• Adjusted EBITDA: $452 million, above the high end of guidance range.
• Free Cash Flow: $109 million, best performance since 2016.
• Revenue: $3.75 billion for 2024.
• Service Revenue: $2.15 billion, representing 55% of total revenue.
• Gross Margin: Improved by 300 basis points, ending at 25.3% for 2024.
• Net Debt Leverage Ratio: 1.4 times.
• Debt Reduction: Paid down $338 million of debt in 2024.
• Liquidity: Over $600 million, including $328 million in cash and short-term investments.
• Share Repurchase Authorization: New $100 million authorization announced.
• 2025 Financial Outlook: Revenue flat to up low single digits; adjusted EBITDA $470 million to $490 million; free cash flow $190 million to $210 million.

• Warning! GuruFocus has detected 4 Warning Sign with DBD.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Diebold Nixdorf Inc (NYSE:DBD) delivered $452 million of adjusted EBITDA, exceeding the high end of their guidance range.
• The company achieved $109 million of free cash flow, marking the best performance since its formation in 2016.
• Diebold Nixdorf Inc (NYSE:DBD) announced a new $100 million share repurchase authorization, highlighting their commitment to returning capital to shareholders.
• The company successfully reduced its debt by $338 million in 2024, strengthening its balance sheet.
• Diebold Nixdorf Inc (NYSE:DBD) is expanding its presence in emerging markets with major contracts in Asia Pacific, Brazil, and the Middle East.

Negative Points

• The macro environment continues to impact retail product revenue, although signs of stabilization are emerging.
• Currency headwinds are expected to have a 3% to 4% unfavorable impact on revenue for the year.
• The company anticipates a back-end loaded year due to large tenders in Brazil, affecting revenue distribution.
• Diebold Nixdorf Inc (NYSE:DBD) faces challenges in the US market, where it is a distant number three in self-checkout solutions.
• First half cash flow is likely to be a use, although the company is targeting breakeven.

Q & A Highlights

Q: Can you explain the expected second-half recovery in the retail segment? Is it driven by POS, SCO, or a specific region? A: Octavio Marquez, President and CEO, explained that the recovery is expected due to significant orders in Europe for both SCO and POS, which will be delivered in the second half of the year. Additionally, investments in the North American sales team are expected to capitalize on the market's transition to more open and scalable self-checkout solutions.

Q: How did the self-checkout market perform in 2024, and what is the outlook for the future? A: Octavio Marquez noted that the market saw a decline in 2024, particularly in Europe. However, self-checkout is expanding into other retail verticals beyond grocery, driven by store efficiency and consumer preference. The U.S. market presents a significant growth opportunity, and the company is optimistic about reaccelerating growth in the second half of 2025.

Q: What is the status of the ATM recycling-led refresh cycle, and how is it progressing regionally? A: Octavio Marquez stated that the company is in the early stages of upgrading its installed base to recycling ATMs, with significant tenders won in Brazil and strong demand in Latin America. Europe remains stable, and North America presents opportunities with branch automation solutions. The Asia Pacific region will see new fit-for-purpose devices starting in Q2 2025.

Q: Are there any disruptions from political factors affecting the business, and how is the supply chain positioned? A: Octavio Marquez and Thomas Timko, CFO, explained that the company has regionalized its supply chain to minimize tariff impacts, with less than 25% of components sourced from China. They have not seen significant disruptions from political factors and feel confident in their ability to manage any potential impacts.

Q: How is the transition to ATM recyclers impacting the business financially? A: Octavio Marquez and Thomas Timko noted that the transition to recyclers is progressing steadily, with increased adoption in major markets. This shift is favorable for the business, leading to higher margins and average selling prices, despite FX headwinds.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.