Arcadis (ARCAD) Q2 2026 earnings summary

Executive summary

• Organic net revenue growth accelerated to 2.2% in Q2 2026 and 1.5% for H1 2026, with upgraded 2026 growth guidance and improved margins, reflecting strong execution and strategic focus on high-growth markets, digital solutions, and operational improvements.

• Record order intake up 13.5% in Q2 2026, driving backlog to €4.0 billion, and supporting long-term visibility.

• Strategic acquisitions and investments, including SATEL Iberia (Spain) and Nomic (US), strengthen energy, digital, and AI capabilities.

• Transformation initiatives include redeploying leaders to client-facing roles and launching a performance-linked incentive program.

• Rejected WSP acquisition proposal, citing undervaluation and confidence in intrinsic value and future prospects.

Financial highlights

• Q2 2026 net revenues reached €974M, up 2.2% year-over-year; H1 2026 net revenues up 1% to €1,907M.

• Operating EBITA margin for Q2 2026 was 11.4% (Q2 2025: 11.3%); H1 2026 margin at 11.2%.

• Order intake in Q2 2026 grew 13.5% year-over-year to €1.1B, driving backlog to a record €4.0B (+6.7% year-over-year).

• Free cash flow for H1 2026 was -€149M, reflecting typical seasonal working capital movements and ongoing investments.

• Net income for H1 2026 was €102M, down 4% year-over-year.

Outlook and guidance

• 2026 organic net revenue growth guidance upgraded to low-single-digit growth, with operating EBITA margin guidance reaffirmed at 11.7%-12.0%.

• 2027-2029 targets: mid-single-digit organic net revenue growth and mid- to high-teens operating EBITDA margin by 2029.

• Transitioning to operating EBITDA as primary guidance metric from 2027.