Nemetschek SE "Q2 26 results preview" (Sell) Briest

Research evidence excerpt

Nemetschek SE "Q2 26 results preview" (Sell) Briest

Figure 3 shows the recent organic growth history of Nemetschek. Weighted by

contribution, over 12 percentage points of Q1's 16.5% organic growth came from Build

(mainly Bluebeam) while 3.5% came from Design. These are likely to remain the main

drivers in Q2 with a continued focus by investors and analysts on the impact of multi-

year deals in Design on growth. With Q1 results CFO Ofverstrom described the tailwind

being "approximately the same level as in Q1 2025… we had a mid-single digit million

euro figure tailwind". She highlighted that this benefit would have been greater absent

the impact of last year's multi-year deals, which led to approximately 50% of the three

year value being recognised on Day One, but the remainder spread linearly over the rest

of the life of the contract meaning that on the anniversary of the deal less revenue

would be recognised than had a one year deal been struck.

Figure 3: Group organic growth rate history

Group

orga histo

ry

nic

th r

ate

grow

Source: Company data, UBS estimates

We have previously built an indicative model showing how the tailwinds from multi-year

deals cascaded through the P&L in 2025 and have updated this for Q1 26 now in Figure

5 below: Whereas last year, the signing of €13m worth of three-year deals would have

created the estimated €4m uplift in revenues in the period given the accounting impact,

we estimate that (assuming a 25% annual maintenance rate) €27m in multi-year deals

would have been needed to be signed in Q1 26 to create a net €5m benefit to revenues

over Q1 25. This is because the upfront benefit of the multi-year deal signed in Q1 26

needs also to compensate for the loss of what a one-year deal in Q1 25 would have

contributed in Q1 26.