King & Megran Limited in Northern Ireland contributed to Savills' stable performance in its assets under management (AUM) during the same period.
- Despite the positive financial results, the drop in Savills' share price indicates cautious investor sentiment, as some markets such as the UK and US industrial market face economic headwinds that have affected real-estate investments and business confidence.
- The flexible office market business, Workthere, played a pivotal role in Savills' growth, as it doubled its revenue during the first half of 2025. The company plans to capitalize on this success as the transactional pipelines are expected to strengthen in the second half of the year.
