Diebold Nixdorf Authorizes Share Buyback of Up to $250 Million as It Cuts Forecasts
Key Facts
Diebold Nixdorf’s board authorized a program to repurchase up to $250 million of common stock on October 28, 2026, according to a company statement. The decision comes as the company faces pressure on earnings and cash flow after cutting its full-year 2026 estimates following third-quarter results. Chief Financial Officer Tom Timko said the new program "provides additional flexibility to return capital," while the company continues to invest in strategic opportunities. The company did not specify how many shares it must repurchase under the authorization. The stock closed at $54.75 on November 12, according to EL7 data.
The new program extends an existing capital-return policy. The company said a previous $200 million program, announced on November 5, 2025, was nearing completion when it announced the new authorization. The approval gives the company a ceiling of up to $250 million for purchases but does not require it to use the full amount. The company said purchases may depend on prevailing share prices, market and economic conditions, and other factors. The program may also be extended, suspended or terminated without prior notice. The timing, size and price of any purchases therefore remain subject to the company’s decision and conditions at the time of execution.
Third-quarter results showed net income of $7.1 million, while adjusted earnings before interest, taxes, depreciation and amortization reached $127.8 million. Earnings per share under accounting standards were $0.19, compared with $1.11 in the third quarter of 2025. Adjusted earnings per share were $1.34, versus $1.39 a year earlier. The comparison reflects a sharp decline in accounting earnings, while the adjusted measure fell by less. On revenue, the company said its retail segment grew 16% year over year in the third quarter.
The company reported third-quarter revenue of $994.3 million, compared with $945.2 million in the corresponding period of 2025, a 5.2% annual increase, according to the disclosure. Retail revenue rose to $296.1 million from $255 million, while banking revenue was $698.2 million, compared with $690.2 million. The figures show sales growth in both segments, with a larger increase in retail sales value. But revenue growth did not prevent the company from revising its outlook for earnings and cash flow. Chief Executive Officer Octavio Marquez said the forecast update reflects changes in revenue mix and raw material cost pressures, as the company focuses on improving profitability and converting earnings into cash.
Diebold Nixdorf said inflation in component costs, primarily related to memory, created a net burden of about $25 million during 2026. It said its adjusted earnings outlook takes into account product mix and raw material cost pressures, partly offset by productivity improvements and operating expense discipline. The company lowered its full-year adjusted earnings before interest, taxes, depreciation and amortization forecast to $490–510 million from $510–535 million. It also cut its free cash flow estimate to $190–210 million from $255–270 million. This places the new buyback authorization against a lower financial outlook, although the company said the program provides flexibility to return capital and invest in strategic opportunities.
The company recorded free cash flow usage of $45.9 million in the third quarter, excluding separate tax payments. It attributed the usage to the timing of value-added tax refunds and working capital requirements. It also expected additional German tax payments in the fourth quarter of 2026 for 2024 and 2025. The company estimated cash taxes related to those years at about $50 million, with the additional payments due in the fourth quarter. These cash obligations are among the factors reflected in the revised full-year free cash flow outlook.