Arcadis Nv Stock Earnings Reports

Arcadis delivered a resilient first half of 2025 with organically stable net revenues and improved margins despite softer markets in the U.K. and Australia. Key positives: backlog of EUR 3.6bn (up 12% organic y/y) with higher-quality, multiyear projects that improve visibility into 2026; strong demand in North America and Continental Europe (notably U.S. water and German energy transition); a clear ramp-up of several large mobility, energy and pharma projects that should drive H2 revenue acceleration; and product/digital investments (EDA, EDA Lite, AI agents) embedding Intelligence into delivery and creating recurring revenue. Financials: H1 operating EBITDA margin 11.1% (Q2 11.3%), free cash flow negative EUR 136m (seasonal and tax timing), net debt/EBITDA 1.8x within target range. Management remains disciplined on project selection, is increasing share of revenue from key clients (improving margin and cash characteristics), and continues material OpEx investments this year (AI, GEC expansion, skill-powered organization) while targeting a 12.5% operating EBITDA margin by 2026. Near-term outlook: modest return to growth in H2 2025 with stronger momentum toward year-end as AMP8 water call-offs and large project mobilizations ramp up; risks include policy timing, elections and regional market softness. M&A remains selective and balance-sheet enabled.