Nemetschek (ETR:NEM) executives highlighted a “very strong finish” to financial year 2025, citing accelerating momentum in recurring revenues and continued progress in the group’s shift toward a subscription and SaaS-centric model. Speaking on the company’s earnings call, CEO Yves Padrines said performance was led by the Build segment—particularly Bluebeam—while Design also “continued to perform very well,” supported by subscription demand and multi-year contracts used to migrate customers from maintenance to subscription.
Full-year 2025 results and key drivers
For the full year, Nemetschek reported revenue growth of 19.7% to EUR 1.19 billion, marking the first time the group exceeded the EUR 1 billion revenue threshold. On a constant-currency basis, revenue growth was 22.6%, which management said was influenced by both organic momentum and contributions from GoCanvas during the first half of the year. The company also pointed to “temporary positive effects” tied to the completion of Bluebeam’s subscription transition.
EBITDA increased to EUR 371.1 million, up 23.3% reported (28.9% at constant currency), for a reported EBITDA margin of 31.2%. Management noted that reported EBITDA was impacted by an “extraordinary non-operating effect” in the low-teens million euro range tied to the unexpected insolvency of a service and payment provider. Earnings per share increased 23.9% to EUR 1.88.
Nemetschek also underscored strong cash generation, citing a cash conversion rate of almost 109% and describing balance sheet quality as “very high.” CFO Louise Öfverström said cash conversion was aided by a favorable U.S. tax cash flow impact, but added that even excluding that effect, conversion remained above 100%—a level the company expects to continue. The company reported an equity ratio of 45.6% and a net debt to EBTA ratio below 1x.
Q4 momentum and segment performance
In the fourth quarter, Nemetschek reported annual recurring revenue (ARR) growth of 17.6%, or 22.9% at constant currency, with management citing a foreign exchange headwind driven mainly by a weaker U.S. dollar. Reported revenue increased 18.8% in Q4 (16.7% at constant currency). EBITDA grew 12.4% reported (19.9% at constant currency), and the quarter’s EBITDA margin reached 32.9%. EPS in the quarter rose 25.2% to EUR 0.56, helped by “strongly reduced interest expenses” year over year.
On a segment basis for 2025:
- Design: Revenue increased 10.4% reported (12.2% at constant currency). Öfverström said subscription and SaaS growth reflected continued ramp-up of the subscription transition, supported in part by strategically used three-year contracts at Graphisoft and Allplan. The reported EBITDA margin was 28.1%, down slightly year over year due to subscription transition accounting effects and the service provider insolvency impact; excluding the one-off, management said the underlying margin would have been at prior-year level.
- Build: Revenue grew 41.3% reported (46.6% at constant currency), driven by strong demand, especially at Bluebeam. Management said the segment benefited in H1 from GoCanvas (acquired July 1, 2024) and saw temporary positives after Bluebeam completed its subscription transition. The reported EBITDA margin rose to 35.8%, up about 400 basis points year over year.
- Manage: Revenue increased 4% for the full year, with Q4 growth reaccelerating to 6.8% as Nemetschek implemented measures to refocus the segment. EBITDA margin expanded to 12% from 10.2%.
- Media: Revenue rose 0.8% reported (2.9% at constant currency) to EUR 121 million, reflecting cautious customer spending—especially in the U.S.—and the loss of subscription sales in H1 following the payment provider insolvency. Adjusting for that one-off, management said revenue growth would have been in the mid-single digits. EBITDA margin declined slightly to 33.9%, and management said it would have been flat year over year excluding the extraordinary effect.
AI strategy: Bluebeam Max, partnerships, and M&A
Padrines framed AI as a central strategic priority, describing a shift from “a leading vertical software player” to “a vertical AI leader.” He said Nemetschek’s advantage is rooted in deep domain expertise, trusted customer relationships, strong network effects, and access to industry-specific datasets spanning the building lifecycle.
A key near-term example is Bluebeam Max, an AI-enabled product launched commercially “a few weeks ago” ahead of a broader rollout later in the year. Padrines said Bluebeam Max integrates agent-based AI into Bluebeam’s PDF workflows to support early risk detection in pre-construction design reviews and reduce costly rework. The rollout is phased: initially direct to large customers, then via channel partners mid-Q2, with webshop availability planned toward year-end.
Management provided initial pricing details for Bluebeam Max: an introductory price of $590 per user per year, compared with about $440 per user per year for Bluebeam’s premium package excluding Max. Padrines said Nemetschek is forecasting Bluebeam Max revenue “in a very, very conservative way” for 2026, with meaningful impact expected to build over time as adoption increases and additional AI capabilities are added. He also said the company expects AI monetization to evolve toward a hybrid approach combining licensing with consumption- or token-based components.
On inorganic AI investment, Padrines said Nemetschek continues to scout small AI startups and larger acquisitions, emphasizing “buy versus make” logic to accelerate the AI roadmap. Addressing a question on Firmus AI valuation, he characterized the acquisition as about 15x forward ARR, while noting that revenue at such startups can be “very, very low” and that the strategic aim is technology rather than near-term revenue.
2026 outlook and planning assumptions
For 2026, Nemetschek expects currency-adjusted revenue growth of 14% to 15% and an EBITDA margin of 32% to 33%. Management said the forecast assumes global economic and industry conditions do not deteriorate significantly and that the war in the Middle East does not escalate further or persist for a prolonged period.
In response to analyst questions, management also offered segment-level expectations for 2026 (constant currency):
- Design: High single-digit to low double-digit growth, with the subscription transition expected to continue through 2026 and to be “seen at the end of 2027.”
- Build: Low-20% growth, with management citing normalization from prior-year temporary effects and a larger comparison base.
- Manage: Low double-digit growth, supported by measures that began to show in Q4.
- Media (Maxon): High single-digit growth, “potentially close to around 10%” at constant currency, alongside continued diversification efforts.
Öfverström also addressed contract assets tied to multi-year deals, stating that the 2025 increase (about EUR 29 million, adjusted for a presentation change) broadly reflects multi-year contracting activity, though not on a one-to-one basis. For 2026, she said Nemetschek estimates additions in the “mid-teens” million euros, and confirmed that assumption is baked into guidance.
About Nemetschek (ETR:NEM)
Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets in Germany, rest of Europe, the Americas, the Asia Pacific, and internationally. It operates through four segments: Design, Build, Manage, and Media. The Design segment offers software solutions primarily under the Allplan, Graphisoft, Solibri, Precast, Vectorworks, SCIA, dRofus, Frilo, and RISA brands for architects, designers, engineers, structural engineers, specialist planners, and landscape designers, as well as developers and general contractors.
