The Nemetschek Group has announced a proposal to its shareholders for a substantial increase in its annual dividend. The software company is recommending a payout of €0.68 per share, marking a sharp 24% rise compared to the previous year’s distribution. This move comes on the heels of the firm surpassing the one-billion-euro revenue milestone for the first time.
Operational Strength Underpins Payout
This generous dividend proposal is grounded in a year of exceptional financial performance. For the 2025 fiscal year, Nemetschek achieved currency-adjusted group revenue of approximately €1.19 billion, representing robust growth of 22.6%. Profitability metrics were even stronger, with EBITDA expanding at a faster rate. The company’s EBITDA margin consequently improved, reaching 31.2%. Management’s decision to raise the shareholder return signals confidence in the sustainability of this earnings power.
Strategic Initiatives Fuel Performance
The company’s strategic focus has been a key driver of its solid results. A deliberate shift toward subscription and Software-as-a-Service (SaaS) revenue models, coupled with continued international expansion, has provided a stable foundation for growth. Looking forward, Nemetschek is channeling investments into areas like artificial intelligence, cloud-based solutions, and digital twin technology to maintain its momentum.
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Financing this strategy is a newly arranged syndicated credit facility worth €500 million. This financing replaced previous bilateral credit lines and is reported to offer more favorable terms, providing the company with flexible capital for its initiatives.
Despite these operational successes, the company’s share price tells a different story. The stock, currently trading at €69.25, remains significantly depressed, showing a decline of roughly 40% over a one-year period and well below its prior-year levels. While the dividend increase alone is unlikely to fully reverse this market underperformance, it serves as a clear indicator that the underlying business remains healthy and cash-generative.
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