Arcadis N . V .: Arcadis Q4 and Full Year 2025 Results : Mixed results , repositioning for next growth phase

finanznachrichten.de · Feb 19, 2026 · Collected from GDELT

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PRESS RELEASE | Arcadis Fourth Quarter and Full Year Results 2025Mixed results, repositioning for next growth phaseFOURTH QUARTERNet revenues of €887 million, organic growth of -2.9%Operating EBITA margin of 10.8% (Q4'24: 12.6%)Extensive Property & Investment (within Places) project portfolio review led to revenue adjustments Record free cash flow performance of €344 million (Q4'24: €183 million)FULL YEARNet revenues of €3.8 billion, organic growth -0.5% with areas of strength offset by PlacesBacklog of €3.6 billion, organic growth of 2.7% including large, multi-year winsOperating EBITA margin of 11.1%, (2024: 11.5%)Earnings per share (EPS) of €2.33, proposed dividend €1.05 per share (2024: €1.00)€175 million Share Buyback Program completed as of 16 January 2026, Net debt / Operating EBITDA at 1.5x2025 MANAGEMENT ACTIONS AND 2026 TARGETSDuring the fourth quarter Arcadis accelerated its restructuring efforts, expanded the salesforce in high-growth markets and introduced individual performance-driven incentivizationReduction of headcount by 1,100, €77 million in non-operating costs 2026 Targets: organic net revenue growth: flat. Operating EBITA margin: 11.7%-12.0%Capital Markets Day planned for November 2026Amsterdam, 19 February 2026 - Arcadis, the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets, reports fourth quarter and full year 2025 results. Net revenues of €3.8 billion represented -0.5% growth for the full year. Fourth quarter Operating EBITA margin of 10.8% led to 11.1% for the full year (2024: 11.5%). Arcadis returned €225 million to its shareholders, through dividends and its Share Buyback Program. The company proposes to distribute €1.05 dividend per share.Alan Brookes, CEO Arcadis, said: "2025 was a challenging year for Arcadis, with mixed results. While we reported strong performance in high-growth markets including Water Optimization, Energy Transition and Climate Adaptation, headwinds in Property & Investment, Environmental Restoration and large mobility projects winding down weighed on overall performance. We delivered record cash performance, supported by measures introduced in the fourth quarter. We have taken actions to reposition the business, including targeted restructuring. In addition, we returned significant capital to the market. It has been an honor to lead Arcadis, and I am confident that Heather with her strong track record, including while leading the Resilience business since 2021, is the right person to lead Arcadis to its next phase."Heather Polinsky, CEO Nominee, said: "Arcadis has significant strengths to build on: leading positions in key growth markets and major infrastructure delivery, combined with exceptional global talent. My priorities for 2026 and beyond are clear: focus where we can win and grow, simplify to accelerate, and drive cultural change. We will become a more client-centric organization, while we drive efficiencies and increase cross-selling opportunities by mobilizing our best expertise across the business. Critically, we are embedding a high-performance culture by clarifying accountability and aligning incentivization directly to results. We will share our strategic ambitions for the next three years together with our medium-term targets at our Capital Markets Day in November 2026. I am committed to accelerating the actions needed to unlock Arcadis' full potential and deliver sustained value to shareholders."KEY FIGURES*Period ended 31 December 202520252024change Q4 2025Q4 2024change Gross revenues4,8754,995-2% 1,1901,244-4%Net revenues3,7603,880-3% 887959-7%Organic growth (%)1)-0.5%4.5% -2.9%2.8% Operating EBITDA2)523557-6% 122149-18%EBITA341418-18% 56112-50%Operating EBITA2)418447-6% 95120-21%Operating EBITA margin (%)11.1%11.5% 10.8%12.6% Net income208243-14% Net income per share (EPS, in €)2.332.70-14% Net income from operations per share (in €)3)2.683.00-11% Dividend (proposal) per share (in €)1.051.005% Net working capital (%)8.3%10.8% Free cash flow4)28822826% 34418388%Net debt / Operating EBITDA1.5x1.3x Order intake3,9004,442-12% 963998-4%Backlog net revenues3,6153,673-2% Backlog organic growth (%, yoy)1)2.7%16.3% Voluntary employee turnover5)10.9%11.0% * Most of these metrics are alternative performance measures; refer to the footnote on page 6 for more information 1) Underlying growth excludes the impact of FX, acquisitions, footprint reductions, winddowns or divestments.2) EBIT(D)A excludes restructuring, integration, acquisition, and divestment costs.3) Net income before non-recurring items (e.g. valuation changes of acquisition-related provisions, acquisition & divestment costs, expected credit loss on shareholder loans and corporate guarantees and one-off pension costs).4) Free cash flow: Cash flow from operations adjusted for Capex and Lease liabilities. 5) Voluntary turnover excludes the Middle East as these operations are being wound down.REVIEW OF THE FOURTH QUARTER 2025Net revenues for the fourth quarter totalled €887 million, representing a 2.9% organic decline, which was fully driven by the Property & Investment (P&I) performance within the Places Global Business Area (GBA). The operating EBITA margin stood at 10.8% (2024 Q4: 12.6%), significantly impacted by the P&I revenue adjustments following a project portfolio review. PROPERTY & INVESTMENT PROJECT PORTFOLIO REVIEW The Arcadis P&I business represented 8% of the total full year 2025 net revenues, and its services are mostly offered in Canada, China and UK. In these areas the residential real estate sector has been under considerable cyclical market pressure. Meanwhile, the Oracle ERP system was rolled out in Canada, causing some operational distraction; however, the roll-out has now been fully completed. As a result, Arcadis undertook a comprehensive analysis of its project portfolio review to reassess its revenue positions in Canada in the fourth quarter, which resulted in a total revenue reduction of €22 million. The outcome of the reassessment process was independently reviewed and audited as part of the usual year-end procedure. Significant actions have been taken to reposition the business, including leadership changes, a reduction of the headcount by 400 people, with an additional 150 people due to leave the business in Q1 2026, and a focus towards growth markets. REVIEW OF THE FULL YEAR 2025: PROFIT & LOSS ITEMS AND BACKLOGNet revenues totaled €3,760 million, reflecting -0.5% organic growth. Good growth in Resilience was offset by a decline in Places largely driven by the P&I portfolio performance, as well as the HS2 wind-down in UK Mobility and softness in US Environmental Restoration within Resilience. Margin was impacted by delayed rightsizing actions in Places, while Arcadis achieved margin expansion in Resilience and Mobility. €77 million of non-operating costs were driven by restructuring costs relating to a 1,100 headcount reduction. Strategic investments continued in key areas: the Key Clients program, now representing 65% of net revenues, up from 62% last year, the Global Excellence Centers (GECs) at 15% of total headcount (up from 14%), and ongoing automation and standardization to drive efficiency. Net financing expenses were €40 million (2024: €53 million), decreasing year on year from lower interest on floating debt. Backlog grew +2.7% organically year-on year, ending at €3,615 million. Order intake stepped up in the fourth quarter from strong performance in Data Centers (UK) and Pharma (US), which will only be supportive to our revenue generation in the second half of 2026 as they take time to ramp up. This was offset by project award delays in Mobility (UK and Australia) and our Semiconductor business. MANAGEMENT ACTIONS IN 2025: DRIVING ACCOUNTABILITY AND PERFORMANCEIn the fourth quarter, Arcadis took actions to strengthen accountability and enhance operational performance. Record cash performance of €344 million in the quarter was achieved, supported by disciplined cash collection measures. Targeted sales hires in Water, Energy, and Industrial Manufacturing were made, and a new individual performance-driven sales incentivization scheme has taken effect as of January 2026. The first phase of a value-based pricing model review was completed, and investments in automation continued, including AI-driven pursuit and project proposal processes.Rightsizing actions accelerated, with a reduction of 600 roles in Q4 and 1,100 for the full year, focused on increasing billability, reallocating resources to high-growth areas, and streamlining corporate overhead. Total non-operating costs were €77 million for the year, including €39 million in Q4, with €53 million related to restructuring. Other non-operating costs included integration and M&A costs, and a small goodwill write-off. LOOKING AHEADThe company will be focusing on and building from leading positions in Water, Energy & Power, Technology & Life Sciences, and major infrastructure delivery: which are markets defined by structural demand and long-term investments. Arcadis will continue to embed digital and AI solutions across its portfolio, leveraging partnerships and innovation. Arcadis plans to direct capital and talent to high-growth markets, deepen relationships with key clients and drive cost and productivity improvements. The company will simplify its business model to remove complexity, reduce layers in the business, and enable faster decisions. Alongside this, automation will be advanced and disciplined cost action taken to improve competitiveness and productivity. Accountability and client focus will be enhanced through streamlined decision-making, expanded senior management client coverage, and incentives aligned with performance.2026 Targets 2026 will be a year of transition, and while the outlook for Resilience is robust, the Places outlook remains uncertain. Mobility performance is expected to remain mixed, with good p