Arcadis (ENXTAM:ARCAD) Is Up 10.0% After Hudson Tunnel Project Extension and €175M Buyback - What's Changed

• In late September 2025, MPA Delivery Partners, a joint venture between Mace, Parsons Corporation, and Arcadis, announced it was awarded a US$665 million, 4.5-year contract extension by the Gateway Development Commission to continue managing the Hudson Tunnel Project, the most urgent rail infrastructure project in the United States. Arcadis also initiated a substantial €175 million share buyback program, representing roughly 5% of its outstanding shares, set to run through July 2026.
• The Hudson Tunnel Project is expected to generate more than 95,000 jobs and significant economic activity across the U.S., underscoring Arcadis’s role in transformative North American infrastructure while the buyback program signals confidence in its financial health and long-term strategy.
• We'll assess how Arcadis's expanded Hudson Tunnel Project role and active share buyback could reshape its medium-term investment narrative.

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Arcadis Investment Narrative Recap

To hold Arcadis stock, investors need to believe in long-term demand for critical infrastructure and the company's ability to capture high-quality projects amid evolving sector needs. The recent Hudson Tunnel Project contract extension supports backlog stability and offers earnings visibility, but it does not materially address the short-term catalyst of sustained organic revenue growth or mitigate the immediate risk of persistent client delays and modest management growth outlooks.

The launch of a €175 million share buyback program is the most relevant recent announcement, reinforcing the company's confidence and aiming to enhance shareholder value even as near-term revenue growth remains modest. This approach aligns with catalysts tied to improving project pipeline quality and financial flexibility.

On the other hand, investors should be alert to how prolonged client delays in capital expenditure decisions could...

Read the full narrative on Arcadis (it's free!)

Arcadis is projected to reach €4.4 billion in revenue and €376.6 million in earnings by 2028. This outlook assumes a 3.9% annual decline in revenue and an earnings increase of €138.6 million from the current €238.0 million.

Uncover how Arcadis' forecasts yield a €57.93 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community see Arcadis’ fair value ranging from €11 to over €112 per share. With client delays posing a current risk, you may want to compare these divergent outlooks before deciding what this could mean for the company’s results.

Explore 5 other fair value estimates on Arcadis - why the stock might be worth less than half the current price!

Build Your Own Arcadis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arcadis research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Arcadis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arcadis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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