Arcadis plans to divest architecture, China businesses under 2029 strategy

By Reuters News

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%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.