Highlights:
- Significant market opportunities for Heijmans due to the growing demand for homes, road, flyovers and building maintenance, energy transition and water management.
- Heijmans has set three financial targets for 2027:
- Revenue to € 3 billion
- Underlying EBITDA of 7-9%
- Proposed dividend policy: 50% pay-out of net profit entirely in cash
- Value creation along three lines in the business: Living, Working and Connecting
- ‘Together towards 2030’ strategy rests on five pillars: Well-being, Sustainability, Connection, Producibility and Team. These are supported by twelve ‘bold statements’ (ambitions) for 2030
- Heijmans wants to take the lead to address the complex challenges faced in the built environment of the Netherlands.
Royal Heijmans N.V. today provides an update on its refined business strategy ‘Together towards 2030’. This update is being given as part of Heijmans’ Capital Markets Day for the international financial community, which on this occasion is being held at Heijmans’ new timber-frame house production plant in Heerenveen.
Heijmans will emphasise the current solid state of the construction company. This is partly due to the company’s effective investments in risk management in recent years, combined with a focused project acquisition policy (margin over volume). In addition, Heijmans’ focus on its Dutch home market and its consistent and integrated approach, the company has achieved a strong positioning in the market. In 2023, Heijmans recorded an underlying EBITDA margin of 6.9% and Heijmans’ land bank now contains around 30,000 new-build homes.
Ton Hillen, CEO Heijmans
“Over the past few years, we have completed a journey with Heijmans, a journey in which we have built a strong foundation together. The market appreciates that our performance is getting ever more predictable and that we are now showing consistent growth in revenue, EBITDA and net profit. In everything we do, we put end users first and deliver what we promise. With that attitude, we have become the second biggest home developer in the Netherlands.”
Market opportunities
The growing demand for homes, road, flyovers and building maintenance, the energy transition and water management is creating significant market opportunities for Heijmans. These are disciplines that will remain of huge importance in the coming years and therefore offer enormous potential for the company. These are operational areas in which Heijmans is seen as a leading player, such as the housing market, technical services, floodwater protection, the expansion of energy networks and asset management. As a result, Heijmans is expecting a further acceleration in revenue growth and higher margins.”
‘Together towards 2030’ strategy
Heijmans wants to play a significant role in finding solutions for the complex challenges facing the Netherlands now and in the coming years. Ton Hillen: “Our country needs breakthroughs, powerful solutions to the issues we are facing in the built environment. And as Heijmans, we want to help realise those solutions. This also offers the company attractive market opportunities, which we want to realise on the basis of our ‘Together towards 2030’ strategy.”
In 2023, Heijmans formulated a vision of the future that forms the basis of the company’s refined business strategy ‘Together towards 2030’. This strategy is built on five pillars: Well-being, Sustainability, Connection, Producibility and Team. Over the past period, Heijmans has added twelve non-financial bold statements to these five pillars; in addition, Heijmans has prioritised a number of product-market combinations (PMCs). Together these are preconditions for organic growth and a framework for the selective search for additional acquisitions,. You will find the bold statements in the appendix to this press release.
Financial targets 2027
Supported by its refined strategy, Heijmans today also announced the financial targets it aims to achieve in 2027, halfway through the term of its ‘Together towards 2030’ strategy. Revenue is heading toward € 3 billion (2023: € 2.1 billion), with an underlying EBITDA margin in the 7-9% range (2023: 6.9%). In addition, Heijmans will explain its new dividend policy at its upcoming Annual General Meeting. As part of this new policy, Heijmans aims to pay out a dividend of 50% of net profit (currently 40%), paid entirely in cash (currently an optional dividend).
