Antoine Gallop

Antoine Gallop of Wedbush Securities questioned the remaining market opportunity for ATM recycler penetration and its ongoing impact on banking margins, and asked for the key factors influencing Diebold Nixdorf's 2026 adjusted EPS guidance range, driving results towards either the upper or lower end.

Answer

CEO Octavio Marquez discussed a consistent annual shipment volume of 60,000-70,000 machines, with continuous improvement in recycler penetration, expecting high banking margins to be sustained despite potential mix shifts. CFO Thomas Timko attributed 2026 EPS growth to the continued share buyback program and post-tax operating profit, emphasizing the operating model's ability to grow EBITDA at twice the revenue rate.

Antoine Gallop of Wedbush Securities asked about the remaining opportunity to grow the mix of recyclers in the banking segment, specifically how under-penetrated these products are as customers refresh their ATM fleets. He also requested insights into the puts and takes that might drive the 2026 EPS guidance towards the upper or lower end of the range, and the overall factors considered in setting this year's guidance.

Answer

CEO Octavio Marquez explained that the growth in recycler mix is a continuous cycle, with the company shipping 60,000-70,000 machines annually and penetration steadily improving. He noted the ramp-up of Fit-for-Purpose devices in Asia, which may have a slightly lower margin profile, but expects to offset this and maintain high margins through Lean initiatives. CFO Thomas Timko clarified that the 2026 EPS guidance, when excluding non-cash, non-operational items from 2025, reflects approximately 22% year-over-year growth. He attributed the drivers to the continuation of the share buyback program and post-tax operating profit, emphasizing the leverage of their operating model to grow EBITDA at twice the rate of revenues and sustain strong free cash flow trends.