Nemetschek (NEM) Q2 2026 earnings summary

Executive summary

• Strong H1 2026 performance with 11.9% revenue growth and high profitability, driven by recurring revenue, strategic AI initiatives, and the HCSS acquisition, which expanded the Build segment and infrastructure presence.

• Subscription and SaaS transition accelerated, now representing up to 95% of group revenues, with recurring revenues at 95.1%.

• International expansion and targeted M&A, including HCSS, Morpholio, and mbue, strengthened market position and technology capabilities.

• Strategic progress in AI, notably Bluebeam Max and next-gen design platforms, advanced across brands.

Financial highlights

• H1 2026 revenue grew 11.9% to €640.7M (+15.7% FX-adjusted); Q2 revenue up 13% to €327.7M (+14.5% FX-adjusted).

• Annual recurring revenue (ARR) up 17.4% at constant currency to €1.25B; subscription/SaaS revenue up 32.4% at constant currency to €514.7M.

• EBITDA up 16.5% to €197M (H1), margin at 30.7% (31.5% adjusted for M&A costs); Q2 EBITDA margin at 30.1%.

• Net income for H1 2026 up 29.9% to €126.4M; EPS at €1.09.

• Free cash flow before M&A at €168.2M; cash and cash equivalents at €392.1M.

Outlook and guidance

• FY 2026 organic revenue growth expected at 14–15% constant currency; EBITDA margin guidance at 32–33%.

• HCSS acquisition to add ~600bps to group revenue growth, with a temporary EBITDA margin dilution of ~150bps due to PPA and integration costs.

• Guidance assumes stable macroeconomic and industry conditions; HCSS financial impact remains preliminary.

• Media segment outlook revised to mid single-digit revenue growth and lower EBITDA margin.