Nemetschek shares rise on strong quarterly results
German software firm Nemetschek reported a 15% revenue increase in Q2, beating analyst expectations and lifting its stock by over 8% in early trading.
Nemetschek SE’s shares surged more than 8% on Tuesday after the German software company posted better-than-expected quarterly results, signaling strong demand for its construction and design solutions.
The Munich-based firm reported second-quarter revenue of €287.3 million, a 15% increase year-over-year and above the €275 million consensus estimate compiled by Refinitiv. Net profit rose 22% to €52.1 million, also exceeding forecasts.
Nemetschek attributed the growth to sustained demand in its core markets, particularly in Europe and North America, where digitalization in architecture and engineering continues to drive adoption of its Allplan, ArchiCAD and Vectorworks platforms. The company also highlighted a 12% increase in recurring revenue, which now accounts for 78% of total sales.
Analysts at Jefferies upgraded the stock to "Buy" from "Hold," citing the company’s resilient performance amid economic uncertainty. "Nemetschek’s strong execution and recurring revenue model provide visibility into future earnings," the bank noted in a research note.
The stock’s gains extended a broader rally in European software equities, which have benefited from a weaker euro and expectations of stabilizing interest rates. Nemetschek’s shares have outperformed the Euro Stoxx 600 index by nearly 18% over the past 12 months.
Investor sentiment was further supported by management’s unchanged full-year guidance, which calls for revenue growth of 10-12% and adjusted EBITDA margin expansion to 28-30%.
At 09:45 GMT, Nemetschek’s shares were trading at €112.50, up 8.3% on the day.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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