Professionals leveraging software solutions for enhanced collaboration and efficiency at Nemetschek Group.
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.
In an impressive display of growth, the Nemetschek Group announced its financial results for the second quarter of 2025, showcasing a remarkable 30.5% revenue increase year-over-year. The company generated €290 million in revenue during Q2, highlighting its strong position in the Architecture, Engineering, and Construction (AEC) software market.
Nemetschek’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a significant boost, rising 46.3% to €88.5 million. The company’s growth trajectory has been characterized by a steady increase in its Annual Recurring Revenue (ARR), which reached a record €1.08 billion, representing a substantial 38.7% growth compared to the prior year.
In light of this outstanding performance, Nemetschek has adjusted its full-year revenue guidance to project a growth rate of 20-22%, up from the earlier estimate of 17-19%. The primary drivers of this growth include the company’s ongoing transition to Software as a Service (SaaS) solutions and increased adoption of subscription models by its clients.
The company’s Build segment demonstrated notable performance with an impressive 63% growth (currency-adjusted), largely aided by the recent acquisition of GoCanvas. Meanwhile, the Design segment recorded an 18.3% increase over the same period. Currently, subscriptions account for a striking 92% of Nemetschek’s revenue, underscoring the effectiveness of their subscription strategy. Additionally, revenue from SaaS alone surged 72.5% to €208.5 million.
The AEC software market is valued at $11.11 billion and is projected to grow at a 8.8% compound annual growth rate (CAGR) through 2030. Nemetschek is strategically positioned to benefit from this expansion, particularly as it increases its footprint in the Asia-Pacific region, where AEC software adoption is anticipated to grow at 11% CAGR. This expansion includes significant investments in markets such as India and Saudi Arabia.
Currently, Nemetschek trades at a trailing price-to-earnings ratio of 78.48 and an EV/EBITDA ratio of 49.09. These numbers are substantially higher than competitors like Autodesk and Trimble, raising questions about the sustainability of such valuations. Analysts forecast a revenue CAGR of 13% through 2028, with earnings per share (EPS) projected to rise from €0.45 in 2025 to €0.75 in 2026, indicating confidence in the company’s growth strategy.
Despite these positive trends, Nemetschek faces challenges that could impact its valuation. Potential margin dilution from the integration of GoCanvas into the broader business structure poses a risk, particularly in an environment sensitive to shifts in construction activity influenced by macroeconomic conditions. The full-year target for EBITDA margins is estimated at around 31%.
CEO Yves Padrines emphasized that the company’s focus on AI innovation, successful execution of subscription services, and continued international expansion will drive growth despite existing uncertainties in the global market. In recognition of its strong financial performance, Nemetschek has proposed an increase in its dividend from €0.48 to €0.55 per share, reflecting a commitment to delivering value to shareholders.
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