Arcadis: Revenue of €991M in Third Quarter, Above Expectations, 2026 Targets Confirmed
Arcadis published on October 28, 2026 an activity update showing simultaneous progress in growth, operating profitability and cash generation. Quarterly net revenue of €991M exceeds the average of €966M expected by analysts.
The Dutch engineering and consulting group confirmed its 2026 targets. Its new orders increased by 14%, to €1,007M, and bring the order backlog to €3,911M, with organic growth of 7.9% year-on-year.
Operating EBITA Margin at 12.5%, Up 90 Basis Points
In the third quarter, net revenue reached €991M, compared with €936M a year earlier, an increase of 6%. Organic growth came in at 4.3%, after 1.0% in the third quarter of 2025, and gross revenue increased by 7%, to €1,313M.
Operating EBITA margin stood at 12.5%, compared with 11.6% a year earlier. Operating EBITDA margin also gained 90 basis points, to 15.0% from 14.1%.
The group attributes this improvement to better utilization of teams, lower support function costs, operating leverage and the continuation of cost control measures.
On a reported basis, margins are slightly down: EBITA margin fell from 10.9% to 10.7% and EBITDA margin from 13.4% to 13.2%. Non-operating costs, excluded from operating aggregates, increased from €7M to €17M during the quarter.
According to the group, these costs primarily reflect restructuring, workforce adjustment, implementation of the new operating model and associated consulting fees. Over nine months, they reached €57M, compared with €38M.
Over the first nine months, net revenue amounted to €2,898M (+1%), with organic growth of 2.4%. Operating EBITA margin came in at 11.6%, compared with 11.2% a year earlier.
Water, Energy and Semiconductors Drive Growth and Orders
The three divisions contributed to the quarter's growth. Resilience (38% of net revenue) recorded organic growth of 5.6%, driven by water activities in the United States, United Kingdom and the Netherlands, by electrical grid projects in Germany and by mining activity in Brazil.
This division's new orders increased by 19%, to €378M, and its backlog shows organic growth of 13.4% year-on-year. According to Chief Executive Officer Heather Polinsky, this distribution of growth reflects the areas on which the group has chosen to focus.
Mobility (27% of net revenue) posted the highest organic growth, at 6.7%, thanks to the ramp-up of major programs in Germany and Canada. Its new orders, however, declined by 13%, to €190M, which the group links to the timing of tender calls.
Mobility's backlog reached €984M, compared with €947M a year earlier, but its year-on-year organic change came in at -2.1%.
Places (35% of net revenue) returned to organic growth of 1.2%, compared with -3.1% a year earlier, and 4.2% excluding architecture, China and non-strategic activities.
Over nine months, the division remained in organic decline of 2.2%. Its new orders increased by 27%, to €438M, driven by contracts in semiconductors.
2026 Targets Confirmed and Net Debt Reduced to €910M
Quarterly free cash flow reached €131M, compared with €80M a year earlier. Average customer payment time was reduced to 65 days, from 73 days, and working capital requirement represents 12.4% of annualized gross revenue, compared with 14.0%.
Net debt stood at €910M at the end of September, compared with €1,042M at the end of June and €978M a year earlier. These figures are in line with the plan presented at the end of September during the investor day held in Amsterdam, which provides for the disposal of the majority of the architecture activity and the elimination of 1,000 positions.
For the 2027-2029 cycle, Arcadis targets organic growth in the middle of the single-digit percentage range and an operating EBITDA margin in the "mid- to high-teens" by 2029. This indicator will replace operating EBITA as the main margin measure from 2027.
The group also targets a payout ratio of 30% to 40% of net income from operations and a net debt to operating EBITDA ratio between 1.5 and 2.5 times.
For 2026, Arcadis confirmed targeting low single-digit organic growth and an operating EBITA margin between 11.7% and 12.0%. This confirmation is based on an order backlog of €3,911M, up 10% year-on-year.
