Brinks posts profit growth as margins expand
The cash-logistics provider reported adjusted earnings of $1.80 a share for the quarter.
Brinks Co. (BCO) reported first-quarter profit growth that outpaced revenue as the cash-logistics provider expanded margins and reduced debt ahead of a major acquisition. Adjusted earnings rose 11% to $1.80 a share.
The quarter marked a continuation of steady organic growth and margin improvement, though earnings growth decelerated from the prior quarter’s 20% pace as acquisition-related costs weighed on profitability. Revenue grew 10% to $1.4 billion, accelerating from 9% growth in the fourth quarter, while organic revenue growth reached 4.5%.
Segment performance varied by region. Europe led with 15% revenue growth, up from 14% in the prior quarter, driven by strong demand in its automated money services and digital retail solutions (AMS/DRS) business. North America revenue grew 5%, consistent with the prior quarter, while Latin America saw a rebound to 4% growth after a 1% gain in the fourth quarter. The Rest of World segment slowed to 12% growth from 10%.
Adjusted EBITDA margin expanded by 10 basis points to 17.3%, building on a 100-basis-point expansion in the prior quarter. Operating profit margin, however, declined sequentially to 8.0% from 13.1% as higher corporate expenses and $38.9 million in acquisition-related costs for the pending NCR Atleos deal weighed on results. The company also disclosed $2.8 million in non-routine legal costs.
Free cash flow surged to $502 million on a trailing-twelve-month basis, up $66 million from fiscal 2025, with conversion reaching 50%. Net debt leverage improved to 2.7 times adjusted EBITDA from 2.8 times at year-end, reflecting debt reduction efforts ahead of the NCR Atleos acquisition, which the company expects to close by the first quarter of 2027. Share repurchases were paused to prioritize balance-sheet strength.
Brinks reiterated its full-year guidance for mid-single-digit organic revenue growth and mid-to-high teens AMS/DRS organic growth, with adjusted EBITDA margin expansion of 30 to 50 basis points and free cash flow conversion of 40% to 45%. For the second quarter, the company projected revenue of $1.37 billion to $1.43 billion, adjusted EBITDA of $245 million to $265 million, and non-GAAP earnings of $1.85 to $2.25 a share, citing currency headwinds.
The company also disclosed a $0.5 million gain from Argentina’s highly inflationary accounting impact, reversing a $10.2 million charge in the prior year.