PRESS RELEASE | Arcadis Third Quarter 2026 Trading Update
Accelerating growth and improved profitability
Third quarter highlights
- Continued organic growth acceleration to 4.3% yoy, with net revenues of €991 million
- Operating EBITA margin of 12.5%, and operating EBITDA margin of 15%, both up 90 basis points yoy
- Free Cash Flow of €131 million, up from €80 million in Q3'25 with improved days sales outstanding
- Backlog organic growth of 7.9% yoy
- Continued execution of strategic priorities, including progressing portfolio actions in China and Architecture
- 2026 guidance reaffirmed: low-single-digit organic net revenue growth and operating EBITA margin of 11.7%-12.0%
Amsterdam, 28 October 2026 - Arcadis, the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets, reports Net Revenues of €991 million in the third quarter of 2026, representing 4.3% organic growth year-on-year. Operating EBITA margin increased by 90 basis points year-on-year to 12.5% in the quarter. Backlog was €3.9 billion, representing 7.9% organic growth year-on-year.
Heather Polinsky, CEO Arcadis, said: "Arcadis delivered a strong third quarter with growth accelerating to 4.3%, improved profitability and strong cash generation. Importantly, the pattern of growth reflects where we are choosing to focus: continued strength in Energy and Water, accelerating momentum in Industrial Manufacturing & Technology, and major transportation programs.
At Capital Markets Day we set out a clear strategy to focus on our strengths, simplify around our clients and drive a stronger performance culture. The momentum we have been building throughout the year reflects the strategic priorities we have been putting in place and our focus on disciplined execution. We are moving with pace on the actions within our control, while continuing to invest for future growth. We reaffirm our 2026 guidance and remain focused on delivering sustainable growth, margin expansion and long-term shareholder value."
KEY FIGURES
| in € millions | Third Quarter | Year-to-date | |||||
| Period ended 30 September 2026 | 2026 | 2025 | change | 2026 | 2025 | change | |
| Gross revenues | 1,313 | 1,232 | 7% | 3,792 | 3,685 | 3% | |
| Net revenues | 991 | 936 | 6% | 2,898 | 2,873 | 1% | |
| Organic growth (%)1 | 4.3% | 1.0% | 2.4% | 0.2% | |||
| EBITDA | 131 | 126 | 4% | 352 | 364 | -3% | |
| EBITDA margin (%) | 13.2% | 13.4% | 12.2% | 12.7% | |||
| Non operating costs | 17 | 7 | 159% | 57 | 38 | 52% | |
| Operating EBITDA2 | 148 | 132 | 12% | 410 | 401 | 2% | |
| Operating EBITDA margin (%) | 15.0% | 14.1% | 14.1% | 14.0% | |||
| EBITA | 106 | 102 | 5% | 280 | 285 | -2% | |
| EBITA margin (%) | 10.7% | 10.9% | 9.7% | 9.9% | |||
| Operating EBITA2 | 124 | 108 | 14% | 337 | 323 | 4% | |
| Operating EBITA margin (%) | 12.5% | 11.6% | 11.6% | 11.2% | |||
| Net working capital (%)3 | 12.4% | 14.0% | |||||
| Days sales outstanding (days) | 65 | 73 | |||||
| Free cash flow4 | 131 | 80 | 64% | -18 | -56 | 68% | |
| Net Debt | 910 | 978 | -7% | ||||
| Order intake | 1,007 | 882 | 14% | 3,214 | 2,937 | 9% | |
| Order intake organic growth (%)1 | 11.9% | -27.0% | |||||
| Book-to-bill5) | 1.02 | 0.94 | 8% | ||||
| Backlog net revenues | 3,911 | 3,544 | 10% | ||||
| Backlog organic growth (%, yoy)1 | 7.9% | 1.6% | |||||
| Backlog organic growth (%, ytd)1 | 6.0% | 1.0% | |||||
| Backlog organic growth (%, qtd)1 | -0.7% | -1.7% | |||||
| Voluntary turnover | 10.7% | 10.9% | |||||
* 2026 and 2025 results as presented in this press release are unaudited
1 Underlying growth excluding impact of FX, acquisitions, footprint reductions, wind-downs or divestments.
2 EBIT(D)A excluding restructuring, integration, acquisition, and divestment costs
3 Net working capital %: net working capital / quarterly gross revenues annualized
4 Free cash flow: cash flow from operations adjusted for capex and lease liabilities
5 Book-to-bill: order intake / net revenues
Income statement
Net Revenues totaled €991 million in the third quarter, representing 4.3% organic growth year-on-year and continuing the sequential improvement in growth during 2026. Growth was driven by continued strength in Energy and Water, major transportation programs, and improving performance in Industrial Manufacturing & Technology. All three Global Business Areas contributed to growth in the third quarter, with Places turning to positive organic growth of 1.2%, or 4.2% excluding the Architecture, China and other non-core activities, consistent with our focus on areas where we are strong.
Operating EBITA margin improved by 90 basis points, supported by stronger utilization, lower enabling-function costs, operating leverage and continued cost-control actions.
In the first nine months, non-operating costs totaled €57 million, including €17 million in the third quarter, mainly reflecting restructuring and rightsizing actions, operating-model implementation and related advisory costs.
Order intake & BACKLOG
Backlog totaled €3.9 billion, representing 7.9% organic growth year-on-year driven by Resilience and Places and providing continued support for future revenue growth. In Resilience, order intake was supported by Water in the US and Netherlands, Power in Germany and strong activity in Brazil, including Mining & Critical Minerals. In Places, major semiconductor awards drove strong order intake, while the Architecture business within Real Estate & Development in Canada remained challenging. In Mobility, order intake reflected the timing of awards. Our strong backlog continues to provide visibility for future growth.
BALANCE SHEET & CASH FLOW
Free Cash Flow was €131 million in the third quarter, compared with €80 million in Q3'25, reflecting the seasonal pattern and continued discipline on billing and cash collection. Days Sales Outstanding was 65 days, compared with 73 days in Q3'25, while Net Working Capital was 12.4% of annualized gross revenues. Net debt decreased to €910 million at the end of the third quarter, from €1,042 million at the end of the second quarter of 2026.
OPERATIONAL HIGHLIGHTS
RESILIENCE
| (38% of net revenues) | |||||||
| in € millions | Third Quarter | Year-to-date | |||||
| Period ended 30 September 2026 | 2026 | 2025 | change | 2026 | 2025 | change | |
| Net revenues | 379 | 353 | 8% | 1,112 | 1,079 | 3% | |
| Organic growth (%)1 | 5.6% | 3.8% | 5.3% | 3.1% | |||
| Order intake | 378 | 317 | 19% | 1,196 | 1,120 | 7% | |
| Backlog net revenues | 1,147 | 992 | 16% | ||||
| Backlog organic growth (%, yoy)1 | 13.4% | 6.8% | |||||
| Backlog organic growth (%, ytd)1 | 7.5% | 3.3% | |||||
Resilience performance was driven by continued strength in Energy and Water. Water performed strongly across the US, UK and Netherlands, with US Water revenues increasing double digit year-on-year and UK water growth supported with Key Clients ramping up investment programs. In Germany, major power-grid expansion projects continued to support growth, while Mining & Critical Minerals contributed to strong growth in Brazil.
PLACES
| (35% of net revenues) | |||||||
| in € millions | Third Quarter | Year-to-date | |||||
| Period ended 30 September 2026 | 2026 | 2025 | change | 2026 | 2025 | change | |
| Net revenues | 341 | 335 | 2% | 1,000 | 1,042 | -4% | |
| Organic growth (%)1 | 1.2% | -3.1% | -2.2% | -3.1% | |||
| Order intake | 438 | 345 | 27% | 1,201 | 1,094 | 10% | |
| Backlog net revenues | 1,780 | 1,605 | 11% | ||||
| Backlog organic growth (%, yoy)1 | 10.3% | 5.2% | |||||
| Backlog organic growth (%, ytd)1 | 6.6% | 2.2% | |||||
Underlying Places performance continued to improve, with 4.2% organic growth excluding Architecture, China and other non-core activities, demonstrating improving momentum in the portfolio we are focusing behind. Performance was supported by strong growth in Life Sciences and Digital Infrastructure across key markets, while major semiconductor wins drove strong order intake. Arcadis continues to focus its Places portfolio on attractive growth markets while progressing the announced portfolio actions in China, Architecture and other non-core activities.
MOBILITY
| (27% of net revenues) | |||||||
| in € millions | Third Quarter | Year-to-date | |||||
| Period ended 30 September 2026 | 2026 | 2025 | change | 2026 | 2025 | change | |
| Net revenues | 270 | 248 | 9% | 786 | 751 | 5% | |
| Organic growth (%)1 | 6.7% | 2.8% | 4.7% | 1.2% | |||
| Order intake | 190 | 219 | -13% | 816 | 722 | 13% | |
| Backlog net revenues | 984 | 947 | 4% | ||||
| Backlog organic growth (%, yoy)1 | -2.1% | -8.8% | |||||
| Backlog organic growth (%, ytd)1 | 3.1% | -3.6% | |||||
Mobility net revenue growth in the third quarter was driven by the ramp-up of the major programs in Germany and Canada, as well as contract variations agreed in the quarter. Order intake in the quarter reflected the timing of pursuits. Pipeline remains healthy across key markets, with a focus on disciplined conversion and aligning capacity with expected workload.
2026 GUIDANCE REAFFIRMED
Arcadis reaffirms its 2026 guidance of low-single-digit organic net revenue growth and Operating EBITA margin of 11.7%-12.0%.
2027-2029 FINANCIAL TARGETS
Arcadis targets mid-single-digit organic net revenue growth over the 2027-2029 cycle and a mid- to high-teens operating EBITDA margin by 2029. From 2027, operating EBITDA will replace operating EBITA as Arcadis' primary margin performance metric. Arcadis also targets a dividend payout ratio of 30-40% of net income from operations and net debt / operating EBITDA of 1.5-2.5x.
FINANCIAL CALENDAR
- 18 February 2027 - Q4 and Full Year 2026 Results
- 29 April 2027 - Q1 2027 Trading Update
- 29 July 2027 - Q2 and Half Year 2027 Results
- 28 October 2027 - Q3 2027 Trading Update
Arcadis IR investor calendar: https://www.arcadis.com/en/investors/investor-calendar
ARCADIS INVESTOR RELATIONS
Sinem Baykalöz | +31 (0)613930008 | sinem.baykaloz@arcadis.com
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About Arcadis
Arcadis is the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets. We are around 34,000 architects, data analysts, designers, engineers, project planners, water management and sustainability experts, all driven by our passion for improving quality of life. As part of our commitment to accelerating a planet positive future, we work with our clients to make sustainable project choices, combining digital and human innovation, and embracing future-focused skills across the environment, energy and water, buildings, transport, and infrastructure sectors. We operate in over 30 countries, and reported €5 billion in gross revenues for 2025. www.arcadis.com
REGULATED INFORMATION
This press release contains information that qualifies or may qualify as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
DISCLAIMER
Statements included in this press release that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "may", "will", "should", "expect", "could", "intend", "plan", "anticipate", "estimate", "believe", "continue", "predict", "potential" or the negative of such terms and other comparable terminology. The forward-looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements.
Attachments
- Arcadis Q3 2026 Trading Update Press Release
- Arcadis Q3 2026 Trading Update Presentation
