#Germany #Munich #revenue growth #Nagarro #Independent Investigation

Nagarro Announces Preliminary 2025 Results and Future Guidance

Nagarro, a global leader in digital engineering, recently announced its preliminary financial results for the fiscal year 2025, reflecting a revenue increase that emphasizes its solid performance amidst a challenging market environment. The company reported a revenue of €999.3 million, up 2.8% from the previous year's €972.0 million, marking a consistent growth rate. This positive trend continues, as the constant exchange rate growth stands at 6.1%, reinforcing the stability of Nagarro's business model.

Financial Highlights

For 2025, Nagarro's gross profit reached €321.3 million, which translates to a gross margin of 32.2%, compared to 30.4% in 2024. Although the adjusted EBITDA saw a slight decline, dropping to €138.2 million from €147.5 million the year prior, the adjusted EBITDA margin remained within the expected range at 13.8%. This performance indicates that the company is navigating the evolving economic landscape prudently, maintaining its financial health despite external pressures.

Moreover, Nagarro's EBIT fell to €83.0 million from €96.7 million in 2024, while the company concluded the year with a cash balance of €124.6 million. The notable cash flow underscores the company's ability to retain liquidity while continuing to build its operational infrastructure.

Projections for 2026

Looking ahead, Nagarro has set ambitious targets for 2026, projecting revenue between €1,000 and €1,060 million. This prediction anticipates approximately 5% growth over the previous year’s revenue, following current exchange rates. The gross margin is expected to stabilize around 32%, while the adjusted EBITDA margin is anticipated to fall within the 14.5% to 15.5% range. Manas Human, co-founder and CEO, highlighted that excluding foreign exchange discrepancies would position adjusted EBITDA considerably higher, emphasizing the underlying strength of the company's operations.

Independent Investigation Findings

In light of historical allegations related to fraud, Nagarro undertook an independent investigation led by White & Case, supported by Alvarez & Marsal. The investigation revealed no supporting evidence for previous claims, thereby clearing Nagarro of any wrongdoing. The rigorous process included thorough examinations, forensic analyses, and interviews, resulting in a finding that reinforces the credibility of the company's governance practices.

Christian Bacherl, chairman of the supervisory board, remarked on the significance of these findings, stating that the company will implement recommendations from the investigation to strengthen its governance structure and transparency further. This proactive approach not only aims to enhance operational integrity but also aligns Nagarro more closely with global financial expectations.

Conclusion

Despite a complex geopolitical and macroeconomic environment, Nagarro's preliminary results and forward guidance reflect a resilient business model poised for growth. The company emphasizes its commitment to leveraging technology and human collaboration as it embraces a new operational paradigm centered around fluid intelligence. This strategy aims to redefine how organizations operate in an increasingly digital world.

Nagarro is set to release its audited annual report for 2025 on April 29, 2026, promising more in-depth insights into its financial standing and strategic direction.