Company Overview - Diebold Nixdorf is led by CEO Octavio Marquez and CFO Thomas Timko, who are discussing the company's strategic direction and opportunities [1] - The company is focusing on its core markets and identifying areas with the most potential for growth in the coming years [4] Financial Measures - The presentation will include forward-looking statements that reflect management's expectations and beliefs, which are subject to risks that could lead to actual results differing from these statements [2] - Non-GAAP financial measures will be discussed, with reconciliations available in the company's most recent earnings presentation [3]

Diebold Nixdorf Conference Call Summary Company Overview - **Company**: Diebold Nixdorf (NYSE: DBD) - **Core Markets**: Banking and Retail [6][7] - **Opportunities**: Focus on branch automation in banking and expansion in the U.S. retail market [6][8] Banking Segment Insights - **Branch Efficiency**: Banks are seeking to improve branch efficiency as running a branch network accounts for 60% of their expenses [7][23] - **Solutions Offered**: - Recycling ATMs and teller cash recyclers to enhance cash management [7][24] - Software solutions that integrate physical branches with digital channels [25] - **Productivity Gains**: Recent implementations have improved teller productivity by 50% [24] Retail Segment Strategy - **Market Position**: Strong presence in Europe, aiming to expand in the U.S. [7][8] - **Self-Checkout Leadership**: Achieved number one position in self-checkout in Europe, targeting U.S. market expansion [26][39] - **AI-Driven Solutions**: Focus on reducing theft at checkout through AI and computer vision technologies [28][30] Financial Performance and Projections - **Free Cash Flow**: Positive free cash flow for three consecutive quarters, with a target of $800 million by 2027 [10][12] - **Revenue Growth**: Projected mid-single-digit growth from low single digits, with a target of 4% to 6% top-line growth by 2027 [12][42] - **Backlog**: Current backlog stands at $980 million, providing strong visibility into future revenue [46] Operational Improvements - **Margin Growth**: Product margins improved from low teens to mid to high 20s over two years [18][48] - **Lean Manufacturing**: Continuous improvement initiatives have led to significant enhancements in quality and delivery times [49][50] Capital Allocation and Shareholder Returns - **Debt Management**: Aiming for a 1.5x net debt leverage ratio, maintaining a strong balance sheet [13] - **Share Buyback Program**: Announced a $100 million buyback program, with $38 million already executed [13][14] Risk Factors and Market Conditions - **Tariff Exposure**: Estimated impact of $5 million to $10 million from tariffs, mitigated by local-to-local manufacturing strategies [52][53] - **ATM Market Dynamics**: The ATM market is stable with a slight growth trend, primarily driven by replacement rather than new installations [32] Key Differentiators - **Comprehensive Solutions**: Integration of hardware, software, and services to enhance banking and retail operations [25][31] - **Customer-Centric Approach**: Focus on understanding customer needs and providing tailored solutions [39][40] Conclusion Diebold Nixdorf is positioned for growth in both banking and retail sectors, leveraging technology and operational efficiencies to enhance profitability and shareholder value. The company is committed to executing its strategic initiatives while maintaining a strong focus on free cash flow generation and capital allocation.

Company Overview - Diebold Nixdorf is a leader in transforming banking and shopping experiences, providing integrated solutions that connect digital and physical channels for consumers [3] - The company partners with the majority of the world's top 100 financial institutions and top 25 global retailers, operating in over 100 countries with approximately 21,000 employees [3] Upcoming Event - Octavio Marquez, president and CEO, along with Tom Timko, executive vice president and CFO, will participate in a fireside chat at the Goldman Sachs Communacopia and Technology Conference on September 10, 2025, at 9:30 a.m. ET [1] - The event will be accessible via webcast on Diebold Nixdorf's Investor Relations website, with a replay available after the event [2]

Core Insights - Diebold Nixdorf has selected Oracle Fusion Cloud Service and Oracle Fusion Cloud Field Service to optimize its global service operations, leveraging AI to enhance efficiency and customer satisfaction [1][2][3] Company Overview - Diebold Nixdorf is a leading provider of services, software, hardware, and security for top financial institutions and retailers globally, aiming to unify and automate its service processes to meet the needs of its expanding customer base [2][6] - The company operates in over 100 countries and employs approximately 21,000 people, connecting digital and physical channels for millions of consumers daily [6] Technology Implementation - The integration of Oracle Cloud Service and Oracle Cloud Field Service is expected to automate complex service workflows, enable predictive maintenance, and improve the scheduling and routing of mobile workers [3][4] - With embedded AI, the new cloud applications will help manage millions of service tickets annually, leading to faster resolution times and reduced operational costs [3][4] Strategic Partnership - Diebold Nixdorf has been collaborating with Oracle since March 2024, building on previous successes in streamlining finance and HR processes with Oracle Fusion Applications [5][3] - The partnership aims to create a more efficient service delivery framework, standardizing processes and optimizing field operations through the latest AI innovations [4][3]

Core Insights - Diebold Nixdorf is launching its new Branch Automation Solutions portfolio aimed at enhancing efficiency for financial institutions while providing a seamless omnichannel consumer experience [1][2] - The solutions are designed to optimize operations, reduce costs, and improve customer engagement in a digital banking environment [2][3] Product Features - The Branch Automation Solutions include managed services that leverage Diebold Nixdorf's software on a cloud-native platform, addressing the need for increased automation in branch networks and cash management [1][4] - The solutions feature four operational domains that are pre-packaged and easy to deploy, allowing financial institutions to select and scale services according to their evolving needs [4][6] Market Positioning - Joe Myers, Executive Vice President at Diebold Nixdorf, emphasized the company's commitment to delivering integrated solutions that enhance efficiency and customer value, positioning the company as a partner of choice in the financial services sector [5][6] - The Branch Automation Solutions aim to transform traditional branches into advisory-led service hubs, enhancing customer relationships and driving profitability [3][5] Event Showcase - The Branch Automation Solutions will be showcased at Intersect Nashville, a premier financial industry client event taking place from August 25-27, 2025 [1][6] Operational Benefits - The solutions set a benchmark for uptime and security across ATM and teller cash recycling fleets, improving user experience and trust [7] - Integrated cash management features allow for optimized cassette configuration and improved cash-handling services, leading to measurable cost savings [7] - The platform enables migration of up to 80% of traditional teller transactions to ATMs, simplifying operations and increasing staff productivity [7]

Core Insights - EDEKA Paschmann is the first supermarket in Germany to implement Diebold Nixdorf's Vynamic® Smart Vision I Shrink Reduction solution at self-service checkouts, aimed at reducing errors and losses in transactions [1][2] - The AI-enabled technology provides real-time analysis of customer behavior, helping to identify missed scans or incorrect operations, thereby enhancing the checkout experience [2][3] - The Vynamic® Smart Vision I Age Verification solution allows for automated age verification for restricted products, freeing up staff for other customer service tasks [3][4] Technology Implementation - The Vynamic Smart Vision I Shrink Reduction uses cameras to monitor customer activities at self-service checkouts, providing immediate feedback to customers on scanning errors [2] - The system minimizes the need for employee intervention, only alerting staff for significant errors, thus streamlining the checkout process [2][5] - Both solutions are designed to be GDPR-compliant, ensuring no facial recognition or storage of customer images [4] Company Statements - Falk Paschmann, managing director of EDEKA Paschmann, emphasized the importance of customer well-being and the goal of enhancing the shopping experience through advanced technology [5] - Leyla Feghhi, head of Retail Sales in the DACH region at Diebold Nixdorf, highlighted that the technology addresses over 20 common causes of shrink, improving employee response to customer interactions [5] Future Plans - EDEKA Paschmann plans to adopt additional Diebold Nixdorf technology, specifically the Vynamic® Smart Vision | Fresh Produce Recognition for automatic identification of fruits and vegetables [5] Company Background - EDEKA Paschmann operates 11 stores with a total sales area exceeding 20,000 m² and employs over 900 staff, being part of the larger EDEKA Group [6] - Diebold Nixdorf is a global leader in automating and digitizing banking and shopping experiences, serving top financial institutions and retailers worldwide [7][8]

Core Insights - Diebold Nixdorf is participating as one of 70 contributors in the European Central Bank's innovation platform to explore digital euro payment functionalities and use cases [1][2] - The digital euro aims to be a universally accepted form of digital cash in the European Union, complementing existing payment methods [2] - Diebold Nixdorf's Vynamic® Transaction Middleware will integrate with digital euro interfaces, allowing banks to support new services efficiently [3][4] Company Involvement - Diebold Nixdorf is collaborating with the ECB to enhance the digital euro ecosystem, benefiting both banks and customers [2][4] - The company aims to assist banking customers in offering the digital euro as a new payment method in the future [4] - Diebold Nixdorf has a global presence, serving top financial institutions and retailers, and employs approximately 21,000 people worldwide [5]

[Forward-Looking Statement Disclosure](index=3&type=section&id=Forward-Looking%20Statement%20Disclosure) This section outlines forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ - This report contains forward-looking statements regarding future events, financial condition, operating results, strategy plans, liquidity, and financial position. These statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially[6](index=6&type=chunk)[7](index=7&type=chunk) - Factors that may affect results include the success of new products/services (e.g., Branch Automation, DN Series® EASY, Vynamic® Smart Vision), ability to execute digital strategy, cash flow generation, continuous improvement programs, international operations risks (geopolitical instability, tariffs), impact of alternative payment options, increased costs (energy, raw material, labor), competitive pressures, cybersecurity incidents, reliance on suppliers/third parties, ability to retain key employees, tax expenses, pension liabilities, acquisition success, market/economic conditions, currency exchange rates, inflation, regulatory changes, intellectual property rights, anti-bribery laws, and internal controls[10](index=10&type=chunk) [Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20Financial%20Information) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=4&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Diebold Nixdorf's financial condition, operational results, and strategic initiatives, including tariff mitigation [Results of Operations](index=4&type=section&id=Results%20of%20Operations) This section details the company's net sales, gross margin, operating expenses, and net income performance for the reported periods Net Sales Performance (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change | % Change (Constant Currency) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | % Change (Constant Currency) | | :------- | :------------------------------- | :------------------------------- | :------- | :--------------------------- | :----------------------------- | :----------------------------- | :------- | :--------------------------- | | **Banking** | | | | | | | | | | Services | $407.4 | $401.5 | 1.5% | 0.7% | $789.5 | $788.1 | 0.2% | 1.1% | | Products | $271.8 | $305.9 | (11.1)% | (12.0)% | $519.1 | $568.1 | (8.6)% | (8.1)% | | Total Banking | $679.2 | $707.4 | (4.0)% | (5.0)% | $1,308.6 | $1,356.2 | (3.5)% | (2.7)% | | **Retail** | | | | | | | | | | Services | $135.2 | $139.2 | (2.9)% | (7.7)% | $261.6 | $277.4 | (5.7)% | (7.2)% | | Products | $100.8 | $93.1 | 8.3% | 3.2% | $186.1 | $201.5 | (7.6)% | (8.7)% | | Total Retail | $236.0 | $232.3 | 1.6% | (3.3)% | $447.7 | $478.9 | (6.5)% | (7.8)% | | **Total Net Sales** | **$915.2** | **$939.7** | **(2.6)%** | **(4.6)%** | **$1,756.3** | **$1,835.1** | **(4.3)%** | **(4.1)%** | - For the three months ended June 30, 2025, total net sales **decreased by $24.5 million (2.6%)**, with a $19.3 million favorable currency impact. Banking net sales **decreased by $28.2 million (4.0%)**, primarily due to lower ATM unit sales volume. Retail net sales **increased by $3.7 million (1.6%)**, but decreased by $8.2 million excluding favorable currency impact, due to market headwinds[18](index=18&type=chunk) - For the six months ended June 30, 2025, total net sales **decreased by $78.8 million (4.3%)**, with a $3.9 million unfavorable currency impact. Banking net sales **decreased by $47.6 million (3.5%)**, driven by lower ATM unit sales volume and the non-recurrence of a $9.7 million tax recovery in Brazil. Retail net sales **decreased by $31.2 million (6.5%)**, primarily due to market headwinds[19](index=19&type=chunk) Gross Margin Performance (in millions, except percentages) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Gross profit - services | $130.6 | $142.7 | (8.5)% | $247.8 | $258.8 | (4.3)% | | Gross profit - products | $103.4 | $100.5 | 2.9% | $188.6 | $193.0 | (2.3)% | | Total gross profit | $234.0 | $243.2 | (3.8)% | $436.4 | $451.8 | (3.4)% | | Gross margin - services | 24.1% | 26.4% | | 23.6% | 24.3% | | | Gross margin - products | 27.8% | 25.2% | | 26.7% | 25.1% | | | Total gross margin | 25.6% | 25.9% | | 24.8% | 24.6% | | - Services gross margin **decreased by 230 and 70 basis points** for the three and six months ended June 30, 2025, respectively, due to restructuring, European service operational cost pressures, and North America business expansion costs. Product gross margin **increased by 260 and 160 basis points** for the same periods, primarily due to a favorable geographic mix of ATM machines and pricing[20](index=20&type=chunk) Operating Expenses (in millions, except percentages) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Selling and administrative expense | $154.2 | $152.2 | 1.3% | $306.0 | $313.8 | (2.5)% | | Research, development and engineering expense | $22.4 | $22.1 | 1.4% | $45.1 | $46.3 | (2.6)% | | Other operating income (loss) | $1.2 | $(1.8) | N/M | $(0.5) | $(2.8) | 82.1% | | Total operating expenses | $177.8 | $172.5 | 3.1% | $350.6 | $357.3 | (1.9)% | | Percent of net sales | 19.4% | 18.4% | | 20.0% | 19.5% | | - Selling and administrative expense **increased by $2.0 million** in Q2 2025 due to unfavorable currency impact but **decreased by $7.8 million** for the six months ended June 30, 2025, driven by lower spending related to refinancing activities and increased efficiency from continuous improvement initiatives. R&D costs reflect ongoing investment in hardware, software, and service enhancements[21](index=21&type=chunk) Other Income (Expense) (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :-------------------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Interest income | $2.5 | $3.0 | (16.7)% | $4.0 | $7.2 | (44.4)% | | Interest expense | $(21.8) | $(38.6) | 43.5% | $(43.3) | $(82.2) | 47.3% | | Foreign exchange gain (loss), net | $(22.2) | $7.6 | N/M | $(40.7) | $8.0 | N/M | | Miscellaneous gain, net | $2.5 | $2.6 | (3.8)% | $4.0 | $3.6 | 11.1% | | Total other income (expense), net | $(39.0) | $(25.4) | (53.5)% | $(76.0) | $(63.4) | (19.9)% | - Interest expense decreased significantly due to the debt refinancing completed on December 18, 2024. Foreign exchange gain (loss), net, was unfavorable, primarily due to the strengthening Brazilian real and euro against the U.S. dollar[22](index=22&type=chunk) Net Income and Effective Tax Rate (in millions, except percentages) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | % Change | Six months ended June 30, 2025 | Six months ended June 30, 2024 | % Change | | :--------------- | :------------------------------- | :------------------------------- | :------- | :----------------------------- | :----------------------------- | :------- | | Income tax expense | $4.8 | $32.0 | (85.0)% | $2.6 | $28.9 | (91.0)% | | Net income | $12.7 | $14.8 | (14.2)% | $5.3 | $0.8 | N/M | | Effective tax rate | 27.9% | 70.6% | | 26.5% | 92.9% | | - The effective tax rate was **significantly lower in 2025** primarily due to improved interest expense deductibility and non-recurring discrete tax items (expense in 2024, benefit in 2025)[23](index=23&type=chunk) [Liquidity and Capital Resources](index=6&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's financial liquidity, capital structure, cash flow generation, and share repurchase activities - On December 18, 2024, the Company issued **$950.0 million in 7.75% Senior Secured Notes** due 2030 and entered into a new **$310.0 million revolving credit facility** maturing on December 18, 2029[24](index=24&type=chunk) Credit Ratings | Agency | Outlook | Long-term | | :----- | :------ | :-------- | | Moody's | Stable | **B2** | | S&P | Positive | **B** | - Management believes current cash, available borrowing capacity, and short-term investments are adequate to support operating requirements, capital expenditures, and share repurchases for at least the next 12 months[25](index=25&type=chunk) Cash and Cash Availability (in millions) | Category | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Cash and cash equivalents | $279.2 | $296.2 | | Short-term investments | $15.2 | $16.9 | | Revolving credit facility | $310.0 | $310.0 | | Total cash and cash availability | $604.4 | $623.1 | Summary of Cash Flows (Six months ended June 30, in millions) | Activity | 2025 | 2024 | | :-------------------------------------- | :----- | :----- | | Net cash provided (used) by operating activities | **$45.8** | **$(31.5)** | | Net cash used by investing activities | $(32.8) | $(15.8) | | Net cash used by financing activities | $(44.1) | $(169.9) | | Effect of exchange rate changes on cash | $15.0 | $(15.0) | | Change in cash, cash equivalents and restricted cash | $(16.1) | $(232.2) | - Operating cash flows in H1 2025 were driven by cash provided by trade receivables and inventory, offset by uses for accounts payable[26](index=26&type=chunk)[27](index=27&type=chunk) - Investing activities were primarily for short-term investments, strategic business investments, capital expenditures, and internally developed software[26](index=26&type=chunk)[28](index=28&type=chunk) - Financing activities in H1 2025 were mainly due to common share repurchases, while H1 2024 related to Exit Facility repayment[26](index=26&type=chunk)[28](index=28&type=chunk) - The Board approved a **$100.0 million share repurchase program** on February 12, 2025. As of June 30, 2025, the Company purchased **855,742 shares for $37.9 million**, with **$62.1 million remaining** under the program[29](index=29&type=chunk) [Critical Accounting Policies and Estimates](index=7&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to the company's critical accounting policies and estimates during the reporting period - There have been no changes to the Company's critical accounting policies during the six months ended June 30, 2025. Further details are available in the Annual Report on Form 10-K for the year ended December 31, 2024[32](index=32&type=chunk) [Condensed Financial Statements and Notes](index=8&type=section&id=Condensed%20Financial%20Statements%20and%20Notes) This section provides the unaudited condensed consolidated financial statements and detailed notes on various financial accounts and activities [Statement of Financial Position](index=8&type=section&id=Statement%20of%20Financial%20Position) This section presents the company's condensed consolidated statement of financial position, detailing assets, liabilities, and equity Condensed Consolidated Statement of Financial Position (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $279.2 | $296.2 | | Restricted cash | $16.0 | $15.1 | | Short-term investments | $15.2 | $16.9 | | Trade receivables, net | $599.4 | $588.5 | | Inventories | $574.0 | $528.1 | | Prepaid expenses | $38.9 | $45.8 | | Current assets held for sale | $6.0 | $9.6 | | Other current assets | $207.8 | $167.7 | | **Total current assets** | **$1,736.5** | **$1,667.9** | | Property, plant and equipment, net | $266.8 | $246.2 | | Deferred income taxes | $69.4 | $69.5 | | Goodwill | $641.2 | $586.4 | | Customer relationships and other intangible assets, net | $815.7 | $778.6 | | Other assets | $210.3 | $194.9 | | **Total assets** | **$3,739.9** | **$3,543.5** | | **LIABILITIES** | | | | Accounts payable | $431.3 | $460.2 | | Deferred revenue | $346.7 | $320.7 | | Payroll and other benefits liabilities | $164.6 | $173.2 | | Other current liabilities | $331.1 | $312.2 | | **Total current liabilities** | **$1,273.7** | **$1,266.3** | | Long-term debt | $931.1 | $927.3 | | Pensions, post-retirement and other benefits | $127.7 | $124.4 | | Deferred income taxes | $185.3 | $176.8 | | Other liabilities | $117.1 | $110.5 | | **Total liabilities** | **$2,634.9** | **$2,605.3** | | **EQUITY** | | | | Common stock | $0.4 | $0.4 | | Paid-in-capital | $1,054.7 | $1,048.4 | | Retained earnings (deficit) | $2.8 | $(1.1) | | Treasury shares, at cost | $(39.7) | — | | Accumulated other comprehensive income (loss) | $79.0 | $(117.9) | | Total Diebold Nixdorf shareholders' equity | $1,097.2 | $929.8 | | Noncontrolling interests | $7.8 | $8.4 | | **Total equity** | **$1,105.0** | **$938.2** | | **Total liabilities and equity** | **$3,739.9** | **$3,543.5** | [Statement of Earnings](index=9&type=section&id=Statement%20of%20Earnings) This section presents the company's condensed consolidated statement of earnings, including revenues, expenses, and net income Condensed Consolidated Statement of Earnings (in millions, per share in dollars) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Net sales** | | | | | | Services | $542.6 | $540.7 | $1,051.1 | $1,065.5 | | Products | $372.6 | $399.0 | $705.2 | $769.6 | | **Total revenues** | **$915.2** | **$939.7** | **$1,756.3** | **$1,835.1** | | **Cost of sales** | | | | | | Services | $412.0 | $398.0 | $803.3 | $806.7 | | Products | $269.2 | $298.5 | $516.6 | $576.6 | | **Total cost of sales** | **$681.2** | **$696.5** | **$1,319.9** | **$1,383.3** | | **Gross profit** | **$234.0** | **$243.2** | **$436.4** | **$451.8** | | Selling and administrative expense | $154.2 | $152.2 | $306.0 | $313.8 | | Research, development and engineering expense | $22.4 | $22.1 | $45.1 | $46.3 | | Other operating income (loss) | $1.2 | $(1.8) | $(0.5) | $(2.8) | | **Total costs and expenses** | **$177.8** | **$172.5** | **$350.6** | **$357.3** | | **Operating profit** | **$56.2** | **$70.7** | **$85.8** | **$94.5** | | **Other income (expense)** | | | | | | Interest income | $2.5 | $3.0 | $4.0 | $7.2 | | Interest expense | $(21.8) | $(38.6) | $(43.3) | $(82.2) | | Foreign exchange gain (loss), net | $(22.2) | $7.6 | $(40.7) | $8.0 | | Miscellaneous gain, net | $2.5 | $2.6 | $4.0 | $3.6 | | **Income before taxes** | **$17.2** | **$45.3** | **$9.8** | **$31.1** | | Income tax expense | $4.8 | $32.0 | $2.6 | $28.9 | | Equity in earnings (loss) of unconsolidated subsidiaries, net | $0.3 | $1.5 | $(1.9) | $(1.4) | | **Net income** | **$12.7** | **$14.8** | **$5.3** | **$0.8** | | Net income (loss) attributable to noncontrolling interests | $0.5 | $(0.1) | $1.4 | $0.5 | | **Net income attributable to Diebold Nixdorf** | **$12.2** | **$14.9** | **$3.9** | **$0.3** | | Basic earnings per share | $0.33 | $0.40 | $0.10 | $0.01 | | Diluted earnings per share | $0.33 | $0.40 | $0.10 | $0.01 | [Statement of Cash Flows](index=10&type=section&id=Statement%20of%20Cash%20Flows) This section presents the company's condensed consolidated statement of cash flows, detailing operating, investing, and financing activities Condensed Consolidated Statement of Cash Flows (Six months ended June 30, in millions) | Category | 2025 | 2024 | | :---------------------------------------------------------------- | :----- | :----- | | **Net income** | **$5.3** | **$0.8** | | **Adjustments to reconcile net income to cash flow from operating activities:** | | | | Depreciation and amortization | $65.1 | $64.7 | | Amortization of deferred financing costs | $3.1 | $3.1 | | Share-based compensation | $6.3 | $4.5 | | Deferred income taxes | $(8.8) | $(2.1) | | Loss (gain) on foreign currency translation | $41.3 | $(8.0) | | Changes in certain assets and liabilities (working capital) | | | | Trade receivables | $33.4 | $(10.0) | | Inventories | $5.0 | $(10.0) | | Accounts payable | $(66.7) | $10.0 | | Deferred revenue | $1.6 | $10.0 | | Income taxes | $(17.1) | $(10.0) | | Accrued salaries, wages and commissions | $(20.5) | $10.0 | | Restructuring accrual | $3.7 | $10.0 | | **Net cash provided (used) by operating activities** | **$45.8** | **$(31.5)** | | **Net cash used by investing activities:** | | | | Capital expenditures | $(15.9) | $(15.8) | | Capitalized software development | $(11.1) | $(15.8) | | Proceeds from maturities of investments | $144.5 | $15.8 | | Payments for purchases of investments | $(152.1) | $(15.8) | | **Net cash used by investing activities** | **$(32.8)** | **$(15.8)** | | **Net cash used by financing activities:** | | | | Dividends paid to noncontrolling interest shareholder | $(2.0) | $0.0 | | Repayment of exit facility | $0.0 | $(200.0) | | Treasury share activity | $(39.7) | $0.0 | | **Net cash used by financing activities** | **$(44.1)** | **$(169.9)** | | Effect of exchange rate changes on cash, cash equivalents and restricted cash | $15.0 | $(15.0) | | **Change in cash, cash equivalents and restricted cash** | **$(16.1)** | **$(232.2)** | | Cash, cash equivalents and restricted cash at beginning of period | $311.3 | $543.5 | | Cash, cash equivalents and restricted cash at end of period | $295.2 | $311.3 | [Statement of Comprehensive Income (Loss)](index=11&type=section&id=Statement%20of%20Comprehensive%20Income%20(Loss)) This section presents the company's condensed consolidated statement of comprehensive income (loss), including other comprehensive income components Condensed Consolidated Statement of Comprehensive Income (Loss) (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Net income** | **$12.7** | **$14.8** | **$5.3** | **$0.8** | | **Other comprehensive income (loss), net of tax** | | | | | | Translation adjustment | $128.9 | $(35.4) | $198.6 | $(78.4) | | Foreign currency hedges | — | $(0.3) | — | $(0.3) | | Interest rate hedges | — | $(0.3) | — | $(0.3) | | Pension and other post-retirement benefits net actuarial gain (loss) amortized | $(0.8) | $1.9 | $(1.4) | $6.9 | | Other | — | — | $(0.3) | — | | **Other comprehensive income (loss), net of tax** | **$128.1** | **$(34.1)** | **$196.9** | **$(72.1)** | | **Comprehensive income (loss)** | **$140.8** | **$(19.3)** | **$202.2** | **$(71.3)** | | Less: Comprehensive income (loss) attributable to noncontrolling interests | $0.8 | $(0.3) | $1.4 | $0.3 | | **Comprehensive income (loss) attributable to Diebold Nixdorf** | **$140.0** | **$(19.0)** | **$200.8** | **$(71.6)** | [Statement of Changes in Shareholders' Equity](index=11&type=section&id=Statement%20of%20Changes%20in%20Shareholders'%20Equity) This section presents the company's condensed consolidated statement of changes in shareholders' equity, detailing movements in capital accounts Condensed Consolidated Statement of Changes in Shareholders' Equity (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Common stock** | | | | | | Beginning balance | $0.4 | $0.4 | $0.4 | $0.4 | | **Common stock, ending balance** | **$0.4** | **$0.4** | **$0.4** | **$0.4** | | **Accumulated other comprehensive income (loss)** | | | | | | Beginning balance | $(48.8) | $(30.4) | $(117.9) | $7.6 | | Other comprehensive income (loss) | $127.8 | $(33.9) | $196.9 | $(71.9) | | **Accumulated other comprehensive income (loss), ending balance** | **$79.0** | **$(64.3)** | **$79.0** | **$(64.3)** | | **Paid-in-capital** | | | | | | Beginning balance | $1,051.4 | $1,040.6 | $1,048.4 | $1,038.7 | | Share-based compensation | $3.3 | $2.6 | $6.3 | $4.5 | | **Paid-in-capital, ending balance** | **$1,054.7** | **$1,043.2** | **$1,054.7** | **$1,043.2** | | **Retained earnings** | | | | | | Beginning balance | $(9.4) | $2.5 | $(1.1) | $17.1 | | Net income attributable to the Company | $12.2 | $14.9 | $3.9 | $0.3 | | **Retained earnings, ending balance** | **$2.8** | **$17.4** | **$2.8** | **$17.4** | | **Treasury shares** | | | | | | Beginning balance | $(9.6) | — | — | — | | Purchases | $(30.1) | — | $(39.7) | — | | **Treasury shares, ending balance** | **$(39.7)** | **—** | **$(39.7)** | **—** | | **Diebold Nixdorf Shareholders' equity** | **$1,097.2** | **$996.7** | **$1,097.2** | **$996.7** | | **Noncontrolling interests** | | | | | | Beginning balance | $7.0 | $12.6 | $8.4 | $15.4 | | Net earnings (loss) attributable to noncontrolling interests | $0.5 | $(0.1) | $1.4 | $0.5 | | Noncontrolling interests other comprehensive income (loss) | $0.3 | $(0.2) | — | $(0.2) | | Distributions to non-controlling interest holders, net | — | — | $(2.0) | $(3.4) | | **Noncontrolling interests, ending balance** | **$7.8** | **$12.3** | **$7.8** | **$12.3** | | **Total equity balance at June 30** | **$1,105.0** | **$1,009.0** | **$1,105.0** | **$1,009.0** | [Note 1: Basis of Presentation](index=12&type=section&id=Note%201%3A%20Basis%20of%20Presentation) This note outlines the basis for preparing the unaudited condensed consolidated financial statements in accordance with U.S. GAAP - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q and U.S. GAAP, reflecting all necessary adjustments for fair presentation. Prior-year information has been reclassified to conform to the current presentation. These interim results are not necessarily indicative of full-year results[39](index=39&type=chunk)[40](index=40&type=chunk) [Note 2: Earnings Per Share](index=12&type=section&id=Note%202%3A%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share for the reported periods Earnings Per Share Calculation (in millions, except per share amounts) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Diebold Nixdorf | $12.2 | $14.9 | $3.9 | $0.3 | | Weighted-average common shares in basic loss per share | 37.2 | 37.6 | 37.4 | 37.6 | | Effect of dilutive shares | 0.3 | 0.1 | 0.3 | — | | Weighted-average number of shares used in diluted earnings per share | 37.5 | 37.7 | 37.7 | 37.6 | | Basic earnings per share | $0.33 | $0.40 | $0.10 | $0.01 | | Diluted earnings per share | $0.33 | $0.40 | $0.10 | $0.01 | | Anti-dilutive shares not used | 0.1 | 1.0 | 0.2 | 1.2 | [Note 3: Income Taxes](index=12&type=section&id=Note%203%3A%20Income%20Taxes) This note details the income tax expense and effective tax rate, highlighting factors influencing period-over-period changes Income Tax Expense and Effective Tax Rate (in millions, except percentages) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $4.8 | $32.0 | $2.6 | $28.9 | | Effective tax rate | 27.9% | 70.6% | 26.5% | 92.9% | - The effective tax rate for the three and six months ended June 30, 2025, was **27.9% and 26.5%**, respectively, significantly lower than the prior year (**70.6% and 92.9%**). This difference is primarily due to improved interest expense deductibility in 2025 and non-recurring discrete tax items[42](index=42&type=chunk) [Note 4: Inventories](index=12&type=section&id=Note%204%3A%20Inventories) This note provides a breakdown of the company's inventories by major classes, including raw materials, finished goods, and service parts Major Classes of Inventories (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Raw materials and work in process | $184.6 | $170.3 | | Finished goods | $196.5 | $183.9 | | **Total product inventories** | **$381.1** | **$354.2** | | Service parts | $192.9 | $173.9 | | **Total inventories** | **$574.0** | **$528.1** | [Note 5: Property, Plant and Equipment and Operating Leases](index=13&type=section&id=Note%205%3A%20Property%2C%20Plant%20and%20Equipment%20and%20Operating%20Leases) This note details the company's property, plant and equipment, including right-of-use assets, and associated operating lease liabilities Property, Plant and Equipment, Net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Original cost | $198.3 | $169.9 | | Less accumulated depreciation | $(60.7) | $(41.8) | | Right-of-use operating lease assets | $129.2 | $118.1 | | **Property, plant and equipment, net** | **$266.8** | **$246.2** | - Depreciation expense was $9.2 million and $5.2 million for the three months ended June 30, 2025 and 2024, respectively, and $17.6 million and $13.0 million for the six months ended June 30, 2025 and 2024, respectively[44](index=44&type=chunk) Operating Lease Liabilities (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Current operating lease liabilities | $48.7 | $43.3 | | Non-current operating lease liabilities | $83.2 | $76.3 | [Note 6: Goodwill and Other Intangible Assets](index=13&type=section&id=Note%206%3A%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides information on changes in goodwill and a detailed breakdown of other intangible assets by major category Changes in Goodwill (Six months ended June 30, 2025, in millions) | Category | Banking | Retail | Total | | :-------------------------- | :------ | :----- | :---- | | Goodwill, balance at January 1, 2025 | $448.4 | $138.0 | $586.4 | | Currency translation adjustment | $41.6 | $13.2 | $54.8 | | **Goodwill, balance at June 30, 2025** | **$490.0** | **$151.2** | **$641.2** | Intangible Assets by Major Category (in millions) | Category | Weighted average remaining useful lives | Gross Carrying Amount (June 30, 2025) | Accumulated Amortization (June 30, 2025) | Net Carrying Amount (June 30, 2025) | Gross Carrying Amount (Dec 31, 2024) | Accumulated Amortization (Dec 31, 2024) | Net Carrying Amount (Dec 31, 2024) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :--------------------------------------- | :---------------------------------- | :----------------------------------- | :--------------------------------------- | :---------------------------------- | | Customer relationships | 15.6 years | $578.0 | $(62.4) | $515.6 | $523.8 | $(41.1) | $482.7 | | Trademarks and trade names | 16.6 years | $123.1 | $(12.5) | $110.6 | $114.5 | $(8.5) | $106.0 | | Capitalized software development | 2.4 years | $35.5 | $(12.0) | $23.5 | $46.9 | $(6.1) | $40.8 | | Technology know-how and development costs non-software | 4.3 years | $200.5 | $(61.2) | $139.3 | $186.2 | $(41.3) | $144.9 | | Other intangibles | < 1.0 year | $67.2 | $(40.5) | $26.7 | $38.3 | $(34.1) | $4.2 | | **Total intangible assets, net** | | **$1,004.3** | **$(188.6)** | **$815.7** | **$909.7** | **$(131.1)** | **$778.6** | - Total amortization expense (excluding deferred financing costs) was $22.2 million and $25.1 million for the three months ended June 30, 2025 and 2024, respectively, and $47.6 million and $51.5 million for the six months ended June 30, 2025 and 2024, respectively. Gross carrying amounts increased by $83.3 million due to currency translation[46](index=46&type=chunk) [Note 7: Product Warranties](index=13&type=section&id=Note%207%3A%20Product%20Warranties) This note outlines the company's accounting policy for product warranties and details changes in the warranty liability - The Company records an estimated liability for potential warranty costs at the time of sale, based on historical factors like labor rates, repair time, travel time, service calls, and replacement part costs[47](index=47&type=chunk) Changes in Product Warranty Liability (in millions) | Category | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Beginning balance as of January 1 | $22.5 | $28.0 | | Current period accruals | $5.8 | $19.6 | | Current period settlements | $(8.6) | $(22.5) | | Currency translation adjustment | $1.9 | $(1.7) | | **Ending balance as of June 30** | **$21.6** | **$23.4** | [Note 8: Restructuring](index=14&type=section&id=Note%208%3A%20Restructuring) This note details the company's continuous improvement initiative, including restructuring charges and severance accrual activity - The Company's continuous improvement initiative, launched in Q4 2023, aims to innovate solutions and streamline cost structures. Total expected expense is approximately **$165 million**, with **$142.4 million** incurred cumulatively as of June 30, 2025. Significant expenses relate to transitioning personnel and consultant fees[48](index=48&type=chunk) Restructuring Charges on Consolidated Statements of Earnings (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of sales – services | $7.8 | $(0.3) | $18.3 | $16.0 | | Cost of sales – products | $0.9 | $1.1 | $1.2 | $1.8 | | Selling and administrative expense | $6.3 | $10.3 | $13.1 | $27.0 | | Research, development and engineering expense | $0.2 | $(0.5) | $2.6 | $2.5 | | Other operating income | $1.1 | — | $1.1 | — | | **Total** | **$16.3** | **$10.6** | **$36.3** | **$47.3** | Severance Accrual Balance and Activity (in millions) | Category | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Beginning balance as of January 1 | $15.9 | $10.3 | | Severance accrual | $30.6 | $22.8 | | Payout/Settlement | $(26.9) | $(16.4) | | Other | $0.6 | $(0.3) | | **Ending balance as of June 30** | **$20.2** | **$16.4** | [Note 9: Debt](index=14&type=section&id=Note%209%3A%20Debt) This note provides details on the company's outstanding debt, recent refinancing activities, and financing facility terms Outstanding Debt Balances (in millions) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | 2030 Senior Secured Notes | $950.0 | $950.0 | | Other | $16.5 | $15.8 | | **Long-term debt** | **$966.5** | **$965.8** | | Long-term deferred financing fees | $(35.4) | $(38.5) | | **Total outstanding debt** | **$931.1** | **$927.3** | - On December 18, 2024, the Company issued **$950.0 million in 7.75% Senior Secured Notes** due 2030 and entered into a new **$310.0 million revolving credit facility** maturing on December 18, 2029[48](index=48&type=chunk)[49](index=49&type=chunk) - No amounts were outstanding under the Revolving Credit Facility as of June 30, 2025[49](index=49&type=chunk) - The December 2024 Refinancing involved borrowing $70.0 million under the Revolving Credit Facility, along with proceeds from the 2030 Senior Secured Notes and cash on hand, to repurchase term loans under the Exit Facility and repay the prior revolving credit facility. This resulted in a **$7.1 million loss** on extinguishment of debt[50](index=50&type=chunk)[51](index=51&type=chunk) Financing Facilities Summary | Financing Facilities | Interest Rate Index and Margin | Maturity/Termination Dates | Initial Term (Years) | | :------------------- | :----------------------------- | :------------------------- | :------------------- | | 2030 Senior Secured Notes | 7.75% | March 2030 | 5.25 | | New Revolving Credit Facility | SOFR + 2.75%-3.50% (floor 0.0%) | December 2029 | 5 | [Note 10: Shareholders' Equity](index=16&type=section&id=Note%2010%3A%20Shareholders'%20Equity) This note details changes in accumulated other comprehensive income and information regarding common shares and share repurchases Changes in Accumulated Other Comprehensive Income (AOCI), Net of Tax (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Currency translation adjustments AOCI** | | | | | | Beginning balance | $(41.6) | $(28.8) | $(111.6) | $14.2 | | Other comprehensive income (loss) before reclassifications | $128.6 | $(35.2) | $198.6 | $(78.2) | | **Ending balance** | **$87.0** | **$(64.0)** | **$87.0** | **$(64.0)** | | **Foreign currency hedges AOCI** | | | | | | Beginning balance | $(0.1) | $(0.1) | $(0.1) | $(0.1) | | Other comprehensive income (loss) before reclassifications | — | $(0.3) | — | $(0.3) | | **Ending balance** | **$(0.1)** | **$(0.4)** | **$(0.1)** | **$(0.4)** | | **Interest rate hedges AOCI** | | | | | | Beginning balance | $(0.1) | — | $(0.1) | — | | Other comprehensive loss before reclassifications | — | $(0.3) | — | $(0.3) | | **Ending balance** | **$(0.1)** | **$(0.3)** | **$(0.1)** | **$(0.3)** | | **Pension and other post-retirement benefits** | | | | | | Beginning balance | $(6.3) | $(1.1) | $(5.7) | $(6.1) | | Amounts reclassified from AOCI | $(0.8) | $1.9 | $(1.4) | $6.9 | | **Ending balance** | **$(7.1)** | **$0.8** | **$(7.1)** | **$0.8** | | **Other** | | | | | | Beginning balance | $(0.7) | $(0.4) | $(0.4) | $(0.4) | | Other comprehensive loss before reclassifications | — | — | $(0.3) | — | | **Ending balance** | **$(0.7)** | **$(0.4)** | **$(0.7)** | **$(0.4)** | | **AOCI at June 30** | **$79.0** | **$(64.3)** | **$79.0** | **$(64.3)** | - As of June 30, 2025, **37,715,053 common shares** were issued and **36,859,610 shares** were outstanding. The Company repurchased **855,443 shares for $39.7 million** during the six months ended June 30, 2025, under a **$100.0 million share repurchase program** approved on February 12, 2025[55](index=55&type=chunk) [Note 11: Financial Instruments](index=16&type=section&id=Note%2011%3A%20Financial%20Instruments) This note provides information on the fair value of the company's borrowings and other financial instruments Fair Value of Borrowings (in millions) | Category | Carrying amount (net) June 30, 2025 | Estimated fair value June 30, 2025 | Carrying amount (net) December 31, 2024 | Estimated fair value December 31, 2024 | | :--------- | :---------------------------------- | :--------------------------------- | :------------------------------------ | :----------------------------------- | | Borrowings | $966.3 | $1,023.3 | $966.0 | $987.4 | - Assets and liabilities reflected at fair value in the financial statements (e.g., short- and long-term investments, deferred compensation) are not included in this disclosure. Substantially all of these assets are considered Level 1, and liabilities' fair values are considered Level 2[58](index=58&type=chunk) [Note 12: Commitments and Contingencies](index=17&type=section&id=Note%2012%3A%20Commitments%20and%20Contingencies) This note discloses the company's legal proceedings, indirect tax claims, and various financial guarantees and restricted cash - The Company is involved in routine indirect tax claims and legal proceedings globally, which management deems immaterial to the financial position or results of operations. The aggregate risk for material indirect tax matters was estimated up to **$56.1 million** as of June 30, 2025[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Two appraisal proceedings related to Diebold Nixdorf Holding Germany GmbH (formerly Diebold KGaA) concerning compensation payments and cash exit compensation have been resolved in favor of the Company by the Higher Regional Court of Düsseldorf, with no further remedies permitted[63](index=63&type=chunk)[64](index=64&type=chunk) Bank Guarantees, Standby Letters of Credit, and Surety Bonds (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Maximum future contractual obligations (performance guarantees) | $117.9 | $90.4 | | Standby letters of credit to insurance providers | $23.8 | $21.9 | Restricted Cash Reconciliation (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $279.2 | $296.2 | | Bank collateral guarantees | $8.3 | $8.2 | | Pension collateral guarantees | $7.7 | $6.9 | | Restricted cash and cash equivalents | $16.0 | $15.1 | | **Total cash, cash equivalents, and restricted cash** | **$295.2** | **$311.3** | [Note 13: Revenue](index=18&type=section&id=Note%2013%3A%20Revenue) This note provides details on the timing of revenue recognition and contract balance information, including remaining performance obligations Timing of Revenue Recognition (Six months ended June 30, as percentage of net sales) | Timing of revenue recognition | 2025 | 2024 | | :---------------------------- | :--- | :--- | | Products transferred at a point in time | 40% | 42% | | Products and services transferred over time | 60% | 58% | | **Net sales** | **100%** | **100%** | Contract Balance Information (in millions) | Contract balance information | Trade receivables | Contract liabilities | | :------------------------- | :---------------- | :------------------- | | Balance at December 31, 2024 | $588.5 | $320.7 | | Balance at June 30, 2025 | $599.4 | $346.7 | - During the six months ended June 30, 2025, the Company recognized **$153.1 million** of revenue related to the deferred revenue balance at December 31, 2024. As of June 30, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was approximately **$1,400 million**, expected to be recognized over the next 12 to 18 months[69](index=69&type=chunk)[70](index=70&type=chunk) [Note 14: Segments](index=18&type=section&id=Note%2014%3A%20Segments) This note presents financial information for the company's Banking and Retail segments, including net sales, cost of sales, and operating profit - The Company operates in two reportable segments: Banking and Retail. Segment information is reviewed by the Chief Executive Officer (CODM) for decision-making, resource allocation, and performance assessment. Segment operating profit excludes corporate charges, asset impairment, restructuring, and other non-routine items[71](index=71&type=chunk)[72](index=72&type=chunk) Segment Performance and Reconciliation to Income Before Taxes (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Total net sales by segment** | | | | | | Banking | $679.2 | $707.4 | $1,308.6 | $1,356.2 | | Retail | $236.0 | $232.3 | $447.7 | $478.9 | | **Total net sales** | **$915.2** | **$939.7** | **$1,756.3** | **$1,835.1** | | **Total segment cost of sales** | | | | | | Banking | $492.5 | $565.1 | $960.3 | $1,081.4 | | Retail | $180.0 | $130.3 | $340.1 | $284.2 | | **Total segment cost of sales** | **$672.5** | **$695.4** | **$1,300.4** | **$1,365.6** | | **Total segment gross profit** | | | | | | Banking | $186.7 | $142.3 | $348.3 | $274.8 | | Retail | $56.0 | $102.0 | $107.6 | $194.7 | | **Total segment gross profit** | **$242.7** | **$244.3** | **$455.9** | **$469.5** | | **Total segment SG&A and other operating expenses** | | | | | | Banking | $61.6 | $63.2 | $125.6 | $127.3 | | Retail | $30.9 | $28.6 | $60.0 | $57.9 | | **Total segment SG&A and other operating expenses** | **$92.5** | **$91.8** | **$185.6** | **$185.2** | | **Total segment operating profit** | | | | | | Banking | $125.1 | $79.1 | $222.7 | $147.5 | | Retail | $25.1 | $73.4 | $47.6 | $136.8 | | **Total segment operating profit** | **$150.2** | **$152.5** | **$270.3** | **$284.3** | | Corporate charges not allocated to segments | $(77.1) | $(62.9) | $(149.3) | $(132.9) | | Restructuring and other saving initiative expenses | $(16.3) | $10.6 | $(36.3) | $(47.3) | | Refinancing related costs | — | $(5.0) | — | $(11.9) | | Net non-routine income (expense) | $(0.6) | $1.2 | $1.1 | $2.3 | | **Operating profit** | **$56.2** | **$70.7** | **$85.8** | **$94.5** | | Other expense, net | $(39.0) | $(25.4) | $(76.0) | $(63.4) | | **Income before taxes** | **$17.2** | **$45.3** | **$9.8** | **$31.1** | Segment Net Sales by Service and Product Solution (in millions) | Category | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Total Banking** | | | | | | Services | $407.4 | $401.5 | $789.5 | $788.1 | | Products | $271.8 | $305.9 | $519.1 | $568.1 | | **Total Banking** | **$679.2** | **$707.4** | **$1,308.6** | **$1,356.2** | | **Total Retail** | | | | | | Services | $135.2 | $139.2 | $261.6 | $277.4 | | Products | $100.8 | $93.1 | $186.1 | $201.5 | | **Total Retail** | **$236.0** | **$232.3** | **$447.7** | **$478.9** | | **Total revenue** | **$915.2** | **$939.7** | **$1,756.3** | **$1,835.1** | [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the Annual Report on Form 10-K for market risk disclosures, noting no material changes since December 31, 2024 [Controls and Procedures](index=19&type=section&id=Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting [Disclosure Controls and Procedures](index=20&type=section&id=Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as evaluated by management - Disclosure controls and procedures are designed to ensure timely and accurate reporting of information required under the Exchange Act. Based on management's evaluation, the CEO and CFO concluded that such controls and procedures were effective as of June 30, 2025[75](index=75&type=chunk) [Change in Internal Controls](index=20&type=section&id=Change%20in%20Internal%20Controls) This section reports no material changes in the company's internal control over financial reporting during the quarter - There have been no changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[76](index=76&type=chunk) [Part II - Other Information](index=19&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=19&type=section&id=Legal%20Proceedings) This section refers to Note 12 of the condensed consolidated financial statements for details on legal proceedings [Risk Factors](index=19&type=section&id=Risk%20Factors) This section refers to the Annual Report on Form 10-K for risk factor disclosures, noting no material changes since December 31, 2024 [Unregistered Sales of Equity Securities and Use of Proceeds](index=19&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program and the shares acquired during the second quarter Share Repurchase Activity (Second Quarter ended June 30, 2025, in millions, except per share amounts) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Purchased as Part of Publicly Announced Plans | Maximum that May Yet Be Purchased Under the Plans | | :----- | :------------------------------- | :--------------------------- | :-------------------------------------------------- | :---------------------------------------------- | | April | 188,458 | $40.76 | $7.7 | $84.3 | | May | 213,426 | $47.74 | $10.2 | $74.1 | | June | 234,897 | $51.08 | $12.0 | $62.1 | | **Total** | **636,781** | **$46.91** | **$29.9** | | - The share repurchase program was approved on February 12, 2025, allowing purchases in the open market or through accelerated share repurchase programs or Rule 10b5-1 plans. The program does not obligate the Company to acquire any specific amount of common stock[78](index=78&type=chunk) [Defaults Upon Senior Securities](index=20&type=section&id=Defaults%20Upon%20Senior%20Securities) This section confirms that there are no applicable defaults upon senior securities - Not applicable[79](index=79&type=chunk) [Mine Safety Disclosure](index=20&type=section&id=Mine%20Safety%20Disclosure) This section confirms that there are no applicable mine safety disclosures - Not applicable[79](index=79&type=chunk) [Exhibits](index=20&type=section&id=Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including XBRL documents and certifications - The exhibits include Inline XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase, and Cover Page Interactive Data File. It also includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[79](index=79&type=chunk) [Signatures](index=21&type=section&id=Signatures) This section contains the official signatures for the report, confirming its submission - The report is signed on behalf of Diebold Nixdorf, Incorporated by Thomas S. Timko, Executive Vice President and Chief Financial Officer, on August 6, 2025[81](index=81&type=chunk)

Financial Data and Key Metrics Changes - The company reported a strong second quarter with product orders growing 10% year over year, reaching the highest level in three years [6] - Gross margins expanded by 50 basis points year over year and 120 basis points sequentially, driven by a favorable product mix and pricing discipline [7][22] - The company generated $13 million of free cash flow in Q2, marking the third consecutive quarter of positive free cash flow and the first time in the company's history for positive cash flow in the first half of the year [25][26] Business Line Data and Key Metrics Changes - In Banking, revenue increased by $50 million sequentially, with gross margin up 140 basis points year over year and 180 basis points sequentially, supported by favorable geographic mix and disciplined pricing [27] - In Retail, there was sequential growth in order entry, revenue, and backlog in Q2, although gross margin decreased by 70 basis points sequentially and 190 basis points year over year [28] Market Data and Key Metrics Changes - The company operates in a CHF 32 billion banking and retail automation market, with strong demand for advanced ATMs and AI-driven checkout solutions [9][10] - The North American market is showing promising growth, with a targeted pipeline of key accounts and increasing traction for AI-enabled solutions [44][47] Company Strategy and Development Direction - The company is focused on capitalizing on market opportunities through a three-year growth plan, emphasizing branch automation and AI-driven solutions [8][10] - The strategy includes local manufacturing to enhance competitiveness and service capabilities, particularly in the North American and Indian markets [14][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong operational performance in the second half of the year, supported by a robust backlog and positive market demand [6][20] - The company anticipates continued improvement in retail margins and revenue growth in Q3 and Q4, driven by a recovery in the retail business [29][60] Other Important Information - The company repurchased $30 million of shares during the quarter, reflecting a commitment to returning capital to shareholders [7][33] - The company maintains a strong balance sheet with approximately $620 million of liquidity and a net leverage ratio of 1.5x [33] Q&A Session Summary Question: Can you expand on the confidence regarding retail business inflection in the second half of the year? - Management noted a higher mix of point of sale revenue impacting margins but expressed optimism about recovery in retail, particularly with significant backlog wins expected to convert into sales [42][43] Question: What is the current status of Teller Cash Recyclers (TCR) adoption? - Management indicated that they are in the third or fourth inning of TCR adoption, with significant orders received and a strong value proposition for banks [51][53] Question: Can you discuss the opportunity in the Indian market? - The company is reentering the Indian market with compact, energy-efficient ATMs, aiming to grow its installed base and service annuity [57] Question: What are the expectations for retail and product gross margins in the second half? - Management expects improvements in retail margins and revenue growth in Q3 and Q4, driven by ongoing projects and market recovery [59][60] Question: How are tariffs impacting the company? - Management provided an updated estimate of tariff impacts, indicating successful mitigation strategies that have reduced expected costs significantly [61][66]

Financial Data and Key Metrics Changes - The company generated positive free cash flow for the third consecutive quarter, achieving $13 million in Q2, marking the first time in its history for positive cash flow in the first half of the year [26][20] - Gross margins expanded by 50 basis points year over year and 120 basis points sequentially, driven by a favorable product mix and pricing discipline [7][22] - Adjusted EBITDA for Q2 was $111 million, with a sequential margin growth of 180 basis points [25][21] Business Line Data and Key Metrics Changes - In Banking, revenue increased by $50 million sequentially, with gross margin up 140 basis points year over year and 180 basis points sequentially [27][28] - Retail saw sequential growth in order entry, revenue, and backlog in Q2, although gross margin decreased by 70 basis points sequentially and 190 basis points year over year [29][30] - The company reported a product backlog of approximately $980 million at the end of Q2, up from $900 million at the end of Q1, with a 10% year-over-year growth in product orders [21][6] Market Data and Key Metrics Changes - The company is capitalizing on the $32 billion banking and retail automation market, with strong demand for advanced ATMs and AI-driven checkout solutions [9][10] - In the Middle East, the introduction of dual power ATMs has opened new customer opportunities, while in India, compact and energy-efficient ATMs are expected to drive growth [11][12][56] Company Strategy and Development Direction - The company is focused on a three-year growth plan, emphasizing disciplined growth and profitability through branch automation and AI-driven solutions [8][9] - The strategy includes local manufacturing to enhance service capabilities and reduce costs, particularly in North America and India [14][56] - The company aims to maintain a strong balance sheet while targeting nearly doubling free cash flow generation by 2027 [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of revenue, adjusted EBITDA, and free cash flow guidance for the year, supported by strong demand and backlog [31][33] - The company anticipates a recovery in the retail business in the second half of the year, driven by ongoing projects and a growing pipeline in North America [30][38] - Management highlighted the importance of continuous improvement and lean operations to enhance productivity and customer satisfaction [16][18] Other Important Information - The company repurchased $30 million worth of shares during the quarter, reflecting its commitment to returning capital to shareholders [7][34] - The effective non-GAAP tax rate for the year is expected to be in the range of 40% to 45%, with a long-term goal of reducing it to the low to mid-30s by 2027 [32][75] Q&A Session Summary Question: Confidence in retail business recovery - Management noted a higher mix of point of sale revenue impacting margins but expressed optimism about sequential improvements in revenue and operating profit [43][44] Question: Teller Cash Recyclers (TCR) adoption rates - Management indicated that they are in the third or fourth inning of TCR adoption, with significant opportunities for cross-selling between ATMs and teller services [50][53] Question: Indian market opportunities - The company is confident in achieving similar margins for compact ATMs in India, with a focus on growing the installed base and service annuity [56][57] Question: Retail and product gross margin expectations - Management expects improvements in retail margins in Q3 and Q4, driven by growth efforts and new software features [58][59] Question: Impact of tariffs on costs - Management clarified that the reduction in tariff impact is due to localized manufacturing and operational efficiencies [62][64]