2.2 Progress on our strategy
The combination of our Step Up! strategy and Create & Scale growth strategy resulted in revenue growth and strengthened our position in the four key markets. Our Step Up! strategy consists of two core elements: focusing our efforts where we can create the most value and leveraging knowledge and expertise across Nedap. In 2025, we zeroed in on Digital Twin Technology and SaaS-based solutions, delivering recurring impact for our customers. We also strengthened our organizational capabilities to support collaboration.
Our progress in 2025 included the establishment of the Nedap Leadership Team, as well as organization-wide initiatives on strategic topics. Key examples include talent development, technology and business model innovation, AI, and supply chain resilience.
This strategic alignment is essential as Nedap enters its next phase of growth. By creating a shared understanding of our priorities and impact, we are able to focus on the activities that create the most value. We are also more agile and better equipped to anticipate changing market dynamics, allowing us to move quickly to seize opportunities. These opportunities come from our enduring customer relationships and entrepreneurial culture, which bring new ideas for value creation and make it possible to pursue them.
Milestones
In 2025, we continued to meet milestones. Recurring revenue (revenue from software subscriptions (licenses) and services) continued to grow, reaching €111.5 million. Overall revenue grew by 11%. Growth in the key markets came in at 18%, with all four contributing to this development. Additionally, our operating margin improved by 180 basis points. Critically, we achieved this while keeping our investments in research and development at 20% of revenue. These investments support our ongoing efforts to build scalable solutions, with a well-balanced portfolio of Create, Scale, and Core.
In 2025, we:
Grew our workforce by 33 FTE, reflecting investments in both our knowledge base and execution base.
Expanded our client focus across our organization in line with our Create, Scale, Core model and emphasis on value delivery.
Leveraged our Ons® Suite to facilitate the Dutch healthcare system's transition to network care, and continued developing our MediKIT solution for the general practitioner market.
Expanded our customer base in Livestock, with an increase in the number of cows monitored on the Nedap Cow Monitoring Platform.
Entered into new partnerships with major retailers in Retail, supporting the growth of our RFID Digital Twin Technology for automation and traceability within the retail market.
Grew our Security business and scaled our digital twin solution Pace for physical identity and access management.
Section 2.5 of this annual report includes additional information on developments in our markets.
Progress on financial targets
As part of the Step Up! process, the following financial targets were set:
Revenue that develops toward annual high-single-digit autonomous growth
In 2025, revenue was up 11% compared to 2024. Growth in our key markets was 18%.An operating margin, excluding one-off items, that rises toward mid-teens
In 2025, the operating margin reached 11.3%, compared to 9.5% in 2024.Return on invested capital (ROIC) that outgrows profitability
ROIC grew to 37% in 2025 from 26% in 2024.
