Diebold Nixdorf Reaffirms 2026 Outlook as Retail Sales Climb
The financial technology provider reported adjusted EBITDA of $120.6 million for the second quarter.
Diebold Nixdorf (DBD) reported second-quarter revenue of $930.8 million. The financial technology provider saw revenue grow more than 1% year-over-year, a deceleration from the 6% growth recorded in the first quarter.
Net income grew 28% year-over-year, with the net income margin expanding 30 basis points to 1.7%. GAAP earnings per share increased to $0.44 from $0.33 in the prior year, while non-GAAP adjusted EPS rose to $1.10 from $0.94.
Adjusted EBITDA grew 8% year-over-year to $120.6 million, and the adjusted EBITDA margin expanded 80 basis points to 13.0%. Product gross margin expanded 110 basis points to 28.9%, though services gross margin compressed 50 basis points to 23.6%.
Growth was driven by the retail segment, where revenue grew more than 20% year-over-year for the second consecutive quarter. European point-of-sale unit sales grew nearly 170% year-over-year during the period.
Non-GAAP free cash flow swung to a use of $11.0 million, compared to a positive $20.7 million in the first quarter. The decline was due to inventory builds to support increased demand.
Diebold Nixdorf reaffirmed its full-year 2026 guidance, projecting total revenue between $3.86 billion and $3.94 billion. The company expects adjusted EBITDA between $510 million and $535 million, free cash flow between $255 million and $270 million, and adjusted EPS between $5.25 and $5.75.
The company began winding down a non-core operation in Turkey in the first quarter, with completion expected by the end of 2026. That operation contributed a loss to adjusted EBITDA of approximately 2.5% of total consolidated adjusted EBITDA for the second quarter.
Diebold Nixdorf paid its 2024 discrete German tax liability in the second quarter and expects to be a cash taxpayer in Germany moving forward. The company estimates additional payments of $50 million for the 2024 and 2025 tax years, which will be excluded from free cash flow.
The company repurchased approximately $60 million of common shares in the second quarter. This follows a $55 million repurchase in the first quarter, leaving $57 million remaining in the $200 million program.