Diebold Nixdorf Reports 6.1% Net Sales Decline and $7.5 Million Net Loss in Q1 2025

Diebold Nixdorf, Incorporated reported a net sales decline of $54.3 million, or 6.1%, for the first quarter of 2025, totaling $841.1 million compared to $895.4 million in the same period of 2024. The decrease was influenced by a net unfavorable currency impact of $23.3 million, primarily from the Brazilian real and the euro. Excluding this currency effect, net sales fell by $31.0 million. The Banking segment, which accounted for 74.8% of total sales, saw a 3.0% decrease in net sales to $629.5 million, while the Retail segment experienced a more significant decline of 14.2%, totaling $211.6 million.

The company's gross profit for the quarter was $202.4 million, down from $208.6 million in the prior year, resulting in a total gross margin of 24.1%, an increase from 23.3% year-over-year. The improvement in gross margin was attributed to enhanced service operations in North America and a favorable geographic mix of ATM sales. Operating expenses also decreased by 6.5% to $172.8 million, driven by lower selling and administrative expenses and research and development costs, reflecting the company's focus on efficiency and cost management.

Diebold Nixdorf's net loss for the quarter was $7.5 million, a 46.4% improvement from the $14.0 million loss reported in the same quarter of 2024. This reduction in net loss was influenced by a significant decrease in interest expenses, which fell by 50.7% to $21.5 million due to recent debt refinancing. The effective tax rate for the quarter was 29.7%, compared to 21.8% in the previous year, reflecting changes in the jurisdictional mix of earnings and other tax-related factors.

The company continues to focus on strategic initiatives, including a $100 million share repurchase program announced in February 2025, under which it repurchased 184,961 shares for $8 million during the first quarter. As of March 31, 2025, Diebold Nixdorf had approximately $624.6 million in total cash and cash availability, which includes $310 million available under its revolving credit facility. The company remains committed to mitigating the impact of tariffs and is actively pursuing alternative sourcing strategies to offset potential costs.

Looking ahead, Diebold Nixdorf anticipates ongoing challenges due to macroeconomic conditions affecting its retail customers and the evolving demand for banking automation solutions. The company is focused on enhancing its product offerings, including its Branch Automation Solutions and cash recycling technology, while continuing to monitor market conditions and adjust its strategies accordingly. The management believes that its current cash position and operational strategies will support its financial requirements for the foreseeable future.