Nemetschek Q4 Earnings Call Highlights

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.

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.

Subscription and SaaS were the primary growth engine. Subscription and SaaS revenue rose 51.2% to EUR 858.7 million (55.6% at constant currency). Nemetschek said its business model is now “almost fully recurring,” with recurring revenues representing 92% of the business at the end of 2025, while subscription and SaaS accounted for 72% of total revenue. Over the past four years, subscription and SaaS revenues increased almost sevenfold, which management described as a roughly 60% CAGR.

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.

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:

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.

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):

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.

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.

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