Brink(US:BCO)2025-08-06 11:08Part I - Financial Information 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 This section presents the unaudited condensed consolidated financial statements and accompanying notes for the quarterly period ended June 30, 2025 Condensed Consolidated Balance Sheets 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 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 202410 Condensed Consolidated Statements of Cash Flows 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 202423 Notes to Condensed Consolidated Financial Statements 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 World2431 - Argentina's economy was designated as highly inflationary, resulting in a $14.1 million pretax remeasurement loss in the first six months of 202534 - A prior period overstatement of depreciation related to Brink's Argentina was corrected, leading to a $13.6 million increase to Q2 2025 net income37 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management analyzes the company's financial performance, condition, liquidity, and capital resources, including consolidated and segment-level results Results of Operations 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 revenue170 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 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 2024253255 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 Facility267 - Under the 2023 Share Repurchase Program, $166 million remained available as of June 30, 2025272 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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, 2025287 Item 4. Controls and Procedures 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 period288 - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2025289 Part II - Other Information This section provides additional information on legal proceedings, risk factors, and equity security sales and use of proceeds Item 1. Legal Proceedings 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 matter294163 Item 1A. Risk Factors 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-K295 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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, 2025296