Nemetschek's Strategic Pivot Fuels Profitability Surge

Nemetschek posts record 2025 results with 31.2% EBITDA margin, hikes dividend 24%, and sets 2026 targets for 14-15% revenue growth and 32-33% margin.

The Munich-based software group Nemetschek has set ambitious new targets for 2026, building on a record-breaking performance in its 2025 fiscal year. The company's latest financial statements reveal a powerful growth trajectory, shifting investor focus squarely onto its potential for sustained margin expansion.

A Consecutive Dividend Hike Amid Robust Fundamentals

Fiscal 2025 proved exceptionally strong for Nemetschek. Revenue, adjusted for currency effects, advanced by 22.6% to €1.19 billion. Profitability metrics grew even more dynamically: EBITDA surged 28.9% to €371 million, pushing the corresponding margin to 31.2%. Net income for the year increased by 23.8%, reaching €217 million.

A key driver of this performance was the subscription and SaaS segment, which expanded by 55.6%. The completed transition toward recurring revenue streams has significantly reinforced the business model's resilience. Reflecting this robust financial health, the management board will propose a dividend increase of approximately 24% to €0.68 per share at the upcoming Annual General Meeting. This marks the thirteenth consecutive year of raised shareholder payouts.

2026 Guidance: Targeting Growth and Enhanced Margins

For the current year, Nemetschek is targeting currency-adjusted revenue growth of 14% to 15%. Concurrently, the company aims to lift its EBITDA margin to a range of 32% to 33%. This dual objective underscores management's confidence that scaling effects from the SaaS transformation are now gaining greater traction.

Central to this strategy are targeted investments in artificial intelligence. The firm plans strategic acquisitions and stakes in startups to integrate AI-based functionalities into its solutions for the construction and media industries. Specifically, AI tools are intended to provide a more comprehensive digital mapping of infrastructure projects' entire lifecycle—from initial design through to ongoing operations.

Market Analysts Offer a Nuanced Perspective

The company's results prompted a mixed reaction from analysts. Jefferies reaffirmed its buy recommendation but reduced its price target from €110 to €90. Its researchers continue to view Nemetschek as the fastest-growing player in its sector and characterized both the results and outlook as in line with expectations. JPMorgan highlighted the powerful performance in the core Design and Build segments, which it sees as supportive of the revenue forecast.

Nemetschek shares currently trade approximately 28% below their 200-day moving average—a reflection of a challenging start to the year for software equities. However, with the solid 2025 results and a clear margin commitment for 2026, the company has laid a substantive foundation for a potential market re-rating.