NCR Atleos (NATL, Financial) is set to enhance ING's presence in Spain by delivering over 740 new terminals. This expansion aims to better serve ING's customer base, which exceeds 4.4 million individuals in the region. NATL will oversee the comprehensive management of these ATMs, handling everything from installation and security to daily operations and maintenance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for NCR Atleos Corp (NATL, Financial) is $39.83 with a high estimate of $60.00 and a low estimate of $30.00. The average target implies an upside of 33.62% from the current price of $29.81. More detailed estimate data can be found on the NCR Atleos Corp (NATL) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, NCR Atleos Corp's (NATL, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
NATL Key Business Developments
Release Date: May 08, 2025
- Revenue: Core revenue was $966 million, slightly less than the prior year on a constant currency basis.
- Adjusted EBITDA: Increased 9% to $175 million, with a margin expansion of 270 basis points to 17.9%.
- Net Income: Non-GAAP EPS increased 56% year over year to $0.64.
- Self-Service Banking Revenue: Grew 1% year over year on a constant currency basis to $624 million.
- ATM as a Service Revenue: Grew 24% year over year to $57 million.
- Network Segment Revenue: $299 million, down 4% year over year on a reported basis.
- Free Cash Flow: Cash outflow of $23 million for the first quarter.
- Net Leverage: 3.2 times, down approximately a quarter of a turn compared to the prior year.
- Guidance for 2025: Core revenue growth of 3-6%, adjusted EBITDA growth of 7-10%, adjusted EPS of $3.90 to $4.10, and free cash flow between $260 million and $300 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NCR Atleos Corp (NATL, Financial) reported a strong start to 2025 with first-quarter results in line with expectations.
- The company achieved a 9% growth in adjusted EBITDA, driven by a favorable revenue mix and productivity initiatives.
- Self-service banking segment saw a 6% growth in combined services and software revenue, contributing to a 320 basis point margin expansion.
- ATM as a service revenue grew by 24%, with a 54% increase in gross profit and over 700 basis points of gross margin expansion.
- The network segment signed a significant partnership with 7-Eleven, adding thousands of locations for its AllPoint network.
Negative Points
- The company faces potential impacts from tariffs, which could result in a $25 million cost impact for the year.
- Liberty X Bitcoin transaction revenue continues to decline due to regulatory changes, impacting overall revenue.
- Hardware revenue was down year-over-year in Q1, although it is expected to grow in the remainder of the year.
- The company is experiencing lower transaction volumes in the UK, affecting the network segment's performance.
- NCR Atleos Corp (NATL) is dealing with the closure of low-performing retail partner locations, which could impact transaction volumes.
