Message from the CEO

In 2025, the Step Up! strategy delivered solid results for Nedap. Our focus on four key markets, combined with the effective deployment of Nedap-wide capabilities, resulted in total revenue growth of 11% compared with 2024. Our key markets grew by 18%, outpacing overall growth.

Markets and customers

Customer willingness to invest remained broadly solid across our markets, reflecting continued confidence in the value of our solutions. In Retail, investment dynamics were more mixed, with customers responding cautiously to ongoing market uncertainty. Geopolitical dynamics have so far had a limited impact but could over time lead to more fundamental market shifts. We therefore continue to closely monitor these developments and remain ready to adapt as conditions evolve.

Create & Scale growth strategy

We continued to execute our Create & Scale growth strategy. The clear guiding principles and structured approach established in the Create phase resulted in a more effective and accelerated decision-making process, focused on defining and validating our assumptions about customer needs and business opportunities. We also made progress in leveraging knowledge, experience, and technology across Nedap.

This accelerated product development and drove successful product launches across all key markets. In Healthcare, MediKIT’s modern architecture enables faster delivery of new functionalities, driving increased adoption by general practitioners. In Livestock, the AI-powered SmartSight Locomotion solution was successfully introduced in Ireland and the United States, with almost all pilot customers converting to paid subscriptions. In Security, Nedap Mobile Access became available on both iOS and Android, boosting adoption in Europe and the Middle East. In Retail, the iD SCO Pro reader, an RFID-based self-checkout solution designed to unlock additional value from our iD Cloud platform, gained traction with rollouts announced at large retailers.

Strengthening and extending our commercial model

As in recent years, in 2025 we made substantial investments in the Scale phase by further building a strong, global sales and support organization, focused on the products and markets where we see the most attractive scale opportunities. Even as our solutions become increasingly digital, a strong physical presence in our key markets remains essential to building and expanding leading positions.

As a growing share of our revenue comes from recurring software services, our commercial strategy increasingly extends beyond the initial sale to long-term customer success. This includes ensuring seamless adoption, supporting day-to-day use, and maximizing added value. This approach not only promotes customer loyalty and reduces churn, but also drives the adoption of additional services, increasing customer lifetime value. Since 2025, this way of working has been rolled out across all four key markets, supporting consistency, scalability, and impact.

Our profile

Over the past years, Nedap has clearly evolved as a company. Through consistent strategic choices and a strong focus on four key markets, we have strengthened our positioning and sharpened our profile. The continued trust of leading customers across these markets confirms that our solutions address real and relevant challenges, and that we are on the right strategic path.

Reaching €100 million in annual recurring revenue was an important milestone in this journey. It marks more than financial progress; it reflects a fundamental shift in our business model and in how we are perceived. We are increasingly recognized as a technology-driven organization with a strong digital foundation and sustainable growth prospects. This clearer profile has resonated with a broader and more diverse group of shareholders, contributing to a strong share price performance during the year.

Importantly, Nedap is not a generic SaaS company. We operate as a Digital Twin Technology Company, developing solutions that closely reflect and support our customers’ real-world processes. A key asset in this model is the extensive and growing datasets we build across our markets. Through our digital technology stack we create and unlock high-quality, mission-critical data that is essential for creating winning solutions.

As software development itself becomes increasingly commoditized, access to and ownership of relevant data is becoming ever more decisive. Our strong data position, combined with deep domain expertise, places Nedap in an excellent position to benefit from advances in artificial intelligence and to develop impactful software solutions faster and more effectively.

Streamlining and accelerating

Over the past year, we made significant progress in our transition to a next-generation, cloud-based ERP solution. Implementation is already well underway and will continue in a phased rollout over the coming years. In parallel, we are standardizing ways of working across business units based on best practices applied consistently across Nedap. This strengthens organizational focus, supports a more scalable operating model, and improves collaboration and overall effectiveness, while laying the foundation for further automation and efficiency gains.

We are actively embracing AI to strengthen the effectiveness and efficiency of both our solutions and our organization. First solutions are already in use, both in our market offerings and internally, where AI is deployed to automate processes, accelerate software development, and support better decision-making.

While we expect AI to have a significant positive impact on the added value per employee over the longer term, building the required knowledge, experience, and skills will lead to additional costs in the short term. We nevertheless see AI as a key driver for improving speed, quality, and scalability, and we will continue to invest in these capabilities.

People

Organizations are confronted with volatile market conditions and rapid technological developments. Amid this uncertainty, customers increasingly choose Nedap for the trust they place in the people they work with, seeking long-term partnerships rather than purely technical solutions. This is where our people give us a clear and lasting competitive edge.

That is why we invest in attracting top talent and in the continuous development of our people. We encourage ownership of long-term customer success and foster collaboration and accountability. Ultimately, the dedication, professionalism, and adaptability of our people form the core of our competitive advantage and enable Nedap to build lasting relationships and create sustainable value for our customers.

Outlook

For 2026, we expect revenue growth across all four key markets, supported by our continued investments under the Create & Scale growth strategy. While geopolitical and macroeconomic developments may influence market dynamics, our strategic focus, strong recurring revenue base and disciplined execution provide confidence in our direction. We reiterate our Step Up! financial ambitions, including an EBIT margin progressing toward the mid-teens over time.

In closing

This is the 25th annual report to which I have had the privilege of contributing, 18 of them as CEO. Over this period, Nedap has undergone a profound transformation, from an electronics manufacturer primarily producing products on behalf of third parties to a leading Digital Twin Technology company with strong market positions in four key markets. This far-reaching transformation has been achieved while delivering solid financial results.

As the time has come for me to take a step back, I would like to sincerely thank our employees, customers, shareholders, partners, suppliers, and all other stakeholders who have contributed to this transformation. We could not have achieved this without your long-term support. It has been an honor to serve as CEO and to contribute to the growth and development of Nedap during this period.

Nedap is well positioned for further growth and for strengthening its leading positions in the four key markets. This will require continued focus, critical reflection, and a strong pace of execution. With the intended appointment of Rob Schuurman as the new CEO, I look to the future of Nedap with great confidence.

23 February 2026
Ruben Wegman, CEO