#Germany #Munich #Digital Engineering #Nagarro #Revenue Forecast

Nagarro's Promising Revenue Outlook for 2025

In a recent statement, Nagarro, a prominent name in the digital engineering arena, has unveiled its revenue forecast for the fiscal year 2025. The company anticipates revenues to range between €1.02 billion and €1.08 billion, calculated at current exchange rates and excluding any future acquisitions. This projection is vital for stakeholders and potential investors, as it highlights the company's robust strategy and market position as it navigates the competitive landscape.

Financial Insights

The gross margin is expected to remain stable at approximately 30%, while the adjusted EBITDA margin is projected to lie between 14.5% and 15.5%. These figures reflect Nagarro's commitment to maintaining financial health and operational efficiency, even in a fluctuating market. Manas Human, the co-founder and CEO of Nagarro, expressed optimism about 2025, noting that the long-term market drivers remain strong and that the company is well-positioned to leverage them effectively.

Focus on Shareholder Value

As part of its strategy to enhance shareholder value, Nagarro's management has outlined a plan that includes a significant share buyback program valued up to €400 million over the next three years. In conjunction with this, there will be a sustainable dividend policy, which aims to distribute between 10% and 20% of EBIT annually to shareholders. This decision underscores Nagarro’s commitment to returning value to its investors while fostering future growth.

Furthermore, the company aims to bolster operational efficiency through a more vigorous approach and a phased growth strategy that incorporates both organic and inorganic elements. Nagarro will leverage its existing credit facilities and explore strategic partnerships to identify nonlinear growth opportunities.

Aiming for Consistency in Goals

Looking ahead, the board remains confident that the financial objectives set for 2024, announced in October, will be at least met, showcasing Nagarro's stability and forward-thinking mindset. This optimistic outlook is a testament to the company's solid operational framework and strategic vision.

About Nagarro

Nagarro stands out in the digital engineering sector, helping clients transform into fluid, innovative digital-first enterprises to thrive in their markets. With an entrepreneurial spirit, agile processes, and a global presence, Nagarro embodies a CARING mentality and a vision encapsulated in its “Fluidic Enterprise” concept. Currently, the company employs around 18,000 professionals across 38 countries, illustrating its expansive reach and commitment to excellence. For more information, please visit www.nagarro.com.

As Nagarro moves forward, its continued focus on innovation and ethical financial practices positions it as a leader in the digital transformation landscape, with the 2025 horizon looking promising and full of potential.