Diebold Nixdorf (DBD) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 increased 1.7% year-over-year to $930.8 million, with order entry up 3% and adjusted EBITDA up 8% to $121 million; adjusted EPS rose 17% to $1.10 year-over-year.

• Retail segment delivered double-digit growth, especially in Europe and North America, with point-of-sale unit sales in Europe up nearly 170% year-over-year; banking initiatives gained traction with record teller cash recycler shipments and expanded automation.

• Net income for Q2 2026 was $16.2 million, up from $12.7 million in Q2 2025, with diluted EPS of $0.44 compared to $0.33 in the prior year.

• Service levels reached record highs, and operational improvements through lean initiatives and cost savings programs enhanced efficiency and productivity.

• The company reaffirmed its 2026 financial outlook and continued share repurchases, returning $60 million in Q2 2026 with $57 million remaining authorized.

Financial highlights

• Q2 2026 GAAP revenue was $930.8 million; non-GAAP revenue was $928 million, up 1.4% year-over-year and over 4% sequentially.

• Adjusted EBITDA was $121 million, up 8% year-over-year and 22% sequentially; margin expanded 80 basis points to 13%.

• Non-GAAP EPS was $1.10, up 17% year-over-year and 64% sequentially; GAAP EPS was $0.44, up from $0.33.

• Free cash flow was an outflow of $11 million, impacted by inventory build to support demand and higher memory prices.

• Operating profit for Q2 2026 was $57.4 million, up slightly from $56.2 million in Q2 2025.

Outlook and guidance

• 2026 revenue guidance: $3.86–$3.94 billion; adjusted EBITDA: $510–$535 million; free cash flow: $255–$270 million; adjusted EPS: $5.25–$5.75.

• Free cash flow guidance excludes $50 million in one-time tax payments related to German profitability.

• Q3 revenue expected to be about 25% of full-year total; Q4 expected to see significant free cash flow improvement from inventory reductions and contract prepayments.

• Management expects liquidity and available borrowing capacity to be sufficient for at least the next 12 months.

• Targeting over 50% free cash flow conversion and strong working capital improvements in Q4 2026.