PRESS RELEASE | Arcadis Fourth Quarter and Full Year Results 2024
Record earnings per share, record backlog, enhanced long term visibility
FOURTH QUARTER
- Strong Order Intake of €1.0 billion resulting in Book to Bill of 1.04x
- Record fourth quarter operating EBITA margin of 12.6% (Q4'23: 11.4%)
- Free Cash Flow generation of €183 million (Q4'23: €208 million)
- Bolt-on acquisition of Data Center Design business in Germany
- Record backlog of €3.7 billion, organic growth of 16%, from large multi-year project wins driving visibility
- Record net revenues of €3.9 billion, organic growth of 5%
- Strong Operating EBITA margin improvement to 11.5% (2023: 10.4%)
- Net debt / Operating EBITDA of 1.3x, reflecting strong balance sheet
- Record earnings per share (EPS) of €2.70, proposed dividend increased by 18% to €1.00 per share (2023: €0.85)
- On track to deliver strategic targets set for 2024-2026 strategy cycle "Accelerating a Planet Positive Future”
Alan Brookes, CEO Arcadis, said: "Arcadis has achieved significant milestones in the first year of its strategic cycle "Accelerating a Planet Positive Future, 2024-2026”. We executed successfully on our strategic plan, expanding our Key Client program, automating our processes, training our people and increasing contribution of our Global Excellence Centers. This has driven sustained margin expansion and further strengthened our strong market positions. In a fast-changing environment, we have been able to secure a record order intake providing long term visibility and anchoring our positions with our key clients. We continue to see sustained commercial momentum on long term projects despite increased volatility from geopolitical uncertainty following a high number of elections in 2024 weighing on short-term spending patterns. In 2025, we will accelerate the investments in our strategy implementation. Our record backlog, increased pipeline and highly qualified teams, position us well to deliver on our 2024-2026 strategic targets.”
KEY FIGURES*
| in € millions | Full Year |
| Fourth Quarter | ||||
| Period ended 31 December 2024 | 2024 | 2023 | change |
| 2024 | 2023 | change |
| Net revenues | 3,880 | 3,759 | 3% |
| 959 | 941 | 2% |
| Organic growth (%)1) | 4.5% | 9.0% |
| 2.8% | 6.5% | ||
| Operating EBITDA2) | 557 | 506 | 10% |
| 149 | 137 | 9% |
| EBITA | 418 | 343 | 22% |
| 112 | 83 | 34% |
| Operating EBITA2) | 447 | 391 | 14% |
| 120 | 107 | 12% |
| Operating EBITA margin (%) | 11.5% | 10.4% |
| 12.6% | 11.4% | ||
| Net Income | 243 | 160 | 52% |
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| Net income per share (EPS, in €) | 2.70 | 1.78 | 51% |
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| NIfO per share (in €)3) | 3.00 | 2.51 | 19% |
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| Dividend (proposal) per share (in €) | 1.00 | 0.85 | 18% |
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| Net Working Capital (%) | 10.8% | 9.3% |
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| Free Cash Flow4) | 228 | 190 | 20% |
| 183 | 208 | -12% |
| Net Debt / Operating EBITDA | 1.3x | 1.7x |
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| Order intake | 4,442 | 3,899 | 14% |
| 998 | 1,028 | -3% |
| Backlog net revenues | 3,673 | 3,155 | 16% |
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| Backlog organic growth (%, yoy)1) | 16.3% | 4.0% |
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| Voluntary employee turnover5) | 11.0% | 11.7% |
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1) Underlying growth excludes the impact of FX, acquisitions, footprint reductions, winddowns or divestments. 2) EBIT(D)A excludes restructuring, integration, acquisition, and divestment costs. 3) Net income before non-recurring items (e.g. valuation changes of acquisition-related provisions, acquisition & divestment costs, expected credit loss on shareholder loans and corporate guarantees and one-off pension costs). 4) Free cash flow: Cash flow from operations adjusted for Capex and Lease liabilities. 5) Voluntary turnover excludes the Middle East as these operations are being wound down.
REVIEW OF THE FOURTH QUARTER 2024
Net revenues totaled €959 million with an organic growth of 3%, driven by our key markets in the US and the Netherlands, while being offset by project phasing in Mobility and Intelligence, and some volatility in clients' short-term spending on the back of geopolitical developments. Good order intake in the quarter was driven by Resilience and Places, while Mobility fell slightly following a very strong third quarter with multiple large, multi-year wins. Operating EBITA margin improved to a record fourth quarter high of 12.6% (Q4'23: 11.4%) driven by an optimized portfolio and a higher Global Excellence Centers (GEC) contribution.
REVIEW OF THE FULL YEAR 2024: PROFIT & LOSS ITEMS AND BACKLOG
Net revenues totaled €3.9 billion with an organic growth of 5%, reflecting good growth in Energy Transition, Climate Adaptation and Intelligent Highway solutions while being offset by the impact of increased selectivity in project pursuits. The operating EBITA margin increased to 11.5% (2023: 10.4%) driven by continued focus on sustainable project choices, a higher GEC contribution and internal efficiencies from standardization and automation efforts. Non-operating costs were €29 million driven by portfolio optimizations and merging of our offices.
Net financing expenses were €53 million (2023: €65 million), decreasing year on year as a result of an increased net derivative asset position. Net Income increased by 52% to €243 million (2023: €160 million) leading to a record EPS of €2.70. Net Income from Operations (NIfO) increased by 20% to €270 million (2023: €226 million), or €3.00 per share (2023: €2.51), as a result of improved performance.
Backlog Net Revenues ended at a record €3.7 billion resulting in an organic growth of 16%. A record order intake of €4.4 billion was driven by projects for clients in Mobility, Technology, Energy Transition and Climate Adaptation, and resulted in a Book-to-Bill of 1.14x for the year. Our strong backlog position and growing project pipeline are providing significant visibility on future performance.
OPERATIONAL HIGHLIGHTS
RESILIENCE
| (38% of net revenues) |
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| in € millions | Full Year |
| Fourth Quarter | ||||
| Period ended 31 December 2024 | 2024 | 2023 | change |
| 2024 | 2023 | change |
| Net revenues | 1,448 | 1,343 | 8% |
| 360 | 336 | 7% |
| Organic growth1) | 7.7% | 10.6% |
| 6.6% | 6.6% | ||
| Operating EBITA2) | 194 | 159 | 22% |
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| Operating EBITA margin (%) | 13.4% | 11.8% |
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| Order intake | 1,539 | 1,457 | 6% |
| 396 | 350 | 13% |
| Backlog net revenues | 1,052 | 953 | 10% |
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| Backlog organic growth (%, yoy)1) | 8.3% | 11.5% |
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PLACES
| (38% of net revenues) |
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| in € millions | Full Year |
| Fourth Quarter | ||||
| Period ended 31 December 2024 | 2024 | 2023 | change |
| 2024 | 2023 | change |
| Net revenues | 1,479 | 1,509 | -2% |
| 365 | 372 | -2% |
| Organic growth (%)1) | 1.3% | 2.7% |
| 0.9% | 1.4% | ||
| Operating EBITA2) | 151 | 137 | 10% |
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| Operating EBITA margin (%) | 10.2% | 9.1% |
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| Order intake | 1,646 | 1,479 | 11% |
| 421 | 401 | 5% |
| Backlog net revenues | 1,637 | 1,504 | 9% |
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| Backlog organic growth (%, yoy)1) | 8.8% | -2.7% |
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MOBILITY
| (22% of net revenues) |
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| in € millions | Full Year |
| Fourth Quarter | ||||
| Period ended 31 December 2024 | 2024 | 2023 | change |
| 2024 | 2023 | change |
| Net revenues | 861 | 814 | 6% |
| 211 | 207 | 2% |
| Organic growth1) | 5.7% | 13.3% |
| 1.7% | 11.5% | ||
| Operating EBITA2) | 100 | 91 | 10% |
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| Operating EBITA margin (%) | 11.6% | 11.1% |
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| Order intake | 1,164 | 860 | 35% |
| 155 | 246 | -37% |
| Backlog net revenues | 872 | 575 | 52% |
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| Backlog organic growth (%, yoy)1) | 53.3% | 9.5% |
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INTELLIGENCE
| (2% of net revenues) |
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| in € millions | Full Year |
| Fourth Quarter | ||||
| Period ended 31 December 2024 | 2024 | 2023 | change |
| 2024 | 2023 | change |
| Net revenues | 93 | 94 | -1% |
| 23 | 27 | -13% |
| Organic growth1) | -0.5% | 24.5% |
| -11.9% | 35.8% | ||
| Operating EBITA2) | 9 | 11 | -14% |
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| Operating EBITA margin (%) | 10.1% | 11.6% |
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| Order intake | 94 | 104 | -10% |
| 26 | 31 | -16% |
| Backlog net revenues | 113 | 123 | -9% |
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| Backlog organic growth (%, yoy)1) | -2.6% | 8.9% |
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BALANCE SHEET & CASH FLOW
We achieved Net Working Capital as percentage of annualized quarterly gross revenues of 10.8% (2023: 9.3%). As a result, Days Sales Outstanding (DSO) was 61 days (2023: 56 days). Free cash flow was €183 million for the quarter resulting in €228 million for the full year (2023: €190 million), driven by improved performance and disciplined net working capital management. The strong cash performance resulted in further deleveraging from 1.7x Net debt / operating EBITDA in 2023 to 1.3x for 2024, below the strategic target range of 1.5 - 2.5x. Net debt decreased to €739 million (2023: €873 million) and includes a €51 million share buyback program for long term incentive purposes.
COST SYNERGIES FROM IBI AND DPS ACQUISITION MATERIALIZED
Cost synergy realization from IBI and DPS acquisitions in 2022 has materialized well in line with expectations to €20 million (2023 year end: €5 million) through the rationalization in workplaces, IT integration and technology platform improvements, as well as the rationalization of overheads, insurance and support driving operational synergies.
ACQUISITION OF KUA GROUP
On 12 February 2025, Arcadis entered into a definitive agreement to purchase KUA Group (KUA) for €70 million on a cash and debt free basis, representing ~8x KUA's 2024 EBITDA. KUA is one of Germany's leaders in complex data center design and excels in architecture, design and engineering, and planning and permitting services. These capabilities complement Arcadis' strengths in site selection due diligence, program and cost management, and sustainability advisory.
KUA has successfully delivered significant growth, nearly doubling its revenue over the last 3 years. Germany, the second largest data center market in Europe, is seeing accelerated growth of AI investments. Data centers are a key growth area for Arcadis' Places and Resilience GBAs, and this acquisition will significantly enhance our position in the European market creating substantial revenue synergy opportunities.
2024-2026 Strategy "accelerating a planet positive future”
On 16th November 2023 Arcadis presented its 2024-2026 Strategy "Accelerating a planet positive future” and its 2026 targets. Financial targets include: organic net revenue growth of mid to high single digits over the cycle, operating EBITA margin of 12.5% in 2026, Net Debt / Operating EBITDA of
1.5 - 2.5x with an Investment Grade credit rating and a dividend payout ratio of 30 - 40% of Net Income from Operations.
ARCADIS KEY FINANCIAL METRICS*
| in € millions | Full Year |
| Fourth Q
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