Nedap's revenue up 13%, operating margin up to 12.1%

 All key markets contributing to revenue growth

GROENLO, The Netherlands, July 16, 2026 /PRNewswire/ --

Key points

• Revenue increased by 13% to €152.0 million (H1 2025: €134.9 million). Revenue in key markets grew by 14%.
• Recurring revenue increased by 17% (H1 2025: 11%) and accounted for 42% of total revenue (H1 2025: 40%).
• Operating profit increased to €18.3 million (H1 2025: €13.8 million). Operating margin grew to 12.1% (H1 2025: 10.3%).

Rob Schuurman, CEO: "Halfway through the year, we remain on track with our Step Up! strategy. Revenue grew across all four key markets in the first half of the year, with Livestock making a large contribution to this growth. Recurring revenue continued to grow, reflecting the increasing adoption of our Digital Twin Technology solutions in customers' core business processes, and its rising share in our revenue mix improved underlying profitability."

Key figures

Outlook
We expect revenue growth in the second half of 2026 compared to the second half of 2025, supported by growing customer adoption across our markets. We remain focused on sustainable long-term growth and will continue to invest accordingly, with particular emphasis on Nedap's technology platform, AI, and cybersecurity. Geopolitical developments and market conditions may affect the pace of revenue growth during the remainder of the year.

Progress on our strategy
As we execute Step Up!, we remain focused on creating and scaling solutions that add value for our customers and the markets they serve. Across our four key markets, adoption of Digital Twin Technology and as-a-service solutions continued to increase. This development contributed to recurring revenue growth. 

We continued to invest in Nedap's technology platform, spanning cloud infrastructure, cybersecurity, and AI, which supports both private and public cloud strategies and gives us increased control over our solutions. These investments support the further development and scaling of our solutions. They also enable us to leverage capabilities and technologies developed in one market more broadly across our portfolio. An example of this is the design system originally developed for Ons® in Healthcare, which is now being applied in other Nedap cloud solutions, including Pace in Security. To strengthen technology leadership across Nedap, we appointed a Chief Technology Officer to the Nedap Leadership Team.

We will host a Capital Markets Day in mid-2027, setting out the next chapter of our strategy. Details will be communicated in due course.

Key market developments
The relevance of our solutions continued to translate into customer adoption across our key markets, reflected in several new contracts in the first half of the year. Alongside this, we invested in the capabilities that support long-term growth: expanding what our solutions can do and scaling production capacity.

In Healthcare, new customer wins across disability care, youth care, and general practice reinforced our position in the transition to network care. These care sectors are strategically important to building a more connected, open, and sustainable healthcare system, and the adoption of Ons® Suite reflects the fit of our solutions with real-life processes of care professionals in these sectors. MediKIT and Luna also contributed to revenue growth in the first half of the year.

In Livestock, dairy farmers' growing demand for data-driven insight into herd health and performance drove further adoption of the Cow Monitoring Platform and, in turn, demand for SmartTags, SmartSight and the broader portfolio. To enable this growth, we launched a new fully automated SmartTag production line in the Netherlands, significantly increasing production capacity. While milk prices remained below 2025 levels, dairy farmers continued to invest in our solutions, demonstrating strong underlying demand across our portfolio. The adoption of as-a-service solutions for both SmartTags and SmartSight contributed to further recurring revenue growth.

In Retail, new long-term customer partnerships demonstrated the growing adoption of our Inventory Engine, as retailers sought greater end-to-end inventory visibility and more data-driven operations. We continued to invest in the Inventory Engine, turning item movement across stores, distribution centers, and factories into one reliable view, embedded in customers' core processes. With insight generated by the Inventory Engine, retailers drive sales, lower cost, and reduce losses all while delivering seamless omnichannel retail experiences. New business momentum remains strong across North America and the EMEA region.

In Security, continued customer investments in Mobile Access and long-range identification solutions reflected increasing demand for secure and efficient access management. Recurring revenue continued to grow with the scaling of cloud-based solutions such as Pace and Mobile Access. We also opened a new office in Saudi Arabia to strengthen our presence in a market where we see attractive long-term growth opportunities for our Security solutions. Geopolitical instability in the Middle East delayed rollouts, negatively impacting results in the first half of the year.

Financial affairs in the first half of 2026

Revenue
Revenue for H1 2026 amounted to €152.0 million, which was 13% ahead of H1 2025 (€134.9 million). Revenue in our key markets increased by 14%. All key markets showed revenue growth. Livestock experienced particularly high growth in Q1.

Recurring revenue, the revenue from software subscriptions (licenses) and services, rose by 17% to €63.3 million in H1 2026 (H1 2025: €54.2 million), comprising 42% of revenue (H1 2025: 40%).  

Added value was up from €98.7 million in H1 2025 (73.2% of revenue) to €113.7 million in H1 2026 (74.8% of revenue). The improvement was driven by a higher share of recurring revenue and improved margins on product deliveries.

Operating costs
Total operating costs grew by 12%, from €84.8 million in H1 2025 to €95.4 million in H1 2026.

Personnel costs (including temporary and agency workers) increased to €69.0 million in H1 2026, from €61.9 million in H1 2025. This includes a €2.4 million non-recurring provision for expected employment-related obligations. Our closing number of FTEs increased by 3% from 1,020 in the first half of 2025 to 1,055 in the first half of 2026. Underlying personnel costs per FTE increased in line with annual wage increases under the collective labor agreement. Additionally, there was an increase in temporary labor.

Other operating costs went up from €16.6 million in H1 2025 to €19.8 million in H1 2026. Development and IT expenses increased by €1.8 million, principally related to Ons® Suite capabilities, AI, and licenses. Within other operating costs, marketing and sales costs increased by €1.5 million due to a €0.7 million bad debt write-off, and a €0.8 million investment in direct marketing activities. Foreign exchange differences amounted to a loss of €0.1 million in H1 2026, compared to a loss of €0.3 million in H1 2025.

Depreciation increased from €5.1 million in H1 2025 to €5.4 million in H1 2026. Amortization increased to €1.2 million (H1 2025: €0.7 million), primarily due to the start of amortization on RFID Pro-Line Readers within Retail. In H1 2026, no impairments were recognized (H1 2025: €0.6 million).

Operating profit
Operating profit (EBIT) for H1 2026 came in at €18.3 million, compared to €13.8 million in H1 2025. The operating margin, i.e., the operating profit expressed as a percentage of revenue, amounted to 12.1% in H1 2026 (H1 2025: 10.3%).

Financing costs and taxation
Net financing costs decreased to €0.1 million in H1 2026 (H1 2025: €0.3 million) as a result of a lower reliance on external debt. Taxation in H1 2026 totaled €3.5 million (H1 2025: €2.6 million). The effective tax rate remained broadly flat at 19.1% (H1 2025: 19.5%).

Profit for the half year
Net profit for H1 2026 came in at €14.7 million, compared to €10.9 million in H1 2025. Earnings per share increased from €1.65 in H1 2025 to €2.22 in H1 2026. The average number of outstanding shares in H1 2026 was 6,623,005 (H1 2025: 6,600,558). This increase is the result of the delivery of shares held by the company to cover employee participation plans.

Financial position
The balance sheet total decreased from €136.4 million as of 31 December 2025 to €135.9 million as of 30 June 2026. Trade and other receivables increased at a lower rate than revenue. Inventories continued to decrease. Current liabilities increased from €41.7 million as of 31 December 2025 to €49.1 million as of 30 June 2026. This relates to a difference in timing of tax payments, provision for employee-related obligations and increased liabilities in line with higher revenues. Cash and cash equivalents increased from €3.4 million as of 31 December 2025 to €3.9 million as of 30 June 2026.

Net debt-to-EBITDA stood at -0.2 as of 30 June 2026 (+0.6 as of 30 June 2025). Solvency stood at 59% as of 30 June 2026 (55% as of 30 June 2025). There are no drawings on the credit facilities as of 30 June 2026 (€15.7 million as of 30 June 2025). The net debt position is now negative at -€3.9 million as of 30 June 2026, compared to €13.0 million as of 30 June 2025.

Cash flow
Operating cash flow amounted to €30.2 million in H1 2026, against €22.2 million in H1 2025. This resulted mainly from the improvement in operating profit and working capital.

About Nedap N.V. 
Nedap is a leader in Digital Twin Technology, bridging the physical and digital worlds in Healthcare, Livestock, Retail, and Security. Through our Technology for Life philosophy, we create sustainable, forward-thinking solutions that help people and organizations succeed in an ever-changing world.

Nedap has a workforce of over 1,000 employees and operates on a global scale. The company was founded in 1929 and has been listed on Euronext Amsterdam since 1947. Its headquarters is located in Groenlo, the Netherlands.

For more information, please contact:
Rianne Jans
CFO
+31 (0)544 47 11 11
[email protected] 
nedap.com 

Disclaimer
This press release contains the Board of Directors' forward-looking statements and expectations based on current insights and assumptions, which are subject to known and unknown risks and uncertainties. The actual results or events could differ from these expectations due to changes in the economic climate, developments on specific markets, orders from individual customers and/or other developments.

Nedap cannot be required to update the forward-looking statements contained in this document or held responsible for doing so, regardless of whether they are related to new information, future events or suchlike, unless Nedap is required to do so by law.