Core Insights - Arcadis reported €965 million in net revenues for Q2 2025, showing stable organic performance year-on-year and an operating EBITA margin of 11.3% while investing in strategic initiatives for future growth [2][3] - The company experienced strong demand in North America and Europe, which offset challenges in the UK and Australia, leading to increased Key Client order intake and expansion of Global Excellence Centers [3][5] Financial Performance - Gross revenues for H1 2025 were €2,453 million, a 2% decrease from €2,512 million in H1 2024, while net revenues were €1,937 million, down 1% from €1,959 million [4][20] - Operating EBITA for H1 2025 was €269 million, a slight decrease of 1% from €271 million in H1 2024, with an operating EBITA margin of 11.1% [4][11] - Free cash flow for H1 2025 was negative at €-136 million, compared to €-88 million in H1 2024, reflecting seasonal trends and higher cash outflows [12][20] Market Dynamics - Revenue growth was strong in the US, Canada, and the Netherlands, driven by high demand for Energy Transition, Water, and Technology solutions, while the UK market saw an 8% decline due to delayed government spending reviews [8][9] - The total backlog increased to €3,647 million, with an organic growth rate of 11.8% year-on-year, supported by significant order intake from sectors like Pharmaceuticals and Energy Transition [4][20] Strategic Initiatives - The integration of recently acquired WSP Rail and KUA Data Centers is expected to unlock new growth opportunities, particularly in Germany [5][10] - The company is well-positioned for growth in H2 2025, with large contracts ramping up and increased UK spending anticipated [5][9] Operational Highlights - The operating EBITA margin improved to 11.3% in Q2 2025 from 10.8% in the previous year, supported by strategic initiatives and an expanded Key Clients program [10][21] - The workforce in Global Excellence Centers has grown to 5,100, with plans for a new center in Bucharest, Romania [10][21] Future Outlook - Arcadis aims for an operating EBITA margin of 12.5% by 2026, with a strategy focused on sustainable growth and investment in digital solutions [19][20]