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]

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]