Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2][3]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Brink's (BCO) is highlighted as a strong candidate for trend investing, having increased by 25.9% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - BCO has also shown a price increase of 18.5% over the last four weeks, indicating that the upward trend is still intact, and it is currently trading at 80.4% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - BCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a proven track record, with Rank 1 stocks generating an average annual return of +25% since 1988, indicating the effectiveness of this rating system [7]. - Additionally, BCO has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Opportunities - Besides BCO, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting potential investment opportunities for investors looking for stocks with strong price momentum [8]. - The article encourages investors to explore over 45 Zacks Premium Screens tailored to different investing styles, which can help identify winning stock picks [8].

Core Viewpoint - Brink's (BCO) is showing solid improvement in earnings estimates, indicating potential for continued stock price momentum [1][2] Earnings Estimate Revisions - Analysts have shown growing optimism regarding Brink's earnings prospects, reflected in upward revisions of earnings estimates [2] - The current-quarter earnings estimate is $2.09 per share, representing a +38.4% change from the previous year, with an 8.59% increase in the consensus estimate over the last 30 days [5][6] - For the full year, the earnings estimate is $7.95 per share, reflecting a +10.9% change from the previous year, with a consensus estimate increase of 8.16% [6][7] Zacks Rank and Performance - Brink's has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on earnings estimate revisions [8] - Historically, Zacks 1 Ranked stocks have generated an average annual return of +25% since 2008, suggesting a favorable investment outlook for Brink's [3][8] Investment Outlook - The stock has increased by 13.4% over the past four weeks due to strong estimate revisions, indicating further upside potential [9]

Core Insights - The performance of Brink's (BCO) in international markets is crucial for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending June 2025 was $1.3 billion, reflecting a year-over-year increase of 3.8% [4] International Revenue Breakdown - Europe contributed 26% of total revenue, amounting to $338 million, with a surprise increase of 5.92% compared to analyst expectations [5] - Latin America generated $319 million, representing 24.5% of total revenue, but fell short of the consensus estimate by 0.38% [6] - The Rest of World segment accounted for $209 million, or 16.1% of total revenue, also slightly missing expectations by 0.24% [7] Future Revenue Predictions - Analysts project Brink's will achieve revenues of $1.33 billion for the ongoing fiscal quarter, a 5.9% increase from the previous year, with expected contributions from Europe, Latin America, and Rest of World being $326.55 million, $324.8 million, and $218.8 million respectively [8] - For the full year, total revenue is projected at $5.23 billion, indicating a 4.3% rise from last year, with regional contributions expected to be $1.27 billion from Europe, $1.29 billion from Latin America, and $869 million from Rest of World [9] Market Performance - Brink's stock has increased by 13.4% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.7% [13] - Over the past three months, the company's shares gained 20.1%, compared to a 13.2% increase in the S&P 500, while the overall sector saw a 2% decline [13]

Group 1 - The investment thesis for The Brink's Co. (BCO) remains positive due to strong growth momentum in both AMS and DRS segments [1] - The second quarter of 2025 showed robust organic growth, supporting the ongoing investment strategy [1] - The investment approach focuses on long-term investments while also identifying short-term opportunities for alpha generation through bottom-up analysis [1] Group 2 - The analysis emphasizes the importance of identifying companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Brink's (BCO) Stock Analysis - Brink's (BCO) has shown a four-week price change of 10.9%, indicating growing investor interest [3] - Over the past 12 weeks, BCO's stock gained 18.6%, with a beta of 1.46, suggesting it moves 46% more than the market [4] - BCO has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - BCO is trading at a Price-to-Sales ratio of 0.87, suggesting it is undervalued at 87 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides BCO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Financial Data and Key Metrics Changes - The company reported total revenue of approximately $1.3 billion, reflecting a 4% increase, with 5% organic growth partially offset by currency fluctuations [22] - Adjusted EBITDA increased by 3% in total and 5% on a constant currency basis to $232 million, with record operating margins of 12.6% [22][6] - Earnings per share (EPS) was $1.79, flat compared to the prior year, with a diluted share count reduction of 6% year over year [22][7] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment experienced 16% organic growth, while the North America segment saw a 5% increase, marking the fastest growth rate in nine quarters [5][6] - The Cash and Valuables Management (CVM) business had stable organic growth of 1% year over year, impacted by the conversion of traditional customers to AMS DRS [18][19] Market Data and Key Metrics Changes - The company noted record transactions and cash dispensed in major geographies, including North America, contributing to the strong performance in AMS [12] - The total addressable market for AMS and DRS is estimated to be two to three times the existing traditional market, indicating significant growth potential [17] Company Strategy and Development Direction - The company is focused on delivering organic revenue growth primarily from higher margin subscription-based services of AMS and DRS, with expectations for margin expansion in the second half of the year [8][9] - Strategic investments, including a partnership with KAL, aim to enhance AMS capabilities and expand the customer base [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver accelerating margin expansion and EBITDA growth, supported by strong performance in AMS and DRS [33][31] - The company anticipates continued robust growth in the second half of the year, with expectations for revenue and EBITDA increases for the full year [8][29] Other Important Information - The company has allocated $130 million year to date for share repurchases, with a remaining capacity of $166 million under the program [10][11] - Free cash flow generation improved, with $102 million delivered in Q2, and a year-to-date increase of $36 million [7][9] Q&A Session Summary Question: What factors contributed to the adjusted EBITDA margin exceeding guidance? - Management highlighted strong organic growth, productivity improvements, and a favorable revenue mix as key contributors, with adjustments for fewer workdays and lapping of previous equipment sales [38][40][43] Question: How does the company expect AMS and DRS growth to trend in the second half of the year? - Management indicated that while growth may be lumpy due to large customer rollouts, they expect acceleration in both AMS and DRS, aligning with the upper end of their guidance [46][47][70] Question: How did the Cash and Valuables Management (CVM) business perform in Q2? - The CVM segment saw a moderate growth rate, reverting to mid-single digits, with expectations for continued performance in line with this range [49][71] Question: What internal initiatives are being taken to push customers towards AMS and DRS? - The company is focusing on enhancing value propositions and improving communication to attract customers to AMS and DRS, while still maintaining a strong CVM business [56][58] Question: What are the expectations for the North America segment in the second half of the year? - Management expects continued upward trajectory in North America, supported by a robust pipeline in AMS and DRS, along with healthy performance in Global Services [64]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $1.3 billion, an increase of 4% with 5% organic growth, partially offset by currency effects [23] - Adjusted EBITDA was up 3% in total and 5% on a constant currency basis to $232 million, with record operating margins of 12.6% [23][24] - Earnings per share (EPS) of $1.79 was flat compared to the prior year, with a diluted share count reduction of 6% year over year [24][26] - Free cash flow for Q2 was $102 million, a year-to-date increase of $36 million, with a conversion rate of 48% of adjusted EBITDA [7][10] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment experienced 16% organic growth, while the North America segment grew by 5%, marking the fastest growth rate in nine quarters [5][6] - The Cash and Valuables Management (CVM) business saw stable organic growth of 1% year over year, impacted by the conversion of traditional customers to AMS DRS [19][20] - The company expects continued strong growth in AMS and DRS, with a robust pipeline and record installations in the quarter [21][60] Market Data and Key Metrics Changes - The total addressable market for AMS is estimated to be around $8 billion, with potential for significant expansion if banks outsource their ATM networks [17][18] - The company noted that the current cash logistics market is valued at $28 billion, indicating substantial growth opportunities in both AMS and DRS [17] Company Strategy and Development Direction - The company is focused on delivering organic revenue growth primarily from higher margin subscription-based services of AMS and DRS, with expectations for margin expansion in the second half of the year [8][9] - Strategic investments, including a partnership with KAL, aim to enhance AMS capabilities and expand the customer base [13][28] - The company is committed to maximizing shareholder value through disciplined capital allocation, including a share repurchase program [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver accelerated margin expansion and EBITDA growth, supported by strong performance in AMS and DRS [32][31] - The company anticipates a strong second half of the year, with expectations for revenue and EBITDA increases based on first half performance [30][31] Other Important Information - The company has reduced its share count by 4% year to date through its share repurchase program, with remaining capacity of $166 million [12][28] - The effective tax rate increased to 28%, primarily due to the lapping impact of one-time tax benefits from the prior year [26] Q&A Session Summary Question: Adjusted EBITDA margin performance - Management noted that strong organic growth and productivity improvements contributed to the higher adjusted EBITDA margin, exceeding guidance [37][38] Question: AMS DRS growth expectations - Management indicated that while they are guiding for high teens growth, they expect acceleration in the second half due to large customer rollouts and previous equipment sales lapping [46][47] Question: BGS performance and tariff impact - The BGS business moderated to mid-single digit growth in Q2, with expectations for similar performance in the near term due to tariff-related volatility [50] Question: Internal initiatives for AMS and DRS - The company is focusing on pulling customers towards AMS and DRS by enhancing value propositions, rather than pushing them away from CVM [55][57] Question: North America segment expectations - Management expects continued upward trajectory in the North America segment, supported by a strong pipeline in AMS and DRS [63] Question: Differentiation in growth between AMS and DRS - Management stated that both segments are expected to grow at balanced rates, with visibility into booked business and sales velocity supporting this outlook [67][69] Question: CVM growth rate catalysts - Management noted that the BGS business could drive CVM growth, while conversions to AMS DRS could also positively impact overall growth rates [71][72]

分组1 - Brink's reported quarterly earnings of $1.79 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing an increase from $1.67 per share a year ago, resulting in an earnings surprise of +25.17% [1] - The company achieved revenues of $1.3 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.16% and increasing from $1.25 billion year-over-year [2] - Over the last four quarters, Brink's has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 4.4% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the coming quarter is $1.92 on revenues of $1.3 billion, and for the current fiscal year, it is $7.35 on revenues of $5.14 billion [7] - The Zacks Industry Rank indicates that the Outsourcing industry is currently in the bottom 33% of over 250 Zacks industries, which may impact Brink's stock performance [8]

Financial Performance & Growth Strategy - Brink's aims to grow organically by expanding ATM Managed Services (AMS) and Digital Retail Solutions (DRS) subscription-based recurring revenue[10] - The company is targeting mid-to-high teens organic growth in AMS/DRS over the mid-term[27, 28] - Brink's expects to expand profit margins by shifting revenue to AMS/DRS and driving cost productivity[10] - The company is focused on improving free cash flow conversion by expanding profit margins, reducing capital intensity, and shortening the cash cycle[10] - Brink's aims to maximize shareholder value through accretive capital allocation, targeting at least 50% of free cash flow to shareholder returns[11, 38] AMS/DRS Expansion & Market Opportunity - AMS/DRS expands Brink's addressable market by 2-3x, targeting retailers with over $5,000 cash per month and the remaining bank ATMs to be outsourced[17] - The company's network optimization with conversion to AMS/DRS results in reduced miles driven and process efficiency[22] - AMS/DRS is delivering growth and margin improvement, with AMS/DRS projected to be 24% of total revenue in 2025, up from 10% in 2020[24] 2025 Outlook - For the second quarter of 2025, Brink's projects total revenue between $1.25 billion and $1.3 billion, with organic growth of 3%-6%[47] - The adjusted EBITDA for Q2 2025 is expected to be between $205 million and $225 million, with a margin of approximately 16.9%[47] - The company anticipates earnings per share (EPS) for Q2 2025 to be in the range of $1.25 to $1.65[47]

[Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls for the reporting period [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the quarterly period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased as of June 30, 2025, with total equity also showing growth compared to year-end 2024 Balance Sheet Summary (in millions) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,072.5 | $2,887.9 | | **Total Assets** | **$7,086.0** | **$6,623.1** | | **Total Current Liabilities** | $2,035.1 | $1,898.4 | | **Total Liabilities** | **$6,700.9** | **$6,310.6** | | **Total Equity** | **$385.1** | **$312.5** | [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues and operating profit increased year-over-year, while net income attributable to Brink's slightly decreased Q2 Financial Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $1,300.5 | $1,253.1 | | Operating Profit | $133.9 | $116.0 | | Net Income attributable to Brink's | $43.7 | $46.2 | | Diluted EPS | $1.03 | $1.02 | Six-Month Financial Performance (in millions, except EPS) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenues | $2,547.2 | $2,489.2 | | Operating Profit | $253.0 | $236.9 | | Net Income attributable to Brink's | $95.3 | $95.5 | | Diluted EPS | $2.22 | $2.11 | - Cash dividends paid per common share increased to **$0.2550** in Q2 2025 from $0.2425 in Q2 2024[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved in H1 2025, while cash used in investing and financing activities increased Six-Month Cash Flow Summary (in millions) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $143.8 | $(2.2) | | Net Cash used in Investing Activities | $(157.6) | $(116.4) | | Net Cash (used in) from Financing Activities | $(38.1) | $99.1 | - The company repurchased **$130.0 million** of its common stock in the first six months of 2025, nearly double the $65.7 million repurchased in the same period of 2024[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, financial data, and significant disclosures, including operations in Argentina - The company operates in four segments: North America, Latin America, Europe, and Rest of World[24](index=24&type=chunk)[31](index=31&type=chunk) - Argentina's economy was designated as highly inflationary, resulting in a **$14.1 million** pretax remeasurement loss in the first six months of 2025[34](index=34&type=chunk) - A prior period overstatement of depreciation related to Brink's Argentina was corrected, leading to a **$13.6 million** increase to Q2 2025 net income[37](index=37&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial performance, condition, liquidity, and capital resources, including consolidated and segment-level results [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q2 2025 consolidated revenues increased by 4% year-over-year, with operating profit rising 15% and margin expanding to 10.3% Q2 2025 vs Q2 2024 Consolidated Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **GAAP Revenues** | $1,300.5M | $1,253.1M | 4% | | **GAAP Operating Profit** | $133.9M | $116.0M | 15% | | **GAAP Operating Margin** | 10.3% | 9.3% | 11% | | **Non-GAAP Operating Profit** | $164.5M | $155.6M | 6% | | **Adjusted EBITDA** | $232.0M | $225.9M | 3% | - Q2 2025 organic revenue growth of **5%** was primarily due to inflation-based price increases and growth in AMS and DRS revenue[170](index=170&type=chunk) Q2 2025 Operating Profit Change by Segment (in millions) | Segment | Q2 2024 Profit | Organic Change | Currency Effect | Q2 2025 Profit | | :--- | :--- | :--- | :--- | :--- | | North America | $51.7 | +$10.6 | $0.0 | $62.3 | | Latin America | $63.2 | -$2.6 | -$7.6 | $55.0 | | Europe | $32.2 | +$5.7 | +$2.1 | $39.5 | | Rest of World | $39.0 | +$1.3 | +$0.9 | $41.2 | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by improved operating cash flow, while net debt increased to fund corporate purposes and working capital - Free cash flow before dividends (non-GAAP) improved to a use of **$0.4 million** in H1 2025 from a use of $36.8 million in H1 2024[253](index=253&type=chunk)[255](index=255&type=chunk) Net Debt Reconciliation (in millions) | Component | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $4,123.1 | $3,896.2 | | Less: Cash & equivalents available | $1,265.6 | $1,314.0 | | **Net Debt** | **$2,857.5** | **$2,582.2** | - As of June 30, 2025, **$373 million** was available under the Revolving Credit Facility[267](index=267&type=chunk) - Under the 2023 Share Repurchase Program, **$166 million** remained available as of June 30, 2025[272](index=272&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices, reporting no material changes in H1 2025 - The company reports no material change in its market risk exposures, which include interest rates, foreign currency, and commodity prices, in the six months ended June 30, 2025[287](index=287&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[288](index=288&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2025[289](index=289&type=chunk) [Part II - Other Information](index=64&type=section&id=Part%20II%20-%20Other%20Information) This section provides additional information on legal proceedings, risk factors, and equity security sales and use of proceeds [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 for details on legal proceedings, including an ongoing antitrust investigation in Chile - For details on legal proceedings, the report refers to Note 13, which discusses the Chilean antitrust matter[294](index=294&type=chunk)[163](index=163&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the 2024 Form 10-K[295](index=295&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchases during Q2 2025, part of a $500 million program authorized in November 2023 Share Repurchases for Q2 2025 | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April 2025 | 607,650 | $87.11 | | May 2025 | 266,136 | $90.00 | | June 2025 | 96,781 | $85.70 | - The repurchases were made under a **$500 million** share repurchase program approved in November 2023, set to expire on December 31, 2025[296](index=296&type=chunk)