Brink(US:BCO)2025-11-05 12:04Financial 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].