Savills half-year results: Underlying profit jumps 47% as Eastdil deal raises the stakes

Savills PLC delivered a strong improvement in underlying trading during the first half of 2026, helped by transaction revenue growth, better margins and a sharp turnaround in North America.

Revenue rose 9% to £1,225.5 million, while underlying profit before tax increased 47% to £34.3 million. The interim dividend was lifted by 5% to 7.8p per share.

However, the statutory figures tell a less flattering story. Reported profit before tax fell 56% to £7.0 million, primarily reflecting restructuring and transaction-related charges, including costs associated with the acquisition of Eastdil Secured.

That acquisition, completed after the period ended, is the key issue for investors. It could significantly strengthen Savills' position in US real estate capital advisory, but it also introduces greater financial leverage and execution risk.

Savills' key half-year figures

Metric	H1 2026	H1 2025	Change
Revenue	£1,225.5 million	£1,127.8 million	9%
Underlying profit before tax	£34.3 million	£23.3 million	47%
Reported profit before tax	£7.0 million	£15.8 million	-56%
Underlying basic earnings per share	17.9p	11.7p	53%
Reported basic earnings per share	3.3p	6.8p	-51%
Interim dividend	7.8p	7.4p	5%
Net debt	£42.7 million	£16.5 million	Not meaningful

The underlying profit margin improved from 2.1% to 2.8%. That remains a relatively thin margin, but the direction is encouraging given the operational gearing in Savills' transaction-focused activities.

Operational gearing means that additional revenue can produce a disproportionately large increase in profit once the fixed cost base has been covered. The downside is that the effect can work in reverse when property transaction volumes decline.

Why underlying and reported profit moved in opposite directions

The divergence between underlying and reported profit is too large to ignore.

Savills recorded £7.2 million of restructuring charges and £13.5 million of transaction-related charges during the half. The latter included professional advisory fees for the Eastdil Secured transaction and costs linked to acquisition consideration arrangements.

After these and other adjustments, underlying profit before tax was £34.3 million, compared with reported profit before tax of £7.0 million.

Underlying figures can help investors assess recurring trading performance, but they are not defined by IFRS accounting standards. In this case, the adjusted numbers show genuine operational progress, although shareholders should still consider the cash and economic consequences of acquisitions and restructuring.

The contrast also explains why underlying earnings per share rose 53% to 17.9p while reported earnings per share fell 51% to 3.3p.

Transaction Advisory is moving in the right direction

Transaction Advisory revenue increased 14% to £449.6 million, with its underlying first-half loss narrowing from £7.8 million to £2.4 million.

Commercial Transaction Advisory was the main driver. Revenue increased 19% to £317.8 million, while the underlying loss improved from £11.9 million to £4.5 million.

North America produced the standout regional result. Commercial Transaction Advisory revenue rose 23% to £150.2 million, while an underlying loss of £3.7 million became a £1.5 million profit. Savills attributed this to higher revenue, favourable market conditions and targeted recruitment.

The performance was more mixed in residential property. Residential Transaction Advisory revenue increased 3% to £131.8 million, but underlying profit fell from £4.1 million to £2.1 million.

UK residential revenue declined 9% to £80.0 million. Savills cited weak confidence, higher-than-expected borrowing costs, possible fiscal changes and a one-time negative impact from the Renters' Rights Act 2025 on lettings revenue.

The steadier businesses provided valuable support

Savills describes Consultancy, Property and Facilities Management, and Investment Management as its Less Transactional businesses. These activities are generally less dependent on the completion of individual property deals.

Together, Less Transactional operations generated 63% of Group revenue during the period.

Business	Revenue change	Underlying profit change
Consultancy	2%	74%
Property and Facilities Management	7%	15%
Investment Management	8%	-2%

Consultancy underlying profit increased to £14.8 million, benefiting from earlier restructuring in China and the US. Property and Facilities Management profit rose to £21.9 million, supported by new business, acquisitions and improved profitability in Asia Pacific.

This mix matters because these operations can provide some stability when transaction completion dates move between reporting periods.

Eastdil Secured changes the investment case

Savills completed the acquisition of Eastdil Secured on 31 July 2026, meaning it made no contribution to the reported first-half results. The enlarged Group expects to include five months of Eastdil Secured's performance in its 2026 full-year figures.

Eastdil Secured generated revenue of US$302 million, or £225 million, in the six months to 30 June 2026, up from US$232 million, or £178 million, a year earlier. Underlying EBITDA was US$51 million, or £38 million. EBITDA is earnings before interest, tax, depreciation and amortisation.

The acquisition increases Savills' exposure to the US real estate market and adds Eastdil Secured's investment banking, capital markets and debt advisory capabilities. Savills said the businesses have limited overlap, reducing integration risk, and it has already seen early signs of collaboration.

Investors can compare this strategic development with the priorities outlined in Savills' full-year 2025 results.

Debt is now a more important risk

Savills ended June with net debt of £42.7 million, compared with £16.5 million a year earlier and net cash of £167.7 million at the end of 2025.

The first half is typically cash-negative because of seasonal trading patterns, dividends and employee remuneration. Savills also spent £42.2 million purchasing treasury shares during the period.

Crucially, the June balance sheet does not include the debt used to complete Eastdil Secured. On 31 July, Savills drew US$350 million under a bridge facility and entered into a US$450 million term loan facility.

The company has consequently elevated leverage to a key principal risk. Higher borrowing can increase sensitivity to interest rates, refinancing conditions and banking covenants, while reducing flexibility during a property downturn.

Savills said its forecasts and stress testing showed sufficient headroom through to at least the end of 2027. Even so, debt reduction and cash conversion are likely to become more prominent measures of progress.

Dividend growth, but transaction timing remains uncertain

The interim dividend increased 5% to 7.8p per share. It is due to be paid on 25 September 2026 to shareholders on the register on 28 August 2026.

Management said transaction pipelines were strong, but macroeconomic volatility made the timing of completions difficult to predict. The Board nevertheless left its expectations for the enlarged Group unchanged.

That outlook contains both sides of the story. Pipeline growth and resilient service businesses offer reasons for confidence, but transaction delays can move revenue and profit between reporting periods. Political change in the UK and wider geopolitical uncertainty add to that unpredictability.

What Savills investors should watch next

The first-half performance demonstrates meaningful operational improvement. Commercial Transaction Advisory losses narrowed, North America moved into profit and the Less Transactional businesses delivered stronger earnings.

The main questions now concern Eastdil Secured. Investors should watch its five-month contribution, evidence of cross-selling, integration costs, cash generation and the pace at which Savills can manage its enlarged debt position.

The 47% increase in underlying profit is encouraging, but the 56% decline in reported profit is a reminder that strategic expansion carries real costs. Savills has created a larger platform with greater growth potential, while also making balance-sheet discipline more important than it was before.

The full financial statements and risk disclosures are available in the original company announcement.