Netherlands' Arcadis Q3 net revenue up on energy segment growth
Overview
Netherlands sustainable design consultancy's Q3 net revenue grew 4.3% organically year-on-year
Operating EBITA margin rose to 12.5%, up 90 basis points from a year ago
Free cash flow rose to €131 mln, supported by improved billing and collections
Outlook
Arcadis reaffirms 2026 guidance for low-single-digit organic net revenue growth
Company maintains 2026 operating EBITA margin guidance at 11.7%–12.0%
Arcadis targets mid-single-digit organic net revenue growth for 2027–2029
Result Drivers
SECTOR PERFORMANCE - Co said Q3 growth was driven by strength in Energy and Water, major transportation programs, and improving results in Industrial Manufacturing & Technology
MARGIN IMPROVEMENT - Higher operating EBITA margin attributed to stronger utilization, lower enabling-function costs, operating leverage and ongoing cost controls
PORTFOLIO FOCUS - Co said positive growth in Places segment, excluding non-core activities, reflected focus on core markets
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | EUR 991 mln | EUR 1.24 bln (1 Analyst) |
Q3 Free Cash Flow | EUR 131 mln | ||
Q3 Operating EBITA Margin | 12.50% | ||
Q3 Organic Growth | 4.30% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Arcadis NV is €49.00, about 11.6% above its October 27 closing price of €43.90
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)