Nagarro Forecasts Strong Revenue Growth for 2025

Nagarro's 2025 Revenue Forecast

Nagarro, a leading figure in digital engineering, has set forth ambitious revenue forecasts for the fiscal year 2025, projecting revenues to fall between €1,020 million and €1,080 million. This anticipated growth underscores the company’s resilience and adaptability in a constantly evolving market landscape.

Strong Financial Projections

According to the press release, Nagarro’s gross margin is expected to hover around 30%. Furthermore, the adjusted EBITDA margin is forecasted to range between 14.5% and 15.5%. These figures suggest that the company is not only aiming for substantial revenue growth but is also committed to maintaining healthy profitability.

Manas Human, co-founder and CEO of Nagarro, expresses confidence in the coming year, asserting, "2025 will be a good year for us, as the long-term market drivers remain intact. Over the past two years, we have structured our organization to fully capitalize on these drivers. This positions us strongly to focus on shareholder value through the implementation of our independent growth strategy instead of pursuing privatization."

This focus on enhancing shareholder value will manifest through several strategic initiatives, including an upcoming share buyback program valued up to €400 million over the next three years and a sustainable dividend policy that aims to distribute between 10% and 20% of EBIT each year. Such measures reflect Nagarro’s commitment to shareholder engagement and operational success.

Strategic Growth and Efficiency Measures

In addition to strengthening shareholder returns, Nagarro plans to adopt a vigorous approach to efficiency while fortifying its growth strategy, which incorporates both organic and inorganic elements. To support this strategy, the company will leverage its existing credit facilities and seek non-linear growth opportunities through strategic partnerships.

The board is optimistic about achieving at least the financial objectives set for 2024, highlighting the company's confidence in its performance and market positioning.

About Nagarro

As a global leader in digital engineering, Nagarro aids clients in transforming into agile, innovative, and cutting-edge digital enterprises, allowing them to excel in their respective markets. The firm prides itself on its entrepreneurial spirit, flexible approach, and a caring corporate culture, employing nearly 18,000 individuals across 38 countries. For more information, visit www.nagarro.com.

In summary, Nagarro's 2025 revenue outlook carries significant weight, signaling its robust strategies aimed at enhancing both growth and profitability. With well-defined financial targets and a clear strategy for engaging shareholders, the company is set to navigate the complexities of the digital engineering landscape efficiently and effectively.