Savills FY2025: revenue up, profits higher, and a clearer plan for margin growth
Savills has posted a strong set of full-year numbers for 2025, showing the benefit of its balanced model and some well-timed restructuring. Top line grew, margins nudged up, and dividends followed suit. The strategy for the next leg is bolder too – particularly around building a Real Estate Investment Banking capability to lift Transaction Advisory margins.
Headline numbers investors should know
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Group revenue | £2,550.9m | £2,404.0m | +6.1% (+8% cc) |
| Underlying profit before tax | £145.3m | £130.4m | +11.4% |
| Reported profit before tax | £101.0m | £88.3m | +14.4% |
| Underlying basic EPS | 77.2p | 66.2p | +16.6% |
| Reported basic EPS | 52.0p | 39.4p | +32.0% |
| Total dividend per share | 33.8p | 30.2p | +11.9% |
| Net cash (31 Dec) | £167.7m | £176.3m | -4.9% |
| Underlying margin | 5.7% | 5.4% | +30 bps |
| Cash from operations | £172.3m | £158.6m | +8.6% |
Note: “Underlying” excludes items like restructuring and certain deal-related charges. Constant currency (cc) strips out FX; currency trimmed £34.6m off revenue and £0.9m off underlying profit in the year.
Where the growth came from: business lines and regions
Less Transactional engines did the heavy lifting
- Property and Facilities Management: revenue £943.3m, up 6%; underlying profit £52.2m, up 6%.
- Consultancy: revenue £546.6m, up 11%; underlying profit £47.5m, up 19%.
- Investment Management: revenue £94.8m, up 1%; underlying profit £13.9m, up 38%; AUM £22.9bn.
Together these “Less Transactional” activities made up 62% of Group revenue and provided resilience, cash generation and margin improvement. That foundation allowed Savills to keep investing through the cycle.
Transactional momentum returned late in the year
- Transaction Advisory: revenue £966.2m, up 4% (+6% cc); underlying profit £47.1m, up 13%.
- Residential Transaction Advisory: revenue £293.6m, up 9%; underlying profit £22.2m, up 40% – strong EMEA and Asia Pacific performances, with the Middle East a standout.
- Commercial Transactional: revenue £672.6m, up 2%; underlying profit £24.9m, slightly down year-on-year due to mix and APAC investment.
Operational leverage showed through as pipelines built in Q2/Q3 converted strongly into the year-end. Management says Q4 was the best since 2019 for Transactional activity.
Geography: EMEA led; APAC and North America improved profitability
- EMEA: revenue £1,501.8m, up 8%; underlying profit £121.2m, up 12% – the UK was particularly strong in Commercial, and Continental Europe/Middle East moved to break-even from a £7.4m loss.
- Asia Pacific: revenue £716.7m, up 2%; underlying profit £33.6m, up 14% – APAC Commercial saw lower capital markets in Japan and China, partly offset by stronger leasing and a good Hong Kong recovery.
- North America: revenue £332.4m, up 6%; underlying profit £5.9m, up 79% – occupier leasing ticked up, with industrial strength and growing Global Occupier Services.
Dividend and payout policy: what’s changing and what’s not
Shareholders are set for a total 33.8p for FY25: interim 7.4p already paid, a recommended final ordinary 15.7p, and a supplemental 10.7p. Savills keeps its “bifurcated” approach – a progressive ordinary dividend underpinned by recurring earnings, plus a supplemental dividend that flexes with Transaction Advisory profits. The stated cap remains the higher of 1.5x cover on statutory EPS or 2.0x on underlying EPS.
Balance sheet and liquidity: still conservative
- Net cash at year-end: £167.7m. Cash and cash equivalents £531.6m; gross borrowings £176.7m.
- £360.0m revolving credit facility extended to February 2030; £414.6m total undrawn facilities at year-end.
- Operating cash flow £172.3m; net assets £804.4m (2024: £777.8m).
It is a capital-light model with headroom for bolt-ons. Management reiterates a preference for low leverage, flexing up only for compelling, cash-generative M&A.
Strategic priorities: margin uplift is the big prize
1) Build Real Estate Investment Banking (REIB)
REIB bundles financing and M&A advice around larger, more complex transactions. Savills wants to expand from its EMEA base into APAC (already started in Singapore). Target: lift Transaction Advisory underlying margins to 10%+ over the medium term (2025: 4.9%). If executed, this is the single most material driver of Group profitability in my view.
2) Grow the Less Transactional portfolio
Targeting c. 10% revenue growth p.a. for Property & Facilities Management, Consultancy and Investment Management, with margin ranges of mid single digit (PFM) and high single to low double digit (Consultancy). This strengthens recurring earnings and underpins the progressive dividend.
3) Broaden international profitability
Focus areas: scale North America beyond office into industrial/logistics and retail; develop Australia, Japan and India in APAC; continue the turnaround and scaling of Property Management and Consultancy in Europe. The German and China restructuring should support further recovery.
4) Expand Global Prime Residential
Continue targeted growth in prime agency across Europe and the Middle East, and deepen the Savills Private Office to serve private wealth and family offices.
5) Scale Savills Investment Management
Strength in Living, Logistics and real estate debt. Raised £2.3bn in 2025. Medium-term margin target: 20%+ (2025: 14.7%). AUM at £22.9bn including undrawn commitments.
Acquisitions and tech: bolt-ons plus AI to sharpen execution
- Alpina (Singapore) 70%: enables fully integrated Facilities Management in-market.
- Osborne King (Ireland) and Hoffman (US): deepen commercial agency and workplace transition services.
- Ongoing investment in data and AI to speed analysis and client advice; upgraded property management systems in China and Germany.
Outlook 2026: what management expects and what I’m watching
Management points to continued momentum early in 2026, building transactional pipelines, and further profitability improvement in Transaction Advisory from operational leverage and past restructuring. Less Transactional lines are expected to continue growing as planned.
Risks include the conflict in the Middle East and wider macro/geopolitical uncertainty. The region hosted c. 800 colleagues and contributed around 5% of underlying PBT in FY25.
Watchlist for the next 12 months
- Conversion of late-2025 pipelines into closed deals in H1 2026.
- Evidence that REIB is scaling – mandate wins and fee mix shifting to higher-margin financing/M&A.
- Further profit recovery in Germany and mainland China following restructuring.
- Investment Management margin progression and net inflows; AUM trajectory from £22.9bn.
- North America diversification into industrial/logistics and retail leasing.
- Cash generation versus increased investment in growth hires and technology.
My take: steady, sensible, and set up for operating leverage
Positives: broad-based revenue growth, a 30 bps uplift in underlying margin, strong cash generation, and a 12% higher total dividend. Less Transactional businesses did exactly what you want in choppy markets – they grew and provided resilience. The step-up in Investment Management profit and the break-even in Continental Europe/Middle East are noteworthy improvements.
Negatives: net cash edged down, APAC Commercial capital markets were softer, and the Group booked £30.5m of restructuring charges – necessary, but not costless. Underlying margins are still modest at 5.7%, so the execution of REIB and regional scaling really matters from here.
Bottom line: Savills exits 2025 with momentum, a stronger platform, and clear levers to lift profitability. If management delivers on REIB and the ongoing shift to higher quality, recurring earnings, there is room for operating leverage to do more heavy lifting in 2026 and beyond.
