NATL

NCR Atleos is two-and-a-half years post the October 2023 spin-off from NCR Voyix, and FY2025 is the first clean year where the operating story shows through. Net income attributable to Atleos roughly doubled to $162M (+102.5%) on revenue of $4.35B (+1.1%), diluted EPS hit $2.14 (+98.1%), and Adjusted EBITDA grew to $830M at a 19.1% margin (up from 18.2%). The Self-Service Banking + Network + T&T segment mix is throwing off $356M of operating cash flow, and management is actively deleveraging — long-term debt fell 6.5% to $2.67B while cash rose to $456M. ATMaaS revenue jumped from $194M to $258M (+33%), which is the highest-quality piece of the model and the closest thing to a secular growth driver in the filing.

The valuation reflects most of this already. At $43.48 the stock trades at 20.3x trailing EPS and 0.7x sales — not cheap on earnings for a low-single-digit grower, and the 40.2% ROE is flattered by the post-spin equity base of just $403M against $5.27B of liabilities (13.07x liabilities/equity). That capital structure is the central problem: equity is thin because the spin loaded Atleos with the ATM business's debt, and while deleveraging is working, one bad year reintroduces solvency optics. Current liabilities ($1.90B) now exceed current assets ($1.82B), a working-capital position that the MD&A itself flags as seasonal — Q1 is structurally weak as winter depresses ATM transaction volume.