Nemetschek Group Reports Strong Financial Performance

News Summary

The Nemetschek Group has showcased remarkable financial growth, with a 30.5% revenue increase year-over-year, reaching €290 million in revenue. The company also experienced a 46.3% rise in EBITDA, hitting €88.5 million, and announced an upward revision in growth projections. With a strong shift towards Software as a Service and successful acquisitions, Nemetschek’s subscription model now contributes significantly to its revenue. Despite facing potential challenges ahead, the company aims to drive growth through innovation and international expansion, while rewarding shareholders with a proposed dividend increase.

Nemetschek Group Reports Impressive Q2 2025 Earnings with 30.5% Revenue Growth

In its recent earnings report, the Nemetschek Group showcased remarkable growth for the second quarter of 2025, achieving €290 million in revenue, which marks a significant 30.5% increase compared to the same period last year. This growth trajectory highlights the company’s successful transition towards Software as a Service (SaaS) and an increased adoption of subscription models.

Accompanying the revenue surge, EBITDA for Q2 2025 rose by 46.3% to reach €88.5 million. The focus on recurring revenue has paid off, with the company’s Annual Recurring Revenue (ARR) hitting a record €1.08 billion, reflecting a year-over-year growth of 38.7%.

Given these impressive results, Nemetschek has raised its full-year revenue growth guidance from a previous forecast of 17-19% to a new range of 20-22%. This optimistic outlook underscores the positive momentum within the Architecture, Engineering, and Construction (AEC) software sector, which is currently valued at $11.11 billion and is expected to grow at a compound annual growth rate (CAGR) of 8.8% through 2030.

Segment Performance and Strategic Initiatives

The growth of Nemetschek can be attributed to its Build segment, which experienced an impressive 63% growth (currency-adjusted), bolstered significantly by the acquisition of GoCanvas. Meanwhile, the Design segment also saw growth, increasing by 18.3%. Notably, 92% of the company’s revenue now derives from subscription models, with SaaS revenues alone witnessing a remarkable 72.5% growth, amounting to €208.5 million.

To maintain its competitive edge, Nemetschek is leveraging interoperability partnerships, including a recent collaboration with Autodesk. This strategy sets the company apart from competitors, who often embrace proprietary ecosystems. Notably, the Asia-Pacific region is projected to experience an 11% CAGR in AEC software adoption, creating a favorable environment for Nemetschek as it expands its presence in India and Saudi Arabia.

Financial Metrics and Market Valuation

Currently, Nemetschek’s stock trades at a trailing price-to-earnings (P/E) ratio of 78.48 and has an EV/EBITDA of 49.09, figures significantly higher than its competitors, including Autodesk at around 25x and Trimble at 8.7x. This valuation raises questions about sustainability, although analysts project a revenue CAGR of 13% through 2028 and a growth forecast for earnings per share (EPS) from €0.45 in 2025 to €0.75 in 2026, reflecting a remarkable 67% growth rate.

Risks and Future Considerations

Despite these positive developments, Nemetschek is not without risks. Analysts caution about potential margin dilution resulting from the integration of GoCanvas and various external macroeconomic factors that may impact construction activity. Although the GoCanvas acquisition is expected to add approximately 450 basis points to revenue, there are concerns about pressure on margins, with a target EBITDA margin of around 31% for the full year.

Commitment to Shareholders and Future Growth

CEO Yves Padrines emphasized that the company will continue to focus on AI innovation, effective subscription execution, and international expansion as the main drivers of future growth, particularly in light of ongoing global uncertainties. A proposed dividend increase from €0.48 to €0.55 per share further illustrates Nemetschek’s robust profit margins and steadfast commitment to rewarding its shareholders.

As Nemetschek Group navigates its path forward, its strategies in SaaS adoption, market expansion, and innovative partnerships will be critical in cementing its position as a leader in the AEC software sector.

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Additional Resources

• Nemetschek Group Q2 2025 Revenue Growth
• Wikipedia: Nemetschek
• Nemetschek Group Q1 Results
• Google Search: Nemetschek Group
• Nemetschek Group Tops $1 Billion
• Encyclopedia Britannica: Software
• Nemetschek: SaaS Powerhouse
• Google News: AEC software