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26.10.2023 07:07:14 - dpa-AFX: GNW-Adhoc: Arcadis Trading Update Q3 2023: Continued strong growth, strategic margin target delivered
Arcadis Third Quarter 2023 Trading Update
Continued strong growth, strategic margin target delivered
Amsterdam, 26 October 2023 - Arcadis (EURONEXT: ARCAD), the leading global
Design & Consultancy organization for natural and built assets reports another
quarter of continued strong growth and an increased operating EBITA margin of
10.6% (last year: 10.3%), meeting the strategic target of >10% with a year-to-
date performance of 10.1%. Solid client demand results in organic net revenue
growth of 9.0% year-over-year to EUR932 million for the quarter.
Alan Brookes, CEO Arcadis, comments: "Arcadis delivered another strong quarter
driven by continued client demand particularly in environmental remediation,
energy transition and innovative mobility solutions. Our strong growth and
profitability have positioned us to deliver on our 2023 targets. The need for
sustainable and digitally enabled solutions remains high on our clients' agenda.
We continue to see significant market opportunities and I am convinced that with
the talent and expertise within the organization, we remain well positioned to
seize the right opportunities and deliver high value to our clients."
KEY FIGURES
------------------------------------------------------- -------------------
Gross revenues 1,237 1,003 23% 3,714 2,851 30%
------------------------------------------------------- -------------------
Net revenues 932 740 26% 2,818 2,158 31%
------------------------------------------------------- -------------------
Organic growth (%)(1) 9.0% 10.9% 10.0% 8.2%
------------------------------------------------------- -------------------
Operating EBITDA(2) 128 101 27% 369 284 30%
------------------------------------------------------- -------------------
Operating EBITDA margin (%) 13.8% 13.6% 13.1% 13.2%
------------------------------------------------------- -------------------
EBITA 91 27 234% 260 158 65%
------------------------------------------------------- -------------------
EBITA margin (%) 9.8% 3.7% 9.2% 7.3%
------------------------------------------------------- -------------------
Operating EBITA(2) 99 76 30% 284 208 36%
------------------------------------------------------- -------------------
Operating EBITA margin (%) 10.6% 10.3% 10.1% 9.7%
------------------------------------------------------- -------------------
Net Working Capital (%) 12.9% 13.8%
------------------------------------------------------- -------------------
Days Sales Outstanding (days) 68 72
------------------------------------------------------- -------------------
Free Cash Flow(3) 117 38 -18 27 -168%
------------------------------------------------------- -------------------
Net Debt 1,083 880 23%
------------------------------------------------------- -------------------
Order intake 832 718 16% 2,871 2,218 29%
------------------------------------------------------- -------------------
Backlog net revenues 3,144 2,813 12%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 5.4% 5.0%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 1.6% 2.9%
-------------------------------------------------------
Acquisitions of IBI Group closed on 27(th) Sept-22, DPS Group on 1(st) Dec-22.
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions
(e.g. Middle East), winddowns or divestments
2) Excluding acquisition, restructuring, and non-operating integration related
costs
3) Free Cash flow: Cash Flow from Operations corrected for Capex and Lease
liabilities
INCOME STATEMENT
Net revenues totaled EUR932 million and increased organically by 9.0%. Growth was
driven by increased use of digital solutions, serving our recurring client base
and leveraging our global expertise. We saw continued strong momentum in
Resilience, Mobility and Intelligence. The currency impact was -5%, mostly
driven by weaker US and Australian dollar. The operating EBITA margin improved
to 10.6% (Q3'22: 10.3%), driven by operational leverage and resulting in a year-
to-date margin of 10.1% already meeting the strategic target of >10% for end of
2023.
ORDER INTAKE & BACKLOG
Order intake of EUR832 million for the quarter was in line with seasonality,
resulting in a backlog of EUR3,144 million (Q3'22: EUR2,813 million). Organic
backlog growth was 5.4% year-on-year, as of this quarter inclusive of Arcadis
IBI, reflecting market demand remaining high for Resilience offsetting softer
market conditions in some of our geographies in Places. Demand for Intelligence
products and services remains strong resulting with good order intake and
backlog. The pipeline is resilient, driven by the solid positions in our high
growth end markets, with ample opportunities from stimulus-driven investments
coming our way.
BALANCE SHEET & CASH FLOW
Net working capital as a percentage of annualized gross revenues improved
to 12.9% (Q3'22: 13.8%) and Days Sales Outstanding (DSO) was 68 days (Q3'22:
72 days). As a result of disciplined working capital management, both metrics
are within the strategic targets set for 2023. Free cash flow in the quarter was
well above last year at EUR117 million (Q3'22: EUR38 million), reflecting strong
billing performance and the increased size of the business combined with our
usual seasonality pattern.
PERFORMANCE BY GLOBAL BUSINESS AREAS
RESILIENCE
(35% of net revenues)
------------------------------------------------------- ------------------
Net revenues 328 320 3% 1,006 909 11%
------------------------------------------------------- ------------------
Organic growth(1) 11.2% 13.7% 12.1% 9.7%
------------------------------------------------------- ------------------
Order intake 328 325 1% 1,107 953 16%
------------------------------------------------------- ------------------
Backlog net revenues 972 943 3%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 12.0% 5.4%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 10.6% 5.2%
-------------------------------------------------------
The Resilience market remains very strong driven by US, UK and Germany.? Demand
remains high for our solutions on Climate Adaptation, PFAS and Energy Transition
where we see very positive trends across markets. A robust pipeline across all
solutions reflects the healthy market we are operating in, allowing us to
continue to be disciplined in the projects we take on.
PLACES
(41% of net revenues)
------------------------------------------------------- ------------------
Net revenues 378 234 61% 1,137 697 63%
------------------------------------------------------- ------------------
Organic growth (%)(1) -0.1% 3.6% 3.3% 2.8%
------------------------------------------------------- ------------------
Order intake 286 216 32% 1,078 718 50%
------------------------------------------------------- ------------------
Backlog net revenues 1,508 1,216 24%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) -0.7% 2.1%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) -3.9% 1.4%
-------------------------------------------------------
Net revenue growth was 61% year-on-year reflecting the acquisitions of Arcadis
IBI and Arcadis DPS. Organic growth was flat for the quarter driven by solid
revenue growth in North America and Continental Europe offset by softness mostly
in China and the UK. Organic backlog growth reflects these market conditions and
the timing of some project awards. The pipeline remains resilient with
attractive opportunities for 2024 and beyond.
MOBILITY
(22% of net revenues)
------------------------------------------------------- -------------------
Net revenues 204 186 10% 607 552 10%
------------------------------------------------------- -------------------
Organic growth(1) 14.6% 15.4% 13.9% 12.5%
------------------------------------------------------- -------------------
Order intake 191 177 8% 614 547 12%
------------------------------------------------------- -------------------
Backlog net revenues 544 542 0%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 4.8% 9.0%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 1.7% 1.8%
-------------------------------------------------------
Organic revenue growth was very strong in the quarter driven by the North
America and Europe, especially in Germany. The demand for electrification and
decarbonization solutions combined with our digital products focused on solving
mobility challenges continues to grow. Collaboration with Architecture and
Urbanism and Intelligence drives enhanced positioning in the market. Organic
backlog growth in the quarter was impacted by lumpiness in order intake as well
as timing of project wins in the UK and Australia. The pipeline is strong with
increased opportunities in the US and Germany.
INTELLIGENCE
---------------------------------------------------
Net revenues 23 67
---------------------------------------------------
Proforma organic growth(1) 22.8%
---------------------------------------------------
Order intake 28 73
---------------------------------------------------
Backlog net revenues 121
---------------------------------------------------
Backlog organic growth (%, yoy)(1) 14.2%
---------------------------------------------------
Backlog organic growth (%, ytd)(1) 5.1%
---------------------------------------------------
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions
(e.g., Middle East), winddowns or divestments
Intelligence showed strong performance across regions, especially in North
America and the UK, with numerous wins for Key Clients in collaboration with
other GBAs. Market proposition remains strong for Intelligence with an expected
acceleration in enterprise software spend in the market and solid pipeline
opportunities stemming from collaboration with Mobility and Intelligence. In a
recent study by Verdantix, Arcadis' Enterprise Decision Analytics (EDA) was
recognized as one of the Market Leaders in the asset investment space and
received top scores for its technical and functional capabilities.
FINANCIAL CALENDAR
INVESTOR RELATIONS
Christine Disch | +31 (0)6 1537 6020 | christine.disch@arcadis.com
CORPORATE COMMUNICATIONS
Tanno Massar | +31 (0)6 1158 9121 | tanno.massar@arcadis.com
ANALYST WEBCAST
Arcadis will host an analyst webcast today at 14.00 hours CET:
https://www.arcadis.com/en/investors/investor-calendar/2023/tra3ing-update-q3-
2023
ABOUT ARCADIS
Arcadis is a leading global Design & Consultancy organization for natural and
built assets. Applying our deep market sector insights and collective design,
consultancy, engineering, project and management services we work in partnership
with our clients to deliver exceptional and sustainable outcomes throughout the
lifecycle of their natural and built assets. We are 36,000 people, active in
over 70 countries that generate EUR4.0 billion in revenues. We support UN-Habitat
with knowledge and expertise to improve the quality of life in rapidly growing
cities around the world. www.arcadis.com (http://www.arcadis.com).
REGULATED INFORMATION
This press release contains information that qualifies or may qualify as inside
information within the meaning of Article 7.1 of the EU Market Abuse Regulation.
FORWARD LOOKING STATEMENTS
Statements included in this press release that are not historical facts
(including any statements concerning investment objectives, other plans and
objectives of management for future operations or economic performance, or
assumptions or forecasts related thereto) are forward-looking statements. These
statements are only predictions and are not guarantees. Actual events or the
results of our operations could differ materially from those expressed or
implied in the forward-looking statements. Forward-looking statements are
typically identified by the use of terms such as "may", "will", "should",
"expect", "could", "intend", "plan", "anticipate", "estimate", "believe",
"continue", "predict", "potential" or the negative of such terms and other
comparable terminology. The forward-looking statements are based upon our
current expectations, plans, estimates, assumptions and beliefs that involve
numerous risks and uncertainties. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward-looking
statements.
Â
Continued strong growth, strategic margin target delivered
* Net revenue of EUR932 million, with strong organic growth of 9.0%(1)
* Operating EBITA margin improved to 10.6% (Q3'22: 10.3%) and 10.1% year to
date, meeting the 2023 strategic target of >10%
* Organic backlog growth at 5.4% (year-on-year), order intake in the quarter
in line with seasonal pattern with strong pipeline opportunities
* Strong cash generation of EUR117 million in the quarter, well above last
year's EUR38 million
* On track to achieve the financial targets set for 2023
Amsterdam, 26 October 2023 - Arcadis (EURONEXT: ARCAD), the leading global
Design & Consultancy organization for natural and built assets reports another
quarter of continued strong growth and an increased operating EBITA margin of
10.6% (last year: 10.3%), meeting the strategic target of >10% with a year-to-
date performance of 10.1%. Solid client demand results in organic net revenue
growth of 9.0% year-over-year to EUR932 million for the quarter.
Alan Brookes, CEO Arcadis, comments: "Arcadis delivered another strong quarter
driven by continued client demand particularly in environmental remediation,
energy transition and innovative mobility solutions. Our strong growth and
profitability have positioned us to deliver on our 2023 targets. The need for
sustainable and digitally enabled solutions remains high on our clients' agenda.
We continue to see significant market opportunities and I am convinced that with
the talent and expertise within the organization, we remain well positioned to
seize the right opportunities and deliver high value to our clients."
KEY FIGURES
in EUR millions Third Quarter Year-to-date Period ended 30 September 2023 2023 2022 change 2023 2022 change
------------------------------------------------------- -------------------
Gross revenues 1,237 1,003 23% 3,714 2,851 30%
------------------------------------------------------- -------------------
Net revenues 932 740 26% 2,818 2,158 31%
------------------------------------------------------- -------------------
Organic growth (%)(1) 9.0% 10.9% 10.0% 8.2%
------------------------------------------------------- -------------------
Operating EBITDA(2) 128 101 27% 369 284 30%
------------------------------------------------------- -------------------
Operating EBITDA margin (%) 13.8% 13.6% 13.1% 13.2%
------------------------------------------------------- -------------------
EBITA 91 27 234% 260 158 65%
------------------------------------------------------- -------------------
EBITA margin (%) 9.8% 3.7% 9.2% 7.3%
------------------------------------------------------- -------------------
Operating EBITA(2) 99 76 30% 284 208 36%
------------------------------------------------------- -------------------
Operating EBITA margin (%) 10.6% 10.3% 10.1% 9.7%
------------------------------------------------------- -------------------
Net Working Capital (%) 12.9% 13.8%
------------------------------------------------------- -------------------
Days Sales Outstanding (days) 68 72
------------------------------------------------------- -------------------
Free Cash Flow(3) 117 38 -18 27 -168%
------------------------------------------------------- -------------------
Net Debt 1,083 880 23%
------------------------------------------------------- -------------------
Order intake 832 718 16% 2,871 2,218 29%
------------------------------------------------------- -------------------
Backlog net revenues 3,144 2,813 12%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 5.4% 5.0%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 1.6% 2.9%
-------------------------------------------------------
Acquisitions of IBI Group closed on 27(th) Sept-22, DPS Group on 1(st) Dec-22.
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions
(e.g. Middle East), winddowns or divestments
2) Excluding acquisition, restructuring, and non-operating integration related
costs
3) Free Cash flow: Cash Flow from Operations corrected for Capex and Lease
liabilities
INCOME STATEMENT
Net revenues totaled EUR932 million and increased organically by 9.0%. Growth was
driven by increased use of digital solutions, serving our recurring client base
and leveraging our global expertise. We saw continued strong momentum in
Resilience, Mobility and Intelligence. The currency impact was -5%, mostly
driven by weaker US and Australian dollar. The operating EBITA margin improved
to 10.6% (Q3'22: 10.3%), driven by operational leverage and resulting in a year-
to-date margin of 10.1% already meeting the strategic target of >10% for end of
2023.
ORDER INTAKE & BACKLOG
Order intake of EUR832 million for the quarter was in line with seasonality,
resulting in a backlog of EUR3,144 million (Q3'22: EUR2,813 million). Organic
backlog growth was 5.4% year-on-year, as of this quarter inclusive of Arcadis
IBI, reflecting market demand remaining high for Resilience offsetting softer
market conditions in some of our geographies in Places. Demand for Intelligence
products and services remains strong resulting with good order intake and
backlog. The pipeline is resilient, driven by the solid positions in our high
growth end markets, with ample opportunities from stimulus-driven investments
coming our way.
BALANCE SHEET & CASH FLOW
Net working capital as a percentage of annualized gross revenues improved
to 12.9% (Q3'22: 13.8%) and Days Sales Outstanding (DSO) was 68 days (Q3'22:
72 days). As a result of disciplined working capital management, both metrics
are within the strategic targets set for 2023. Free cash flow in the quarter was
well above last year at EUR117 million (Q3'22: EUR38 million), reflecting strong
billing performance and the increased size of the business combined with our
usual seasonality pattern.
PERFORMANCE BY GLOBAL BUSINESS AREAS
RESILIENCE
(35% of net revenues)
in EUR millions Third Quarter Year-to-date Period ended 30 September 2023 2023 2022 change 2023 2022 change
------------------------------------------------------- ------------------
Net revenues 328 320 3% 1,006 909 11%
------------------------------------------------------- ------------------
Organic growth(1) 11.2% 13.7% 12.1% 9.7%
------------------------------------------------------- ------------------
Order intake 328 325 1% 1,107 953 16%
------------------------------------------------------- ------------------
Backlog net revenues 972 943 3%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 12.0% 5.4%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 10.6% 5.2%
-------------------------------------------------------
The Resilience market remains very strong driven by US, UK and Germany.? Demand
remains high for our solutions on Climate Adaptation, PFAS and Energy Transition
where we see very positive trends across markets. A robust pipeline across all
solutions reflects the healthy market we are operating in, allowing us to
continue to be disciplined in the projects we take on.
PLACES
(41% of net revenues)
in EUR millions Third Quarter Year-to-date Period ended 30 September 2023 2023 2022 change 2023 2022 change
------------------------------------------------------- ------------------
Net revenues 378 234 61% 1,137 697 63%
------------------------------------------------------- ------------------
Organic growth (%)(1) -0.1% 3.6% 3.3% 2.8%
------------------------------------------------------- ------------------
Order intake 286 216 32% 1,078 718 50%
------------------------------------------------------- ------------------
Backlog net revenues 1,508 1,216 24%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) -0.7% 2.1%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) -3.9% 1.4%
-------------------------------------------------------
Net revenue growth was 61% year-on-year reflecting the acquisitions of Arcadis
IBI and Arcadis DPS. Organic growth was flat for the quarter driven by solid
revenue growth in North America and Continental Europe offset by softness mostly
in China and the UK. Organic backlog growth reflects these market conditions and
the timing of some project awards. The pipeline remains resilient with
attractive opportunities for 2024 and beyond.
MOBILITY
(22% of net revenues)
in EUR millions Third Quarter Year-to-date Period ended 30 September 2023 2023 2022 change 2023 2022 change
------------------------------------------------------- -------------------
Net revenues 204 186 10% 607 552 10%
------------------------------------------------------- -------------------
Organic growth(1) 14.6% 15.4% 13.9% 12.5%
------------------------------------------------------- -------------------
Order intake 191 177 8% 614 547 12%
------------------------------------------------------- -------------------
Backlog net revenues 544 542 0%
-------------------------------------------------------
Backlog organic growth (%, yoy)(1) 4.8% 9.0%
-------------------------------------------------------
Backlog organic growth (%, ytd)(1) 1.7% 1.8%
-------------------------------------------------------
Organic revenue growth was very strong in the quarter driven by the North
America and Europe, especially in Germany. The demand for electrification and
decarbonization solutions combined with our digital products focused on solving
mobility challenges continues to grow. Collaboration with Architecture and
Urbanism and Intelligence drives enhanced positioning in the market. Organic
backlog growth in the quarter was impacted by lumpiness in order intake as well
as timing of project wins in the UK and Australia. The pipeline is strong with
increased opportunities in the US and Germany.
INTELLIGENCE
(2% of net revenues) in EUR millions Q3 YTD Period ended 30 September 2023 2023
---------------------------------------------------
Net revenues 23 67
---------------------------------------------------
Proforma organic growth(1) 22.8%
---------------------------------------------------
Order intake 28 73
---------------------------------------------------
Backlog net revenues 121
---------------------------------------------------
Backlog organic growth (%, yoy)(1) 14.2%
---------------------------------------------------
Backlog organic growth (%, ytd)(1) 5.1%
---------------------------------------------------
1) Underlying growth excl. impact of FX, acquisitions, footprint reductions
(e.g., Middle East), winddowns or divestments
Intelligence showed strong performance across regions, especially in North
America and the UK, with numerous wins for Key Clients in collaboration with
other GBAs. Market proposition remains strong for Intelligence with an expected
acceleration in enterprise software spend in the market and solid pipeline
opportunities stemming from collaboration with Mobility and Intelligence. In a
recent study by Verdantix, Arcadis' Enterprise Decision Analytics (EDA) was
recognized as one of the Market Leaders in the asset investment space and
received top scores for its technical and functional capabilities.
FINANCIAL CALENDAR
* 16 November 2023 - Capital Markets Day * 22 February 2024 - Q4 & FY 2023 Results * 30 April 2024 - Q1 2024 Trading Update * 25 July 2024 - Q2 & HY 2024 Results * 31 October 2024 - Q3 2024 Trading Update
INVESTOR RELATIONS
Christine Disch | +31 (0)6 1537 6020 | christine.disch@arcadis.com
CORPORATE COMMUNICATIONS
Tanno Massar | +31 (0)6 1158 9121 | tanno.massar@arcadis.com
ANALYST WEBCAST
Arcadis will host an analyst webcast today at 14.00 hours CET:
https://www.arcadis.com/en/investors/investor-calendar/2023/tra3ing-update-q3-
2023
ABOUT ARCADIS
Arcadis is a leading global Design & Consultancy organization for natural and
built assets. Applying our deep market sector insights and collective design,
consultancy, engineering, project and management services we work in partnership
with our clients to deliver exceptional and sustainable outcomes throughout the
lifecycle of their natural and built assets. We are 36,000 people, active in
over 70 countries that generate EUR4.0 billion in revenues. We support UN-Habitat
with knowledge and expertise to improve the quality of life in rapidly growing
cities around the world. www.arcadis.com (http://www.arcadis.com).
REGULATED INFORMATION
This press release contains information that qualifies or may qualify as inside
information within the meaning of Article 7.1 of the EU Market Abuse Regulation.
FORWARD LOOKING STATEMENTS
Statements included in this press release that are not historical facts
(including any statements concerning investment objectives, other plans and
objectives of management for future operations or economic performance, or
assumptions or forecasts related thereto) are forward-looking statements. These
statements are only predictions and are not guarantees. Actual events or the
results of our operations could differ materially from those expressed or
implied in the forward-looking statements. Forward-looking statements are
typically identified by the use of terms such as "may", "will", "should",
"expect", "could", "intend", "plan", "anticipate", "estimate", "believe",
"continue", "predict", "potential" or the negative of such terms and other
comparable terminology. The forward-looking statements are based upon our
current expectations, plans, estimates, assumptions and beliefs that involve
numerous risks and uncertainties. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward-looking
statements.
Â
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
ARCADIS NV EO-,02 | A0Q163 | Frankfurt | 59,650 | 20.05.24 08:16:23 | -0,400 | -0,67% | 0,000 | 0,000 | 59,650 | 59,650 |
