We can look back on a strong and successful 2024. Our business operations performed well on all fronts. That calls for a huge compliment for all our enthusiastic and committed employees. Thanks in part to their efforts and achievements, we were able to further strengthen our position in the market. Last year, we also got to work full out on our revised business strategy ‘Together towards 2030’.
This gives us a roadmap that makes very clear how and on which fronts Heijmans, as a sustainable leader, wants to take the lead, and with whom. In line with this, we presented our new brand promise with great conviction: ‘Together, it’s possible’.
Positive about our performance
We are proud of the robust financial results we achieved in 2024, with revenue of € 2.6 billion and an underlying EBITDA-margin that rose to 7.7%. All our business units - Living, Working and Connecting - performed within the strategic bandwidth of an underlying EBITDA-margin of 7-9%. In 2023, with four months of Van Wanrooij in our books, we achieved revenue of € 2.1 billion. All our business units showed profitable revenue growth.
Our order book (including joint ventures) is stable and well filled, standing at € 2.8 billion at year end. We are especially pleased with the continued increase in the quality of our order book. It is an excellent sign that the share of revenue from recurring business continues to grow, particularly in the Working and Connecting segments. After all, recurring work based on long-term client relationships is an extremely important pillar of our business model, and now accounts for 35% of our revenue. Partly for this reason, we continue to focus strongly on these recurring activities, such as the renovation of existing homes and making them more sustainable, the management and maintenance of technical installations and the execution of (repair) work on the road network and traffic installations, including services in the field of asset management, to give just one example.
We have now broadly translated the five pillars on which we have built our ‘Together towards 2030’ business strategy - Well-being, Sustainability, Connection, Producibility and Team - into programme lines and activities. In 2024, we completed the realignment of our organisation in line with these pillars and engaged our colleagues in our strategic vision and its practical implementation. Our current performance and future prospects give us great confidence in our ability to realise the strategic and financial objectives we have set for 2027, including an underlying EBITDA-margin in the range of 7-9%. On the way there, we will of course continue to maintain robust and predictable business operations, with a selective tendering policy and strict risk management. When tendering for projects, we always ensure the right balance between risk acceptance and earning potential. Thanks to this approach, our net debt continued to decline and last year we were able to accelerate the repayment of the financing for the acquisition of Van Wanrooij, which we repaid in full in 2024.
Celebrating successes
We can also look back with great pride on the other successes we celebrated together in 2024. For example, we received two prestigious awards. The first was the FD Henri Sijthoff Prize 2024 for the best reporting in the ‘other listed companies’ category. The jury praised Heijmans for its insightful financial reporting and clear vision on sustainable construction. And secondly, we won the Public Award in the ABN AMRO Sustainable 50 contest. Another highlight was our well-attended Capital Markets Day, which we hosted on 22 May 2024 at our new timber-frame house production facility in Heerenveen. And over the course of the year, we saw Heijmans' share price rise to € 31.55 from € 12.12 a year earlier. This made Heijmans the biggest climber on Amsterdam’s Euronext stock exchange in 2024, with a gain of no less than 160%.
Changing safety awareness
Our efforts to increase safety in the construction sector are still very much needed. We stand by our credo: we work safely or we do not work at all. Based on this conviction, we had to postpone our weekend work on the A13 motorway in 2024. During the preparations, it became clear that the safety measures taken were not in order, something that should never have happened. We then decided to postpone the weekend work in consultation with our client, the Dutch Ministry of Public Works and Water Management (Rijkswaterstaat). By making this decision, we set an example for the sector. Together, we sent a clear message that safety is our number one priority. Unfortunately, we still see examples of reckless driving, road users ignoring red crosses and sometimes even intimidation and aggression towards road workers during road works. This is not acceptable. It is important to realise that our road workers work hard every day to keep the roads in optimal condition for all road users.
Our safety strategy focuses primarily on compliance with standardised procedures for high-risk activities. For example, we take plenty of time to emphasise safety measures at the daily start-up of activities and we are working hard to continue to develop our safety leadership. Recent figures on the number of accidents resulting in absenteeism at Heijmans were largely unchanged from the previous year. However, we did see a decline in the severity of accidents in 2024. Employees are also more inclined to report safe and unsafe situations. This behaviour is encouraging, but we can never afford to rest on our laurels. Safety therefore remains one of our top priorities.
As a sector, we must also continue to accept our own responsibility. It is essential that we have the courage to call each other to account for unsafe behaviour, that we do not look away and that we work together to investigate where and how we can realise improvements. To help achieve this, one of our many initiatives is sponsoring the new Chair in Integrated Safety Practice at the Delft University of Technology (TU Delft).
Living: housing market showing signs of recovery
We are encouraged by the improving housing market. In 2024, we sold a total of 3,181 homes, an increase of 23% compared with the previous year. This increase was primarily due to an increase in home sales to private buyers. As a result, the ratio of private to commercial sales at the end of 2024 stood at 60% - 40%. Competition in the housing market continues to increase due to the limited supply and the lack of firm planning capacity. As a result, demand continues to significantly outstrip supply. In the mid-priced rental segment, we see that sales have shifted from institutional investors to housing corporations. The latter group is making more and more resources available, both to expand their portfolios and to make their existing housing stock more sustainable.
At Heijmans, we are well positioned to play our part in the housing market. We are determined to continue our upward trajectory. Partly due to the acquisition of Van Wanrooij (2023) and Van Gisbergen (2024), our order book expanded to 37,000 new homes from 29,000 the previous year. To make sure we can take full advantage of this, we are once again calling on policymakers to increase the ‘firm’ planning capacity in urban and suburban areas and to standardise legal and regulatory requirements in line with national norms. The goal is to accelerate the industrial-scale production of homes, which will also help keep homes affordable. To continue to stimulate this, the market needs the public sector to act quickly. This will require more civil service capacity, the shortening or limiting of objection and appeal procedures and making sure home seekers have a say in legal proceedings.
Working: demand for innovation remains strong
We are seeing growing demand for the renovation of existing buildings. This is being fuelled by the increasing demand for sustainable business premises, but the supply of these buildings is still limited. In addition, few office buildings have been adapted to current market demands and the new ways of working that are on the rise. Furthermore, the renovation of buildings can be complex due to technical requirements, high costs and regulatory demands, especially in sectors such as healthcare, education and industry. This is increasing the need for strategic asset management. Heijmans plays a key role on this front, thanks to its expertise in energy optimisation, safety and data-driven solutions such as real-time monitoring and predictive maintenance. We see plenty of opportunities in this area, running parallel with our growth in recurring business.
Connecting: clear opportunities
There is a great deal of work to be done on the renovation or replacement of essential infrastructure. Many roads, bridges, viaducts and tunnels date from the post-war years and are in urgent need of maintenance. In addition, increased traffic intensity and greater loads on our roads (axle loads) are increasing the need for maintenance. We are seeing a shift in activities from new construction to replacement and renovation. After all, due to the nitrogen emissions problem, the government is being forced to opt more frequently for large-scale renovations rather than building completely new infrastructure. For Heijmans, this is part of our day-to-day business and an integral part of our core activities. Consequently, we see many attractive opportunities and possibilities for us in this field.
That certainly proved to be the case in 2024. For example, last year we successfully and effectively completed the asphalting of the A2 motorway between the Oudenrijn and Everdingen junctions. This was a major project on one of the busiest arteries of our national road network. For future projects, the new Asfaltcentrale Lage Weide (ACLW) asphalt plant will certainly be useful. AsfaltNu, in which Heijmans is one of two shareholders, is investing in the construction of this most sustainable, innovative and environmentally friendly asphalt plant in Europe. State-of-the-art technology will ensure that the production of this new asphalt will be very low emission, odour free, and with generate virtually no noise. On top of this, the asphalt will be almost completely circular.
Challenges on the water front
One of the infrastructural challenges we face in the period ahead is how we as a society should deal with water. Climate change means we will have to deal with rising sea levels, extreme weather and higher water levels in our rivers. We also need to take into account periods of prolonged drought, with a resulting scarcity of drinking water and the contamination of surface water, but also wet periods that can result in flooding. The expected effects of these phenomena once again call upon the expertise and innovative potential that we as ‘the Netherlands, land of water’ have built up over the centuries. All parties involved need to work together to develop an all-encompassing vision and plan of action. To provide direction on this front within Heijmans, we drew up the ‘Water Matters!’ vision paper in 2024. This vision is based on four pillars that we see as our focus areas: water quality, water balance, water use and water safety.
Grid congestion
We will also have to make use of our innovative potential to tackle the pressing problem of grid congestion. We need to focus on innovative solutions if we are to meet current and future electricity demand. Our knowledge of energy infrastructure and the built environment is helping us to create a stable and reliable network. We create energy grids for public and private clients, including local grids on our clients’ own premises. We take care of the design and realisation, we work as an all-round service partner or we take care of the long-term management and operation. In addition, in the Waterviolier neighbourhood of Nuenen, we are experimenting with a new energy management system that optimises the availability and use of locally generated energy. Our own timber-framed house production facility in Heerenveen is now largely powered by solar panels and a battery system that stores any excess solar energy.
Accepting our social responsibility
As a sustainable leader, we want to play a leading role in making the living environment healthier and improving the well-being of residents, consumers and road users. We focus on this in almost every aspect of our work, from the design phase and execution during construction to management and involvement after completion. For example, we actively look for opportunities to increase social cohesion in our new construction projects. We also look at the potential for alternative and decentralised energy generation, and for the efficient use and reuse of raw materials. Of course, we never lose sight of the comfort and experience of users. It is certainly encouraging to see that the nature-inclusive and climate-adaptive method that we applied in the Parijsch new-build neighbourhood in Culemborg is now being applied on a national scale.
We are proud that Heijmans' ambitious climate targets have been approved by the Science Based Target initiative (SBTi). Thanks to our efforts on the sustainability front, we remain within the Paris guidelines. We are also fully committed to the goal of making our own business operations and our chain climate-neutral by 2040 at the latest. We will continue to report transparently and accessibly on this front, in accordance with the new requirements of the EU Corporate Sustainability Reporting Directive (CSRD). For that purpose, we also conducted a so-called double materiality analysis in 2024. This helped us to identify seven material themes that are of major importance to Heijmans. In addition to climate change, these are water, biodiversity and ecosystems, use of materials and the circular economy, our own employees, employees in the value chain, and business conduct.
We regret that (semi-)government clients are exempt from transparent reporting according to the CSRD guidelines. As a sector, we need to make the chain sustainable from start to finish, and it would be good if clients in the public and semi-public sector also accepted their responsibility in this regard. The goal must be to arrive at a single common ‘language’ in the construction chain to make the sector as a whole more sustainable.
Together, it’s possible
As the creators of a healthy living environment, we are determined to leave the Netherlands in a better state for future generations. What drives us is tackling the major construction and transition challenges facing our country, in all their complexity and interdependence. The housing shortage, water surpluses and shortages, declining biodiversity, the energy transition and the congested traffic network. Our country must move forward, but that will not happen if we continue to exaggerate the many social differences. What we need is a unifying, solution-oriented and integrated approach. Heijmans wants to take the lead on this front and, together with our clients, partners and users, continue to build a future-proof country. We see these challenges as new opportunities to continue our development as a company and in our business operations.
This ambition is the basis of our new brand promise: ‘Together, it’s possible’. Since the autumn of 2024, we have been drawing attention to this through various communications via our own channels and beyond. We also make use of every opportunity to emphasise this promise internally. It is no coincidence that this ties in seamlessly with our strategic vision ‘Together towards 2030’ and our financial goals for 2027.
Retaining employees
Together with every single one of our colleagues at Heijmans, we are building the future of the Netherlands. Together we form one Heijmans – it is our ‘yellow heart’ that connects us. We work for each other, for our clients, and throughout the Netherlands. That is what makes working at Heijmans so special. We emphasise this in various ways and ensure that we retain our employees for the long term. Our goal is to create a diverse and inclusive work environment where everyone feels welcome. This is why we devote constant attention to diversity in our workforce. We believe that differences in background, gender, vision, experience and age make us stronger. Heijmans also believes it is important to offer newcomers a pleasant, welcoming workplace and by doing so give them the opportunity to build a new life in the Netherlands. The know-how and skills they bring with them also enrich our organisation. In 2024, 31 highly motivated newcomers started working for us.
The labour market in our sector is tight. Fortunately, we are still able to attract many new employees who identify with our strategic vision and are willing to work to realise it. We also continue to look ahead. We see plenty of opportunities for further growth, and for that we will need more employees. With that in mind, at the end of 2024 we launched our new labour market communications campaign. We are counting on this to raise our profile as an attractive employer even higher and to recruit and retain even more new colleagues for the long term.
Outlook for 2025
We are expecting a further increase in home sales and the continued growth of recurring business in the Working and Connecting segments. On top of this, we are encouraged by our well-filled and high-quality order book. Based on this, we expect revenue to increase to € 2.75 billion in 2025. Our profitability is expected to increase to a minimum underlying EBITDA-margin of 8.0%. We also expect all sectors to perform within their strategic bandwidths in 2025. And we expect to achieve a positive net cash position in Q1 2025, one year earlier than we had initially anticipated. It is still difficult to predict the impact of the macro-economic uncertainty that appears to be increasing, as well as the consequences of legal rulings related to nitrogen emissions in the longer term. Nevertheless, we have a solid foundation and the outlook is good that 2025 will be another strong year.
It looks promising that 2025 will be another successful year for Heijmans. To continue to ensure a healthy living environment where people can enjoy living, working and connecting. And to do so with all Heijmans colleagues, and our clients, suppliers, contractors, subcontractors, partners and users. Because we believe in this completely: Together, it’s possible!
Ton Hillen
CEO Royal Heijmans N.V.
28 February 2025