Brink's third quarter results were met with a positive market response as the company delivered steady revenue growth and improved profitability. Management attributed the quarter's performance to continued expansion in its ATM Managed Services (AMS) and Digital Retail Solutions (DRS) business lines, which now comprise a significant portion of total revenue. CEO Mark Eubanks emphasized the impact of productivity initiatives and disciplined pricing, stating that "record profit margins were driven by strong productivity, the benefits of AMS/DRS revenue mix, and continued pricing discipline." Brink's also highlighted notable gains in cash generation and capital efficiency, aided by a shift toward less capital-intensive service offerings.
Is now the time to buy BCO? Find out in our full research report (it’s free for active Edge members).
Brink's (BCO) Q3 CY2025 Highlights:
- Revenue: $1.34 billion vs analyst estimates of $1.33 billion (6.1% year-on-year growth, in line)
- Adjusted EPS: $2.08 vs analyst estimates of $2.08 (in line)
- Adjusted EBITDA: $253.3 million vs analyst estimates of $251.7 million (19% margin, 0.6% beat)
- Revenue Guidance for Q4 CY2025 is $1.36 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q4 CY2025 is $2.48 at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for Q4 CY2025 is $277 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.1%, up from 9.3% in the same quarter last year
- Market Capitalization: $4.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Brink's’s Q3 Earnings Call
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George Tong (Goldman Sachs) asked about AMS/DRS client traction. CEO Mark Eubanks explained that both AMS and DRS pipelines remain strong, with a third of new DRS signings coming from traditional customers converting to managed services.
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Timothy Mulrooney (William Blair) questioned which internal actions are driving AMS/DRS growth. Eubanks described expanded incentive plans and the adoption of new sales channels and partnerships as key contributors.
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Mulrooney (William Blair) also inquired about North America margin potential. Eubanks detailed that margin improvements are from AMS/DRS mix, pricing discipline, and operational execution, with no near-term ceiling on expansion.
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Tobey Sommer (Truist) asked about free cash flow conversion drivers. CFO Kurt McMaken cited the favorable DSO profile of AMS/DRS, balanced incentives, and less capital-intensive business as main factors.
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Sommer (Truist) probed on geographic growth dispersion. Eubanks replied that all regions present growth opportunities, with particularly strong prospects in underpenetrated markets like Latin America and no expected regional slowdowns.
Catalysts in Upcoming Quarters
In the coming quarters, our team will monitor (1) the pace of AMS and DRS customer conversions, which underpin Brink's margin and revenue growth; (2) execution of productivity and efficiency initiatives in North America and other regions; and (3) Brink's ability to accelerate geographic expansion, particularly in Latin America and the Middle East. Additionally, we will assess how channel partnerships and evolving incentive plans translate into sustained growth and profitability.
Brink's currently trades at $112.61, up from $105.79 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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