Nemetschek (NEM) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of €1.19 billion in 2025, surpassing €1 billion for the first time, with strong double-digit growth and improved profitability year-over-year, driven by Build and Design segments and significant SaaS and subscription momentum.

• Strategic focus on AI innovation, with new product launches (e.g., Bluebeam Max), targeted M&A (GoCanvas, Firmus AI), and partnerships (Google Cloud, Tencent) to accelerate vertical AI leadership.

• Transition to a recurring revenue model nearly complete, with 92% of revenues now recurring or subscription-based.

• International expansion continued, with strong growth in Americas (+24%), Europe (especially outside Germany), and Asia Pacific (+60%), including new markets like India and Saudi Arabia.

• Outlook for 2026 anticipates 14–15% organic revenue growth at constant currency and an EBITDA margin of 32–33%.

Financial highlights

• Full-year 2025 revenue up 19.7% to €1.19 billion (22.6% FX-adjusted); subscription and SaaS revenue up 55.6% to €858.7 million (55.6% FX-adjusted).

• Annual recurring revenue (ARR) grew by 17.6% (22.9% FX-adjusted) in Q4 2025, reaching €1,199.2 million.

• EBITDA rose 23.3% to €371.1 million (28.9% FX-adjusted), with a margin of 31.2%.

• Earnings per share increased 23.9% to €1.88; EPS before PPA up 23.5% to €2.15.

• Free cash flow before M&A up 32.7% to €389.5 million; cash conversion at 108.6%.

• Net debt/EBITDA below 1x; equity ratio at 45.6%; net cash position improved to €252.0 million.

Outlook and guidance

• 2026 guidance: organic revenue growth of 14–15% at constant currency, EBITDA margin of 32–33%.

• Build segment expected to grow in the low 20% range, Design in high single to low double digits, Manage in low double digits, and Media in high single digits.

• Guidance assumes stable global economic and industry conditions and no escalation of geopolitical risks.

• Continued investment in AI, internationalization, and M&A; resilience from subscription/SaaS model.