Royal Heijmans continues positive trend from the first half of the year

Highlights

• Total number of newly built homes sold YTD (through to Oct): 2,313 (2024 YTD: 2,284).

• Order book €3.3 billion (2024: €2.7 billion) with increasing quality.

• Contract awarded as part of Defence reinforcement efforts.

• Next step in the Producibility strategic pillar within Connecting: self-propelled roller.

• Reconfirmation of outlook for FY2025 with revenue of around €2.75 billion and an underlying EBITDA margin of around 9.0%.

Ton Hillen, CEO Heijmans

"Heijmans can look back on a strong third quarter. This is in line with our H1 forecast for the underlying EBITDA margin of around 9.0% for the financial year as a whole. The severe housing shortage in the Netherlands was rightly among the main issues debated during the Dutch general election. At the same time, it is clear there are no easy solutions to the housing issue. It calls for a long-term approach that combines a vision, a sense of coherence and a strong dose of reality. Residential buildings without surrounding infrastructure, for example, are akin to a house without a front door. The new government needs to have the courage to combine the two. We call on the parties to show that courage, because living and infrastructure are one and the same thing. Continued investment in infrastructure is an essential prerequisite for reducing the housing shortage in the Netherlands. Meanwhile, Heijmans is continuing to work on its 'Together towards 2030' strategy to make progress on the major challenges facing the Netherlands, such as residential construction, network congestion and water quality."

Living

The INCK project in Eindhoven proved to be a key development for the Living division. A total of 400 apartments will be built there, 234 of which are for social housing and 166 for the private market. In geographical terms, INCK is situated between the city centre and the High Tech Campus Eindhoven. Heijmans is leveraging innovative technologies to reduce network congestion in the development area as a whole. This is an example of the Connecting strategic pillar, given that today’s complex challenges call for a new approach. We take the lead in making groundbreaking solutions a reality.

Total residential sales remain stable, with continued strong demand for ground-level homes in suburban areas. In urban locations, the sale of new apartments is progressing more moderately, partly due to reduced interest from private buyers and increased caution from institutional investors following changes in legislation. This contrast between urban and suburban developments has been evident in the market for some time. Thanks to a balanced distribution across both segments, Heijmans remains well-positioned in the housing market.

Working

The Working division was awarded a contract under the Defence reinforcement programme. Heijmans signed a contract for the Technology Centre Land (TCL) in Leusden, a site for various activities involving land-based equipment for the Ministry of Defence. The strategic pillar of Sustainability is reflected here in the use of recycled steel and a green, climate-adaptive roof. The Working division is also involved in Connecting projects, such as the construction of a high-voltage station as part of the energy transition. In doing so, Heijmans shows how different disciplines can be combined to help find solutions for the major societal challenges faced by the Netherlands.

Connecting

Within the Connecting division, the large-scale project involving substantial maintenance for the Buitenveldertbaan runway at Amsterdam Airport Schiphol was delivered to the client on schedule and without any outstanding issues. Heijmans will continue to be involved in the flood protection programme (HWBP) after being awarded a contract last quarter to reinforce the dykes between Wijk bij Duurstede and Amerongen. Connecting also completed several new projects in the previous quarter. One example is the maintenance and renovation work performed on the A2 and A6 motorways, which in turn are part of the Rijkswaterstaat’s approach to sustainable road paving. Such projects reinforce the strategic pillar of Sustainability. The strategic pillar of Producibility is reflected in Connecting with the introduction of Europe’s very first self-driving electric asphalt roller. With this prototype, Heijmans is taking an important first step in the automation of road construction, which is necessary due to the emerging labour shortages in the sector. The innovation allows for smarter and safer work. It also fits in with the company's goal of zero emissions. The roller's first deployment will be for work at Schiphol Airport.

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