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  • Gross revenues €3.3 billion, 3% below 2015. Net revenues €2.5 billion, organically -4%
  • Operating EBITA €175 million (-30%); EBITA €166 million (-20%), including €28 million restructuring cost and €19 million release of Hyder related provisions following settlement of litigation cases
  • Net income from operations €91 million (2015: €137 million)
  • Business conditions in Brazil led to goodwill impairment of €15 million and in Q4 provision for receivables was increased by €10 million related to Brazil and the Middle East
  • Regional cost reductions in Q4 generated €20 million annualized cost savings; simplified operating model will lead to €10 million lower overhead costs in 2017
  • Strong free cash flow in the 4th quarter of €102 million, free cash flow 2016 €80 million (2015: €121 million). Net debt €494 million, equal to year-end 2015. At 17.5% net working capital improved from 20.9% in Q3 (2015: 17.1%)
  • Net debt/EBITDA at year-end 2.3 and 2016 average covenant ratio 2.5
  • Backlog €2.2 billion representing 11 months of net revenues, a decline of 6% due to project cancellations in Brazil, Middle East and China
  • Dividend proposal €0.43 per share (2015: €0.63); pay-out ratio 40%

Amsterdam, 16 February 2017 - Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy firm for natural and built assets, reports a 4% organic decrease in net revenues for 2016. Net income from operations was €91 million, a decrease of 34% versus 2015.

Arcadis interim CEO Renier Vree: "2016 was a challenging year for Arcadis, which required us to take action. I am pleased that we are making good progress on the priorities set in October. We are implementing a simplified operating model which enables us to better respond to market opportunities, combined with structurally reduced overhead costs."

"Furthermore, we delivered a strong free cash flow in the fourth quarter, supported by significant cash collections in the Middle East. The market outlook starts to improve due to higher oil prices and increased Infrastructure spending in many countries. We also see higher demand from cities in Europe, North America and Asia for water resiliency, as well as for environmental consulting around the world. We continue to win large projects, such as a framework with US Army Corps of Engineers for environmental and remediation services across Europe, and for Construction Management Support Services in the $1.55 billion Regional Connector Transit Project to ease congestion around Downtown Los Angeles."

"I am confident that our actions position us for profitable growth. We will continue to focus on our clients to increase our backlog and revenues, reduce our cost base, improve project management, expand our Global Excellence Centers, while reducing working capital."


in € millions
Period ended December 31
2016 2015 change 2016 2015 change
Gross revenues 3,329 3,419 -3% 854 873 -2%
Organic growth -1% 1%   -1% -1%  
Net revenues 2,468 2,597 -5% 608 636 -4%
Organic growth -4% 0%   -3% -4%  
EBITA 166.3 208.8 -20% 39.7 59.8 -34%
EBITA margin 6.7% 8.0%   6.5% 9.4%  
Operating EBITA1) 175.5 250.3 -30% 34.7 68.5 -49%
Operating EBITA margin 7.1% 9.6%   5.7% 10.8%  
Net income 64.2 98.7 -35%      
Net income per share (in €) 0.76 1.19 -36%      
Net income from operations 91.0 137.1 -34%      
Net income from operations per share (in €)  

1.66 -35%      
Avg. number of outstanding shares (millions)  

82.6 2%      
Net working capital % 17.5% 17.1%   17.5% 17.1%  
Free cash flow 2) 80.0 120.6   102.4 113.2  
Backlog (organic growth)/ months -6%/11 -7%/11   -3% -5%  

1)  Excluding acquisition, restructuring and integration-related costs and excluding the release of Hyder related litigation provisions of €19.4 million in 2016
2) Cash flow from operating activities minus investments in (in)tangible assets

Net revenues amounted to €2,468 million and declined organically by 4%. The decrease in net revenues was mainly due to a 37% organic decline in Brazil, and lower revenues in North America, Asia and CallisonRTKL. This was partly compensated by organic revenue growth in Continental Europe, the UK and Australia.

EBITA decreased 20% and included a release of provisions of €19.4 million related to legacy Hyder claims and €28 million in restructuring, acquisition and integration charges (2015: €41.5 million). Our global workforce came down by 2% versus December 2015 (~400 FTEs). The number of employees in the regions fell by ~1,100 FTEs (-4%), while the Global Excellence Centers added ~700 FTEs (+50%).

Operating EBITA decreased by 30% mainly due to an operating loss in Brazil, lower results in North America, Europe and CallisonRTKL and a negative currency effect of the British Pound. Results were stable in the Middle East and in Asia Pacific, where a higher result in Australia compensated for a lower result in Asia. The operating EBITA margin was 7.1% (2015: 9.6%).

The income tax rate was 19.3% (2015: 23.0%). Financing charges were slightly higher at €29.0 million (2015: €26.1 million) due to foreign exchange effects. Income from associated companies was a loss of €2.6 million (2015: loss of €3.2 million), related to non-core energy assets in Brazil.

Net income declined 35% to €64.2 million or €0.76 per share, compared to €98.7 million
or €1.19 per share in 2015. Net income from operations decreased 34% to €91.0 million (2015: €137.1 million) or €1.08 per share (2015: €1.66).

Working capital as a percentage of gross revenues was 17.5% (Q4 2015: 17.1%). Strong free cash flow in the fourth quarter supported by significant cash collections in the Middle East improved this ratio from 20.9% in Q3 2016. The days sales outstanding decreased from 101 days in Q3 to 91 days in Q4 2016 (2015: 84 days). The increase compared to last year is mainly due to the Middle East. Net debt at the end of December was €494 million (2015: €494 million).

Based on the average net debt for June 2016 and December 2016, the covenant leverage ratio was 2.5 (2015: 2.2). Return on invested capital was 6.8% (2015: 9.3%).

Backlog at the end of 2016 stood at €2.2 billion, representing 11 months of net revenues. Backlog at the end of December decreased by 6% compared with December 2015, due to project cancellations in Brazil, Qatar and China.

Net revenues were €608 million, an organic decline of 3%. Revenues in the Americas were organically lower by 5% due to a 2% decrease in North America and a continued decline in Brazil. Organic growth in Continental Europe and the United Kingdom compensated for a decline in the Middle East. Revenues in Asia Pacific were almost in line with last year. CallisonRTKL revenues declined organically due to Asia. The currency effect was -2%.

Operating EBITA was €34.7 million (Q3 2016: €43.3 million), 49% lower than in the same quarter last year (Q4 2015: €68.5 million). The operating EBITA margin was 5.7% (Q4 2015: 10.8%), due to lower revenues in Brazil and CallisonRTKL, less favorable business mix in the United Kingdom, capacity imbalances in France and an addition to provisions for receivables in Brazil and the Middle-East of € 10 million. EBITA decreased by 34% to €39.7 million and includes a release of provisions of €19.4 million related to legacy Hyder claims and a restructuring charge in the quarter of €13.9 million, mainly related to capacity adjustments in France and Brazil and to reduce overhead costs.

Review by segment
Reflecting the simplified operating model and to align reporting to the responsibilities of the members of the Executive Board, Arcadis will now report in four segments: (1) Americas, (2) Europe and Middle East, (3) Asia Pacific and (4) CallisonRTKL.

(31% of net revenues)

in € millions
Period ended December 31
2016 2015 change 2016 2015 change

Gross revenues







Net revenues







Organic growth














Operating EBITA1)







Operating EBITA margin







Backlog organic growth







1) Excluding acquisition, restructuring and integration-related costs

The decrease in net revenues in the Americas was mainly due to a 37% organic decline in Brazil driven by the economic recession. The decline in operating EBITA relates to an operating loss in Brazil of €9 million (2015: +€12 million), including an increase in provisions for trade receivables of €6 million. The operating results in North America were slightly lower than in 2015.

In North America revenues declined organically driven by Environment and Water.

  • The Environmental Market saw lower prices caused by reduced oil & gas spending and increased competition from regional competitors
  • Buildings and Infrastructure generated high organic growth
  • In the second half year, the region started to benefit from the improved backlog, including strong order intake from Arcadis FieldTech Solutions (AFS) and in Canada
  • The performance improvement program that began in 2015 contributed to an almost stable operating margin despite lower revenues

The deep recession in Brazil caused project postponements across a range of private and public clients.

  • Due to the significant revenue decline, the number of employees dropped to 1,250 (2015: 1,950)
  • In order to maintain our leadership position and to be able to respond when the market recovers we have kept our core capabilities in place

Europe & Middle East
(45% of net revenues)

in € millions
Period ended December 31
2016 2015 change 2016 2015 change

Gross revenues







Net revenues







Organic growth














Operating EBITA1)







Operating EBITA margin







Backlog organic growth -2% -13%   1% -8%  

1) Excluding acquisition, restructuring and integration-related costs and excluding the release of Hyder related litigation provisions in 2016

The organic growth in net revenues of 1% consists of 4% growth in Continental Europe, 1% increase in the UK, compensating for a 5% decrease in the Middle East. Operating EBITA was impacted by lower results in France and Belgium, lower margins in Buildings in the UK and a negative currency impact of the British Pound.

Continental Europe
Net revenues increased organically by 4% mainly driven by private sector clients, whilst the public sector is slowly returning to growth after several years of decline. Arcadis continued to perform strongly in the Netherlands and Germany, while facing challenges especially in Belgium and France. In France we have launched an action program to streamline operations.

  • In Buildings Arcadis generated double digit growth in all countries
  • In Infrastructure we maintained our leading position, despite a sharp decline in the French local infrastructure market
  • In Environment Arcadis further expanded its service offering, while facing price pressure in remediation programs for the oil & gas sector
  • Despite various significant project wins in water management and flood protection in the Netherlands, Germany and Poland the Water business slightly declined in 2016

United Kingdom
Net revenues grew slightly.

  • Buildings revenues declined due to Brexit related delays in investment decisions, which especially impacted the commercial development sector in and around London
  • Sustained government spending drove strong organic growth in Infrastructure
  • In Water Arcadis expanded its position with the large water utilities
  • After a slower first half-year in Environment, performance improved for site remediation solutions, supported by the use of FieldTech Solutions

Middle East
The low oil price impacted government spending across the Middle East.

  • The UAE was the most active market in 2016, particularly in Dubai where Arcadis is delivering a number of large projects linked to Expo 2020
  • Revenues decreased in Qatar after a number of projects were cancelled or deferred, with priority given to schemes that are key for the 2022 FIFA World Cup. Significant payments were received in the fourth quarter related to large milestone driven contracts
  • In Saudi Arabia payments for completed projects for public sector clients were delayed

Asia Pacific
(14% of net revenues)

in € millions
Period ended December 31
2016 2015 change 2016 2015 change
Gross revenues 378 371 2% 97 88 9%

Net revenues







Organic growth














Operating EBITA1)







Operating EBITA margin







Backlog organic growth







Excluding acquisition, restructuring and integration-related costs and excluding the release of Hyder related litigation provisions in 2016

Net revenues declined organically by 10%, especially in Buildings due to less commercial development in Singapore and Hong Kong, while China performed strong.

  • Growth in Infrastructure, Water and Environment contributed to a further diversification of our business in Asia
  • Due to lower revenues in commercial Buildings the operating EBITA margin was slightly lower

Australia Pacific
Australia Pacific performed well on the back of stronger end markets and an effective diversification of the former Hyder business into the full Arcadis offering

  • Organic net revenue growth was 16%, and the operating margin was well above last year
  • The strong performance resulted largely from the delivery of major infrastructure and buildings projects across all major urban areas of Australia and a strong usage of Global Excellence Centers

(10% of net revenues)

in € millions
Period ended December 31
2016 2015 change 2016 2015 change

Gross revenues







Net revenues







Organic growth














Operating EBITA1)







Operating EBITA margin







Backlog organic growth







1) Excluding acquisition, restructuring and integration-related costs

CallisonRTKL is active in four distinct practice groups: Commercial, Retail, Workplace and Healthcare, across the geographies North America, Asia Pacific, Europe and the Middle East.

  • While the markets for Commercial and Healthcare were under pressure and formed a challenging environment for CallisonRTKL, Retail offered positive opportunities in 2016.
  • The organic revenue decline was mainly due to lower activity levels in the commercial sector in Asia and the Middle East
  • Revenues in North America were stable, while there was growth in Europe
  • The operating EBITA margin came down due to lower revenues and price pressure across the practice groups, except for Retail, where margins grew

Market outlook 2017

  • In general positive business sentiment with private sector clients, with uncertainty in Asia
  • Higher oil prices contribute to an improved business climate in the oil & gas sector
  • New US Administration sends positive signals for Infrastructure and Buildings. Large corporations and cities/states continue to support sustainability goals
  • Increased Infrastructure spending planned in many countries
  • Uncertainty around Brazil remains, improvement in economy expected for 2nd half 2017

Leadership priorities 2017
Our leadership priorities are geared towards improving our financial performance:

  • Focusing on Clients, leading to growth in backlog and revenues
  • Reducing costs by simplifying organization structure, strengthening project management and expanding Global Excellence Centers
  • Reducing working capital
  • Finalizing the strategy, including innovation through digitalization

Appointment of CEO
The process to appoint a new CEO is well advanced, and we are hopeful that we will be able to make an announcement on this topic in the near future.

Financial Calendar 2017
20 April 2017           First quarter results 2017
26 April 2017           Annual General Meeting of Shareholders
27 July 2017            Half year results 2017
25 October 2017     Third quarter results 2017

For further information please contact:
Arcadis Investor Relations
Jurgen Pullens
Telephone: +31 20 2011083
Mobile: +31 6 51599483

Arcadis Group Communications
Jeremy Cohen
Mobile: +31 6 21639411

Conference Call
Arcadis will hold an analyst meeting and webcast to discuss its full year 2016 results on February 16, 2016. The analyst meeting will be held at 10.00 hours CET today. The webcast can be accessed via the investor relations section on the company's website at

About Arcadis
Arcadis is the leading global Design & Consultancy firm 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 27,000 people active in over 70 countries that generate €3.3 billion in revenues. We support UN-Habitat with knowledge and expertise to improve the quality of life in rapidly growing cities around the world.

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.

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.

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Source: Arcadis N.V. via Globenewswire