DBD

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Investor Relations - Maynard Um President and Chief Executive Officer - Octavio Marquez Executive Vice President and Chief Financial Officer - Thomas Timko Operator: Hello. Good day, and welcome to Diebold Nixdorf's Second Quarter 2026 Earnings Call. My name is Paige, and I'll be coordinating today's call. I'd now like to turn the call over to our host, Maynard Um, Vice President of Investor Relations. Maynard, please go ahead. Maynard Um: Hello, and welcome to our second quarter 2026 earnings call. To accompany our prepared remarks, we posted our slide presentation to the Investor Relations section of our website. Before we start, I'll remind all participants that you'll hear forward-looking statements during this call. These statements reflect the expectations and beliefs of our management team at the time of the call, but they are subject to risks that could cause actual results to differ materially from these statements. You can find additional information on these factors in the company's periodic and annual filings with the SEC. Participants should be mindful that subsequent events may render this information to be out of gate. We will also discuss certain non-GAAP financial measures on today's call. As noted on Slide 3, reconciliations between GAAP and non-GAAP financial measures can be found in the supplemental schedules of the presentation. With that, I'll turn the call over to Octavio, who will begin on Slide 4. Octavio Marquez: Thank you, Maynard, and good morning, everyone. Thank you for joining us. Commercial momentum remained strong during the quarter. Order entry increased 3% year-over-year and 6% sequentially. First half order entry reached its highest level in 4 years. Backlog grew sequentially to $814 million, and we remain on track to deliver on our full year outlook. Revenue increased 1% year-over-year and 4% sequentially to $928 million. Adjusted EBITDA grew to $121 million, an increase of 8% year-over-year and 22% sequentially, while adjusted earnings per share increased 17% year-over-year to $1.10. Across the business, we continue to execute the strategic priorities we've discussed throughout the year. In banking, we continue to expand our branch automation strategy beyond the ATM with growth in teller cash recyclers, transaction middleware and managed services. Retail delivered another quarter of strong growth across all our regions. We also achieved record service level performance, meeting or exceeding our customers' expectations and continue improving the efficiency of our operating model through lean initiatives. At the same time, we also navigated several challenges. Higher memory costs in our electronic point-of-sale portfolio continue to be a headwind. We have taken pricing, sourcing and other mitigation actions. And while memory pricing environment remains uncertain, we expect these actions to continue gaining traction through the third and fourth quarters. In response to the evolving memory market dynamics, we made the strategic decision to increase inventory to secure components and support customer deployment schedules in the second half of the year. This inventory investment contributed to lower free cash flow during the quarter, and we expect inventory to remain elevated through the third quarter before normalizing in the fourth. Tariff refunds recognized in adjusted EBITDA from prior period costs largely offset the impact of higher memory costs during the quarter. Tom will provide additional detail on these items in his remarks. Importantly, underlying customer demand remains healthy. Our diversified portfolio and global footprint continue to be a competitive advantage and our order book, growing backlog and customer deployment schedules continue to support not only our confidence in the full year outlook, but also in the durability of the momentum we're building across the businesses. Let's now turn to Slide 5 to review our banking strategy. The bank branch continues to evolve. As routine transactions become more automated, employees can spend more time providing financial advice and strengthening customer relationships. At the same time, banks increasingly want integrated technology partners that help them automate routine transactions, improve branch operations and better connect the physical and digital customer experience. Our core ATM franchise continues to deliver. During the quarter, we secured several important wins, including a new customer in the U.K. for approximately 1,100 DN Series units together with a long-term service agreement. In Mexico, a key customer refreshed its fleet with 600 DN Series recyclers. And in South Africa, one of the country's largest banks selected Diebold Nixdorf to replace their entire legacy fleet. Building on our leadership in APMs, our strategy is to expand deeper into the branch through teller cash recyclers, branch automation solutions and managed services. We're seeing encouraging momentum from this strategy. During the second quarter, we achieved record teller cash recycler shipments from our North Canton facility, reflecting growing customer adoption and reinforcing our confidence in this underpenetrated market. We're also gaining traction with our branch automation solutions, which combined our APM and teller cash recycler hardware, managed services and our Vynamic transaction middleware platform. Our Vynamic transaction middleware platform connects self-service, assisted service, digital banking and core banking systems, simplifying transaction management across the enterprise while giving us a unique position within our customers' branch infrastructure. Today, most of the top 5 financial institutions in North America rely on dynamic transaction middleware to process millions of transactions every day. That installed base provides a solid foundation to expand our software, automation and managed services as customers continue modernizing their branch networks. Recent deployments with Lloyd's in the U.K. and VyStar Credit Union in the U.S. demonstrate this strategy in action. At Lloyd's, our branch automation solution is live in an initial pilot across 2 high-traffic branches, representing an important first step that position us for broader deployment across the Lloyd's branch network over time. At VyStar, our end-to-end branch automation solution supports more than 200 advanced ATMs through our managed services offering, helping simplify operations and enhance the member experience. These deployments demonstrate how our integrated portfolio expands our opportunity well beyond the ATM, allowing us to deliver greater value through software, services and automation while strengthening customer relationships. Our fit-for-purpose product designed for the India market continues to gain traction. Our pipeline is growing, and we believe India represents one of our most attractive long-term growth opportunities given the size of the market and our relatively modest market share position today. Finally, in Brazil, one large public sector bank tender has shifted into the second half with the associated revenue originally expected in 2026 now expected primarily in 2027. While this affects timing, it does not change our full year outlook, and we remain confident in our ability to capture our share of this opportunity. Turning to retail. Revenue grew approximately 25% year-over-year. Retailers continue to invest in technology to create a more seamless shopping experience across physical and digital channels, while improving labor productivity and reducing shrink. Our strategy is to build on our market leadership in Europe while accelerating growth in North America through innovative store technology, AI-enabled solutions and managed services. We're seeing momentum across each of these priorities. In North America, we're converting our growing pipeline into new logo wins. During the quarter, we secured self-checkout wins with 2 grocers, a point-of-sale deployment with a quick-serve restaurant chain and a service agreement with a large fashion retailer supporting technology deployments across hundreds of stores. Across Europe, our checkout solutions continue to lead the market. We secured a more than 4,000 unit point-of-sale order with an existing customer in Germany, 1,600 units with a retailer in Romania and an 800-unit new logo win in Germany. In addition, we won a 1,500 self-checkout lane deployment with one of the United Kingdom's largest grocers. Our Smart Vision AI solution is gaining meaningful commercial traction. We've deployed hundreds of lanes year-to-date and new multiyear contracts signed this quarter will expand deployments to thousands of lanes by the end of 2026. Most notably, we signed dynamic Smart Vision AI deployment contracts for 1,400 new lanes across 2 large European grocers, representing the largest new deployments to date. These wins demonstrate that retailers are increasingly deploying AI at an enterprise scale. Together, our market leadership in Europe, growing momentum in North America and the rapid adoption of the Smart Vision AI platform give us confidence that our retail business remains in the early stages of significant long-term growth opportunity. Turning to Slide 7. For the second consecutive quarter, we achieved record service levels in both North America and globally. Based on customer feedback and available market data, we believe we're leading the industry in response times and availability. These improvements strengthen our customer relationships today and position us to win additional business over time. Service margins improved 10 basis points sequentially despite the near-term impact of our North America fleet renewal program. This investment is improving technician safety, increasing parts availability, strengthening repair execution and improving fuel efficiency, creating a stronger service platform for the future. The actions we've taken are delivering measurable results. With the largest phase of our investment cycle now behind us, we expect to leverage the stronger operational foundation to continue improving service margin in the quarters and years ahead. As we continue expanding our installed base through colored cash recyclers, branch automation solutions and retail, we're also expanding higher-value service opportunities. Combined with the operational improvements we've made, this gives us confidence in our expectation of up to 50 basis points of service margin expansion this year and continued improvement over time. Now let's turn to Slide 8. Our lean operating system continues to be a foundational element on how we run the business. Across the company, we're applying lean principles to improve productivity, simplify operations, increase capacity and deliver a better experience for our customers. These efforts are making our business more efficient, more scalable, better positioned to support profitable growth. One example comes from our Paderborn manufacturing facility. As customer demand increased, the team implemented flow manufacturing and added a fourth production line without increasing operating costs. The result was 25% increase in output and improved safety, demonstrating how lean enables us to grow efficiently while improving operational performance. In North Canton, lean initiatives reduced dispatch times by more than 50%, shortened receiving and shipping lead times by 2 days and generated greater than $200,000 in annual labor savings. These improvements increase responsiveness, improve productivity and enhance the experience we deliver to customers. We are also applying lean to our service operations through our plan for every part initiative. By improving parts availability and inventory planning, we're reducing incomplete service costs and helping technicians resolve customer issues on the first visit. This directly supports the record service level agreements we discussed earlier and strengthens both customer satisfaction and operational performance. Our commitment to innovation continues to be recognized externally. During the quarter, our dynamic transaction middleware platform received 2 international industry awards, recognizing our leadership in payment technology. These examples demonstrate that lean is much more than a manufacturing initiative. It is the operating system that drives continuous improvement across our company. Every productivity gain, process improvement and quality enhancement strengthens our ability to execute for our customers, expand margins and support sustainable long-term growth. With that, I'll turn the call over to Tom to review our financial performance in more detail. Thomas Timko: Thank you, Octavio. Starting on Slide 9. The second quarter financial results reflect our continued commercial momentum and operational execution. Non-GAAP revenue was $928 million, up 1.4% year-over-year and more than 4% sequentially. Increasing retail demand helped offset the timing of certain banking deployments being pushed out, while orders and backlog both increased sequentially, giving us continued confidence in our outlook for the second half of the year. Before reviewing our margin performance, I'd like to provide some context around 2 items that influenced our second quarter results. We received a onetime tariff refund of approximately $13 million, with approximately $10 million benefiting banking product margins and the remaining $3 million benefiting banking services. This benefit was almost entirely offset by approximately $10 million of higher memory costs. As we've now diversified our memory supply base and implemented customer pricing actions, we expect the impact of higher memory costs to continue to decline throughout the remainder of the year. And as in prior periods, both items are reflected in our reported non-GAAP results. Non-GAAP gross profit grew approximately 1% year-over-year and 9% sequentially, driven by continued strength in our retail business. Non-GAAP margin was 26.4%, essentially flat year-over-year and up 100 basis points sequentially. Non-GAAP product gross margin increased 70 basis points year-over-year to 28.7%, driven by banking execution and partially offset by memory costs and a higher mix of retail point-of-sale products. Sequentially, non-GAAP product margins increased 240 basis points. Non-GAAP service margins were 24.9%, down 60 basis points year-over-year and up 10 basis points sequentially. The year-over-year decline primarily reflects the rollout of our new North America service fleet and increased investments in technicians to support future growth. These investments are already improving operational performance, and we remain confident that they will contribute to continued service margin expansion over time. Non-GAAP operating expenses declined $7 million or 4% year-over-year and improved by $2 million sequentially, reflecting the benefits of our continuous improvement initiatives and disciplined cost management. We now expect total operating expenses to decline approximately 2% for the full year at the higher end of our previously guided 1% to 2% decline. As a result, non-GAAP operating profit increased 13% year-over-year to $82 million, while non-GAAP operating margin expanded 90 basis points to 8.9%. Sequentially, non-GAAP operating profit increased 35% with non-GAAP operating margin expanding 200 basis points. Now let's turn to Slide 10. In Q2, adjusted EBITDA grew 8% year-over-year to $121 million, and margin expanded 80 basis points to 13%, driven by higher retail revenue and operating expense discipline. Sequentially, adjusted EBITDA grew about 22% and margin expanded 180 basis points. Non-GAAP earnings per share were $1.10, up 17% year-over-year and up 64% sequentially, driven by higher net income and lower share count as we continue to execute our $200 million share repurchase program. Turning to free cash flow. We reported an outflow of $11 million. Free cash flow was primarily impacted by inventory build of approximately $40 million to support demand in the second half and to secure memory supply. This figure excludes discrete tax items attributable to prior fiscal years related to increasing profitability in our German legal entities. In 2026, we expect approximately $50 million of higher-than-anticipated estimated cash tax payments related to years 2024 and 2025, which we are excluding from free cash flow to better reflect operational cash flow generation. We expect inventories to be below prior year's level in the fourth quarter as customer deployments accelerate, reinforcing our confidence in achieving our full year free cash flow guidance. Continuing on to Slide 11. Turning to banking. Revenue was up approximately 2% sequentially and declined approximately 6% year-over-year. As we've discussed, revenue was impacted by the timing of certain customer projects, but our backlog and product gives us confidence in the back half of the year. The Banking segment delivered strong margins in the quarter, increasing 100 basis points year-over-year to 28.5%. Banking product gross margins were 36.8%, up 620 basis points year-over-year and up 540 basis points sequentially. Excluding the tariff refund benefit, banking product gross margin would have been 32.5%, up 190 basis points year-over-year and establishing another new record for product gross margin. Banking service gross margins were 23.6%, down 180 basis points year-over-year and down 10 basis points sequentially, reflecting the tariff refund that was more than offset by additional fleet investment and lower installation and project volume. Looking ahead in banking, our backlog and with the majority of the investments for services now behind us, gives us confidence in the second half of the year outlook. Turning to Slide 12. Retail delivered another outstanding quarter. Revenue was up approximately 9% sequentially and up 24% year-over-year. Retail product and service both delivered double-digit growth for the second consecutive quarter, driven by growth in point-of-sale in both Europe and North America. Gross profit dollars increased approximately 5% sequentially and 15% year-over-year to $64 million. Total gross margin was 21.9%, down 70 basis points sequentially and 180 basis points year-over-year, reflecting a higher mix of point-of-sale products and the related higher impact of memory costs. Retail service margin improved 230 basis points year-over-year to 28.2%, driven by the higher revenue. Looking ahead in retail, we expect to see product margin improvements in the second half of the year, driven by pricing to offset increased memory costs and improved product mix. Moving to Slide 13. Let's review our 2026 guidance. We are reaffirming our full year guidance with revenue of $3.86 billion to $3.94 billion, which is supported by our recurring service revenue and the $814 million of product backlog. Turning to gross margin. Given the stronger mix of point of sale and higher memory cost impact in Q2, we now expect full year product gross margins to be comparable with prior year, while service gross margins are still expected to improve up to 50 basis points, consistent with our previous outlook. For adjusted EBITDA, we reaffirm a range of $510 million to $535 million, reflecting our confidence in the commercial momentum and operational execution we've discussed throughout today's call. For free cash flow, while the quarterly cadence is now expected to be more weighted toward the fourth quarter, our full year expectation remains at $255 million to $270 million, excluding the higher-than-expected tax payments of approximately $50 million related to the 2024 and 2025 tax years. We continue to expect adjusted earnings per share to be in the range of $5.25 to $5.75, assuming an effective full year tax rate in the range of 35% to 40% with a higher tax rate expected in Q3 versus Q4. Looking specifically at the third quarter, Revenue is expected to represent approximately 25% of full year revenue at the midpoint. Gross margin is expected to be approximately 25%, flat sequentially, excluding the tariff refund. We expect third quarter adjusted EBITDA to represent approximately 24% of the full year adjusted EBITDA at the midpoint. Turning to free cash flow. We expect to continuing carrying elevated inventory in Q3 in addition to higher restructuring payments related to our OpEx cost savings program as well as the divestiture of our business in Turkey, resulting in a free cash flow at similar levels to Q2. As we exit the year, we expect significant improvement in free cash flow in Q4, driven by approximately $100 million to $120 million of inventory reductions, other working capital improvements across the business and the annual receipt of our customer service contract prepayments. Turning to Slide 14. We maintained a fortress balance sheet with over $590 million of liquidity at the end of Q2, comprised of $282 million in cash and cash equivalents and our revolving credit facility of $310 million. The net leverage ratio stood at 1.4x, providing financial flexibility for share repurchases and M&A activity. During the quarter, we repurchased approximately 752,000 shares at an average price of $79.82 per share, returning $60 million to shareholders under our existing $200 million share repurchase authorization. We have approximately $57 million remaining under the current authorization. Our capital allocation priorities remain unchanged. We are committed to maintaining a strong balance sheet, returning the vast majority of our free cash flow to shareholders through share repurchases and preserving the flexibility to pursue disciplined value-enhancing acquisitions that strengthen our strategic position. With that, I'll turn it back to Octavio for closing remarks. Octavio Marquez: Thank you, Tom. To conclude, the second quarter demonstrated continued commercial momentum across the business. First half order entry was the highest in 4 years. Our backlog sits at over $800 million. Retail delivered another great quarter, and our banking growth initiatives continue to gain traction. The underlying demand environment remains healthy. The quarter presented both operational opportunities and challenges. We were able to build inventory to secure supply to better position us for a strong second half of the year, while our service margins still have room for improvement. Our priorities are clear: convert backlog into revenue, reduce inventory, improve service productivity and maintain operating expense discipline. I want to thank our employees for their continued focus and commitment to our customers. The work is driving the service improvements, customer wins and operational progress we discussed today. We remain focused on delivering the full year outlook, strengthening the quality and consistency of the business and creating sustainable long-term value for shareholders. With that, operator, please open the line for questions. Operator: Your first question comes from the line of Matt Summerville with D.A. Davidson. Matt Summerville: A couple of questions. First, help me just a little bit with kind of the fourth quarter build in the sense that what gives you confidence in what is becoming an increasingly bigger sort of fourth quarter in terms of implied EBITDA, in particular, as more material services gross margin inflection seems to be kind of pushing out again, if you will. So just help me understand how the pieces come into play. If I'm doing my math right, you're implying about $125 million of EBITDA in Q3, which again means Q4 ultimately has to move higher for you guys to hit the midpoint of the guide. So just help me a little bit there? Thomas Timko: Yes. So I'd say you're pretty much spot on for Q3 in terms of what you implied for the EBITDA component. Look, the incremental spend that we saw as it relates to service margins this quarter was entirely related to our fleet, right, that impacted service margins by about 50 basis points. So obviously, we're driving that fleet renewal program as well as the underlying technician investments. But the timing and concentration of the rollout in Q2 had a larger near-term impact on the service gross margin. The key point is these were deliberate decisions and investments in that service platform and don't meaningfully change the underlying trajectory for margins, right, which, Matt, as you know, we said that we expect to be able to grow service margins, and we still do. up to 50 basis points this year. And then as it relates to product margins, right, we said that they'd be flattish when compared to prior years and really strong banking product gross margin performance with or without the tariff refund. So just jumping back to services, we think the largest phase of the investment cycle is now behind us, and we expect to be able to leverage this stronger foundation to improve the service margins, certainly in the quarters ahead. And as it relates to banking, right, that being slightly down in revenues, we expect that some of the pushout and deployments are going to end up in the third and fourth quarter. So I'd say, yes, big fourth quarter for us from a cash flow perspective as well, but we feel like we're -- we've got pretty good line of sight, whether it's the backlog, Octavio spoke about order entry being the highest. It's been in 4 years. So we'll be able to convert that as well. And we feel really confident that we're going to be able not only to deliver the EBITDA, but the associated free cash flow. Matt Summerville: Got it. Maybe pivot over to North American retail. Is there any sort of framework you can provide around what you're seeing now in terms of orders and revenue, logo wins? Any early view on what you think you can ultimately deliver in that business, again, North America retail focus here with the question in 2027? Thomas Timko: Yes. So Matt, we're really focused on delivering 2026 first, and it will be very high double-digit growth for the North America business. As you know, it's -- in Europe, over $1 billion that we're thinking retail will do this year, still the vast majority comes from Europe. And with North America being the biggest market, the opportunity remains relatively untapped yet. So as we look into the next year, we still believe that retail in North America can continue at that same pace of growing a very high double-digit growth for the foreseeable future. This quarter, we had 2 important wins with grocery in the grocery space. We had one important win in the self-checkout space. We continue to -- as we engage with customers, find new opportunities, a very large fashion retailer hired us to deliver RFID technology across hundreds of stores. So we're very excited about the opportunity, and we just see the opportunity getting better. And again, we are taking all the appropriate measures to do that. We remain very excited about the prospects of retail in North America. Look, the only thing I'll add to Octavio's comment as it is more focused on '26, right? We do expect to see product margin improvements in the second half, driven by a slightly better mix of self-checkout when compared to point of sale. And then because of the challenge in memory that we saw, right, that headwind of about $10 million in the quarter, right, that's predominantly retail. We have now -- and well, we're close to probably finalizing revising all of the contracts to reflect the updated market pricing in memory. And we've also diversified as it relates to memory, our product, the supply chain, which has helped keep us in with the right amount of supply to support second half demand, and that's also helped a little bit on the pricing side of things. So we will, going forward, be able to pass up to 100% of those costs on. as we price these things, these contracts. And the other big change that we made was that we went from our price quoting mechanism where we would usually allow a price quote to be active and open for a 90-day period of time. We've shrunk that down significantly because of the volatility to 7 days. So between that and our ability to escalate pricing in the contracts, we expect retail to continue to deliver, and we offset that pricing headwind on memory. Matt Summerville: Maybe I'll just sneak one more in. When you talk about the German -- the cash taxes you effectively own in Germany for '24 and '25, is that just a onetime catch-up true-up? Or does that impact Diebold's go-forward free cash algorithm -- and then Octavio, if you can just maybe do the geographic around the horn on the ATM side of the business and what you're seeing from demand, that would be great. Thomas Timko: Matt, I'm not counting, but I think you snuck in 2 questions there, but happy to address the first one. So yes, is the answer. So we expect to make discrete onetime payments related to '24 and '25 of $50 million between the second quarter, which we had about $18 million incurred. And then third quarter, a similar amount, fourth quarter sort of makes up the difference, and that's the $50 million. Now to more specifically answer the run rate for our cash tax payments, if you look at last year as a basis, we spent about $57 million on cash tax payments. Because we are now going to be profitable in Germany and no longer have NOLs, -- we're also required in '26 to pay an additional $25 million to $30 million of taxes, and that will get added into our new run rate for '27. So the way to think about it is the run rate that we saw last year of, let's say, $57 million, you can add $25 million to $30 million on it. That will be our new run rate going forward. The one point that you'll see for this year is the added $50 million for the '24 and '25 years. So we backed out that $50 million, thinking it was more appropriate to show what the business can generate operationally from a cash flow perspective. Octavio Marquez: Yes, Matt, before I start, I think that this does not change our long-term outlook. What we've discussed would be our goals for a 3-year period that will end next year remain unchanged. So even with a higher cash tax payment probably next year based on the increased profitability in our German subsidiaries, we still feel very comfortable with our cash flow outlook for 2027 and beyond. So let me walk you through the world now as we'd like to say. So I'll start with Europe this time. So as you know, Europe is a more mature market, very, very modest growth, but we're really winning in that market. You saw some of the wins I referenced in the U.K., winning new customers, 1, 100% competitive win that we had in the U.K. that will now be coming our way. I referenced Lloyd's, where our branch automation is piloting in 2 very high-traffic branches, but proving once again that the combination of going beyond the ATM and moving into the branch will prove successful. So I think that in Europe, we see as the market continues to move in the direction of shared networks or utility, customers are prioritizing partners that can really provide a technological edge to their operations. So we see that's where our strength is, providing technology and integrated solutions. And so Europe, we will -- we expect to see continued success as we keep growing our base there with innovative solutions. When I look at North America and preempting sometimes the question about where are we in recyclers, I think that recycling in North America is now moving significantly downstream. We also talked about VyStar this quarter on how they are now using 200 advanced recyclers through our managed service offering. So we're seeing a lot more deployment of full recycling in smaller financial institutions, think of the credit market, super-regional accounts. So we're excited about what we're seeing there. And more importantly, the integrated value proposition of ATM recycler plus teller cash recycler is gaining traction. This was the highest volume of shipments we've had for teller cash recyclers out of our North Canton factory. And I'm happy that, that trend continues through the year. So we do see that this combination of recyclers at the brand, at the ATM recyclers at the seller, common components is a very, very powerful way of growing. And I would tell you that, that is also what gives me significant confidence on our numbers for the remainder of the year because we see all these orders coming in and the acceptance of these new solutions. When we move to LatAm, as I mentioned, the large Brazilian tender for government banks for one of the large government banks now move into the third quarter. This shifts revenue more towards 2027. However, we remain confident that LatAm will continue to be a strong market for us. We'll continue to grow. We will see improvements year-over-year. And we remain confident that this is a very strong market, still very heavy dependent on cash dispensers, but also moving significantly into cash recyclers, significant wins. One bank in Mexico replaced all its fleet with cash recyclers. So we see that, that should also be an important factor for us going forward. And lastly, when we think of the Asia Pacific, Middle East, Africa region for us, fit for purpose will have a very strong second half of the year. That's what gives us confidence. When we look at the order book and some of the big deals that we're expecting in that part of the world, they are very heavily weighted towards the third and in some cases, the fourth and more importantly, the fourth quarter. So you will see us perform exceptionally well in the latter half of the year in the Asia Pacific region. As I said, India is still a growing market. We're underrepresented there, and we feel very good that the second half of the year will provide ample opportunities for growth. So I would tell you that the ATM market overall, we see healthy demand. We've seen some shifts in timing of large projects and things moving a little bit, but the demand environment remains very, very healthy. Operator: Your next question comes from the line of Justin Ages with CJS Securities. Justin Ages: You gave us some good color on what was driving free cash flow negative this quarter. Just wanted to dig a little bit deeper and see were you able to make working capital improvements outside of what was happening on the inventory side? Thomas Timko: So we expect going forward that we're going to make substantial improvements in the days inventory outstanding. So if you think about the cash flow, and it's kind of connected to the question that Matt asked as well, right? Our Q4 cash flow is going to be somewhere between $255 million, $270 million. And to give you a perspective, historically, Diebold has generated upwards of $200 million. So in order to sort of generate the remainder of the cash, we expect a lot of that to come from additional inventory takedown. Typically, we probably turn inventory anywhere between $80 million and $100 million in the fourth quarter, right? We have line of sight to be able to do even more than that this year, the way our schedules are working out, and we're feeling really, really positive about that. DSO for sure, will be a tailwind for us as we get into the fourth quarter as well. And then don't forget, right, the fourth quarter is when we have our annual receipt of the customer service contract prepayments. So again, we guided to Q2 positive free cash flow similar to Q2 of last year. That's about $13 million. And really, what you see manifesting itself in Q2 and Q3 is just the inventory buildup and some of the memory cost and procuring that so that we could secure the revenue. But we expect to be able to burn through that and deliver a really solid free cash flow quarter for Q4. All right. That's helpful. Justin Ages: And then one more on the retail side. Some of the commentary around making this an open product and being able to work with other systems. Are you seeing any trends of customers taking just some of the hardware and maybe not some of the service parts of your retail offerings? Octavio Marquez: So Justin, again, I think one of the reasons why we're winning in North America is the modularity of our products, the openness to work with different softwares. So I would say that when we think of the wins that we have in self-checkout in North America, all of them come with service contracts. I think that there, the relationship is very tightly coupled. When you think of the point-of-sale wins, in some cases, that being an easier product to service, service attach rates are in between the 30%, 50%, depending on the customer. So we continue to see that trend continue to manifest itself. And I think that the exciting part is that as we go into these retailers with whether it's the AI platform or the hardware solution, we're discovering additional service opportunities that we didn't have. The example I gave of this very large fashion retailer as they're rolling out RFID across the stores where they were the partner to -- that's just a service opportunity that we want to help them deploy technology across literally hundreds of stores. So I think that the way I like to think about it is a strong product portfolio, our strong AI platform opens up opportunities. And whether we are talking to a customer about hardware, the AI platform or services, it just creates multiple entry points into an account, and then we can really expand within that account as time goes by. Operator: We will take our final question from the line of Matt Bryson with Wedbush. Matthew Bryson: Just wanted to start on the banking side. Octavio, you talked about some shipments being delayed or pushed from Q2. Is there anything specific you'd call out there? Octavio Marquez: Yes. I would say that even though we have for the first half like record order entry for the company, the highest it's been in 4 years, we did see the push out of this very large Brazilian tender. That is tens of millions of dollars that got pushed. Now the order will be in Q3, we expect with the majority of the revenue now happening in Q4. So that is a little bit of the rollout of that now it's delayed a little bit. I would also say that as we're now selling a lot more teller cash recyclers and ATMs combined, it requires a lot more coordination in our installation teams to really address the full branch rather than just the ATM. So that is adding up, I would say, adds additional opportunity for us, but also creates more coordination needed with the customer because we're not just touching the outside of the branch. Now we're talking the inside of the branch plus the software layer that we delivered with our transaction middleware. So I think that some of those rollouts that we expected to be faster have been a little bit slower than what we expected, but customers have placed the orders and are waiting for us to deliver. And lastly, I would say that the APAC region with our fit-for-purpose product will have a very strong second half of the year. So -- that is also more related to customers' rollout schedules than anything else, but we see the orders coming in, and now it's just our ability to turn those orders into revenue in the late third and early fourth quarter to -- in banking. So I would say that it's a little bit of everything in every region, but we -- the demand environment that we measure looking first at the orders remain solid. The optimism in the team on delivering their full year outlook remains unchanged. And we're -- and it's just a matter of executing against what we -- the backlog that we have today and the projects that are coming up in the coming weeks. Matthew Bryson: Yes. That's really helpful. And then just with gross margins on the parts side there coming in at 32%. Was there anything unique to the quarter that pushed gross margins higher? Or is that just the result of you guys continuing to optimize and sell a richer product mix? Octavio Marquez: So there's a little bit of product mix that has helped in the first half. We've had very higher concentration in the U.S. market, which is better margins, higher concentration in Europe. The second half will be a little bit more global. So we're -- but also we're -- our lean initiatives continue to gain traction. So we're very focused on maintaining those margins. If you remember, Q1, we set an all-time high in margins for ATM products. Q2, we once again did that. So we're very, very focused on making sure that for the year, we continue maintaining that margin discipline. I think the competitive environment and -- sorry, Matt, go ahead. Matthew Bryson: No, no, I keep going. slightly different question. Octavio Marquez: I was just going to say, the competitive environment is favorable. Our technology continues to lead the market. So we think that we still have -- we have the ability to keep not relying on price to win any particular bid. Matthew Bryson: Yes. That was -- so with the competitive side of things, I was just going to ask now with a bit more time having passed since the announcement of the Brink's Atleos combination, is that having any impact at all that you can see? Octavio Marquez: So we haven't seen any impact right now, Matt. As you know, this combination won't be effective until first quarter of next year, and all indications are that they're on track to that. I would say that when I look at the competitive positioning, sometimes imitation is the most sincere form of flattery. And I was happy to see Atleos now reselling TCRs. That validates our strategy that it's very important to move across the branch and we -- so we think that, that is a winning strategy. And we think that providing this integrated solution as banks keep transforming the branch infrastructure will be key to success in the future, not so much pricing actions. Clearly, banks always are worried about reducing costs, increasing operational efficiency. But more importantly, they're focused on how do I make a branch more efficient, how can it become a service point and advice point for my customers. remove the manual work out of it. And I think that our solutions are very well positioned there, and we're in a unique position to keep doing that with the common components across the platform, common service infrastructure. So we're excited. And again, we will always be vigilant, both Brink's is an outstanding company, great competitor. So we will always be mindful of any changes in the dynamics and how we need to adjust our strategy. Matthew Bryson: That all makes sense. Just one on the retail side. With POS being so strong, is there anything in particular driving the strength there? Is it cyclical? Is it sustainable? Just any comments? Octavio Marquez: Yes. So listen, our POS business is growing in the very, very high double digits and in some markets, triple digits. I think we have a unique position in that we have strong customers that are expanding, that are refreshing their fleet. But don't forget that even though in Europe, we're seeing significant demand, we're also just starting to scratch the surface in the North America market with wins in POS in the North America market. So we feel that growth is still very much in the plan for our retail business going forward. And POS is still a very important part of that strategy, making sure that we continue to advance in the North American market while continuing to expand our share in Europe. Matthew Bryson: And just one last one for Tom, I think. Tom, obviously, the lean initiatives are -- you're having a whole lot of success driving out cost. Just curious with the, I guess, the advent of AI, are you implementing AI solutions? And are you finding any room to drive cost down further faster through the use of AI yet? Thomas Timko: Yes. Look, I would say part of our operational evolution program and some of those OpEx savings, we're beginning to deploy AI to help us better predict some of our forecasting abilities. We're deploying AI in our GBS center in Poland, which is a great asset for us and continues to really provide strong returns. So yes, where there's an opportunity and where it makes sense, and we've got the right level of data in the right format, so it can be digestible, we are availing ourselves to that, which is why, Matt, we did raise guidance to a degree, right, as it relates to the OpEx reduction. We used to say 1% to 2% OpEx reduction year-over-year. Now we're sort of at the high end of the 2% and it's a direct result of that evolution program and where and when possible, deploying AI to help facilitate. Operator: Thank you. As of now there are no further questions. Maynard Um: Thanks everyone for joining this call. Operator: Yes, I'll now hand it over to you, Maynard, for your closing remarks. Thanks so much. Maynard Um: Thank you. Yes. Thanks, everyone, for joining today's call and your interest in -- in Diebold Nixdorf. If you have any follow-up questions, please feel free to reach out to the Investor Relations team. And thanks again, and have a good rest of the day. Operator: Thanks, Maynard. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Diebold Nixdorf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Diebold Nixdorf wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Diebold Nixdorf (DBD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Diebold Nixdorf, Incorporated? Here are five stocks we like better. Strong quarterly performance: Second-quarter revenue rose 1.4% year over year to $928 million, while adjusted EBITDA increased 8% to $121 million and adjusted EPS climbed 17% to $1.10. The company reaffirmed its full-year financial outlook. Retail growth offset banking delays: Retail revenue surged approximately 24%, supported by point-of-sale, self-checkout and AI deployments, while banking revenue fell about 6% because of delayed project timing, including a Brazilian public-sector tender. Cash flow remains back-end loaded: Free cash flow was negative $11 million due largely to inventory investment for memory supplies and upcoming deployments. Management expects inventory reductions and working-capital improvements to drive approximately $100 million to $120 million of fourth-quarter free cash flow. 3 Stocks Offering Strong Value and Stability Diebold Nixdorf (NYSE:DBD) reported higher second-quarter revenue, adjusted EBITDA and earnings per share as retail demand and cost discipline helped offset timing delays in banking deployments and higher memory costs. Revenue rose 1.4% year over year to $928 million and increased more than 4% sequentially. Adjusted EBITDA grew 8% from a year earlier to $121 million, while adjusted earnings per share increased 17% to $1.10. The company reaffirmed its full-year revenue, EBITDA, free-cash-flow and adjusted-EPS outlook. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Best Ultra-Value Stocks Set for Long-Term Growth President and CEO Octavio Marquez said first-half order entry reached its highest level in four years. Second-quarter order entry rose 3% year over year and 6% sequentially, while product backlog grew sequentially to $814 million. “Underlying customer demand remains healthy,” Marquez said, adding that the company’s order book, backlog and customer deployment schedules support its confidence in the full-year outlook. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Retail revenue increased approximately 24% year over year and 9% sequentially, supported by point-of-sale growth in Europe and North America. Retail product and service revenue both posted double-digit growth for the second consecutive quarter. The company cited several European wins, including a point-of-sale order for more than 4,000 units from an existing customer in Germany, a 1,600-unit order in Romania and an 800-unit new-customer win in Germany. It also secured a 1,500-lane self-checkout deployment with a major U.K. grocer. → Innovative ETF Strategies That Are Paying Off This Summer In North America, Diebold Nixdorf said it won self-checkout business with two grocers, a point-of-sale deployment with a quick-service restaurant chain, and a service agreement with a fashion retailer spanning hundreds of stores. The company also reported growing adoption of its Vynamic Smart Vision artificial-intelligence offering. It deployed hundreds of lanes year to date, and new multiyear contracts are expected to expand deployments to thousands of lanes by the end of 2026. Two European grocery customers signed contracts covering 1,400 new lanes, described by the company as its largest new Smart Vision AI deployments to date. Banking revenue, meanwhile, declined approximately 6% year over year, though it rose about 2% sequentially. Management attributed the year-over-year decline partly to deployment timing. A large public-sector bank tender in Brazil shifted into the second half, with most associated revenue now expected in 2027 rather than 2026. Marquez said broader branch-automation deployments can also require more coordination because the projects include ATMs, teller cash recyclers, installation work and transaction middleware. He said orders have been placed and customers are awaiting delivery. Chief Financial Officer Tom Timko said second-quarter results included a one-time tariff refund of approximately $13 million, including about $10 million benefiting banking product margins and $3 million benefiting banking services. The benefit was almost entirely offset by roughly $10 million in higher memory costs, primarily affecting the retail business. Non-GAAP gross margin was 26.4%, essentially unchanged from the prior year and up 100 basis points sequentially. Product gross margin rose 70 basis points year over year to 28.7%, while service margin declined 60 basis points to 24.9%. Banking product gross margin reached 36.8%, up 620 basis points year over year. Excluding the tariff refund, banking product gross margin would have been 32.5%, which Timko said represented another record for the business. Retail gross margin was 21.9%, down 180 basis points year over year, reflecting a higher mix of point-of-sale products and the impact of memory costs. Retail service margin improved 230 basis points to 28.2%. Diebold Nixdorf said it has diversified its memory supply base, taken customer pricing actions and shortened the duration of price quotes amid market volatility. Timko said the company expects to be able to pass through up to 100% of memory-cost increases in future contract pricing and expects retail product margins to improve during the second half. Free cash flow was negative $11 million in the quarter, largely due to an approximately $40 million inventory build to secure memory supply and support second-half customer deployments. Management expects inventory to remain elevated through the third quarter before declining in the fourth quarter. The company expects fourth-quarter free cash flow to benefit from approximately $100 million to $120 million of inventory reductions, other working-capital improvements and annual customer service-contract prepayments. Diebold Nixdorf also expects approximately $50 million of higher-than-anticipated cash-tax payments in 2026 related to the 2024 and 2025 tax years. The company is excluding those payments from its operational free-cash-flow guidance. Timko said the company expects its ongoing cash-tax run rate to rise by roughly $25 million to $30 million beginning in 2027 because its German legal entities are profitable and no longer have net operating losses. The company reaffirmed 2026 revenue guidance of $3.86 billion to $3.94 billion, adjusted EBITDA guidance of $510 million to $535 million, and adjusted EPS guidance of $5.25 to $5.75. It also maintained expected free cash flow of $255 million to $270 million, excluding the approximately $50 million in discrete tax payments. Management now expects full-year product gross margins to be comparable with the prior year, while service gross margin is still expected to improve by up to 50 basis points. Diebold Nixdorf expects total operating expenses to decline about 2% for the year, at the high end of its prior 1% to 2% reduction outlook. At quarter-end, the company had more than $590 million of liquidity, including $282 million in cash and cash equivalents and a $310 million revolving credit facility. Net leverage was 1.4 times. During the quarter, Diebold Nixdorf repurchased about 752,000 shares for $60 million at an average price of $79.82 per share, leaving approximately $57 million under its existing authorization. Diebold Nixdorf, Inc (NYSE: DBD) is a leading global provider of connected commerce solutions, specializing in automated teller machines (ATMs), point-of-sale (POS) systems and related software and services for the banking and retail industries. The company's core offerings include hardware platforms, software applications for transaction management and advanced analytics tools that enable financial institutions and retailers to enhance customer engagement, streamline operations and improve security at the point of transaction. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Diebold Nixdorf Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Order entry increased 3% year over year and 6% sequentially, reaching its highest level in four years. Revenue increased 1% year over year and 4% sequentially to $928 million. Adjusted EBITDA rose by 8% year over year and 22% sequentially. The company achieved record teller cash recycler shipments, reflecting growing customer adoption. Retail revenue grew approximately 25% year over year, driven by strong demand for technology solutions. Higher memory costs in the electronic point of sale portfolio continue to be a challenge. Inventory investment contributed to lower free cash flow, with inventory expected to remain elevated through the third quarter. Service margins were impacted by fleet renewal programs and increased investments in technicians. Certain banking deployments were delayed, affecting revenue timing. The company faces higher than anticipated cash tax payments related to prior years, impacting free cash flow. Warning! GuruFocus has detected 4 Warning Signs with GEHC. Is DBD fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the expected build-up in the fourth quarter, particularly regarding EBITDA and service collections? A: CFO: You're correct in estimating about $125 million of EBITDA for Q3. The increased spend on service margins was due to our fleet renewal program, impacting margins by about 50 basis points. These were deliberate investments in our service platform, and we expect service margins to grow by up to 50 basis points this year. Product margins are expected to be flat compared to prior years, with strong banking margin performance. We anticipate a significant fourth quarter from a cash flow perspective, supported by our backlog and order entries. Q: What is the outlook for North American retail, particularly in terms of orders and revenue? A: CEO: We're focused on achieving very high double-digit growth for North American retail in 2026, similar to Europe. The opportunity in North America remains largely untapped. This quarter, we secured important wins in the grocery and self-checkout spaces. We are excited about the prospects and are taking appropriate measures to capitalize on them. Q: Can you provide more details on the German cash taxes for 2024 and 2025? Is this a one-time adjustment? A: CFO: Yes, we expect to make one-time payments of $50 million related to 2024 and 2025. Our run rate for cash tax payments will increase due to profitability in Germany and the absence of NOLs. This does not change our long-term outlook, and we remain comfortable with our cash flow projections for 2027 and beyond. Q: What are the current trends in the ATM market across different regions? A: CEO: Europe is a mature market with modest growth, but we're winning new customers. In North America, recycling is moving downstream, with significant deployments in smaller financial institutions. Latin America remains strong, with a large Brazilian tender expected in Q3. In Asia Pacific, we anticipate a strong second half, particularly in India, where we see ample growth opportunities. Q: Are there any specific factors driving the strong performance in the POS segment? A: CEO: The POS business is experiencing high double-digit growth, driven by strong customer demand and fleet refreshes. We're also expanding in North America, which remains a largely untapped market. This growth is expected to continue as we advance in North America and expand our share in Europe. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Recent attention on Diebold Nixdorf (DBD) is being driven by projections for strong near term earnings growth and an A grade on valuation metrics, as investors look ahead to upcoming quarterly results. This renewed focus comes as the stock has delivered a gain of about 2.4% over the past month and is on Zacks.com’s list of most searched stocks. This has put its recent performance and expectations under closer scrutiny. See our latest analysis for Diebold Nixdorf. Beyond the recent buzz around earnings projections, Diebold Nixdorf’s share price has climbed to $83.49, with a year to date share price return of 30.53% and a 1 year total shareholder return of 40.34%, signaling that momentum has been building as the market reassesses its growth profile and risk after recent index reclassifications and the upcoming earnings release. If Diebold Nixdorf has you watching how market narratives can shift, it can help to widen the lens and look at other opportunities too. Use this moment to uncover 19 top founder-led companies Diebold Nixdorf now sits in growth focused indexes and has a strong earnings story attached to it, yet the stock already trades at $83.49 after a 30.53% year to date move. Is that strength already in the price? The most followed narrative currently places Diebold Nixdorf’s fair value at $96.67 versus the last close of $83.49, framing the stock as undervalued and putting its earnings and cash flow potential under the microscope. Read the complete narrative. Want to see what sits behind that confidence in Diebold Nixdorf? The narrative leans heavily on earnings power, improving margins and a future earnings multiple that has to line up with those projections. Curious which specific revenue and profit assumptions need to hold for that fair value to stack up? Result: Fair Value of $96.67 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Diebold Nixdorf’s story still hinges on the hardware heavy ATM and POS markets, and any slower shift toward higher margin software and services could quickly test that 13.6% undervaluation case. Find out about the key risks to this Diebold Nixdorf narrative. The most followed Diebold Nixdorf narrative leans on earnings and cash flows, but our DCF model presents an estimated value of $187.12 versus the current $83.49 share price. This suggests the stock appears heavily undervalued on this approach. That gap is wide. It raises a practical question for you as an investor: are the cash flow assumptions too generous, or is the market still hanging onto an outdated risk view that could shift if execution stays on track? Look into how the SWS DCF model arrives at its fair value. The mix of optimism and caution around Diebold Nixdorf is clear, so consider reviewing the figures yourself and deciding where you stand with the 3 key rewards and 2 important warning signs Do not stop your research at Diebold Nixdorf. Broaden your watchlist with other stocks that match your risk, income, and value preferences using the Simply Wall St Screener. Target resilient companies that aim to reduce portfolio shocks by screening for 72 resilient stocks with low risk scores tailored to more cautious investors. Hunt for strong businesses that may trade below what their cash flows justify by scanning 44 high quality undervalued stocks for potential value candidates. Spot lesser known opportunities with solid fundamentals before the crowd pays attention by using the screener containing 19 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DBD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In recent weeks, Diebold Nixdorf reported stronger-than-expected first-quarter 2026 results and announced a new chief information officer, alongside rising analyst expectations for substantial year-over-year earnings-per-share growth in the current quarter. These developments, coupled with heavier investor attention and discussions of potential valuation discounts versus peers, highlight how earnings quality and execution are increasingly central to the company’s story. We’ll now examine how the anticipated earnings strength and recent outperformance versus expectations may influence Diebold Nixdorf’s existing investment narrative. AI is about to change healthcare. These 38 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Diebold Nixdorf, you need to believe that branch and retail automation, plus higher-margin software and services, can offset long-term pressure on cash and ATM usage. The short term story now hinges on whether expected earnings-per-share growth, following a stronger-than-expected first quarter, is sustainable. The biggest near term risk remains execution on this business mix shift and cost discipline, and the latest results and higher EPS expectations directly test that. Among the recent developments, the most relevant here is the strong Q1 2026 earnings beat, coupled with expectations for roughly 83% year over year EPS growth this quarter. This combination reinforces the view that restructuring and higher-value contracts are gaining traction, even as analysts still rate the shares at Zacks Rank #3 (Hold). How consistently Diebold Nixdorf can deliver against these heightened expectations will be pivotal for the earnings driven catalyst investors are watching. Yet beneath the improving earnings story, there is still the underappreciated risk that accelerating digital payments adoption could quietly reshape Diebold Nixdorf’s addressable market that investors should be aware of... Read the full narrative on Diebold Nixdorf (it's free!) Diebold Nixdorf's narrative projects $4.1 billion revenue and $333.6 million earnings by 2029. This requires 2.9% yearly revenue growth and about a $239 million earnings increase from $94.6 million today. Uncover how Diebold Nixdorf's forecasts yield a $96.67 fair value, a 18% upside to its current price. While recent earnings strength looks encouraging, the most cautious analysts were assuming only about 3.4% annual revenue growth and US$249.9 million in earnings by 2028, reminding you that expectations can differ widely and that both bullish and bearish views may shift as new information arrives. Explore 5 other fair value estimates on Diebold Nixdorf - why the stock might be a potential multi-bagger! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Diebold Nixdorf research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Diebold Nixdorf research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Diebold Nixdorf's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: The latest GPUs need a type of rare earth metal called Neodymium and there are only 31 companies in the world exploring or producing it. Find the list for free. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 14 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DBD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Diebold Nixdorf, Incorporated's (NYSE:DBD) earnings announcement last week was disappointing for investors, despite the decent profit numbers. We did some digging and actually think they are being unnecessarily pessimistic. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Importantly, our data indicates that Diebold Nixdorf's profit was reduced by US$98m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Diebold Nixdorf doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from Diebold Nixdorf's earnings over the last year, but we might see an improvement next year. Because of this, we think Diebold Nixdorf's earnings potential is at least as good as it seems, and maybe even better! And one can definitely find a positive in the fact that it made a profit this year, despite losing money last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. You'd be interested to know, that we found 2 warning signs for Diebold Nixdorf and you'll want to know about these. Today we've zoomed in on a single data point to better understand the nature of Diebold Nixdorf's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.