Diebold Nixdorf (DBD) Q1 2026 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $891.8 million in Q1 2026, with adjusted EBITDA up 14% to $99.1 million and backlog increasing sequentially to $790 million.

• Retail revenue surged 26.5% year-over-year, with North America up 70% from a small base and Europe delivering strong growth; banking revenue was flat or slightly down due to timing and lower European volumes.

• Free cash flow more than tripled year-over-year to $21 million, marking the sixth consecutive quarter of positive free cash flow.

• Net income for Q1 2026 was $5.5 million, reversing a net loss of $7.5 million in Q1 2025; adjusted EPS rose to $0.67 from $0.37.

• The company maintained a net debt leverage ratio of 1.2x and returned $55 million to shareholders via share repurchases in Q1, with $117 million remaining under the $200 million program.

Financial highlights

• Non-GAAP revenue was $888 million, up 6% year-over-year, with GAAP net sales at $891.8 million.

• Non-GAAP gross margin expanded 10 bps to 25.4%; GAAP gross margin was 23.9%.

• Adjusted EBITDA margin expanded to 11.2%; non-GAAP operating profit increased 27% to $61 million.

• Days inventory outstanding improved by 6 days; days sales outstanding improved by 4 days.

• Net cash from operating activities was $31.7 million, up from $15.7 million year-over-year.

Outlook and guidance

• 2026 revenue guidance: $3.86–$3.94 billion, supported by $790 million backlog.

• Adjusted EBITDA projected at $510–$535 million; free cash flow forecasted at $255–$270 million, targeting 50%+ conversion.

• Adjusted EPS expected in the range of $5.25–$5.75; free cash flow per share projected in the mid-$7 range.

• Gross margin expected to increase 25–50 bps year-over-year; service margin to improve up to 50 bps.

• Positive free cash flow expected every quarter; Q2 revenue to represent ~24% of full year.