Strong order intake and strategic progress
- Strong Order Intake of €1.1B with 1.19x book-to-bill, backlog of €3.8B with 4.6% organic growth1) ytd
- Net Revenues of €933 million, with 0.8% organic growth yoy
- Operating EBITA Margin2) at 11.0% (Q1‘25: 10.9%) supported by the cost-out and rightsizing actions
- Capital Markets Day on September 29, 2026 to set mid-term strategy for 2027-2029
Amsterdam, 30 April 2026 – Arcadis, the world’s leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets, reports first quarter results with strong order intake of €1.1 billion, Net Revenues of €933 million representing 0.8% year-on-year growth, while Operating EBITA margin was 11.0% (Q1’25: 10.9%).
Heather Polinsky, CEO Nominee Arcadis, said: “During the quarter we made good progress executing on our strategic priorities: focusing on high growth markets, simplifying the organization to accelerate execution and driving cultural change. While the full benefits of these actions will be realized over time, we are already seeing positive early momentum in our order intake and pipeline opportunities. First quarter revenue growth stepped up, led by Mobility, while performance in our Water and Energy solutions remained strong. Margins were supported by our cost-out program and rightsizing actions. We continued to invest in our high growth markets, as well as digital and AI-embedded solutions. We remain a resilient company, focused on execution and value creation, and look forward to providing a comprehensive update on our strategy and medium‑term financial targets at our Capital Markets Day in September.”
INCOME STATEMENT
Net revenues totaled €933 million, representing 0.8% organic growth and a foreign exchange impact of -5.5%, driven by the US Dollar. Growth was driven by our key markets in US and Europe, partially offset by ongoing challenges in Property & Investment, particularly in Canada and China. Non-operating costs totaled €15 million, mainly related to rightsizing and restructuring actions within Property & Investment and corporate overhead.
ORDER INTAKE & BACKLOG
Backlog totaled €3.8 billion, representing 4.6% organic growth year-to-date. Order intake was strong at €1.1 billion, supported by robust performance across all Global Business Areas. Backlog growth was driven by Water, Climate and Advisory in Resilience. In Places, order intake for Data Centers and Public Facilities was strong, while Property & Investment in Canada remained challenging. Mobility order intake was very strong in the quarter, mainly driven by project extensions in the US, Canada and the UK with significant opportunities in the pipeline.
BALANCE SHEET & CASH FLOW
Net working capital as a percentage of annualized gross revenues was 12.1% (Q1’25: 12.9%), and Days Sales Outstanding (DSO) was 64 days (Q1’25: 67 days). A free cash flow of €-149 million in the quarter was in line with seasonal trends (Q1’25: €-138 million), with continued discipline on billing and cash collection.
STRATEGIC AND OPERATIONAL PROGRESS
Focused on growth
Arcadis continues to concentrate investment on high-growth markets where it has a clear competitive advantage. During the first quarter, the company strengthened leadership in priority sectors and expanded targeted hiring. Arcadis also launched its AI Studio, a dedicated capability that brings together data, digital and domain expertise to develop scalable, client-facing AI solutions that enhance productivity, insight and delivery. In addition, a comprehensive pricing diagnostic was completed, supporting the rollout of a more disciplined, value-based pricing approach to enhance win rates and earnings quality.
A simpler, future-proof operating model
In parallel, Arcadis is simplifying its operating model to improve agility and efficiency. In the first quarter we exited another 250 roles and we continued to proactively address underutilization across the business while intensifying our cost-out actions. The organization is being reoriented around sectors, supported by a new sector leadership team, while core processes around the project pursuit phase continue to be automated to drive productivity.
Driving cultural change
Arcadis is embedding a more commercial, performance-driven culture across the organization. This includes leadership changes, strengthened commercial controls, and more targeted sales incentives focused on key clients. In addition, the company has launched a new short-term leadership incentive program for its top 2,000 leaders, directly linked to individual contribution, commercial outcomes and overall performance. Looking ahead, Arcadis will continue to invest in talent, sharpen incentives and performance management, and empower leaders to operate with greater accountability, entrepreneurial focus and a client-centric mindset.
Resilience net revenue growth was driven by our Water Optimization solution in the US on the back of deep technical expertise, effective AI‑integration and strong client relationships. In the UK, water projects related to AMP8 are gaining positive momentum. Our Energy Transition and Advisory had continued strong growth from large transmission, distribution and grid readiness programs for leading clients in Germany and Netherlands. In Environmental Restoration the wind-down of a large contract is being actively managed and higher-value opportunities are progressing through the US pipeline, driven by power, energy and government clients and rising PFAS demand. Backlog growth was solid, primarily supported by Water Optimization, Climate Adaptation and Energy Transition in the US and Europe. In line with our strategic priorities, we are focused on backlog growth driven hiring and commercial upgrades in US Environmental Restoration.
Places net revenue declined primarily due to Property & Investment in Canada and China where we progressed the restructuring and the repositioning of our Canadian business towards rental, student, and senior housing, as well as transit and data center projects. Growth for public facilities for government clients in the UK was good, whereas it remained subdued in Canada. US pharmaceutical facilities work showed good growth supported by government’s onshoring investments, while softness in Europe continued. Technology clients delivered strong data center growth, offset by the wind-down of a large semiconductor contract. Backlog growth was driven by data center projects in the US and UK, as well as government clients in both the US and Europe.
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments
Mobility net revenue growth was strong in US, Canada, the Netherlands, and Germany, driven by key clients and synergy wins in Germany following the WSP Rail acquisition last year. In Australia, revenues increased year-on-year, supported by a high work volume on our largest contracts during the quarter. In UK, the impact from the HS2 related projects wind-down was lower than last year, while an improving rail market also supported revenues. Order intake was very strong during the quarter driven by project extensions in US, Canada and UK. We see large opportunities progressing through the pipeline in Germany, US and Canada, driven by increased road and port activity, particularly in North America. We are hiring to meet backlog and pipeline demand in these key areas, while remaining focused on diversifying the Australian business.
2026 GUIDANCE UNCHANGED
Arcadis had an encouraging start to the year; however, due to increased macroeconomic uncertainty, and 2026 being a transition year focused on repositioning the business, the 2026 guidance remains unchanged. Arcadis expects organic net revenue growth to be flat and the operating EBITA margin to be between 11.7% and 12.0%, supported by overhead reductions (delivering 40–50 bps of savings), further rightsizing, GEC contribution, and disciplined project selection.
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments
FINANCIAL CALENDAR
- 20 May 2026 – Annual General Meeting of Shareholders
- 30 July 2026 – Q2 and Half Year 2026 Results
- 29 September 2026 – Capital Markets Day
- 29 October 2026 – Q3 2026 Trading Update
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
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