Diebold Nixdorf (DBD) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of $3.81B, adjusted EBITDA of $485M, and free cash flow of $239M, more than doubling prior year’s cash flow and EPS, reflecting disciplined execution and a lean operating model.

• Core banking and retail businesses remained strong, with double-digit order entry growth and robust demand for automation, software, and AI-driven retail solutions.

• Received two credit rating upgrades, including Moody’s upgrade to B1 from B2, and maintained net leverage around 1.1x, reinforcing financial stability.

• Completed a $100M share repurchase program and launched a new $200M authorization, repurchasing $128M (~6% of shares) in 2025.

• Achieved five consecutive quarters of positive free cash flow and ended the year with a net debt leverage ratio of 1.1x.

Financial highlights

• Q4 2025 revenue was $1.1B, up 11.7% year-over-year; full-year revenue reached $3.81B, up 1.5% year-over-year.

• Q4 adjusted EBITDA was $164M (up 46% year-over-year); full-year adjusted EBITDA was $485M (up 7.2%).

• Full-year adjusted EPS was $5.59, including $1.08 of non-cash, non-operational tax benefits.

• Free cash flow for FY 2025 was $239M, more than doubling year-over-year; Q4 free cash flow was $196M.

• Gross margin improved to 25.3% in Q4 and 26.4% for the full year, with operating margin for Q4 expanding to 11.6%.

Outlook and guidance

• 2026 revenue guidance is $3.86B–$3.94B, with adjusted EBITDA of $510M–$535M and free cash flow of $255M–$270M, all above prior targets.

• Adjusted EPS guidance for 2026 is $5.25–$5.75, reflecting ~22% year-over-year growth on a comparable basis, excluding 2025 non-cash tax benefits.

• Free cash flow conversion targeted at 50%+ for 2026, with positive free cash flow expected every quarter and continued margin expansion.

• Revenue and adjusted EBITDA are expected to be weighted toward the second half of 2026 (~55%).