Nemetschek SE (ETR:NEM) released its full-year 2025 results on Thursday, reporting fourth-quarter constant currency revenue growth of 16.7% and a full-year increase of 22.6%.
The company had already disclosed headline numbers earlier, and the market's focus heading into the full report centered on the quality of earnings and the guidance for 2026.
Quarter-on-quarter, fourth-quarter growth decelerated from the 20% rate reported in the third quarter, a slowdown the company attributes in part to tougher year-earlier comparisons.
Segmental performance in Q4 was uneven. The Build division led the pack with a 36% rise in constant currency revenue. The remaining three divisions each recorded single-digit growth in the quarter.
On profitability, Nemetschek recorded expansion in EBITDA margins for the full year, improving by 90 basis points to reach 31.2%.
Multi-year contract activity contributed meaningfully to growth in FY25. The company said multi-year deals accounted for roughly 3% of full-year growth, up from the 2% figure it cited on the third-quarter call. For the fourth quarter specifically, the contribution from multi-year agreements is estimated at about 3.5%.
Narrative disclosures also flagged a year-on-year increase in capitalised costs, which rose by 29 million.
Looking ahead, Nemetschek provided guidance for 2026 that calls for 14% to 15% constant currency growth. This range sits close to consensus expectations of 14%.
The company is forecasting EBITDA margins between 32% and 33% for 2026, versus a consensus estimate of 32.3%.
Summary
Nemetschek delivered a strong full-year revenue increase of 22.6% for FY25, but growth momentum slowed in Q4 to 16.7% as tougher comparisons weighed. Build was the standout division in the quarter, while other divisions posted modest single-digit expansion. EBITDA margins expanded by 90 basis points for the year. Multi-year deals added roughly 3% to FY25 growth, with an estimated 3.5% contribution in Q4, and capitalised costs rose by 29 million. Guidance for 2026 anticipates 14% to 15% growth and 32% to 33% EBITDA margins, both close to consensus.
Key points
- Full-year revenue growth for FY25 was 22.6%, with Q4 constant currency growth of 16.7%.
- Build division drove Q4 strength with 36% growth, while three other divisions posted single-digit gains; this split affects software and construction-related segments most directly.
- EBITDA margins expanded by 90 basis points to 31.2% for the year, and 2026 margin guidance is 32% to 33% - roughly in line with consensus.
Risks and uncertainties
- Slower sequential growth in Q4 - if tougher comparisons persist, sectors tied to Nemetschek's customer investment cycles in architecture and construction software could face renewed revenue headwinds.
- Concentration of growth in the Build division - reliance on a single segment for outsized growth could amplify volatility if demand in that area weakens.
- Rising capitalised costs - the 29 million year-on-year increase in capitalised development spending introduces execution and capitalization risks that could affect near-term reported profitability.
The company s forward guidance frames expectations for steady, mid-teens constant currency growth and modest margin improvement, both of which the market had been watching closely when headline numbers were first disclosed.