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Jun 30, 2022
Diebold Nixdorf Q2 2022 Earnings Report
Reported sequential revenue increase and record backlog amidst new operating model implementation.
Key Takeaways
Diebold Nixdorf reported a sequential increase in revenue and a record backlog of $1.4 billion. The company is implementing a new operating model and cost savings plan. The company reaffirmed Adjusted EBITDA guidance of $320 million to $350 million.
Ended the second quarter with a record $1.4 billion in backlog.
Reported revenue of $852 million, up 3% sequentially.
Reaffirmed Adjusted EBITDA guidance of $320 million to $350 million.
New operating model well underway, with ~$120 million of annualized costs either removed or in a transition period.
Diebold Nixdorf
Diebold Nixdorf
Forward Guidance
Diebold Nixdorf expects total revenue of $3.55 billion to $3.75 billion and adjusted EBITDA of $320 million to $350 million for the full year 2022. Free cash flow is expected to break even.
Positive Outlook
- Reiterating adjusted EBITDA guidance range.
- Reiterating free cash flow outlook.
- Savings from restructuring plan and other cost management measures will offset adjusted revenue guidance.
- Expect full-year revenue to be flat on a year-over-year basis on a constant currency basis adjusting for divestitures.
- Confident in our operating model as we continue to implement cost savings and additional operational rigor to accelerate the pace of backlog conversion to revenue and free cash flow.
Challenges Ahead
- Adjusting full-year revenue outlook to reflect ongoing challenges in the macroeconomic environment.
- A majority of the adjustment attributable to unfavorable FX impacts.
- Free cash flow guidance includes cash restructuring charges.
- Expect foreign currency exchange (FX) will be an additional, significant headwind in the second half of the year.
- Working against the expected challenges faced during the past few quarters.