Preview 1H26 Results: Improving Earnings Momentum, While Slowdown Derated Peers

Research evidence excerpt

Preview 1H26 Results: Improving Earnings Momentum, While Slowdown Derated Peers

Netherlands | European Midcaps

Arcadis EquityJuneResearch26, 2026

FLASH NOTEPreview 1H26 Results: Improving Earnings

RATING BUYMomentum, While Slowdown Derated Peers

PRICE €33.04^

1H26 results on July 30th are expected to reflect a 6% restructuring-driven

2Q26 EBITA recovery, and after 1Q26 order intake recovered 7%, confirming PRICE TARGET | % TO PT €48.00 | +45%

organisational changes and restructuring are starting to pay off under 52W HIGH-LOW €51.25 - €25.88

new management. However, Arcadis' valuation discount to engineering FLOAT (%) | ADV MM (USD) 79.8% | 5.90

consulting peers narrowed from c.50% six months ago, to 33% today, in line MARKET CAP €2.8B | $3.2B

with its historical discount, after peers derated 23% on slowing momentum, TICKER ARCAD NA ^Prior trading day's closing price unless otherwise

limiting upside potential. noted.

Improving earnings momentum. We estimate 2Q26 operating EBITA will be 6% higher at

€115.4m, driven by organic net revenue growth of 1.4% (vs. 0.8% in 1Q26, and FY26E guidance Exhibit 1 - Quarterly organic net revenue

for stable organic revenues), and a 70bps higher restructuring-driven EBITA margin at 12.0% growth (%)

12.3

9.6(vs. 1Q26 stable at 10.9%, and FY26E guidance of 11.7%-12.0%), partly offset by negative 10.9 11.2 11.6

7.7 9.0 9.0 7.2 6.9 9.6 8.1FX of 1.7%. Arcadis new management, Heather Polinsky (CEO) and Simon Crowe (CFO), are 5.6 8.3 8.0 6.5 6.0 5.7 5.6 3.8 5.0 6.2 2.9 6.3 4.4 4.1 4.0executing a strategic and operational reset, shifting from a complex, inward-looking structure, 5.0 2.0 2.7 1.9 2.8 3.7 3.4 3.3

1.0 0.8 1.4 0.5to a sector-led, performance-driven consulting model, with tighter financial control, credible 0.0 -0.2