Arcadis NV (ARCAD) AI Stock Analysis

• Market Cap: €2.50B
• Dividend Yield: 2.85%
• Average Volume (3M): 214.67K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.79
• Revenue Growth: -2.02%
• EPS Growth: 24.14%
• Country: NL
• Employees: 32,059
• Sector: General
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 1.52
• Shares Outstanding: 90,442,090
• 10 Day Avg. Volume: 192,744
• 30 Day Avg. Volume: 214,667
• PEG Ratio: -1.11
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 8.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €53.67
• Price Target Upside: 79.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.33
• Revenue Forecast (FY): €3.88B

• Rating: 66 Neutral
• Price Target: €32.00 ▲(6.95% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is supported primarily by strong financial performance driven by robust 2025 revenue growth and high-quality cash generation. This is tempered by balance-sheet leverage and a weak technical backdrop, with the stock in a pronounced downtrend despite oversold signals. Valuation is reasonable and helps stabilize the overall score.

Positive Factors

Strong 2025 revenue growth

A ~31% annual revenue increase in 2025 signals structural demand and successful commercial execution across projects. Sustained top-line expansion improves scale economics, supports investment in capabilities, and strengthens long‑term contracts and client relationships over the next 2–6 months and beyond.

High free cash flow conversion

Free cash flow tracking nearly one-to-one with net income demonstrates high earnings quality and real cash generation. Durable cash conversion supports reinvestment, dividends and debt reduction, enhancing financial resilience and funding strategic initiatives over multiple quarters.

Diversified, sustainability-oriented services

A broad service mix across infrastructure, water, environment and buildings plus emphasis on sustainable solutions creates structural demand from public and private clients. Diversification across sectors and long-term projects reduces single-market risk and supports steady backlog and repeat business.

Negative Factors

Elevated leverage

Higher debt-to-equity (~1.28) and debt exceeding equity materially reduce financial flexibility. Elevated leverage increases interest and refinancing risk, constrains capacity for M&A or capex, and magnifies earnings volatility, making capital structure a key medium-term risk to manage.

Weak debt coverage by operating cash flow

Operating cash flow covering only ~20–25% of total debt indicates limited immediate capacity to service or reduce liabilities from operations. Even with strong FCF, reliance on other sources for debt service raises liquidity sensitivity during downturns or project delays over coming quarters.

Profitability and margin volatility

Notable swings in gross margin point to execution, mix or cost control variability in project-based work. Margin volatility undermines predictability of profits and cash flow, complicating planning and increasing downside risk if input costs or project issues persist over the medium term.

Arcadis NV Business Overview & Revenue Model

Company Description

Arcadis NV operates as a design and consultancy firm for natural and built assets worldwide. The company operates through four segments: Europe & Middle East, The Americas, Asia Pacific, and CallisonRTKL. It offers architectural based design consultancy services; and asset management services, such as asset management strategy and planning, asset management decision making and operational optimization, life cycle planning and asset management systems, asset information/condition assessment, risk and review, organization and people, and asset management/O&M. The company also provides business advisory services, including asset strategy and performance, business transformation and resiliency, investment and finance, operations and maintenance, and technology and information; cost and commercial management services; and design and engineering solutions for highways, railways, bridges, tunnels, power utilities, water utilities, ports and waterways, geotechnics, architecture, and structures, as well as building mechanical, electrical, and plumbing. In addition, it offers digital environmental health safety and sustainability, environmental restoration, and project management solutions. Further, the company provides mobility solutions for connected highways, intelligent rail and transit, integrated airports, and new mobility; places solutions; resilience solutions, including climate adaption, energy transition, enviro socio permitting, environmental restoration, sustainable advisory, sustainable operations, and water optimization; and water supply and treatment, distribution, resource management, and industrial water and wastewater services. It serves industrial manufacturing, technology, property and investment, contractors, and energy and resources sectors. The company was formerly known as Heidemij NV and changed its name to Arcadis N.V. in October 1997. Arcadis NV was founded in 1888 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Arcadis generates revenue through a combination of project-based and consulting services across its various sectors. The company primarily earns money by providing engineering and project management services, which involve designing and overseeing construction projects, as well as offering consulting services related to environmental management and infrastructure development. Key revenue streams include fees for professional services, which are billed based on time and materials, fixed fees for project deliverables, and performance-based contracts. Additionally, Arcadis benefits from long-term partnerships with governmental and private entities, which provide a steady flow of projects and revenue. The company also invests in innovative technologies and sustainable practices, enhancing its service offerings and enabling it to capture new market opportunities.

Arcadis NV Financial Statement Overview

Summary

Strong revenue growth into 2025 (~31%) and consistently high free cash flow conversion (~0.96x net income) support the score. Offsets include higher leverage (debt-to-equity ~1.28 in 2025 with declining equity) and profitability volatility, including notable swings in gross margin.

Income Statement

Revenue expanded strongly into 2025 (annual growth ~31%), supporting higher operating profit versus prior years. Profitability is generally solid with EBIT margin mostly in the mid-to-high single digits and net margin improving versus 2022–2023, though it remains modest (~4–5%) and dipped sharply in 2020, highlighting cyclical/operational sensitivity. A key watch item is the large swing in reported gross margin (notably lower in 2025 versus 2021–2024), which suggests volatility in cost structure and/or reporting mix.

Balance Sheet

Leverage has moved higher: debt-to-equity rose to ~1.28 in 2025 from ~0.91 in 2024, and debt is above equity, which reduces financial flexibility. Equity has also declined versus 2024, adding to balance-sheet pressure. Positively, the company has operated with similar leverage levels before (e.g., ~1.29 in 2022) and has generated decent returns on equity historically (mid-teens to ~20% in 2023–2024), though 2025 return data is not provided.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently high and closely tracks earnings (free cash flow is ~0.96x net income in 2025 and ~0.87–0.89x in recent years), indicating good earnings quality. Free cash flow also grew strongly in 2025 (~18%). The main weakness is that operating cash flow covers only a modest portion of total debt (roughly low-to-mid 20% in 2023–2025), which matters more now that leverage has increased.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.88B	5.00B	5.00B	4.03B	3.38B
Gross Profit	697.00M	3.88B	3.76B	3.02B	2.56B
EBITDA	463.00M	545.00M	464.00M	343.31M	353.97M
Net Income	208.00M	243.00M	159.98M	131.52M	167.88M
Balance Sheet
Total Assets	3.63B	3.90B	3.78B	3.84B	2.74B
Cash, Cash Equivalents and Short-Term Investments	323.50M	357.00M	270.00M	243.15M	320.60M
Total Debt	1.33B	1.12B	1.16B	1.29B	518.67M
Total Liabilities	2.59B	2.67B	2.72B	2.85B	1.71B
Stockholders Equity	1.04B	1.23B	1.06B	995.24M	1.02B
Cash Flow
Free Cash Flow	369.00M	305.00M	268.15M	243.89M	294.68M
Operating Cash Flow	386.00M	350.00M	308.72M	284.02M	329.46M
Investing Cash Flow	-108.00M	-46.00M	-36.56M	-834.98M	-33.59M
Financing Cash Flow	-333.00M	-218.00M	-244.63M	456.38M	-410.82M

Arcadis NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:ARCAD, the sentiment is Negative. The current price of 29.92 is below the 20-day moving average (MA) of 34.30, below the 50-day MA of 35.69, and below the 200-day MA of 40.44, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 34.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:ARCAD.

Arcadis NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEIJM	77 Outperform	€2.41B	18.87	25.34%	2.44%	11.67%	36.03%
VPK	75 Outperform	€5.05B	8.88	15.92%	4.27%	-3.32%	15.52%
BAMNB	74 Outperform	€2.56B	11.78	11.89%	2.69%	3.64%	-22.13%
ARCAD	66 Neutral	€2.50B	12.82	21.45%	2.85%	-2.02%	24.14%
AALB	62 Neutral	€3.78B	25.74	6.13%	4.08%	-4.31%	-50.34%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FUR	55 Neutral	€1.18B	-59.11	9.91%	8.99%	-7.57%	-51.86%