Diebold Nixdorf (DBD) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformative year with revenue growth of 1.5% to $3.81B, record free cash flow of $239M, and adjusted EBITDA up 7% to $485M, reflecting a more stable and predictable financial profile.

• Achieved five consecutive quarters of positive free cash flow, double-digit order entry growth, and received two credit rating upgrades, including Moody’s upgrade to B1.

• Ended the year with a net leverage ratio of 1.1x, a strong balance sheet, and launched a new $200M share repurchase program after completing a $100M program.

• Margin expansion and robust performance in both Banking and Retail segments drove improved financial health and capital allocation discipline.

• Adjusted EPS for 2025 was $5.59, more than doubling year-over-year, including non-cash, non-operational tax benefits.

Financial highlights

• Full-year 2025 revenue was $3.81B (up 1.5% year-over-year), with Q4 revenue at $1.1B (up 12% year-over-year and 17% sequentially).

• Adjusted EBITDA reached $485M for the year (up 7.2%), with Q4 at $164M (up 46% year-over-year); adjusted EBITDA margin for FY 2025 was 12.7%.

• Free cash flow more than doubled to $239M for the year, with Q4 at $196M; free cash flow conversion reached 49%.

• Adjusted EPS for 2025 was $5.59, including $1.08 of non-cash, non-operational tax benefits.

• Gross margin expanded to 27.1% in Q4 and 26.4% for the year, with Q4 non-GAAP gross margin at 25.3%.

Outlook and guidance

• 2026 revenue guidance: $3.86B–$3.94B, with gross margin expected to increase by 25–50 basis points.

• Adjusted EBITDA projected at $510M–$535M, and free cash flow at $255M–$270M, both reflecting growth.

• Adjusted EPS guidance for 2026 is $5.25–$5.75, up ~22% year-over-year on a comparable basis.

• Free cash flow conversion targeted at 50%+ for FY 2026, with positive free cash flow expected in every quarter.

• Revenue and adjusted EBITDA are expected to be weighted toward the second half of the year (~55%).