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Diebold Nixdorf Earnings 2024 Third Quarter
We watch Diebold. Skillful resellers in the retail market while trying to underpin their lagging ATM service market. We remember DeLaRue.
2025 Guidance: The company provided initial 2025 guidance, projecting revenue between $3.8 billion to $4.0 billion and adjusted EBITDA of $500 million to $550 million. The company secured significant wins in the banking sector, including a major deal with a top-5 U.S. bank for over 3,000 ATMs. Diebold Nixdorf made significant progress in its cloud transformation, with over 230,000 devices now connected to DN AllConnect℠ Data Engine. The company introduced new products like the DN Series™ EASY eXpress and expanded its self-service solutions portfolio.
Diebold Nixdorf’s third quarter 2024 financial results present a mixed picture with several positives and negatives:
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- Gross profit (non-GAAP) increased by 8.2% year-over-year to $259.0 million1.
- Gross margin (non-GAAP) expanded by 250 basis points to 27.9%1.
- Operating profit (non-GAAP) grew by 7.2% year-over-year to $101.8 million1.
- Adjusted EBITDA increased by 7.7% to $117.5 million1.
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- Net cash use from operating activities improved by 81.1% year-over-year1.
- Free cash flow use improved by 73.7% year-over-year1.
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- Continued strength in Banking with major wins in the U.S., Netherlands, Brazil, and Asia-Pacific1.
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- Seven consecutive quarters of gross margin expansion1.
- Accelerating adoption of lean manufacturing principles1.
- Successful launch of a new cloud-based sales and operations planning model1.
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- Company expects to finish the year at the high end of its adjusted EBITDA guidance range1.
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- Total revenue decreased by 1.7% year-over-year to $927.1 million1.
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- Operating profit (GAAP) decreased by 21.1% year-over-year1.
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- Reported a net loss (GAAP) of $21.7 million, compared to a profit in the same period last year1.
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- Retail product market headwinds impacting full-year revenue outlook1.
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- Net debt increased to $754.7 million as of September 30, 2024, compared to $647.0 million at the end of 2023.
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- Modest unfavorable impact from foreign currency exchange affecting full-year revenue outlook1.
Overall, while Diebold Nixdorf is showing improvements in profitability and operational efficiency, it still faces challenges in revenue growth and maintaining profitability on a GAAP basis. The company’s focus on lean principles and continuous improvement appears to be yielding positive results, but market headwinds in the retail segment and currency fluctuations continue to pose challenges.