Foreign media: Dutch engineering consultancy Arcadis has unveiled its 2027–2029 strategy, outlining plans to divest the majority of its construction operations and China-focused business in order to accelerate growth, enhance profitability, and streamline its portfolio. This comes shortly after the company rejected a takeover bid from Canadian rival WSP Global.
The firm expects to eliminate approximately 1,000 full-time positions through organizational restructuring by 2027, while continuing recruitment in high-growth areas. The divestment of its China and construction segments is projected to improve core operating profit margin by around one percentage point, with the company maintaining its 2026 target for operating EBITDA margin at 14.3% to 14.6%.
The China business is currently under discussion with local management regarding a potential sale, with Arcadis intending to retain a minority stake for a transitional period. The construction division generates annual revenue of about €200 million but has historically delivered low profitability. The strategic objective is to achieve single-digit organic net revenue growth, mid-to-high teens operating EBITDA margins, and allocate 30% to 40% of operating net income to dividends.
Original article: toutiao.com/article/1877672423085068/
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