NCR Atleos (NATL) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2024, exceeding guidance for adjusted EPS and free cash flow, and establishing a solid foundation as an independent, ATM-centric public company after separation activities.

• Drove growth across key P&L metrics, with new highs in revenue, adjusted EBITDA, adjusted EPS, and free cash flow, supported by robust service backlogs and pipelines.

• Expanded customer base and partnerships, particularly in bank outsourcing solutions, and improved operational performance and customer service levels.

• Strategic focus on growing recurring service revenue, expanding ATM as a Service, and leveraging global scale.

• Recognized for service excellence with industry awards and improved customer satisfaction.

Financial highlights

• 2024 revenue reached $4.317 billion, up 3% year-over-year, with recurring revenue up 5% to 73% of total.

• Adjusted EBITDA was $781 million, up 7% year-over-year, with margin expanding 60 basis points to 18.1%.

• Adjusted EPS was $3.22, exceeding guidance; free cash flow was $242 million, well above the $205 million target.

• Q4 revenue was $1.11 billion, up 1% year-over-year; Q4 adjusted EBITDA grew 23% to $219 million.

• Full-year GAAP net income was $91 million, reversing a prior year loss, with diluted EPS of $1.23.

Outlook and guidance

• 2025 core revenue expected to grow 3%-6% (constant currency); total revenue up 1%-3% with 2% FX headwind.

• Adjusted EBITDA projected to grow 7%-10% (constant currency); adjusted EPS expected to rise 21%-27% to $3.90-$4.10.

• Free cash flow guidance for 2025 is $260-$300 million; net leverage targeted to fall further from 3.2x.

• Q1 2025 core revenue to be flat; adjusted EBITDA $165-$175 million; adjusted EPS $0.50-$0.60.