Arcadis (ARCAD) Q3 2026 TU earnings summary

Executive summary

• Q3 net revenue reached €991M, with organic growth accelerating to 4.3% YoY; operating EBITA margin rose 90 bps to 12.5%.

• Backlog grew 7.9% organically YoY to €3.9B, supporting visibility for future growth.

• The Arcadis Reset advanced through portfolio reviews, overhead rightsizing, and a simpler operating model, with actions continuing into 2027.

• Focus on water, energy, semiconductors, life sciences, and digital infrastructure, alongside disciplined execution, supported growth and profitability.

• Voluntary turnover continued to decline as transformation and capacity alignment progressed.

Financial highlights

• Q3 gross revenue was €1,313M, up 7% YoY; net revenue was €991M, up 6% reported and 4.3% organically.

• Q3 operating EBITA was €124M, up 14% YoY, with a 12.5% margin versus 11.6% in Q3’25; operating EBITDA was €148M, with a 15.0% margin versus 14.1%.

• Nine-month net revenue was €2,898M, up 1% reported and 2.4% organically; operating EBITA was €337M, up 4%.

• Nine-month non-operating costs were €57M, including €42M of restructuring costs and €15M of other non-operating costs.

• YTD divestment impact was estimated at 150–200 bps on organic net revenue growth and ~100 bps on operating EBITA margin.

Outlook and guidance

• 2026 guidance was reaffirmed at low-single-digit organic net revenue growth and an 11.7%–12.0% operating EBITA margin on the current reported perimeter.

• The current perimeter includes China, most of Architecture, and other non-core activities under strategic review while they remain in reported results.

• The cost-out program is expected to benefit FY26 operating EBITA margin by 40–50 bps; expected restructuring costs are €60M–€70M in 2026 and €70M in 2027.

• Remaining Reset measures are targeted for completion by year-end 2027; plans include rightsizing about 1,000 overhead roles while hiring selectively in growth markets.

• 2027–2029 targets include mid-single-digit organic net revenue growth and a mid- to high-teens operating EBITDA margin by 2029; operating EBITDA becomes the primary margin metric from 2027.