Summary of Brink's Acquisition of NCR Atleos Conference Call Industry and Companies Involved - **Industry**: Financial Technology and Cash Management - **Companies**: Brink's and NCR Atleos Key Points and Arguments 1. **Acquisition Announcement**: Brink's announced a $6.6 billion acquisition of NCR Atleos, subject to regulatory and shareholder approvals [3][30] 2. **Financial Performance**: Brink's reported strong fourth quarter and full year 2025 results, achieving $436 million in free cash flow and expanding Adjusted EBITDA margins by 40 basis points [5][8] 3. **Combined Financial Outlook**: The combined entity is expected to generate approximately $10 billion in revenue and $2 billion in Adjusted EBITDA, with margins approaching 20% [8][19] 4. **Synergies and Cost Savings**: Anticipated annual run rate synergies of $200 million, primarily from SG&A cost reductions and shared network optimization, expected to be realized within three years [10][26] 5. **Market Expansion**: The acquisition will enhance Brink's capabilities in ATM management and digital retail solutions, expanding its addressable market and improving service offerings [9][22] 6. **Customer Base**: NCR Atleos has a global installed base of approximately 600,000 ATMs, which will enhance Brink's service capabilities and market reach [15][24] 7. **Strategic Fit**: Both companies share a customer-focused culture and have been partners for decades, which is expected to facilitate integration and innovation [12][13] 8. **Growth Potential**: The combined company aims for mid-single-digit organic revenue growth, with potential upside from increased outsourcing in the banking and retail sectors [44][51] 9. **Cash Flow Generation**: The merger is projected to generate over $1 billion in annual free cash flow, providing capital flexibility for investments and shareholder returns [27][28] 10. **Transaction Structure**: The acquisition involves $30 per share in cash and 0.1574 shares of Brink's for each share of NCR Atleos, with funding secured through cash on hand and a committed bridge facility [30][31] Other Important Content 1. **Integration Challenges**: Emphasis on maintaining operational focus during the integration process to avoid distractions [73] 2. **Customer Relationships**: The acquisition is expected to streamline service delivery and improve customer satisfaction by reducing vendor complexity [23][56] 3. **Regulatory Considerations**: The transaction is subject to customary closing conditions, including regulatory approvals [31] 4. **Long-term Vision**: The deal aligns with Brink's long-term value creation priorities, focusing on organic growth and operational efficiencies [32][34] This summary encapsulates the essential details and strategic implications of the acquisition, highlighting the financial metrics, growth opportunities, and operational synergies expected from the merger of Brink's and NCR Atleos.

Fourth Quarter 2025 Earnings February 26, 2026 Continued strong organic revenue growth led by AMS/DRS 5% Total organic growth Forward-Looking Statements and Non-GAAP Results These materials contain forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," "target" "project," "model", "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in these materials includes, but ...

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]

First-Quarter 2025 Performance - Revenue increased by 1% to $1,247 million, with organic growth of 6%[11] - Adjusted EBITDA decreased by 1% to $215 million, representing a margin of 17.2%[11] - Earnings per share (EPS) decreased by 2% to $1.62, but increased by 13% in constant currency[11] - Trailing-twelve-month Free Cash Flow was $360 million, reflecting a conversion rate of 40%[9, 11] Segment Performance - North America revenue increased by 3% to $418 million, with adjusted EBITDA up 6% to $73 million[15] - Latin America revenue decreased by 8% to $308 million, with adjusted EBITDA down 14% to $67 million[15] - Europe revenue increased by 3% to $299 million, with adjusted EBITDA remaining flat at $40 million[15] - Rest of World revenue increased by 9% to $222 million, with adjusted EBITDA up 20% to $57 million[15] Strategic Growth & Outlook - AMS/DRS organic growth exceeded 20%, now representing 25% of total revenue[9] - The company repurchased over 1.3 million shares year-to-date[9] - Second quarter guidance includes revenue between $1,250 million and $1,300 million, with organic growth between 3% and 6%[9]

Core Insights - The Brink's Company reported strong first-quarter results with revenue at the upper end of guidance, achieving a total growth of 1% and organic growth of 6% [1][2] - Significant organic growth was noted in ATM managed services (AMS) and digital retail solutions (DRS), exceeding 20% [1][2] - The company has repurchased over 1.3 million shares year-to-date, nearly three times the amount from the previous year [1][2] Financial Performance - First-quarter revenue reached $1,247 million, reflecting a 1% increase year-over-year, with a 6% increase in constant currency [3][14] - Operating profit was reported at $119 million, a decrease of 1% compared to the previous year, while adjusted EBITDA was $215 million, a slight decrease of 1% [3][14] - Earnings per share (EPS) increased by 9% to $1.19, while non-GAAP EPS decreased by 2% to $1.62 [3][14] Segment Performance - North America revenue increased by 3% to $418 million, while Latin America saw a decline of 8% to $308 million [14] - Europe reported a 3% increase in revenue to $299 million, and the Rest of World segment grew by 9% to $222 million [14] - Operating profit in North America increased by 10% to $53 million, while Latin America experienced a decline of 14% to $54 million [14] Guidance and Strategic Outlook - The company affirmed its 2025 framework and introduced second-quarter 2025 guidance, projecting revenue between $1,250 million and $1,300 million [4][5] - Management anticipates mid-single-digit organic revenue growth for 2025, with AMS and DRS expected to grow in the mid to high teens [5] - The adjusted EBITDA margin is expected to expand by 30-50 basis points, with free cash flow conversion projected at 40-45% [5] Shareholder Returns - The company has accelerated share repurchases, totaling over $110 million year-to-date, and plans to return over 50% of free cash flow to shareholders [2][5] - The focus remains on improving profitability through growth in AMS and DRS, streamlining operations, and adhering to capital allocation priorities [2][5]

Financial Performance - Full Year 2024 - The company's full-year organic revenue grew by 12%[8], driven by a 23% increase in AMS/DRS (ATM Managed Services/Digital Retail Solutions) and a 9% increase in CVM (Cash & Valuables Management) organic revenue[8] - Adjusted EBITDA for the full year was $912 million, representing an 18.2% margin, which expanded by 40 basis points[8] - Full-year Free Cash Flow reached $400 million, with a 44% conversion rate from EBITDA growth and working capital management[8] - The company returned $245 million, or 61% of Free Cash Flow, to shareholders through share repurchases and dividends[8] Financial Performance - Fourth Quarter 2024 - Fourth-quarter organic revenue increased by 11%[8], with AMS/DRS growing by 23% and CVM growing by 7%[8] - Adjusted EBITDA for the fourth quarter was $251 million, resulting in a 19.9% margin[8] - Fourth-quarter EPS (Earnings Per Share) was $2.12[8] - Free Cash Flow for the fourth quarter was $302 million, with a 120% conversion rate due to strong working capital performance[8] Strategic Initiatives and Growth - The company delivered an incremental $200 million of higher-margin AMS/DRS revenue during the year[8] - AMS/DRS revenue represented 24% of total revenue, with accelerated organic growth of 23%[8] - AMS/DRS revenue has increased by approximately 130% since 2021[22] 2025 Guidance Framework - The company anticipates mid-single-digit organic growth for the full year 2025[8] - AMS/DRS organic growth is projected to be in the mid-to-high teens[8] - Adjusted EBITDA margin is expected to expand by 30-50 basis points[8] - Free Cash Flow conversion is projected in the mid-40% range[8]