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Nedap Reports Robust Revenue Growth and Improved Margins

Nedap, a leading technology company renowned for its innovative digital twin solutions, has announced significant financial growth in its latest midyear report. The company achieved a remarkable 13% increase in revenue, resulting in a total of €152 million for the first half of 2026. This increase is a notable rise from €134.9 million recorded during the same period last year, marking a strong performance across all key markets.

Key Financial Highlights

In addition to the overall revenue growth, there were several other positive indicators from Nedap's financial report:

• - Recurring revenue saw a substantial 17% growth, reaching €63.3 million, which now accounts for 42% of total revenue, an increase from 40% in the previous year.
• - The operating profit surged to €18.3 million, up 33% compared to the €13.8 million in the first half of 2025, elevating the operating margin to 12.1%.
• - The net profit also experienced a favorable rise of 35%, amounting to €14.7 million, with the earnings per share increasing to €2.22.

The growth in revenue is reflective of the rising demand for Nedap's advanced solutions across its primary sectors—healthcare, livestock, retail, and security. Rob Schuurman, the CEO of Nedap, emphasized that the firm's strategy, known as Step Up!, is effectively moving forward, with robust contributions coming from all critical markets.

Sector-wise Performance

Livestock Sector

Nedap's solutions in the livestock market have notably thrived, driven by producers seeking data-based insights regarding their herds. The adoption of their cow tracking platform has fueled demand for products like SmartTags and SmartSight, contributing significantly to the firm's recurring revenue growth. A newly operational automated production line in the Netherlands has further enhanced the production capacity for SmartTags.

Healthcare Sector

Emerging clients in the healthcare sector, especially those focused on managing disabilities and general medical practices, have increased demand for Nedap's technology solutions, particularly the Ons® Suite. This adoption demonstrates how their innovative products align with the needs of practical healthcare processes, thus reinforcing their market position.

Retail Sector

The retail division has witnessed a strong uptake of Nedap's inventory management systems, showing a strategic shift among distributors who aim for enhanced visibility and data-driven operations. Continued investments in inventory management technology have reinforced Nedap’s commitment to providing integrated solutions that drive sales and decrease costs for retailers.

Security Sector

Nedap has also made strides in the security sector, where ongoing investments in mobile access and long-range identification solutions have illustrated a growing demand for efficient access management. The launch of a new office in Saudi Arabia represents Nedap's strategy for tapping into promising long-term growth opportunities in this sector, despite facing geopolitical challenges in the region.

Financial Outlook

Looking ahead, Nedap projects continued revenue growth for the second half of 2026, driven by increasing client adoption of its technology solutions across all markets. The company remains focused on long-term sustainable growth, with planned investments in its technology platform, artificial intelligence, and cybersecurity.

As part of its commitment to transparency, Nedap plans to host a dedicated financial markets day in mid-2027 to outline the next phase of its strategy. This initiative will provide stakeholders with deeper insights into the company’s future direction and detailed plans for growth.

In conclusion, Nedap’s robust financial performance, spearheaded by significant growth in key markets and ongoing strategic investments, illustrates the company's strong position within the tech landscape while affirming its commitment to delivering value to customers worldwide.