Koninklijke Heijmans N.V. is a Dutch construction and development company with almost a century of history. Founded in 1923 by entrepreneur Jan Heijmans, the company has been listed on the Amsterdam Stock Exchange since 1993.
It evolved from a family business into a leading firm with over 5,000 employees, while still maintaining a family-oriented culture and strong local relationships. Since 2017, Heijmans has focused exclusively on the Dutch market after exiting its foreign activities in Belgium and Germany. Its main clients are domestic residential customers (individual home buyers, housing associations, investors), businesses, and the public sector (both local and state authorities).
Heijmans operates in three key segments:
This broad approach—covering the entire value chain from design to construction and maintenance—coupled with a strong emphasis on innovation, sustainability, and quality, gives Heijmans a strategic advantage over its competitors.
In recent years, Heijmans has demonstrated stable revenue and profit growth following a successful turnaround in 2017. Due to divesting risky foreign divisions and completing loss-making projects, consolidated revenues fell in 2017 to approximately €1.49 billion (from €1.88 billion in 2016). Since then, revenues have steadily grown, reaching €1.81 billion in 2022.
The company’s net profitability improved dramatically – from a record loss of –€110.5 million in 2016 to consistently positive net income. Net profit rose from €19.5 million in 2017 to €59.6 million in 2022, representing an average annual growth of around 30%. Operating profit (EBIT) increased to about €70.9 million, with operating margins around 4% and an adjusted EBITDA margin of approximately 7% in 2022.
Heijmans now boasts a strong financial position with minimal debt. Thanks to robust cash flows and proceeds from divesting non-core assets, the company has significantly reduced its debt. By the end of 2022, it held approximately €151 million in net cash—a remarkable recovery compared to 2016. Key ratios, such as Return on Equity (ROE) at around 18–19% and Return on Invested Capital (ROIC) at about 28.9% in 2022, reflect effective resource management. Moreover, a strong order book valued at around €2.36 billion by the end of 2022 provides a solid foundation for future growth.
After suspending dividend payments during the crisis years (2016–2017), Heijmans resumed dividends and has gradually increased its payouts. The company follows a prudent dividend policy, typically distributing around 30–50% of its net income. This approach ensures that while shareholders receive stable dividends, enough funds remain for reinvestment. For instance, in 2022, Heijmans paid dividends in both cash and shares, and the management aims to maintain a policy of distributing roughly half of the net income in cash annually.
Current signals of attractiveness include a proposed record dividend for 2024 of €1.64 per share, which equates to a gross dividend yield of approximately 4% at the current share price. This proposed payout—about 50% of net income—is sustainable given the company's strong cash flow and low debt. Historical trends indicate a positive outlook, positioning Heijmans as a stable dividend stock with potential for further dividend growth in line with earnings.
Over the past 5–10 years, Heijmans’ shares have experienced significant volatility but have delivered high returns to long-term investors. After a downturn during its financial difficulties around 2016, the restructuring efforts led to a turnaround. From 2018 onward, shares have shown an upward trend. For example, in 2023, the stock price increased by about 20% (from roughly €10.12 at the end of 2022 to €12.12 by the end of 2023), significantly outperforming the small-cap index AscX, which recorded only around a 1% increase in the same period.
The market reacted positively to the acquisition of Van Wanrooij in June 2023, with the share price surging as a result. Although temporary concerns—such as rising interest rates and inflation—affected the stock mid-year, improvements in economic conditions restored its upward momentum. Over the past 12 months, Heijmans’ stock outperformed the global equity index by over 108%, while competitor BAM posted an increase of around 41%. In March 2025, Heijmans was upgraded from the small-cap index (AScX) to the mid-cap index (AMX), reflecting its increased market capitalization (currently around €1–1.1 billion) and improved liquidity, making it more attractive to institutional investors. Despite remaining cyclically sensitive, the long-term trend has rewarded investors who entered during the downturn.
In recent years, Heijmans has taken several strategic measures to strengthen its market position and set the stage for future growth. A key turning point was the 2016–2017 restructuring, during which the company divested its risky foreign activities in Germany and Belgium and refocused on more profitable domestic projects. This “Focus, Discipline, Excellence” strategy helped stabilize the company, improve its solvency, and build a robust foundation for expansion.
The company continues to invest in organic growth and innovation. Heijmans emphasizes digitalization (such as Building Information Modeling and data-driven building management) and sustainable technologies. One notable example is the acquisition of a production line for wooden modular constructions in 2022, enabling the production of energy-neutral wooden buildings and accelerating the construction of sustainable homes. This initiative allows Heijmans to build affordable, high-quality homes more quickly and cost-effectively.
Another significant strategic move was the acquisition of the development and construction company Van Wanrooij in 2023. Valued at approximately €298 million, the deal was structured partly in cash and partly in new shares. This acquisition is highly significant as it increased annual revenues by over 20% (with a pro forma turnover reaching around €2.2 billion in 2022) and doubled the developers’ project portfolio from about 15,000 to 29,000 planned residential units. As a result, Heijmans’ capacity in residential construction is expected to rise from 1,500–2,000 homes annually to around 3,000–4,000. The integration of Van Wanrooij is anticipated to add an extra €30–40 million of EBITDA annually in the short term, and €50–70 million in the medium term.
Recent insider trading activity shows a predominantly buying and holding trend among executives and major shareholders, indicating strong confidence in the company. For example, CEO Ton Hillen participated in a share ownership program by purchasing additional shares in April 2020, and after the required holding period, he received an extra 13,000 “matching shares.” Such moves align management’s interests with those of shareholders.
The acquisition of Van Wanrooij also led to a notable change in the ownership structure, with the Van Wanrooij family acquiring about 9% of Heijmans, making them the largest individual shareholder. This family, with a long history in successful development, retained a significant stake and actively participated in the integration process, further reinforcing investor confidence. Overall, there have been no major insider sell-offs; on the contrary, many long-term investors have increased their holdings over time. Institutional investors, including Dutch funds, raised their cumulative stake from around 44.6% to 49.8% in 2023, aided by new share issuances related to the acquisition.
The Dutch real estate market faces a severe housing shortage, which creates a strong foundation for companies like Heijmans. It is estimated that the Netherlands is short by around 400,000 housing units—meaning that approximately 4–5% of households struggle to find suitable accommodation. Studies indicate a deficit of roughly 401,000 units in 2024 (compared to 390,000 in 2023), with over 450,000 active home seekers in the market.
This shortage is driven by long-term factors: a growing population (due to natural growth and migration), a trend toward smaller households, and historically slow construction rates hindered by lengthy permitting processes, strict regulations (such as nitrogen emission limits), and limited availability of building plots.
The Dutch government has recognized the severity of the housing shortage and set ambitious targets to mitigate it. Current plans aim to build approximately 900,000–980,000 new housing units by 2030—about 100,000 units per year, a significant increase from previous years. In addition, various incentives (such as favorable mortgage rates for young buyers, tax relief on mortgages, or housing subsidies) support the demand for new homes. Despite short-term fluctuations (for example, due to temporarily high inflation and interest rates), the long-term outlook for housing demand remains very strong, providing significant growth potential for Heijmans.
The construction and development sector in the Netherlands is competitive. However, among publicly traded companies, Heijmans faces relatively few direct rivals. Its main competitor is Koninklijke BAM Groep, the largest Dutch construction company. BAM operates on a larger scale—achieving revenues of around €6.6 billion in 2022 (three to four times Heijmans’ turnover) and maintaining significant international operations (especially in the UK, Ireland, and Belgium). In contrast, Heijmans is smaller, more agile, and focused solely on the domestic market and the residential segment.
This focus results in a different financial profile—Heijmans currently achieves higher profit margins than BAM. For example, in 2024 Heijmans reported an adjusted EBITDA margin of around 7.5%, compared to approximately 5% for BAM. While other private construction groups also compete for public tenders and large projects, many domestic developers are privately held, leaving Heijmans as one of the few publicly traded options for direct exposure to the Dutch market.
Heijmans represents an attractive long-term investment opportunity in Dutch construction for several reasons:
The company operates in a market with a chronic housing shortage. With the Netherlands needing to build hundreds of thousands of new homes over the next decade, Heijmans—being one of the market leaders in residential construction—stands to benefit significantly. Following the Van Wanrooij acquisition, it now has an unmatched project pipeline with around 29,000 planned residential units, ensuring a steady flow of orders for years to come.
Heijmans has proven its ability to generate profits even in challenging conditions, thanks to its disciplined approach to project selection and cost efficiency. With high returns on equity (around 19%) and strong cash flows, coupled with minimal debt, the company is well positioned to reward investors with consistent dividends while maintaining financial flexibility.
Heijmans has established itself as a dividend-paying stock, distributing roughly half of its net income in dividends. With an anticipated dividend yield of around 4% (based on a proposed dividend of €1.64 per share for 2024) and a history of increasing payouts, investors receive a combination of regular income and potential capital gains.
The company’s integrated approach covers the entire project lifecycle, enabling it to profit not only during construction but also from development margins and long-term service contracts. Its focus on digitalization, sustainable building practices, and the industrialization of construction (such as its modular wood construction facility) further differentiates it from competitors.
The acquisition of Van Wanrooij and the strengthening of its infrastructure division have unlocked significant growth opportunities. The company projects that in the medium term (over the next approximately 5 years) it could achieve annual revenues of up to €2.75 billion with an 8% EBITDA margin, continuing its trend of double-digit profit growth. Even without additional acquisitions, Heijmans has a robust pipeline of projects.
Strong, experienced leadership that successfully navigated the company out of crisis, along with insiders who maintain and even increase their holdings, adds an extra layer of confidence for investors. The company’s commitment to good governance and corporate responsibility further enhances its investment appeal.
In summary, if you believe in the positive long-term outlook for the Dutch construction market, Koninklijke Heijmans offers a unique investment opportunity. It combines robust growth potential with financial stability, a strong dividend policy, and strategic initiatives that set it apart from competitors. This makes Heijmans a compelling choice for investors looking for exposure to the domestic Dutch construction and development sector over a 5–10 year horizon.