Slow start in a tough market in the first half of 2024

Macroeconomic headwinds continued to influence the first six months of the year, leading to delayed or cancelled client projects in some of Ramboll’s most important markets. Buildings, Architecture & Landscape, and Transport were particularly impacted due to a slowdown of investments in infrastructure projects.

Leveraging Ramboll’s diverse portfolio helped the company steer through these developments as clients continued to demand more sustainable solutions across their value chains, as demonstrated by good growth in Environment & Health and Energy.

• Gross revenue was DKK 8.7 billion (EUR 1,172 million), an increase compared to DKK 8.4 billion (EUR 1,129 million) in the first half of 2023
• Organic growth was 2.6% compared to 9.2% in the first half of 2023
• Operating profit before amortisation of goodwill, brand, and customer contracts (EBITA) was DKK 382.5 million (EUR 51 million), yielding an EBITA margin (profit margin) of 4.4% compared to 5.2% in the first half of 2023
• The order book stood at 7.3 months of secured revenue, corresponding to DKK 8.7 billion (EUR 1.2 billion), as compared to 7.8 months secured revenue in the first half of 2023.

“Like much of our industry, we experienced a tough market in the first six months of the year. Coming out of a strong performance in 2023, our business has been impacted by clients delaying or cancelling projects, which, in turn, impacted many of Ramboll’s markets. We are working diligently to meet our full-year ambitions and support our clients as their partner for sustainable change,” says Jens-Peter Saul, Group CEO.

He continues: “We continue to see demand for solutions that address clients’ business needs while meeting their climate and nature goals. This is evident from the solid performance in our Environment & Health and Energy markets where we are delivering solutions that tackle urbanisation, climate change, and the need for low carbon energy.”

Energy faced challenges in the beginning of the year owing to cancelled or postponed projects, but billing ratio has stabilised owing to demand for Power-to-X and Carbon Capture and Storage (CCS). Moreover, there was an improvement in the second quarter in the market for offshore wind, which remains a key focus area. Ramboll’s recent acquisition of K2 Management, a global consultancy company specialised in wind and solar energy, is expected to further strengthen Ramboll’s ability to support clients through all stages of wind energy projects.

Environment & Health delivered double-digit organic growth, driven by, among others, solutions for global data centre operators to build out IT infrastructure with minimal environmental and social impact.

Moreover, Ramboll delivered double-digit organic growth in the Americas, spurred by demand for climate resilience and low-carbon energy solutions, as well as increased focus on sustainability compliance. Despite a difficult market in the UK, renewable and low-carbon energy projects contributed to drive growth, alongside projects in the health and life sciences sector. Growth in Denmark was slightly negative and impacted by investment postponements across multiple markets, yet Ramboll continues to play an important role in the build out of electrical grid infrastructure in support of national renewable energy targets.

The company’s full-year guidance has been updated with slightly lower expectations driven by the challenging market situation. Expected organic growth rate is between 3-5% and an expected EBITA margin is between 5.5%-6.2%.

Sustainability is integral to Ramboll, anchored in its corporate strategy, and in its work with clients. Ramboll is also working on reducing its own carbon footprint and has taken another important step to address greenhouse gas emissions throughout its value chain.

In June, the Science Based Targets initiative approved Ramboll’s net zero targets, further cementing the company’s commitment to climate action. Ramboll is among only 16 professional services companies in the world to have SBTi validated net zero science-based target by 2040, which is 10 years earlier than the 2050 deadline for global net zero.

“As a global company with more than 18,000 employees, we are firm in our commitment to real action on climate. We walk our talk by working to decarbonise Ramboll’s full value chain, and we hold ourselves accountable through validated science-based targets,” Jens-Peter Saul says.

• Full-circle sustainability: In the US, a global pharmaceutical company has chosen Ramboll for a multi-year programme to support their corporate sustainability operations, decarbonisation, and master site planning. Ramboll will help the client upgrade fire safety, manufacturing, energy, water, and environmental systems at their largest global manufacturing and research site.
• Increasing low-carbon mobility: Ramboll will design the 19 km Cycle Superhighway in Germany, connecting Nuremburg, Erlangen, and Herzogenaurach. The project aims to enhance regional connectivity through cycling infrastructure to improve low-carbon mobility.
• Boosting offshore wind in Asia Pacific: Ramboll is designing the offshore substation for the Shinan-Ui Offshore Wind Farm, in South Korea, for client Hanwha Ocean. The windfarm is expected to produce more than three times the wind energy currently produced by all offshore wind farms in South Korea each year.
• National heat network zones: Ramboll is supporting the UK government to establish Heat Network Zones by helping develop national zoning methodology and piloting zone development in three cities. These methods are being extended to 19 locations in England to accelerate heat network project development.
• Enabling world-class science: Ramboll and Henning Larsen are designing the B777 Circular Timber Campus Building for CERN, the world’s leading scientific research centre for high-energy physics, in France. The building will contain offices, laboratories, and workspaces, with a focus on reducing embodied and operational carbon as well as allowing for the reuse and recycling of structural materials.