Brink's (BCO 4.25%), the global security and cash management services provider, reported its Q2 2025 results on August 6, 2025. The company delivered results that surpassed market expectations, with non-GAAP earnings per share of $1.79 versus an analyst estimate of $1.45. Revenue (GAAP) reached $1.301 billion, up 4% from the prior year and ahead of the $1.27 billion forecast. Operating profit (GAAP) and adjusted EBITDA (non-GAAP) both improved over last year. Overall, the period demonstrated continued progress in expanding higher-margin, technology-enabled offerings, despite currency headwinds in Latin America.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.79 | $1.45 | $1.79 | 0.0% |
| Revenue (GAAP) | $1.30 billion | $1.27 billion | $1.25 billion | 3.8% |
| Operating Profit (Non-GAAP) | $164.5 million | $155.6 million | 5.7% | |
| Adjusted EBITDA (Non-GAAP) | $232.0 million | $225.9 million | 2.7% | |
| Free Cash Flow Before Dividends (Non-GAAP) | ($0.4 million) | ($36.8 million) | n/m |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company overview and business focus
Brink's provides cash management, secure logistics, and security solutions to banks, retailers, and governments in over 100 countries. It operates an extensive fleet and workforce to handle high-value assets, including cash, precious metals, and other valuables.
In recent years, the company has prioritized expansion of Digital Retail Solutions (software and hardware for in-store cash automation) and ATM Managed Services (outsourced ATM installation and servicing). These technology-enabled product lines (AMS/DRS) generate recurring revenue and offer higher margins than traditional services. Consistent global network operation and cost efficiency remain critical to long-term performance. The ability to innovate and integrate technology into offerings is a key success factor.
Second quarter 2025 performance: Growth, margins, and segment highlights
Revenue (GAAP) grew to $1.301 billion, supported by strong results in higher-margin recurring product families. The company's Digital Retail Solutions and ATM Managed Services recorded organic revenue growth in the mid-to-high teens, continuing a pattern seen earlier in the year. Together, these segments now make up about one-quarter of consolidated revenue on a trailing-twelve month basis. The shift to technology-driven services, particularly in Digital Retail Solutions and ATM Managed Services (AMS/DRS), contributed to company-wide margin expansion and improved profit consistency, as evidenced by record operating profit margin.
North America saw a 5% increase in GAAP revenue to $434 million. Operating profit in the North America region rose 21% (GAAP), and margins expanded to 14.3% in North America. Earnings were driven by increased adoption of ATM Managed Services and Digital Retail Solutions, as well as cost improvements throughout the network. In Europe, revenue climbed 9% to $338 million (GAAP), with operating profit up 15% (GAAP) and margins reaching 11.7%. New contracts, such as with Sainsbury’s for ATM outsourcing, bolstered results alongside improved labor management and expanded device installations in retail locations.
Latin America reported a 4% decline in revenue, but this drop was entirely due to currency devaluation. On a local-currency basis, the region delivered strong organic growth (non-GAAP). Operating profit (GAAP) fell 13%.
In the Rest of World segment, GAAP revenue increased by 5%. Margins remained high at 19.7%.
Adjusted EBITDA (non-GAAP) of $232.0 million was up 3%. Key drivers included productivity initiatives in North America and Europe and a growing contribution from higher-margin recurring offerings.
Free cash flow before dividends (non-GAAP) nearly balanced out for the six months ended, showing significant improvement from a loss of $36.8 million in the prior-year period. Share repurchases totaled $85 million, bringing the half-year total to $130 million. The company’s capital allocation approach remained focused on returning excess cash to shareholders through both buybacks and dividends. The quarterly dividend was raised for the third consecutive year, but management did not specify the new per-share amount.
Looking ahead: Guidance and trends for fiscal 2025
Leadership raised its outlook for the rest of fiscal 2025 based on strong performance in the first half and visible momentum in high-growth segments. For the full year, management now expects organic revenue growth in the mid-single digits, with Digital Retail Solutions and ATM Managed Services anticipated to deliver mid-to-high teens organic revenue growth on an organic (non-GAAP) basis. Adjusted EBITDA margins are targeted to improve by up to 50 basis points (non-GAAP), with free cash flow conversion targeted for the 40–45% range in the non-GAAP framework. Free cash flow returned to shareholders is planned to be at least 50% (non-GAAP).
Guidance for Q3 2025 calls for GAAP revenue between $1.305 billion and $1.355 billion, adjusted EBITDA (non-GAAP) in the range of $240 million to $260 million, and non-GAAP EPS between $1.85 and $2.25. Management noted that margin improvements should accelerate in the second half as the company laps last year’s foreign exchange losses and security incident. The dividend was raised for the third consecutive year. Executives did not provide a specific figure for the new dividend per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
