Brink's Q1 Earnings Call Highlights

Key Points

• Brink's reported Q1 results at the upper end of guidance with revenue up ~10% year-over-year (4.5% organic), led by a 15% organic increase in AMS/DRS; adjusted EBITDA was $238 million (17.3% margin) and EPS was $1.80 (+11%).
• Cash generation strengthened as trailing 12‑month EBITDA reached about $1 billion and trailing 12‑month free cash flow exceeded $500 million (50% conversion), while net debt/adjusted EBITDA was 2.7x with a target of ~2.3x by year-end 2026.
• Brink's is advancing the pending NCR Atleos acquisition, targeting close by end‑Q1 2027, expects roughly $200 million of cost synergies and sees pro forma leverage of ~3.4x at close but below 3x by end‑2027, with combined free cash flow potential of about $1 billion.

Brink's NYSE: BCO reported first-quarter 2026 results that management said came in at the upper end of its guidance ranges, driven by continued growth in higher-margin ATM Managed Services and Digital Retail Solutions (AMS/DRS) and improving cash generation. CEO Mark Eubanks said the company is “off to a strong start to the year” and reiterated confidence in its full-year framework as Brink’s also works toward its pending acquisition of NCR Atleos.

Quarterly performance and mix shift

Eubanks said first-quarter revenue growth was 10%, including 4.5% organic growth, “driven mostly by 15% organic growth in ATM Managed Services and Digital Retail Solutions.” He highlighted customer activity including the onboarding of Pandora in DRS and “good momentum in AMS, especially in the Rest of World segment.” At the segment level, he said Rest of World delivered 7% organic growth, supported by “strong precious metals activity in the global services line of business.”

Brink’s reported adjusted EBITDA of $238 million with a 17.3% margin. Eubanks attributed margin expansion to “organic growth, favorable revenue mix, and good underlying productivity,” and noted margin expansion of more than 100 basis points in both North America and Rest of World, 240 basis points in Europe, and 10 basis points overall.

CFO Kurt McMaken added that revenue increased 10% with 5% constant-currency growth and “a 6% tailwind from foreign currency.” He said adjusted EBITDA rose 10% to $238 million, while operating profit increased 12%, supported by “favorable revenue mix, pricing discipline, and productivity in both labor and fleet.” Earnings per share were $1.80, up 11%, according to McMaken.

Cash generation and capital allocation

Management emphasized progress in free cash flow and working capital. Eubanks said trailing 12-month EBITDA reached $1 billion “for the first time in our history,” and trailing 12-month free cash flow exceeded $500 million for the first time, with conversion from EBITDA of 50%. He said free cash flow has more than doubled since year-end 2022, “with free cash flow now exceeding $12 per share,” and noted improvements in days sales outstanding and days payable outstanding.

McMaken reported trailing 12-month free cash flow of $502 million at quarter-end and said the company enhanced its cash flow disclosures to isolate cash flows related to the NCR Atleos acquisition. Those cash flows were $2 million in the quarter and are expected to total $50 million to $60 million for the full year, he said.

On capital allocation, McMaken said Brink’s ended the quarter with leverage of 2.7x net debt to adjusted EBITDA and expects “net debt leverage reduction to be the primary focus” in 2026, targeting approximately 2.3x standalone leverage by year-end 2026. Assuming a first-quarter 2027 closing of the NCR Atleos deal, he said the company expects leverage to be around 3.4x at closing and “below 3x by the end of 2027,” while maintaining a longer-term target range of 2x to 3x.

McMaken also noted the company completed roughly $30 million of share repurchases prior to the NCR Atleos acquisition announcement, reducing shares outstanding by 5%.

AMS/DRS momentum and customer activity

Eubanks said AMS/DRS organic revenue growth was approximately $50 million in the quarter, representing a 15% growth rate and marking the “13th consecutive quarter of at least 15% organic growth in AMS DRS.” He cautioned that sequential comparisons were affected by “strong growth related to one-time equipment sales” in the fourth quarter, primarily in North America.

In response to a question from Goldman Sachs analyst George Tong about what portion of DRS growth came from conversions versus new customers, Eubanks said installs remained consistent with prior quarters: about one-third from conversions of existing customers and two-thirds from new customers. He said conversions create “a little bit of headwind in CVM,” but bring “better margin” and recurring revenue benefits.

Asked about sustainable growth, Eubanks said the company expects “mid to high teens organic growth” to continue, citing pipeline strength and typical seasonality in installations, which tend to be lighter during the fourth-quarter retail season.

Brink’s also highlighted a DRS win with Paradies, a travel retailer and restaurateur operating more than 700 airport stores across North America. Eubanks said Brink’s designed a bespoke solution with front-office recyclers and smart safes integrated with Paradies’ POS software. He said the solution is intended to reduce cash handling time, track transactions “down to the teller level,” reduce shrink, and shift the service deliverable toward “overnight electronic deposits,” which he said creates more flexible routing options for Brink’s. The company completed a trial phase and is planning a broader rollout over the remainder of the year.

Regional trends and North America margins

On geographic differences in demand, Eubanks told Truist analyst Tobey Sommer that AMS/DRS growth is broadening globally, calling out Mexico’s DRS momentum and activity in Argentina and Brazil. He also pointed to Rest of World AMS momentum in “big cash markets” at an earlier stage of adoption, citing deployments in the Philippines and a win with Indonesia’s largest national bank for about 5,000 ATMs.

In North America, Eubanks said DRS continues to gain traction and is contributing to margin progress. He said North America EBITDA margins expanded 170 basis points year-over-year in the first quarter, bringing trailing 12-month segment margins to 19.5% as the company progresses toward a 20% target. He attributed the improvement to revenue mix, growth in AMS/DRS, and network productivity, including improvements in revenue per vehicle and labor as a percentage of revenue.

On bank outsourcing in the U.S., Eubanks said discussions are ongoing but adoption of full outsourcing remains slower than in Rest of World. He said the NCR Atleos acquisition is intended to help by enabling “a full vertical solution” and increasing confidence in outsourcing outcomes.

NCR Atleos acquisition update and outlook

Eubanks said Brink’s has continued shareholder outreach while also advancing financing, regulatory, and filing work for the NCR Atleos transaction. He said the company refinanced the secured portion of its bridge loan at the end of March, filed its registration statement “just last week,” and is moving toward a shareholder vote in the coming months. Regulatory filings have been submitted “in many jurisdictions,” with reviews progressing as expected, he said.

Eubanks said NCR Atleos’ first-quarter results were expected to be filed after the market close and that Brink’s understands those results to be “in line with our business case modeling and on track with our full-year projections.” He said a dedicated Brink’s integration management team has been created and is separate from day-to-day operations, with a focus on executing cost synergies after closing. Brink’s continues to expect closing by the end of the first quarter of 2027.

Management reiterated strategic and financial expectations tied to the acquisition, including previously identified $200 million of cost synergies. Eubanks also said Brink’s has completed a secured financing arrangement that would allow it to absorb $1.6 billion of NCR Atleos bank debt at a rate more than one percentage point better than NCR Atleos’ current level. While emphasizing near-term leverage reduction, he said the combined companies are expected to generate $1 billion of free cash flow.

In Q&A, McMaken and Eubanks also pointed to potential benefits from the combination in capital efficiency, working capital, procurement, and “cash interest and cash taxes,” though they said those opportunities would be developed further with the combined firm.

For guidance, McMaken said Brink’s 2026 framework remains unchanged, including mid-single-digit organic growth, mid-to-high-teens organic growth in AMS/DRS, EBITDA margin expansion of 30 to 50 basis points, and free cash flow conversion of 40% to 45%. For the second quarter, Brink’s expects revenue of $1.37 billion to $1.43 billion and adjusted EBITDA of $245 million to $265 million, with EPS expected between $1.85 and $2.25.

About Brink's NYSE: BCO

The Brink's Company NYSE: BCO is a global leader in secure logistics and cash management solutions. The company provides a comprehensive suite of services that span armored transportation, cash-in-transit (CIT), ATM services, smart safe solutions, and valuables storage. Through its network of service centers and armored vehicles, Brink's ensures the safe and efficient movement of currency, precious metals, and other high-value assets for banks, retailers, mints, and government agencies.

Brink's armored transport operations are complemented by technology-driven cash management offerings, including deposit automation and secure vaulting.

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