土木工程服务行业：回顾截至3月的季度业绩

Civil engineering services sector: A look back at the results for thequarter ending March analyze the results published by Arcadis's listed competitors. Within the sector, we coverArcadis (Outperform,PT48,covered by Derric Marcon)and Jacobs (Outperform, PT$163,covered by Chad Dillard). This sector perspective allows us to track the evolution of trendsand key events in the industry. We begin with a summary of each company's performanceMarch, the share price reactions of the companies in our sample on the day their resultswere published were very mixed (Exhibit 1). +33158980630derric.marcon@bernsteinsg.com +331421354 22richard.nguyen@bernsteinsg.com +4420 35471533kiran.shah@bernsteinsg.com Our ratings and estimates for the companies wecover remain unchanged in thisreport.Ourkey findings forthequarter ending March tend to reinforce our investment thesis onArcadis. Indeed,the earnings releases confirmed the market trends we anticipated. Thesetrends supportour cautiousrevenuegrowthforecastsfor Arcadis (+3.5%over 2027-36with a peak at +4.3% in FY29, growth to perpetuity at +2.5%). In a market where customerperformance (converting leads into signed contracts,accelerating the conversion ofbacklog into revenue,and increasing consultant utilization rates)and to reposition itself inmarket segments where customer demand is strongest.At the same time, the group hasactivities facingdeclining markets, such as services related to residential construction,is apriority, even though the share of these activities in Arcadis's revenue continues to decreasequarter after quarter. Organicrevenuegrowthforoursampleofcompanies comparabletoArcadisremainedbroadly inlinewithpreviousquarters March.However, these relatively positive results have rarely translated into significant upward revisions to full-year estimates.Themainmovementswe observedareas follows: The companieswith the highestOSG rates were Jacobs and AtkinsRealis(Engineering Services division only;not covered).The companiesthatexperiencedthemostsignificantslowdown sequentiallywereAtkinsRealis (Engineering Servicesdivision only) and Sweco. nuclear.Conversely,significant exposureto the Middle East orto declining market segments/projects (such as the headwindcreated by the termination of USAID/DOS for Tetra Tech or the wind-down of Canadian infrastructure projects for Stantec)hampered the OSG rate ofmany players (notably Stantec,Sweco,andAEcOM-none of whichwe cover). andtheorderbacklogcontinuetodemonstratestrongresilienceincustomerdemand. TetraTech:figuresexcludingUSAlD/DOSfromcalendar4Q24;AtkinsRealisfigures forthe engineering services segment only; Arcadis' selected peers:Stantec, WSP Global, Tetra Tech,AtkinsRealis, AEcOM, Jacobs, Sweco, AfrySource: company data, Bernstein analysis MANYFIRMSHAVEBEENACTIVEONTHEM&AFRONT Discussions about M&A were a common themein thesector publicationsthis quarter, with most groups havingbeen active inthis area recently: WSPGlobalhas beenthemostactive,finalizingtheacquisitionof TRC andmaintainingM&Aas its topcapital allocationpriority (press release). Stantec benefited fromthe earlier acquisition of Page (press release), which contributed significantly to the growth of its revenue and backlog,althoughthe integration weighed on its FCF dueto integration costs.AtkinsRealismadeseveral bolt-onacquisitions. .Swecocontinued itspolicyofmaking small acquisitions ata steadypace. .Tetra Techhas madetargeted acquisitions inthedefense andcybersecuritysectorsand has divested non-corebusinesses. andimprovingitsday-to-daybusinessmanagementprocesses SUMMARYOFARCADISPEERPUBLICATIONS Sweco(notcovered):OSG was+2%in1Q26,belowthetwoprevious quarters,reflecting softer customerdemandandunfavorable calendar effects. Growth was driven by infrastructure, water,environment, energy,and security and defense, withstrong contributions from Sweden,theNetherlands,Norway, Belgium,and the UK.Weakness persisted in residential andcommercial buildings and parts of industry (notably pharmaceuticals and chemicals), with Finland, Denmark, Germany, andCentral Europe weighing on performance due to weak end-markets.EBITA margin declined yoy to 10.4% due tonegativesectors, driven by long-term trends (sustainable development and resilience, demographic shifts, and digitalization). However,control. Tetra Tech(notcovered):0SG,at+3.1%,was slightly weak in2Q26compared topreviousquarters.However,itsbacklogwas +8% sequentially. Demand is driven by secular trends, notably Al-led data center expansion, electrification, water scarcity,climate adaptation and the modernization of defense facilities.The construction of data centers supports the demand for water stimulatingwork on expandingbases,ports and harbors, coastal resilience,flood protection andthe cleanup of PFAs.Publicsectordemandremainskey,withUSFederal revenueup11%yoy,State&Localup9%,and Internationalup12%,supportedbymulti-yearfunding frameworks (US infrastructure programs andtheUK's AMP8 watercycle).Offsettingthis,