Nemetschek stock weighs strong growth against HCSS margin drag
Published on 11/12/2026 at 12:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth Meets Integration Costs
- HCSS lifted reported growth after its consolidation began on July 1, 2026.
- Recurring revenue and subscription sales continued to outpace total revenue.
- Management kept its 2026 organic growth and EBITDA margin targets unchanged.
Nemetschek reported strong third-quarter growth on Thursday, November 5, 2026, but the HCSS acquisition made the quality of earnings more important for investors. In its Q3 release, Nemetschek said revenue rose 26.6% year over year to EUR 371.1 million, including HCSS from July 1.
HCSS Drives Reported Growth
Organic revenue growth reached 13.7% on a reported basis and 12.5% at constant currency, excluding HCSS. The Build segment was the main engine, with revenue up 56.6% to EUR 190.8 million. Organic Build growth remained 25.6% reported, showing that the acquisition was not the only source of momentum.
Recurring revenue increased 35.8% to EUR 1,462.2 million, while subscription and software-as-a-service revenue rose 52.4% to EUR 321.9 million. For the first nine months, subscription and SaaS revenue grew 36.1% to EUR 836.5 million. That mix supports the group's shift toward more predictable revenue, although the transition also affects the timing of reported sales.
Reported Margins Face Acquisition Effects
Third-quarter EBITDA increased 21.8% to EUR 115.9 million, producing a 31.2% reported margin. The organic EBITDA margin was 34.8%. Nemetschek said the HCSS purchase price allocation reduced HCSS revenue by about EUR 15 million in the quarter, while acquisition-related costs, integration expenses and share-based compensation also weighed on earnings.
Net income attributable to shareholders fell 15.7% to EUR 46.6 million, and reported earnings per share declined to EUR 0.40 from EUR 0.48. Adjusted earnings per share rose 20.0% to EUR 0.66 after excluding purchase price allocation effects and the HCSS deferred-revenue haircut. The contrast leaves investors weighing stronger underlying performance against weaker reported profitability during the integration phase.
Full-Year Targets Remain Intact
Management confirmed its 2026 organic constant-currency revenue growth target of 14% to 15% and its organic EBITDA margin target of 32% to 33%. HCSS is expected to add about 600 basis points to group revenue growth, while the company expects acquisition-related effects to dilute the reported margin by about 150 basis points.
The segment outlook became more selective. Nemetschek now expects Manage revenue growth in the mid-single-digit range, compared with its previous low-double-digit view, while Media revenue is expected to remain broadly stable rather than grow at a mid-single-digit rate. The overall outlook was unchanged because the revised segment assumptions were in line with market expectations.
Nemetschek stock traded at 63.93 euros on Lang & Schwarz at 12:11 CET on Thursday, November 12, 2026, 0.73 percent below the Xetra close of Wednesday, November 11. The move places the focus on whether HCSS integration and recurring-revenue growth can translate into stronger reported margins as purchase price allocation effects fade.
Nemetschek stock at a glance
- Company: Nemetschek SE
- ISIN: DE0006452907
- WKN: 645290
- Stock: NEM.DE
- Listing: Frankfurt regulated market, Prime Standard
- Lang & Schwarz price: EUR 63.93 at 12:11 CET on November 12, 2026
- Change versus Xetra close: -0.73 percent versus EUR 64.40 on November 11, 2026
- Indices: MDAX and TecDAX
European investors are also watching the DAX market environment as software valuations adjust to changing growth and margin expectations.
