Arcadis plans to divest architecture, China businesses under 2029 strategy

Sept 29 (Reuters) - Dutch engineering and consulting firm Arcadis ARDS.AS said on Tuesday it planned to divest most of its architecture business along with its China operations as part of a 2027-2029 strategy.

The strategy lays out Arcadis' plans to accelerate growth, lift profitability and streamline its portfolio, as the company seeks to demonstrate its standalone value after rejecting a takeover approach from Canadian rival WSP Global WSP.TO earlier in September.

• The divestments would increase Arcadis' operating EBITDA margin by about 100 basis points

• It targets yearly organic net revenue growth in a mid-single-digit percentage and a mid- to high-teens operating EBITDA margin in 2027-2029

• It targets a dividend payout ratio of 30% to 40% of net income from operations between 2027 and 2029

• It expects a net debt to operating EBITDA ratio of 1.5 to 2.5 times in the same period

• Arcadis reaffirmed 2026 guidance, including an operating EBITDA margin of 14.3% to 14.6%