Arcadis NV (ARCAD.AS) | Investment Case

1. Company Snapshot

1.a. Company Description

Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide.The company operates through four segments: Europe & Middle East, The Americas, Asia Pacific, and CallisonRTKL.It offers architectural based design consultancy services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M.

The company also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing.In addition, it offers digital environmental health safety and sustainability, environmental restoration, and project management solutions.Further, the company provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, including climate adaption, energy transition, enviro socio permitting, environmental restoration, sustainable advisory, sustainable operations, and water optimization; and water supply and treatment, distribution, resource management, and industrial water and wastewater services.

It serves industrial manufacturing, technology, property and investment, contractors, and energy and resources sectors.The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997.Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.

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1.b. Last Insights on ARCAD

Arcadis' recent performance has been impacted by several factors. Despite a return to organic growth, with Q3 2025 net revenues reaching €936 million, the company's margin expansion has been modest, with an operating EBITA margin of 11.6%. The company's portfolio shift towards high-growth solutions for energy, water, climate, and technology clients continues, but sales process enhancements are still underway. Additionally, Arcadis has been repurchasing shares, with 240,961 shares bought back in the period from October 27-31, 2025, at an average price of €44.06.

1.c. Company Highlights

Last Price	36.94
Change Percentage	-0.22%
Open	36.9
Previous Close	37.02
Market Cap ( Millions)	3310
Volume	153571
Year High	63.75
Year Low	34.5
M A 50	42.25
M A 200	43.15

FCF Yield	9.43%
Dividend Yield	2.71%
ROE	15.94%
Debt / Equity	127.26%
Net Debt / EBIDTA	246.19%
Price To Book	3.07
Price Earnings Ratio	18.0
Price To FCF	10.61
Price To sales	0.89
EV / EBITDA	10.22

2. Arcadis Delivers Solid H1 Performance, Positioned for Growth

Arcadis reported a solid first half of 2025, with net revenue stability year-on-year, driven by continued strong demand in North America and Europe, offset by softer markets in the UK and Australia. The company's backlog stood at €3.6 billion, representing 12% year-on-year organic growth, driven by large multi-year projects. Margin was strong, supported by expansion of key client programs and increased contribution from global excellence centers. Net revenue for the half-year was $1.9 billion, with an operating EBITDA margin of 11.1%. As CEO Alan Brookes noted, "We remain disciplined through enhanced project selectivity and execution of our strategy, with investments in digital, people, and new ways of working."

Publication Date: Aug -09

                                    📋 Highlights
                                    Organic Revenue Stability:
                                                2.7% growth in H1 2025, driven by key markets like U.S. water optimization and Germany's energy transition.
Backlog Expansion:
                                                €3.6 billion backlog, 12% YoY organic growth, from multi-year projects and AMP8 water cycle contracts.
Margin Resilience:
                                                11.1% operating EBITDA margin, supported by project selectivity and cost discipline, with Resilience reporting 14.2% margin.
Strategic Investments:
                                                Focused on AI, digital platforms, and energy transition, with GECs contributing 15% of resources and Romania center planned for 2026.
Debt Management:
                                                Net debt/EBITDA at 1.8x within target range, supported by disciplined M&A and improved free cash flow in H2 2025.

                                

Segment Performance

The Resilience segment reported a strong operating EBITDA margin of 14.2% for the half year, driven by continued discipline in project selection and cost management. The company is investing in attracting and training talent in energy transition and AI-driven water solutions to position itself for continued growth in these strategic areas. The Places segment was impacted by delayed large CapEx decision-making by clients in industrial manufacturing and property and investment, but saw good performance in North America, U.S. pharma, and data centers. The Mobility segment saw significant rail project wins in the quarter, improving long-term visibility and strengthening the company's position in this market.

Valuation

Arcadis' valuation appears reasonable, with a P/E Ratio of 15.41, P/B Ratio of 3.04, and EV/EBITDA of 8.23. The company's dividend yield of 2.4% and free cash flow yield of 8.42% also suggest a relatively attractive valuation. With analysts estimating next year's revenue growth at 4.8%, the company's current valuation seems to price in modest growth expectations.

Outlook

Arcadis is positioning itself for improved performance in the second half of 2025, driven by energy transition projects, increased government spending, and growing clarity around major programs. The company expects the ramp-up of large contracts, emerging U.K. opportunities following the positive conclusion of the spending review, and the start of the AMP8 water cycle to provide clear growth visibility for the remainder of the year. With a strong backlog and investments in digital, people, and new ways of working, Arcadis appears well-positioned for long-term growth.

3. NewsRoom

Arcadis reports transactions under its current share buyback program

Dec -02

Source:

Arcadis receives seven honors from ACEC New York for Engineering Excellence

Dec -01

Source:

Arcadis (ENXTAM:ARCAD) Valuation: Is the Recent 1% Share Price Gain a Turning Point?

Nov -29

Source:

Jacobs & Arcadis JV Wins New Rail Project From TMR in Australia

Nov -27

Source:

Jacobs Selected for Transformational Logan and Gold Coast Faster Rail Project in Australia

Nov -26

Source:

Arcadis reports transactions under its current share buyback program

Nov -25

Source:

Arcadis selected by US Army Corps of Engineers Europe District for share of $49 million multiple award task order contract to support Environmental Services in Eastern Europe

Nov -18

Source:

Arcadis reports transactions under its current share buyback program

Nov -18

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.82%)

6. Segments

Places

Expected Growth: 7.9%

Arcadis NV's 7.9% growth is driven by increasing demand for sustainable infrastructure, urbanization, and digital transformation in the built environment. Strong project execution, strategic acquisitions, and a solid backlog of projects also contribute to this growth. Additionally, the company's focus on high-growth markets, such as Asia and Latin America, and its expertise in areas like water management and environmental services, further support its growth momentum.

Resilience

Expected Growth: 8.37%

Arcadis NV's resilience is driven by its diversified business model, strong order book, and increasing demand for sustainable infrastructure solutions. The company's focus on digitalization, innovation, and cost savings initiatives also contribute to its growth. Additionally, its strategic acquisitions and partnerships have expanded its capabilities and geographic reach, further enhancing its resilience.

Mobility

Expected Growth: 6.37%

Arcadis NV's Mobility segment growth of 6.37% is driven by increasing demand for sustainable transportation solutions, government investments in infrastructure development, and rising adoption of electric vehicles. Additionally, the growing need for smart traffic management and urban planning is fueling growth in this segment.

Intelligence

Expected Growth: 11.27%

Arcadis NV's 11.27% growth is driven by increasing demand for sustainable infrastructure, urbanization, and digital transformation in the built environment. The company's expertise in design, consultancy, and project management, as well as its strategic acquisitions, have enabled it to capitalize on these trends, resulting in robust revenue growth.

7. Detailed Products

Design & Consultancy

Arcadis provides design and consultancy services to clients across various industries, including architecture, urban planning, and infrastructure development.

Project Management

Arcadis offers project management services to help clients deliver projects on time, within budget, and to the required quality standards.

Engineering

Arcadis provides engineering services to clients across various industries, including transportation, water, and energy.

Environmental Services

Arcadis offers environmental services to help clients manage environmental risks and opportunities.

Asset Management

Arcadis provides asset management services to help clients optimize the performance of their assets.

Digital Solutions

Arcadis offers digital solutions to help clients leverage technology to improve their operations.

8. Arcadis NV's Porter Forces

Forces Ranking

Threat Of Substitutes

Arcadis NV operates in a niche market with few substitutes, but the threat of substitutes is still present due to the increasing competition in the industry.

Bargaining Power Of Customers

Arcadis NV has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality services reduce the customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Arcadis NV relies on a network of suppliers for materials and services. While the company has some bargaining power due to its size, the suppliers also have some bargaining power due to the specialized nature of the services they provide.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for specialized skills, licenses, and certifications. Additionally, Arcadis NV's strong brand reputation and established customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industry in which Arcadis NV operates is highly competitive, with many established players competing for market share. The company must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	47.22%
Debt Cost	9.30%
Equity Weight	52.78%
Equity Cost	9.30%
WACC	9.30%
Leverage	89.48%

11. Quality Control: Arcadis NV passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

ACS

A-Score: 6.9/10

Value: 5.8

Growth: 6.6

Quality: 4.4

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Balfour Beatty

A-Score: 6.5/10

Value: 5.8

Growth: 6.1

Quality: 4.5

Yield: 4.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

HOCHTIEF

A-Score: 6.1/10

Value: 5.3

Growth: 6.6

Quality: 4.8

Yield: 5.6

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

Webuild

A-Score: 5.9/10

Value: 7.0

Growth: 6.6

Quality: 2.9

Yield: 5.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

Budimex

A-Score: 4.5/10

Value: 2.4

Growth: 4.8

Quality: 5.4

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Arcadis

A-Score: 4.3/10

Value: 4.7

Growth: 6.3

Quality: 5.8

Yield: 3.1

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.07%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.30%

Arcadis NV - NL0006237562

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ARCAD

1.c. Company Highlights

Less Volatile

Strong Momentum

Average Yield

Earnings Beats

Fairly Valued

Revenues Beats

Stable Momentum

Earnings Miss

Expensive

Weak Momentum

Revenues Miss

Average Quality

Average Growth

Medium Volatility

2. Arcadis Delivers Solid H1 Performance, Positioned for Growth

Segment Performance

Valuation

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.82%)

6. Segments

Places

Expected Growth: 7.9%

Resilience

Expected Growth: 8.37%

Mobility

Expected Growth: 6.37%

Intelligence

Expected Growth: 11.27%

7. Detailed Products

Design & Consultancy

Project Management

Engineering

Environmental Services

Asset Management

Digital Solutions

8. Arcadis NV's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Arcadis NV passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.94$

Current Price

36.94$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA