Financial Data and Key Metrics Changes - Brink's reported Q3 2025 revenue of over $1.3 billion, a 6% increase, with 5% organic growth and a 1% foreign currency tailwind [18] - Adjusted EBITDA rose 17% to $253 million, with operating profit up 24% [18] - EBITDA margins reached a record 19%, up 180 basis points year-over-year, driven by strong productivity and a favorable revenue mix [5][18] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment saw organic growth accelerate from 16% in Q2 to 19% in Q3, now accounting for 28% of total revenue [5][11] - Cash and Valuables Management (CVM) organic growth remained consistent, but was impacted by the conversion of existing customers to AMS DRS, accounting for a 2-3 percentage point headwind [10][31] Market Data and Key Metrics Changes - The company is experiencing healthy organic growth across all geographic segments, with notable performance in North America and Latin America [11][29] - The penetration rate for ATM outsourcing remains low, indicating significant growth opportunities in both existing and new markets [13] Company Strategy and Development Direction - Brink's is focused on delivering organic growth primarily from higher-margin subscription-based services, with a strategic shift towards AMS DRS [7][10] - The company aims to maximize shareholder value through disciplined capital allocation, including share repurchase programs [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of AMS DRS, citing a healthy pipeline and strong customer conversions [27][28] - The company anticipates continued margin improvement and cash generation, with a commitment to return at least 50% of free cash flow to shareholders [9][25] Other Important Information - Free cash flow for Q3 was $175 million, a year-over-year increase of 30%, with a trailing 12-month conversion rate of 50% of adjusted EBITDA [6][18] - The net debt to EBITDA leverage ratio was reduced to 2.9 times, within the targeted range [9][22] Q&A Session Summary Question: Can you elaborate on the client traction you're seeing in both AMS and DRS? - Management noted good visibility into Q4 and the first half of next year, with strong growth in both AMS and DRS, particularly in North America and Latin America [27][28] Question: What trends are seen in the CVM business? - The CVM business experienced flat organic growth, primarily due to customer conversions to AMS DRS, which accounted for a headwind [31] Question: What internal strategies are driving growth in AMS DRS? - The company has expanded its incentive compensation plans to align more employees with AMS DRS growth, and is also exploring partnerships with channel partners to enhance sales [36][41] Question: How should investors think about North America margin potential? - Management indicated that North America margins have improved significantly, driven by a better AMS DRS mix, disciplined pricing, and operational execution, with expectations for continued margin expansion [42][46] Question: What are the midterm goals for free cash conversion from EBITDA? - The company aims for a conversion rate of 40-45%, supported by improvements in DSO and capital efficiency [49][51] Question: How does bank consolidation impact the business? - Management views bank consolidation as an opportunity for AMS solutions, providing potential cost synergies for consolidating banks [60][62]

Financial Data and Key Metrics Changes - The company reported revenue of over $1,300,000,000, an increase of 6% year-over-year, with 5% organic growth and a 1% tailwind from foreign currency [21][22] - Adjusted EBITDA rose 17% to $253,000,000, with operating profit up 24% [21][22] - EBITDA margins reached 19%, up 180 basis points from the prior year [6][21] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment saw organic growth accelerate from 16% in Q2 to 19% in Q3, contributing to 28% of total revenue [6][14] - The Cash and Valuables Management (CVM) business remained consistent, with growth driven by pricing discipline and customer conversions to AMS DRS [14][22] Market Data and Key Metrics Changes - The company is experiencing healthy organic growth across all geographic segments, with particular strength in North America and Latin America [36][70] - The penetration rate for ATM outsourcing remains low, indicating significant market expansion opportunities [16][36] Company Strategy and Development Direction - The company is focused on delivering organic growth primarily from higher-margin subscription-based services of AMS and DRS, with expectations to increase the revenue mix to 27-28% by year-end [12][13] - The strategy includes enhancing productivity, improving capital efficiency, and maximizing shareholder value through disciplined capital allocation [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of AMS DRS, citing a robust pipeline and strong customer traction [32][36] - The company anticipates continued margin improvement and cash generation, with a target of at least 20% EBITDA margin in North America over the midterm [19][57] Other Important Information - The company has repurchased approximately 1,700,000 shares year-to-date at an average price of $89 per share, with plans to return at least 50% of free cash flow to shareholders [11][26] - The net debt to EBITDA leverage ratio was reduced to 2.9 times, within the targeted range [12][26] Q&A Session Summary Question: Can you elaborate on the client traction you're seeing in both AMS and DRS? - Management noted good visibility into Q4 and the first half of next year, with strong growth in both AMS and DRS, particularly from conversions of traditional customers [32][34] Question: What trends are you seeing in the CVM business? - The CVM business growth was impacted by conversions to AMS DRS, accounting for a 2-3 point headwind, while Global Services performed in line with expectations [37] Question: What internal strategies are driving growth in AMS DRS? - The company has expanded its incentive compensation plans to align more employees with AMS DRS growth, and is evolving to work with channel partners to enhance sales [46][51] Question: How should investors think about the margin potential in North America? - Management indicated that incremental margins are expected to be between 20% to 30%, with no artificial ceiling, and a target of at least 20% EBITDA margins in the midterm [56][57] Question: What are your thoughts on midterm goals for free cash conversion from EBITDA? - The company aims for a free cash flow conversion of 40% to 45%, driven by a favorable mix of subscription-based business models and improved collection efforts [63][66] Question: How do you view bank consolidation and its implications for your business? - Management sees bank consolidation as an opportunity for AMS solutions, providing unique offerings that can create cost synergies for consolidating banks [75][80]

Core Insights - Brink's reported quarterly earnings of $2.08 per share, slightly missing the Zacks Consensus Estimate of $2.09 per share, but showing an increase from $1.51 per share a year ago, resulting in an earnings surprise of -0.48% [1] - The company achieved revenues of $1.34 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.19% and up from $1.26 billion year-over-year [2] - Brink's shares have increased approximately 14.1% year-to-date, compared to a 15.1% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.48 on revenues of $1.35 billion, while for the current fiscal year, the estimate is $7.95 on revenues of $5.23 billion [7] - The earnings outlook and estimate revisions will be crucial for understanding the stock's future performance [4][5] Industry Context - The Outsourcing industry, to which Brink's belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable environment for performance [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5][6]

Financial Performance Highlights - The company reported strong organic revenue growth of 5% in Q3 2025, driven by accelerating AMS/DRS growth[6] - AMS/DRS organic growth was 19% in Q3 2025, contributing to 28% of the total revenue mix[6] - Adjusted EBITDA margin reached a record 19% in Q3 2025, an increase of 180 basis points[6] - Free cash flow grew by 30% in Q3 2025, reaching $175 million[6] - The company utilized $154 million YTD to repurchase 17 million shares at $8905 per share[8] Growth Strategy and Outlook - The company is increasing its revenue mix expectation for AMS/DRS to 27-28%[13] - North America Adjusted EBITDA margins have expanded 370bps since 2022 and +190bps YTD[20] - The company's Q3 2025 revenue increased by 6% to $1335 million, with organic growth contributing 5%[23, 26] - Adjusted EBITDA increased by 17% to $253 million, with a margin of 19%[23] - The company projects full-year organic revenue growth of approximately 5% and Adjusted EBITDA margin expansion of 30-50 basis points[36]

Core Insights - SouthernSun Asset Management's "SouthernSun Small Cap Strategy" reported a gross return of 11.73% for Q3 2025, underperforming the Russell 2000 Index and Russell 2000 Value Index which returned 12.39% and 12.60% respectively [1] - Over the trailing twelve months, the strategy returned -0.66% on a gross basis, significantly lagging behind the indexes which returned 10.76% and 7.88% [1] Company Highlights - The Brink's Company (NYSE:BCO) was identified as the top contributor in the SouthernSun Small Cap Strategy during Q3 2025, showcasing its strong performance in cash and valuables management, digital retail solutions, and ATM managed services [3] - The Brink's Company experienced a one-month return of -6.33% but gained 3.12% over the last 52 weeks, with a closing stock price of $105.88 and a market capitalization of $4.411 billion as of November 4, 2025 [2] - The company achieved 16% organic growth in ATM managed services and digital retail solutions in Q2 2025, with these higher-margin businesses now accounting for over 25% of total revenue [3] - Free cash flow improved significantly, generating over $100 million in the quarter, supported by EBITDA growth and strong working capital performance [3] - Management has been proactive in capital deployment, having repurchased $130 million in stock year to date, with $85 million of that occurring in Q2 [3] - The current stock price presents an opportunity for investors to achieve double-digit returns, backed by a strong balance sheet and effective capital allocation strategy [3]

Financial Performance - Revenues for Q3 2025 increased by $76.5 million to $1,335.0 million, a 6% rise compared to Q3 2024, driven by organic growth in North America, Europe, Latin America, and Rest of World [170]. - Operating profit for Q3 2025 rose by $40.8 million to $152.4 million, resulting in an operating profit margin increase from 8.9% to 11.4% [174]. - Non-GAAP operating profit for Q3 2025 increased by $36.6 million to $188.2 million, with a non-GAAP operating profit margin of 14.1%, up from 12.0% [182]. - Income from continuing operations attributable to Brink's shareholders for Q3 2025 increased by $7.3 million to $36.2 million, with diluted EPS rising to $0.86 from $0.65 [174]. - Revenues for the first nine months of 2025 increased by $134.5 million to $3,882.2 million, a 4% rise compared to the same period in 2024, with significant contributions from Latin America and North America [176]. - Non-GAAP income from continuing operations for the first nine months of 2025 increased by $6.6 million to $234.4 million, with non-GAAP diluted EPS rising to $5.49 from $5.06 [184]. - Adjusted EBITDA for Q3 2025 increased by 17% to $253.3 million, primarily due to the increase in non-GAAP operating profit [183]. - The company experienced a 5% organic revenue growth in Q3 2025, attributed to inflation-based price increases and growth in AMS and DRS revenue [172]. - Revenues for Q3 2025 increased by 6% to $1,335.0 million, driven by a 5% organic growth and contributions from acquisitions [188]. - For the nine months ended September 30, 2025, total revenues increased by 4% to $3,882.2 million, with a 5% organic growth [199]. Regional Performance - North America segment revenues rose by 5% to $434.8 million, with operating profit increasing by 37% to $56.8 million [192]. - Latin America revenues grew by 2% to $326.8 million, but operating profit decreased by 6% to $65.9 million due to unfavorable currency impacts [194]. - Europe segment revenues increased by 12% to $353.1 million, with operating profit up 15% to $46.2 million, primarily driven by currency effects and organic growth [196]. - Rest of World revenues rose by 5% to $220.3 million, with operating profit increasing by 9% to $47.8 million, supported by organic growth in BGS revenue [198]. - North America revenues for the nine months increased by 5% to $1,286.7 million, with operating profit rising by 22% to $172.2 million [202]. - Latin America revenues decreased by 3% to $953.8 million, with operating profit down 11% to $174.8 million, primarily due to currency exchange rate impacts [204]. - Europe revenues for the nine months increased by 8% to $990.0 million, with operating profit up 13% to $110.9 million [206]. Expenses and Costs - Selling, general and administrative expenses decreased by 2% to $199.0 million in Q3 2025, mainly due to lower consulting fees and transformation initiative costs [173]. - Corporate expenses for Q3 2025 decreased by 35% to $28.5 million, driven by lower insurance and security losses [212]. - Total other items not allocated to segments decreased by 11% to $(35.8) million in Q3 2025 from $(40.0) million in Q3 2024 [215]. - Acquisitions and dispositions costs increased by 8% to $(17.8) million in Q3 2025 compared to $(16.5) million in Q3 2024 [215]. - Transformation initiatives incurred expenses of $18.6 million in the first nine months of 2025, down 13% from $21.5 million in the same period of 2024 [220]. - DOJ/FinCEN investigations accrued costs of $5.5 million in the first nine months of 2025, a 29% decrease from $7.7 million in the same period of 2024 [221]. Taxation - The provision for income taxes for the three months ended September 30, 2025, was $53.0 million, compared to $27.2 million in 2024, reflecting an increase of 95% [237]. - The effective tax rate for the nine months ended September 30, 2025, was 40.8%, up from 36.0% in 2024 [237]. - Non-GAAP pre-tax income for the nine months ended September 30, 2025, was $335.3 million, with an effective income tax rate of 27.7% [251]. - The valuation allowance on tax credits increased due to the One Big Beautiful Bill Act, resulting in a tax expense of $18.7 million [249]. - The company recorded a significant income tax expense of $95.8 million for the nine months ended September 30, 2025, compared to $75.5 million in 2024 [251]. - The effective tax rate may fluctuate due to various factors, including changes in pre-tax earnings and legislative changes [238]. Cash Flow and Capital Expenditures - Cash flows from operating activities rose by $209.7 million in the first nine months of 2025 compared to the same period in 2024, totaling $265.9 million [260]. - Free cash flow before dividends increased by $76.3 million in the first nine months of 2025, reaching $174.3 million [262]. - Capital expenditures decreased slightly to $155.4 million in the first nine months of 2025 from $159.9 million in 2024 [264]. - Cash used for investing activities increased by $18.2 million in the first nine months of 2025, totaling $199.6 million [264]. - Total property and equipment acquired was $203.3 million, slightly down by 0.8% from $204.1 million in the prior year [266]. - Depreciation and amortization for the first nine months of 2025 was $208.7 million, down 11.6% from $220.3 million in 2024 [266]. Debt and Shareholder Returns - Total debt as of September 30, 2025, was $3,991.0 million, an increase from $3,896.2 million at the end of 2024 [273]. - Net debt increased to $2,750.7 million as of September 30, 2025, compared to $2,582.2 million at the end of 2024 [273]. - The company authorized a $500 million share repurchase program, which is set to expire on December 31, 2025 [279]. - During the nine months ended September 30, 2025, the company repurchased 1,724,309 shares for $153.6 million at an average price of $89.05 per share [281]. - The company paid dividends of $0.7525 per share, totaling $31.7 million in the first nine months of 2025, compared to $31.3 million in 2024 [272].

Financial Performance - Total revenue for the third quarter of 2025 reached $1,335 million, reflecting a 6% increase compared to the same period in 2024[3] - Operating profit increased by 37% to $152 million, with an operating profit margin of 11.4%, up 250 basis points year-over-year[3] - Adjusted EBITDA for the third quarter was $253 million, representing a 17% increase, with an adjusted EBITDA margin of 14.1%, up 210 basis points[3] - Revenues for Q3 2025 increased to $1,335 million, a 6% growth compared to Q3 2024, with North America contributing $435 million, up 5%[20] - Operating profit for Q3 2025 reached $152 million, reflecting a 37% increase from Q3 2024, driven by North America's significant growth of 37% to $57 million[20] - North America segment operating margin improved to 13.1% in Q3 2025, compared to 10.1% in Q3 2024, indicating enhanced profitability[24] - Latin America revenues for Q3 2025 were $327 million, a slight increase of 2% year-over-year, despite a 6% decline in operating profit to $66 million[20] - Europe segment revenues grew by 12% to $353 million in Q3 2025, with operating profit increasing by 15% to $46 million[20] Cash Flow and Capital Allocation - Free cash flow increased by 30% year-over-year, driven by improved profitability and working capital metrics[2] - The company reduced its outstanding share count by 5% year-to-date as part of its capital allocation framework[2] - The company is prioritizing capital allocation towards technology-enabled solutions, including AMS and DRS, to drive future growth[21] - Cash flows from operating activities (GAAP) for the nine months ended September 30, 2024, were $426.0 million, with free cash flow before dividends at $399.9 million[53] - The free cash flow before dividends for the nine months ended September 30, 2024, was $399.9 million, indicating strong cash generation[53] Guidance and Future Outlook - The company plans to achieve mid-to-high teens organic revenue growth for AMS/DRS and adjusted EBITDA margin expansion of 30-50 basis points in 2025[7] - Q4 2025 revenue guidance is set between $1,330 million and $1,380 million, with non-GAAP adjusted EBITDA expected to be between $267 million and $287 million[7] - Full-year 2025 revenue guidance anticipates organic revenue growth, with a focus on expanding adjusted EBITDA margins and free cash flow conversion[21] Assets and Liabilities - Total assets increased from $6,623.1 million at the end of 2024 to $6,953.0 million by September 30, 2025[11] - Total liabilities rose from $6,310.6 million at the end of 2024 to $6,556.5 million by September 30, 2025[11] Corporate Expenses and Strategic Initiatives - Corporate expenses decreased significantly by 35% to $29 million in Q3 2025, contributing to overall profit improvement[20] - The Brink's Company is actively pursuing strategic initiatives, including potential acquisitions and market expansions, to enhance its competitive position[21] Non-GAAP Metrics and Adjustments - Non-GAAP operating profit and margin metrics are utilized to evaluate performance, excluding other items not allocated to segments[41] - The company reported non-GAAP free cash flow before dividends, reflecting cash flows available for capital or investing activities[40] - Non-GAAP income from continuing operations for the nine months ended September 30, 2024, was $309.3 million, with an effective income tax rate of 23.2%[46] - For the nine months ended September 30, 2025, Non-GAAP income from continuing operations increased to $335.3 million, with an effective income tax rate of 27.7%[46] - Non-GAAP EPS for the full year 2024 was $3.61, and for the nine months ended September 30, 2025, it was $5.49[49] Risks and Challenges - The company faces risks related to macroeconomic conditions, including inflation and geopolitical tensions, which may impact future performance[22] Transformation and Restructuring - The company initiated a multi-year transformation program in 2023, incurring $28.4 million in expenses in 2024 and an additional $18.6 million in the first nine months of 2025[32] - Restructuring costs related to acquisitions were $10.3 million in the first nine months of 2025, with integration costs of $2.7 million incurred during the same period[30]

Core Insights - The Brink's Company reported a total revenue growth of 6% for the third quarter of 2025, with a notable 19% organic growth in ATM Managed Services (AMS) and Digital Retail Solutions (DRS) [1][3][4] - AMS and DRS now account for 27% of the trailing twelve-month revenue, indicating a shift towards higher-margin subscription-based services [1][3] - The company achieved record operating profit and EBITDA margins in the third quarter, reflecting successful business transformation efforts [1][3] Financial Performance - Total revenue for Q3 2025 was $1,335 million, a 6% increase compared to Q3 2024 [4] - Operating profit reached $152 million, up 37% year-over-year, with an operating profit margin of 11.4%, an increase of 250 basis points [4] - Adjusted EBITDA was reported at $253 million, a 17% increase, with an adjusted EBITDA margin of 14.1%, reflecting a 210 basis point improvement [4] Cash Flow and Capital Allocation - Free cash flow increased by 30% year-over-year, driven by improved profitability and working capital metrics [3] - The company is focused on reducing leverage below three times and has reduced its outstanding share count by 5% year-to-date [3] - Brink's plans to continue investing in strategic acquisitions while adhering to its capital allocation framework [3] Future Outlook - The company anticipates mid-single digits organic revenue growth and mid-to-high teens growth in AMS/DRS for the full year 2025 [7] - Guidance for Q4 2025 includes expected revenue between $1,330 million and $1,380 million, with adjusted EBITDA projected between $267 million and $287 million [8] - The company aims to build on its momentum in higher-margin subscription-based revenue and improve cash conversion [3][6]

Core Viewpoint - The Brink's Company will host a conference call on November 5, 2025, to discuss its third-quarter financial results, which will be released earlier that morning [1]. Group 1: Conference Call Details - The conference call is scheduled for 9:00 a.m. (EDT) on November 5, 2025 [1]. - Participants can access the call by dialing 888-349-0094 (U.S.) or 412-902-0124 (international) and should join at least five minutes early [2]. - A pre-registration option is available for participants to receive a direct dial-in number [2]. - The call will also be accessible via live webcast [2]. Group 2: Replay Information - A replay of the conference call will be available until November 12, 2025, through specific U.S. and international numbers [3]. - The conference number for the replay is 3590547 [3]. - A webcast replay will be available on the Brink's Investor Relations site [3]. Group 3: Company Overview - The Brink's Company is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services [4]. - The company serves a diverse customer base, including financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations [4]. - Brink's operates in 51 countries and serves customers in over 100 countries [4].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to profitable opportunities if supported by strong fundamentals [1][2]. Group 1: Stock Performance - Brink's (BCO) has shown a solid price increase of 23.5% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also maintained a price increase of 3.1% over the last four weeks, suggesting that the upward trend is still intact [5]. - BCO is currently trading at 97% of its 52-week high-low range, indicating 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 [6]. - The stock 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 Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like BCO that have the fundamental strength to maintain their upward momentum [3]. - The article suggests that there are several other stocks passing through this screen, providing additional investment opportunities [8].