Arcadis (ARCAD) CMD 2026 summary

Strategic context and market drivers

• Capital investment by hyperscalers rose 66% in 2025, signaling robust infrastructure demand.

• Two-thirds of US drinking water investment needs relate to replacing aging infrastructure.

• Mega projects face increasing complexity, with 79% experiencing cost overruns.

• Infrastructure owners can achieve 20-40% lifecycle cost reductions through optimization.

• Every $1 invested in resilience can protect up to $8.60 in asset value.

Strategic priorities and business transformation

• Reset strategy centers on focused growth, sustainable value, and three value creation principles: focus on strengths, simplify around clients, and drive a performance culture, all enabled by AI and digital innovation.

• Portfolio shift includes divesting most of the architecture business and China operations, aiming to boost operating EBITDA margin by ~100 basis points.

• Focused investments in core (Transportation, Power & Water) and accelerate (Industrial Manufacturing & Tech) sectors, with environmental services scaled as a differentiator and growth driver.

• Portfolio reshaped to prioritize high-growth, low-cyclicality markets and redeploy capital.

• Core and Accelerate industries expected to grow from 74% to 85% of total net revenues by 2029, improving quality and profitability.

Organizational and operational changes

• New model replaces Global Business Area structure with account-based profit and loss accountability, integrating sales and delivery.

• Streamlined delivery and standardized approaches to scale globally and locally, with a single global services and delivery business enhancing talent visibility and efficiency.

• Enhanced commercial model with outcome-based pricing and sector-aligned incentives, reinforcing a performance culture.

• Over 200 leaders appointed in 2026 to create a simpler, flatter, and more agile organization, with a reset talent strategy to attract and develop next-generation leaders.

• 95% of revenue comes from repeat clients, reflecting strong client trust.