Arcadis reported steady revenue growth and a strong order intake in its latest financial results driven by strong UK data centre demand.
The business reported six per cent organic growth for net revenue of €991 million in the second quarter of 2024, compared with €945 million in the previous period.
The global design, engineering and management consulting company also showed a strong order intake of €1.1 billion, resulting in organic backlog growth of 5.6 per cent year-on-year.
Meanwhile, it reported an improved operating EBITA margin to 11.5 per cent (Q2 2023: 9.7 per cent) driven by operating leverage and improved project portfolio.
Solid demand across its resilience solutions led the company to see strong results in its UK markets, leading with eight per cent net revenue growth from €346 million in Q2 2023 to €373 million.
UK markets also drove revenue growth in places solutions, as demand for data centers design remained strong, while its semiconductor clients’ demand rose due to CHIPS Act funding.
In terms of mobility solutions, margin improvement resulted from improved performance with large government clients in the UK, while intelligence saw good growth in North America and UK, particularly driven by improved Enterprise Decision Analytics (EDA) sales.
Alan Brookes, CEO Arcadis, said: “Sustained client demand across all our Global Business Areas and specifically in solutions across Energy Transition, Water, Technology and Mobility resulted in strong revenue growth and order intake in the quarter.
“Operating leverage, an improved project portfolio and cost control allowed us to further improve our margin and deleverage our balance sheet.
“Meanwhile, we achieved the first milestones in our strategy implementation through the roll out of our Skills Powered Organization, the advancing of the Arcadis Energy Transition Academy and expansion of the Global Excellence Centers.
“Our deep asset knowledge, global expertise and complementary set of services are key success factors allowing us to further drive continued profitable growth and to better serve our clients.”
Was this interesting? Try Cancelled HS2 Phase 2 to cost £100m
If you have a tip or story idea that fits with our publication, please contact miles@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.