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.”
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.
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.
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 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.
1 Underlying growth excluding impact of FX, acquisitions, footprint reductions, wind-downs or divestments.
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 INVESTOR RELATIONS
Sinem Baykalöz | +31 (0)613930008 | sinem.baykaloz@arcadis.com
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