Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>Nemetschek delivered solid Q1 2026 results broadly in line with expectations, with strong growth in subscriptions and SaaS and continued momentum in the Build segment, while reaffirming full-year guidance.</li>
<li>The planned HCSS acquisition strengthens exposure to faster-growing infrastructure markets, enhances its North American presence, and is structured to preserve financial flexibility, with synergies expected to drive long-term growth.</li>
<li>Nemetschek is advancing a comprehensive AI strategy across its portfolio, positioning itself as a full-lifecycle platform in the AEC sector, supporting future revenue growth, higher ARPU, and improved competitive positioning.</li>
</ul>


Nemetschek delivered solid Q1 2026 results broadly in line with expectations, with strong growth in subscriptions and SaaS and continued momentum in the Build segment, while reaffirming full-year guidance.
The planned HCSS acquisition strengthens exposure to faster-growing infrastructure markets, enhances its North American presence, and is structured to preserve financial flexibility, with synergies expected to drive long-term growth.
Nemetschek is advancing a comprehensive AI strategy across its portfolio, positioning itself as a full-lifecycle platform in the AEC sector, supporting future revenue growth, higher ARPU, and improved competitive positioning.


<ul>
<li>Nemetschek’s acquisition of HCSS strengthens its Build &amp; Construct segment by adding capabilities in infrastructure and heavy civil construction, expanding its addressable market and reinforcing its position in North America. </li>
<li>The transaction, financed through a minority stake granted to Thoma Bravo, avoids a large cash outlay, maintains balance sheet strength, and reflects challenges in PE exits at high valuation multiples.  </li>
<li>The deal is expected to generate revenue and cost synergies, enhance AI-driven capabilities, and improve margins, but will only become accretive to EPS from 2028 due to financing costs.</li>
</ul>


Nemetschek’s acquisition of HCSS strengthens its Build &amp; Construct segment by adding capabilities in infrastructure and heavy civil construction, expanding its addressable market and reinforcing its position in North America. 
The transaction, financed through a minority stake granted to Thoma Bravo, avoids a large cash outlay, maintains balance sheet strength, and reflects challenges in PE exits at high valuation multiples.  
The deal is expected to generate revenue and cost synergies, enhance AI-driven capabilities, and improve margins, but will only become accretive to EPS from 2028 due to financing costs.


Nemetschek (NEM GR): HCSS Acquisition - A Clever Deal with Thoma Bravo

<ul>
<li>Nemetschek guides to 14–15% revenue growth and 32–33% EBITDA margin, with a more confident tone driven by stabilising end markets, limited geopolitical exposure, and continued visibility on mid-single-digit medium-term growth.   </li>
<li>Double-Digit growth in Design is supported by subscription transition contracts, &gt;20% growth in Build is driven by international expansion and Bluebeam Max, while Media recovery is supported by diversification.   </li>
<li>Nemetschek is scaling a platform-wide, agent-based AI strategy. AI is expected to drive ARPU uplift and cross-brand synergies, with monetisation evolving towards hybrid subscription + usage models.</li>
</ul>


Nemetschek guides to 14–15% revenue growth and 32–33% EBITDA margin, with a more confident tone driven by stabilising end markets, limited geopolitical exposure, and continued visibility on mid-single-digit medium-term growth.   
Double-Digit growth in Design is supported by subscription transition contracts, &gt;20% growth in Build is driven by international expansion and Bluebeam Max, while Media recovery is supported by diversification.   
Nemetschek is scaling a platform-wide, agent-based AI strategy. AI is expected to drive ARPU uplift and cross-brand synergies, with monetisation evolving towards hybrid subscription + usage models.


Nemetschek (NEM GR): Maturing the AI Roadmap

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Nemetschek SE demonstrated robust performance in the financial year 2024, underlining its capacity to sustain growth and profitability amid challenging global economic conditions, particularly in the construction industry.</li><li>The company's transition towards a subscription and Software-as-a-Service (SaaS)-centric business model has proven instrumental in its strategic evolution, contributing significantly to recurring revenue growth.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Nemetschek SE demonstrated robust performance in the financial year 2024, underlining its capacity to sustain growth and profitability amid challenging global economic conditions, particularly in the construction industry.The company's transition towards a subscription and Software-as-a-Service (SaaS)-centric business model has proven instrumental in its strategic evolution, contributing significantly to recurring revenue growth.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Nemetschek Group: Initiation of Coverage- Game-Changing Subscriptions & Smart Tech Are Fueling Its Global Ascent!

Thematic (Sector/Industry)

<ul>
<li>In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   </li>
<li>US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   </li>
<li>Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.</li>
</ul>


In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   
US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   
Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.


European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

Germany

Nemetschek SE provides standard software for designing, constructing and managing buildings and real estate. The Company offers software which provides cost estimation, design, planning, account calculation, cost management, facilities management, document management and B2B e-commerce capabilities. Nemetschek distributes its products around the world.

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Nemetschek SE (NEM GR)

Nemetschek (NEM GR): So Far, So Good

Nemetschek reported solid Q1 results, plans HCSS acquisition to boost growth in infrastructure markets and advances AI strategy for future revenue...

Gregory Ramirez

Nemetschek (NEM GR): HCSS Acquisition - A Clever Deal with Thoma Bravo

Nemetschek strengthens Build & Construct segment with HCSS acquisition, expanding market, reinforcing North American position, and enhancing...

Gregory Ramirez

Nemetschek (NEM GR): Maturing the AI Roadmap

Nemetschek expects strong revenue growth and EBITDA margin, driven by stable markets, international expansion, and AI strategy for increased ARPU...

Gregory Ramirez

Nemetschek Group: Initiation of Coverage- Game-Changing Subscriptions & Smart Tech Are Fueling Its Global Ascent!

Nemetschek SE demonstrated robust performance in the financial year 2024, underlining its capacity to sustain growth and profitability amid...

Baptista Research

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nemetschek (NEM GR): So Far, So Good

​Nemetschek reported solid Q1 results, plans HCSS acquisition to boost growth in infrastructure markets and advances AI strategy for future revenue...

Gregory Ramirez

Nemetschek (NEM GR): HCSS Acquisition - A Clever Deal with Thoma Bravo

​Nemetschek strengthens Build & Construct segment with HCSS acquisition, expanding market, reinforcing North American position, and enhancing...

Gregory Ramirez

Nemetschek (NEM GR): Maturing the AI Roadmap

​Nemetschek expects strong revenue growth and EBITDA margin, driven by stable markets, international expansion, and AI strategy for increased ARPU...

Gregory Ramirez

Nemetschek Group: Initiation of Coverage- Game-Changing Subscriptions & Smart Tech Are Fueling Its Global Ascent!

Nemetschek SE demonstrated robust performance in the financial year 2024, underlining its capacity to sustain growth and profitability amid...

Baptista Research

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

​European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

Nemetschek reported solid Q1 results, plans HCSS acquisition to boost growth in infrastructure markets and advances AI strategy for future revenue...

Nemetschek strengthens Build & Construct segment with HCSS acquisition, expanding market, reinforcing North American position, and enhancing...

Nemetschek expects strong revenue growth and EBITDA margin, driven by stable markets, international expansion, and AI strategy for increased ARPU...

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...