BCO

Brink's second quarter saw steady financial performance, with results broadly in line with what Wall Street expected. Management pointed to continued organic growth in its ATM Managed Services (AMS) and Digital Retail Solutions (DRS) businesses as the main drivers. CEO Mark Eubanks emphasized that these segments have delivered “mid-teens or better organic revenue growth” for over three years, supported by new customer wins and ongoing productivity initiatives. The company also reported record EBITDA margins for the quarter, bolstered by strong results in its Global Services and favorable shifts in its revenue mix. Is now the time to buy BCO? Find out in our full research report (it’s free). Revenue: $1.39 billion vs analyst estimates of $1.39 billion (7.1% year-on-year growth, in line) Adjusted EPS: $2.13 vs analyst estimates of $2.04 (4.4% beat) Adjusted EBITDA: $257.2 million vs analyst estimates of $253.3 million (18.5% margin, 1.5% beat) Revenue Guidance for Q3 CY2026 is $1.39 billion at the midpoint, below analyst estimates of $1.40 billion Adjusted EPS guidance for Q3 CY2026 is $2.43 at the midpoint, above analyst estimates of $2.37 EBITDA guidance for Q3 CY2026 is $273 million at the midpoint, in line with analyst expectations Operating Margin: 9.5%, down from 10.8% in the same quarter last year Market Capitalization: $4.69 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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. Sammy (Goldman Sachs): Asked how much of second half AMS/DRS growth is backed by contracts versus pipeline. CEO Mark Eubanks explained most acceleration is underpinned by contracted business, with additional visibility from a strong sales pipeline. Sammy (Goldman Sachs): Inquired about the causes of lower regional organic growth. Eubanks attributed this to timing of deployments, especially in North America, and some macroeconomic headwinds in Argentina. Timothy Mulrooney (William Blair): Sought detail on potential for North America margins to exceed 20%. Eubanks said incremental margins could keep rising due to network density and synergies, emphasizing 20% is a milestone, not a ceiling. Timothy Mulrooney (William Blair): Asked about the pace and potential acceleration of ATM outsourcing in the U.S. and Europe. Eubanks stated the trend is still in the early innings, especially in the U.S., but expects long-term growth as more banks consider outsourcing. Tobey Sommer (Truist): Queried about regulatory hurdles for the NCR Atleos deal. Eubanks noted most clearances are secured, with some remaining in Europe, Latin America, and Asia, and expressed optimism about closing early next year. In the coming quarters, our team will closely watch (1) the pace of AMS and DRS contract deployments and whether delayed projects contribute to a meaningful revenue uptick, (2) execution on NCR Atleos integration milestones and realization of projected synergies, and (3) progress in margin expansion—especially in North America—as network density increases. Success on these fronts will be key indicators of Brink’s ability to drive long-term growth and profitability. Brink's currently trades at $113.91, down from $117.98 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how safety & security services stocks fared in Q2, starting with Brink's (NYSE:BCO). Rising concerns over physical security, cybersecurity threats, and workplace safety regulations will present opportunities for companies in this sector. AI and digitization will enhance surveillance, access control, and threat detection, which could benefit key players in Safety & Security Services. These trends could also introduce ethical and regulatory concerns over data privacy and automated decision-making in security operations, giving rise to headline risks. Finally, increasing scrutiny on private security practices and evolving criminal justice policies again mean that companies in the space need to operate with the utmost care or risk being the poster child of abuse of power. The 5 safety & security services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results. Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide. Brink's reported revenues of $1.39 billion, up 7.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EPS guidance for next quarter estimates but revenue guidance for next quarter slightly missing analysts’ expectations. Mark Eubanks, President and CEO, said: “Our strong second quarter shows continued progress against our AMS/DRS strategy with another quarter of mid-teens or better organic revenue growth. We closed several key customer wins late in the second and early in the third quarter that support continued growth momentum into the second half of the year." Brink's delivered the weakest performance against analyst estimates in the group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 4.9% since reporting and currently trades at $112.19. Is now the time to buy Brink's? Access our full analysis of the earnings results here, it’s free. With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa. GEO Group reported revenues of $732.1 million, up 15.1% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates. GEO Group scored the highest guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $29.55. Is now the time to buy GEO Group? Access our full analysis of the earnings results here, it’s free. Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE:MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers. Motorola Solutions reported revenues of $3.13 billion, up 13.3% year on year, exceeding analysts’ expectations by 4.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates. Motorola Solutions delivered the highest full-year guidance raise but had the weakest guidance update in the group. Interestingly, the stock is up 6.9% since the results and currently trades at $468.19. Read our full analysis of Motorola Solutions’s results here. Founded in 1914 as Mine Safety Appliances to protect coal miners from dangerous gases, MSA Safety (NYSE:MSA) designs and manufactures advanced safety products that protect workers and facilities across industries including fire service, energy, construction, and manufacturing. MSA Safety reported revenues of $503.3 million, up 6.2% year on year. This number beat analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates. MSA Safety had the slowest revenue growth among its peers. The stock is up 11.4% since reporting and currently trades at $194.24. Read our full, actionable report on MSA Safety here, it’s free. Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE:CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States. CoreCivic reported revenues of $684.9 million, up 27.3% year on year. This print topped analysts’ expectations by 10.9%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates. CoreCivic achieved the biggest analyst estimate beat and fastest revenue growth in the group. The stock is up 5.7% since reporting and currently trades at $33.01. Read our full, actionable report on CoreCivic here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Senior Vice President of Financial Planning and Analysis - Jesse Jenkins Chief Executive Officer - Mark Eubanks Chief Financial Officer - Kurt McMacken Operator: Good day, and welcome to the Brink's Company Second Quarter 2026 Conference Call. [Operator Instructions] Please note this event is being recorded. This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences are available in today's press release and presentation and in the company's SEC filings. The information presented and discussed on this call is representative of today only. Brink's assumes no obligation to update any forward-looking statements. The call is copyrighted and may not be used without written permission from Brink's. I will now turn it over to your host, Jesse Jenkins, Senior Vice President of Financial Planning and Analysis. Mr. Jenkins, you may begin. Jesse Jenkins: Thanks, and good morning. Joining me are CEO, Mark Eubanks; and CFO, Kurt McMacken. Today, Brink's reported second quarter results on a GAAP, non-GAAP and constant currency basis. Most of our commentary today will be focused on our non-GAAP results. These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. We believe these measures allow investors to better compare performance over time and to evaluate our performance using the same metrics as management. Reconciliations of non-GAAP results to their most comparable GAAP results are provided in SEC filings, which can be found on our website. We will also have commentary on the status of our pending acquisition of NCR Atleos. As a reminder, this transaction remains subject to the completion of customary closing conditions and additional regulatory approvals. Other details, including risk factors related to the transaction can be found in the pertinent SEC filings. I will now turn the call over to Brink's CEO, Mark Eubanks. Richard Eubanks: Thanks, Jesse. Good morning, everyone. Starting on Slide 3. We delivered a strong second quarter with organic growth of 4% and ATM Managed Services and Digital Retail Solutions or AMS/DRS, growing 14%. This marks the 14th consecutive quarter of mid-teens or better organic revenue growth in AMS/DRS, more than doubling in total revenue over the same period of time to over $1.5 billion. We continue to focus our strategic efforts on growing these valuable lines of business and have good line of sight into continued growth in the second half, supported by some recent customer wins, which I'll talk about later. Cash and Viables Management, or CVM, performance was highlighted by continued strong growth in our Global Services business as we drive incremental revenue in the volatile precious metals markets. Supported by favorable revenue mix and widespread productivity initiatives, we delivered record second quarter operating and EBITDA margins. EBITDA margins were 18.5% in the quarter, up 70 basis points year-over-year with expansion across each of our operating segments. Cash flow continues to grow with year-to-date and trailing 12-month free cash flow of $32 million over the prior periods. Total free cash flow generated over the last 4 quarters was $468 million with conversion from EBITDA of 46%, above our full year framework. Year-to-date, our results are slightly ahead of our original expectations. With EBITDA above the midpoint of our prior guidance, we're raising our full year profit expectations. As you'll see from our Q3 guidance in a few minutes, I'm confident in this team's ability to continue to improve the business, accelerate organic growth and drive higher margins and free cash flow over the balance of the year. We remain well positioned to deliver against our full year 2026 framework of mid-single-digit organic revenue growth with EBITDA margin expansion of 30 to 50 basis points. Now turning to Slide 4. I'd like to provide an update on the NCR Atleos acquisition. Over the last few months, we've made considerable progress on many fronts and have moved our estimated closing timeline forward to early in the first quarter. Since our last public comments, we received overwhelming support from both NCR Atleos and Brink's shareholders with more than 99% of the votes cast in favor of the transaction. That endorsement reflects the confidence in the strategic merits of the combined companies. We also have satisfied several outstanding regulatory requirements. During the quarter, we were granted an early termination by the U.S. antitrust regulators. This clearance represents a meaningful step forward with the U.S. representing the largest concentration of combined company pro forma revenue of almost 40%. Other recent antitrust clearances include Brazil, India, Turkey, Colombia, and we continue to work constructively with the remaining other jurisdictions. We're also making meaningful progress with foreign direct investment regulators, having received clearance across the majority of the Euro zone footprint, including France, Germany, Spain, Italy and the U.K. Money transmitter licensing requirements with the U.S. regulators are also moving forward with urgency. We've achieved clearance in more than 80% of the necessary jurisdictions and remain well on track in the remaining markets. Over the next several months until closing, we will stay focused on the stand-alone commitments of both companies while accelerating integration planning. Although we'll continue to operate independently until closing, our dedicated integration teams will work closely to ensure that we capture the strategic benefits of the combined businesses. As I continue to engage with the NCR Atleos team, I'm increasingly encouraged by the potential of the combination. With deep expertise and strong performance across both organizations, I'm confident we'll be able to deliver the solutions to our customers' most important challenges. I look forward to close the acquisition and moving forward as one team as quickly as possible. Now shifting back to the quarter on Slide 5. I'll provide some commentary on performance by line of business. Starting with CVM, organic growth was slightly positive in the quarter with strong Global Services volume and good pricing discipline offset by AMS/DRS conversions. As we discussed last quarter, our Global Services business remained strong through the first half of the year. Moving to AMS/DRS. Revenue grew organically $50 million in the quarter at a rate of 14%. Late in the quarter, we saw several large installations and customer wins move into the second half, primarily reflecting customer-driven timing decisions. In the AMS business, we were recently awarded a full ATM outsourcing agreement for a network consortium of banks in Europe that will come online over the second half of the year. In DRS, we continue to deploy our solution across the Paradies footprint that we discussed last quarter, and I'll talk more about another key win in North America on the next slide. AMS/DRS remains compelling outside of the more penetrated North America and Europe segments with strong growth in both Latin America and Rest of World. These recent wins and solid deployment schedules in the second half give us confidence in our ability to deliver organic growth towards the top end of our full year framework of mid- to high teens for the balance of the year. As we said last quarter, the visibility into our pipeline and backlog continues to support accelerated growth in the second half of the year. Stepping back and looking at total revenue trends for the quarter, we delivered a second quarter in line with our organic revenue expectations and customer engagement with our solutions remains very high. As you'll see in our Q3 guidance, we expect a slight acceleration in organic growth in the second half and remain on track to deliver against our organic growth framework for the full year. Moving on to Slide 6. You can see a few details on a new DRS win in North America. We recently signed an enterprise agreement with a large retail chain to provide a full DRS solution. We are nearly doubling our share of wallet with this customer by providing our tech-enabled solutions at over 5,000 retail locations across a broad U.S. footprint. This customer will enjoy the security and reliability of Brink's solutions, the integration of physical to digital payments, working capital transparency and simplified cash handling. This in-store process simplification will unlock management time for more value-add activities across the entire retail environment like employee training, customer assistance and other in-store operational efficiency measures. While the customer benefits of DRS are clear, Brink's will also see meaningful productivity opportunities from this win as we increase density by adding a network that complements our existing footprint while optimizing the routes that already exist in most of our geographic locations. As I've said before, DRS is a true win-win in the marketplace, and we continue to have meaningful conversations with customers of all sizes in all of our markets. As we continue to improve our go-to-market approach in highly underpenetrated verticals, we expect to continue to deliver these kinds of wins that will set the foundation for future growth and margin accretion for years to come. One other important point before we move to the next page relates to NCR's own U.S. ATM network, Allpoint, which has ATMs in all of these locations. This is an example of the opportunities that will create significant routing synergies and improve service levels as we increase network density. This optimization creates significant benefits for our DRS value proposition while also reducing service costs for an owned ATM network in the combined company. As we look at the next several years post acquisition, we see meaningful additional opportunities to drive operating efficiencies, enhance service levels and create value through the expanded network of the combined company. Now on to Slide 7. You can see detail on our recent AMS win in a key Southeast Asia financial institution market. We recently won an AMS deal with Mandiri Bank in Indonesia, servicing more than 1/3 of their entire estate. Mandiri is the largest national bank in Indonesia, operating over 13,000 total ATMs. Southeast Asia remains an attractive market for AMS as we add Mandiri to the previously discussed wins in Indonesia and more recently, the Security Bank win in the Philippines. These end markets have favorable cash usage trends and remain attractive for outsourcing as banks look to optimize costs and better serve their customers. For reference, the total Mandiri estate of over 13,000 ATMs is larger than many of the top 10 banks in the U.S. market. With the ATM managed services market still underpenetrated, we are having meaningful customer discussions across the globe. We continue to believe that outsourcing the operations and upkeep of these increasingly complex machines is the next logical step for financial institutions looking for ways to optimize their costs while continuing to improve customer experience at the intersection of physical and digital payments. After the completion of the NCR Atleos acquisition, we expect to have a best-in-class set of ATM Managed Services capabilities, positioning us to better serve financial institutions as they evaluate outsourcing opportunities in the markets around the world. Moving on to Slide 8. Before I hand over to Kurt for more detail on the financials, I wanted to briefly update progress on North America margins. We continue to methodically advance toward 20% EBITDA margins, coming in at 19.8% on a trailing 12-month basis at the end of the second quarter. With a solid revenue mix outlook over the second half of the year, supported by recent customer wins at Paradies, Pandora and the large enterprise deal I spoke about a few slides ago, we expect to continue to march towards this level as an intermediate milestone in our continuous improvement journey. Our operations continue to improve and with a good pipeline of productivity initiatives, we expect to continue to drive asset efficiency and labor productivity as we move forward. Over the past 5 years, we've improved our service, strengthened our safety culture, improved our AMS/DRS selling capabilities and eliminated waste from our operating model. The North America business is well positioned operationally to absorb additional capacity as we integrate the NCR Atleos business into our daily activities. With meaningful cost synergies contemplated in the North American markets, I remain confident that 20% margins is just the next milestone in our journey as a company, and I look forward to pressing beyond these levels in future years. And with that, I'll turn it over to Kurt to walk through the financials and Q3 guidance before I return for some closing comments and Q&A. Kurt? Kurt McMaken: Thanks, Mark. I'll begin on Slide 10 with a look at the quarter. Revenue increased by 7% with 4% constant currency growth and a 3% tailwind from foreign currency. Adjusted EBITDA was up 11% to $257 million, with constant currency EBITDA growth rates more than double constant currency revenue growth rates. Operating profit was up $25 million year-over-year or 15%. EBITDA margins were up 70 basis points and operating profit margins were up 100 basis points, slightly ahead of our second quarter guidance expectations. EPS growth of 18% was more than double revenue growth as we continue to compound profits faster than our top line. Trailing 12-month free cash flow was $468 million with conversion of 46%. Solid year-to-date cash performance was driven by EBITDA growth and continued capital efficiency as we shift to less capital-intensive customer offerings. As we expected and experienced last year, we are currently ahead of our full year cash conversion guidance. Given the timing of cash tax payments, working capital and CapEx over the balance of the year, we continue to target 40% to 45% conversion for the full year. On Slide 11, total organic revenue growth was $54 million, with the majority of the growth coming from our higher-margin subscription-based strategic focus areas of AMS and DRS. FX contributed $37 million or 3% of growth in the quarter with favorable year-over-year rates in the Euro, Mexican peso and Brazilian real, partially offset by the Argentinian peso. Moving to the right side of the slide, you can see that $54 million of organic revenue growth converted to $21 million of EBITDA growth for an incremental flow-through to profits of 39%, driving total EBITDA margin expansion of 70 basis points over the prior year to record second quarter levels of 18.5%. Moving to Slide 12. Starting on the left. Operating profit was up $25 million to $190 million with a margin of 13.6% on strong productivity, pricing and revenue mix. Interest expense was $63 million in the quarter, flat sequentially and is expected to remain roughly the same in future periods using current interest rate expectations. Tax expense was $34 million in the quarter, representing an effective tax rate of 27.3%, slightly better than the prior year. Income from continuing operations was $88 million on 41.5 million diluted shares for an EPS of $2.13. Depreciation and amortization was $64 million in the quarter and is expected to be roughly $250 million for the full year. Let's move to Slide 13 to discuss our capital allocation framework. Our capital allocation framework remains unchanged despite the pending NCR Atleos acquisition. Our leverage at the end of the second quarter was 2.7x net debt to adjusted EBITDA. With the pending acquisition set to temporarily move us over 3 turns at close, we continue to expect the primary use of capital during 2026 to be preemptive debt paydown. Over the year, we expect to reduce our stand-alone leverage to approximately 2.3x as we position for the transaction. As we have mentioned previously, we plan to rapidly delever after closing and are targeting net leverage below 3x by the end of 2027. Once we return to our targeted leverage level of 2 to 3x, we expect to resume our prior capital allocation model with at least 50% of free cash flow focused on shareholder returns. Given the expected EBITDA growth after closing, both organically and through synergies, we expect to continue net debt leverage reduction during 2028. With approximately $1 billion of free cash flow approaching $20 per share, we will have ample flexibility to capitalize on accretive uses of capital that will compound cash generation. Moving to the guidance on Slide 14. Our framework for 2026 is unchanged. We expect to deliver mid-single-digit total organic growth, supported by mid- to high teens organic growth for AMS/DRS. With the second quarter EBITDA above the midpoint of prior guidance, we are raising our full year organic profit numbers despite the recent change in foreign currency. Using rates as of yesterday, we are currently expecting an FX benefit for the full year of between 1.5% and 2.5%, less than our expectations last quarter. EBITDA margins are expected to expand between 30 and 50 basis points with conversion of EBITDA to free cash flow of between 40% and 45%. In the third quarter, we expect revenue between $1.365 billion and $1.415 billion, reflecting slight organic growth acceleration sequentially. As Mark mentioned earlier, we expect second half organic growth in AMS/DRS to be towards the top end of our full year framework to drive this acceleration. Using yesterday's spot rates, FX is expected to be flat to less than a percentage point of benefit year-on-year. Adjusted EBITDA is expected to be between $263 million and $283 million, reflecting margin expansion of approximately 60 basis points to 19.6% at the midpoint. EPS is expected to be between $2.23 and $2.63. And with that, I'll turn it back over to Mark for some closing comments. Richard Eubanks: Thanks, Kurt. On Slide 15, you can see how we plan to create value for years to come in our business. The key tenets of this strategy are unchanged over the years and will guide how we move forward through the rest of '26 and through the acquisition. We continue to operate at a high level, improving the growth profile, profit margins and cash generation of the business in a consistent and measurable way. We've made good progress over the years, but in many ways, we're still in the early innings. There remains ample opportunities in our base business to continue to improve our operating model and drive waste out of our day-to-day frontline and back-office activities. After this acquisition, we'll be well positioned to accelerate these efforts across a $10 billion global enterprise with fresh new growth and margin opportunities. While the size of the business changes, the strategy remains constant. We will grow the business behind higher-margin recurring revenue service offerings that solve the complex problems of our retail and banking customers. We will be positioned to capture industry outsourcing momentum in the ATM market while we continue to transform the retail cash management industry through DRS. As I approach my 5-year anniversary with Brink's next month, I'm proud of the progress we've made transforming our business, shifting our business model to higher-margin recurring revenue AMS/DRS offerings while driving consistent productivity, margin expansion and improved free cash flow conversion. Even with this progress, I'm even more excited about the opportunities that remain in front of us. Working from the strong foundation we've built, I'm energized for the future and I look forward to driving shareholder value creation to new levels in the years to come. Before we take questions, I want to congratulate both the Brink's and NCR Atleos teams on a strong second quarter and for their steadfast focus on delivering for our customers and for our shareholders. And with that, we'll open the line for questions. Operator? Operator: [Operator Instructions] Our first question today comes from George Tong of Goldman Sachs. Unknown Analyst: This is Sammy on for George. Can you break down the 14% AMS and DRS organic growth between pricing, new customer wins and expansion with existing customers? And how much of your second half AMS and DRS growth outlook is already supported by contracted business versus opportunities still in the pipeline? Richard Eubanks: Sure. Yes. We'll start with the back half first. We have a very strong pipeline. In fact, in the quarter, had a few deals that actually deployments on AMS/DRS that moved out of second quarter into the third. So we expect to have continued acceleration in the back half and have good visibility to many of those contracts and/or sales pipelines where we have high confidence. And as we've said in the past, DRS is usually a shorter window of certainty, maybe a quarter, maybe like 2 quarters and AMS usually a bit longer, 2 quarters to maybe a full year in some of those deployments. So as we look at the third quarter guidance, we've anticipated this acceleration as well as getting back to our full year framework for organic growth in the mid- to high teens. That continues to be supported by a few large deals. As I mentioned, the enterprise retailer we laid out that we came to an agreement with in the second quarter for 5,000 locations and really an interesting opportunity for us as we look at the overlap of the NCR Allpoint network as you think about that sort of post transaction and really being able to improve service to those customers as we visit not only for DRS solutions but also for AMS support. So really excited about that. And then if you move around the world, we've got several large ATM deployments. One I mentioned in Europe around a bank consortium and the second, we explicitly talked about, which was Mandiri. And again, a large opportunity in Indonesia. When you think about that market, both Indonesia and the rest of Asia Pacific, it's a really big cash market with a big population, growing population that continues to be an area of strength for us. And you can see in the individual growth rates for that market. Rest of world growing 44% year-on-year, up admittedly a smaller base, but a big growth number down in that region. We expect that to continue here in the short term. Kurt McMaken: I might just add -- I might just add on the question on price versus volume. Remember, AMS and DRS, it's mostly volume. There's some price in there, but it's a much smaller piece of total price. It's really a volume-driven number. Richard Eubanks: And so that means mainly new customers or share of wallet. You asked about expansion within existing customers. I don't have that data in front of me. We are expanding share of wallet with customers. But for the most part, as Kurt said, that's really new locations, new deployments, new services because the nature of these agreements are longer-term recurring revenue. Unknown Analyst: That's helpful. And then just on organic growth, North America, Latin America and Europe all decelerated to about 2% this quarter. Was there a common factor driving that across the regions? And where do you expect improvement as you move through the back half of the year? Richard Eubanks: Yes. Really, this was -- North America specifically was really a timing issue on these customer deployments, as I said. We expect the organic growth for total to pick up. But certainly, that's mainly an AMS/DRS story, which was a large part of the growth number. If you think about Latin America, I didn't talk about it earlier, but the economy is actually pretty stable down there across the region. We talked about Argentina. Of course, that's a bit of an anomaly in the region. There we continue to see depressed consumption down there just given their austerity measures across the government. But long term, it's a good business for us, good margins, good cash economy, and we think the austerity is probably healthy for them to get back on track. And our team down there is doing a really good job as well, managing through a tough situation. So that provided a little bit of a headwind. But you look at Latin America, 34% quarter-on-quarter growth with AMS/DRS and probably could have been a little better given some of the contracts we have in hand and just again, timing on deployments that kind of moved out of Q2 or in Q3. So we're still very, very bullish about it. In Latin America, particularly around DRS, we continue to see good penetration of both our existing customers with conversions, but also with the unvended space. So all in all, pretty good. Operator: The next question comes from Tim Mulrooney of William Blair. Timothy Mulrooney: So you're getting really close to your intermediate target for North America margins. As we think about your ability to press beyond that 20%, can you talk about how you think about incremental margins in this business, just a framework here or potential incremental margins? Help us understand what the opportunity is to press beyond 20% because if incremental margins aren't much higher than that, then folks are going to assume it kind of tops out there. So I thought I'd give you the opportunity to talk about in kind of a framework way? Richard Eubanks: Sure. Tim, the way we think about it, particularly on the AMS/DRS side is relative to the existing market, it's almost infinite. It's -- the unvended space is so large. And so as we continue to shift our business model away from this linear investment of capacity to serve an incremental customer, the network effect and the density continues to drive up those incrementals higher and higher as we create more and more density. And that's not just from the incremental new locations, but it's also, let's say, trapped productivity that's sitting inside of our existing [ CIP ] customers that are non-DRS. So as we think about converting those. So we think that, that incremental rate can continue to creep up. Layer on -- besides our own business, layer that on now with the NCR business, and we've laid out some of those synergies already in the beginning. But we would certainly hope that as we put those 2 businesses together, we continue to improve our density on the retail side, not just where their Allpoint network exists today as a cross-selling opportunity, but just more and more of our existing service base and the existing retail locations, we think that can continue to creep. The 20% number is -- it's sort of a headline number, Tim, that we've had investors ask us about relative to other business services and route-based industrial business margins. And it's why we continue to sort of point to it. But it's not -- in our view, it's not a destination. It's only going to be a point in time that we maybe take a short victory lap with the team and celebrate, but keep moving. And that's the way we're thinking about it, and we think that framework can continue to move up from those 20% incrementals as we go further. Timothy Mulrooney: Yes. That's a good point, Mark, that I hadn't fully considered that the incremental margins are not static as you continue to densify the network. So a really good point. And then you also brought up, which was going to be my next question, how a combined Brink's and NCR could drive those incremental margins in North America higher, even higher. Is there anything beyond the cost synergies, the obvious cost synergies that would drive that higher? Is that what you were thinking about? Or are there opportunities beyond that, that would also potentially drive that higher? Richard Eubanks: Sure. The cost synergies we've laid out already, and that's largely most of the -- we put in the business case. I think the other area, Tim, as we think forward, though, is as we build more density and leverage a shared network and think about customers not just in terms of an individual contract or an individual location, but a network, a consortium, a continuum of services, we're going to think about that long term about where do we send the right technician, the right service person in the field to the right location with the right material or right skill set. And that optimization, we think, can continue to drive not just lower cost as we already laid out, we think it can drive better service and quality for our customers that's going to allow us to grow more. And I think this is all part of the strategic thesis of this acquisition is for us, the combined company to really be a catalyst for an end-to-end solution, whether that's full outsourcing or some subset of that, we think that, that combination can do that. And again, the more we grow in locations, the more services we're doing, the more we're going to create incremental margin leverage going forward. Timothy Mulrooney: Yes. Very clear. I did have one more question, but I don't want to be rude. Should I ask one more question? Or you want me to hop back in the... Kurt McMaken: Yes, that's fine. Sure. Timothy Mulrooney: Okay. Yes. So shifting gears completely. Ever since you announced this deal with NCR Atleos, we've been getting a lot of questions from investors around ATM Managed Services, AMS. And the one big question we've been getting is around the pace of ATM outsourcing in the U.S. and Europe with financial institutions. So the question is what inning do you think we are in with regional and national banks? And is there anything that you can point to that suggests this is something that will or could accelerate in the coming years? Richard Eubanks: Sure. Yes, good question. I think we are in early innings of this. And although you can see the strong growth numbers from the NCR Atleos team around ATM as a Service. You can see our growth rates and some of the announcements that we've made. We've seen a little bit of bifurcation in market activity, though, between North America and Europe that you referenced. And in Europe, we've certainly seen more activities by financial institutions to either outsourced networks, which we've done. We outsourced BPCE, which is over 10,000 locations today in France. There's also been banks taking another route building out their cooperatives or consortiums. And so we see this as a trend that's going to favor our services, our outsourcing offering for the long term. And we think that will only continue as people continue to look for more and more efficiency and productivity along the way and look to a partner that's going to have the most fulsome solution. And that's happening, and of course, we've talked about -- there's a bank in Europe -- that we're contracted with now to outsource their consortium of banks, their ATM network. So we definitely are seeing it. And there's a lot in the pipeline. Certainly, we're talking to all of the banks that we -- that are our customers. And I know the NCR Atleos team has been doing that also even before our announcement, obviously. In North America, it's been a little bit different in that we've seen lots of small banks, community banks, credit unions and so forth, kind of the place where the managed services stack really has resonated. And that's largely a cost and efficiency scale play. And I think that's -- it's pretty obvious. And both us and the NCR team have had pretty good progress there and that's pretty supportive. The other part though, Tim, that you're -- maybe you're getting to is big -- what are the big financial institutions in the U.S. to do. And we get this question from investors all the time. And listen, we think that there's a time and point where our services of a full stack, a full suite of managed services will be attractive to these banks, and we would expect that to be part of our future growth algorithm to say that there is someone ready today to just outsource everything. That's not -- I'm not ready to talk about that today. But we do think this -- the growth opportunity that's embedded in the existing ATM, let's say, market construct relative to managed services or ATM as a Service is very favorable in the long term. And we've talked about the TAM being 2 or 3x. If that's a 10-year TAM, 2 or 3x in the available market over the next decade, that's a lot of incremental growth opportunity along the way. So -- and I think I laid that out in the -- in previous calls that we think our solution will be -- the combined solution will be the kind of best-in-class from servicing quality and kind of clear orchestration, not just cost efficiency, but servicing quality. And that for us is -- we think we're going to be sitting at the table having those conversations for many years to come to be a better partner for our financial institutions. Timothy Mulrooney: It sounds like a very exciting opportunity, Mark. Thanks for laying all that out for me and good luck on the next 5 years. Operator: Our next question comes from Tobey Sommer of Truist. Tobey Sommer: On the regulatory front associated with the deal, nice to see you say, the early part of '27. Could you maybe speak to what are the longest lead time items and geographies associated with that? And what would need to happen to be able to close even earlier? Richard Eubanks: Sure. Yes, we're -- we continue to be hyper-focused and moving with urgency and pace. I mentioned it in my prepared comments around not only the antitrust, but the foreign direct investment as well as some of the money transmitter license here in North America. But Tim, I mean, Tobey, we have so many kind of parallel paths going. It's hard to say any one thing is sort of in the way. What I can say is that all of the activities that we contemplated when we announced the deal have trended in the positive direction. And I talked about DOJ, particularly here in North America -- in the U.S. with early termination. That wasn't that wasn't the 100% case that could have gone longer. And I think we continue to make our case in the same way to these other jurisdictions. We still -- we laid out, I think, a few that we've gotten through. But most of these processes are all confidential and I probably wouldn't go any further to say anything on any specific. I think to make these go faster was your question, what could change the date in advance of that. It would be that we got clearance from some of the remaining European area, we've got some in Latin America and still some in Asia Pacific to get through. So yes, early termination -- early resolution of those beyond the track we're on. But nothing to report today, Tobey, that would say we could do any better than kind of early Q1. Tobey Sommer: Okay. I wanted to ask a question about your incentive comp and how you're thinking about that for the firm as you join with NCR Atleos. You've had, I think, a successful track record of changing compensation throughout the organization to focus efforts on growth in AMS and DRS. And wondering if you -- how you would contemplate any modifications to that to drive further growth and integration within the business as you turn the page into '27 and beyond. Richard Eubanks: Yes, sure. It's a really good question. We certainly think the key tenets of the strategy are intact. And maybe I said that in the prepared comments as well that this deal relative to our strategy is right down the middle and supporting, of course, AMS, but also DRS. I think as we think about incentive comp going forward, we really want to continue to do more of the same. And I think the acceleration, the meaningful push that we've had internally and culturally around AMS/DRS it's improvement that our incentive comp worked. I think the other side of that is the operational side, we've also seen and certainly around free cash flow, and we've talked about that previously, and we would expect to do the same. Good news is the NCR team already highly focused on ATM as a Service and improving their long-term contracted service recurring revenue base, which is where we want to be. And also, you've seen their performance, which has been strong in and around free cash flow. So I think culturally, it won't be so difficult to do that. We just want to make sure we've got people pointed toward the right North Star and reward them when they get there. And listen, we think from a management perspective, all the way up to our Board that making sure that our incentive comp lines up with what our shareholders are interested in and the profile of the company and where we want to take the company, I think it is paramount to success, and we'll continue to do that. And I know the NCR team will be aligned. Tobey Sommer: I appreciate that, Mark. And I want to pull out a string there, and that's the cash conversion. You've done very well year-to-date, and noticed in some of your projections associated with the deal that maybe there's an opportunity to crack that 50% barrier. Could you talk about the puts and takes around setting and achieving an even higher cash conversion from EBITDA? Kurt McMaken: Tobey, it's Kurt here. Let me take this one. Look, I'd say both companies are really focused on improving their free cash flow conversion. And for us, as you know, a big piece of that is changing the business model, focusing on AMS and DRS because it's less capital intensive and getting capital out of the system, but also focusing on the basics around working capital turns and then other aspects of free cash flow generation. So we're marching towards that, and so are they. So we definitely see that between the EBITDA growth, better capital management between the 2 companies, driven by the business model and then both companies really working on working capital and both companies making progress there that we're going to see us continue to march up on free cash flow conversion. There's nothing that holds us back from continuing to move up the levels you're talking about. Operator: This concludes our question-and-answer session and brings us to the end of our conference. Thank you for attending today's presentation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Brink's (BCO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 14% organic growth in high-margin ATM Managed Services (AMS) and Digital Retail Solutions (DRS), marking 14 consecutive quarters of mid-teens growth. Achieved record Q2 EBITDA margins of 18.5%, driven by favorable revenue mix and productivity initiatives across all operating segments. North America margins reached 19.8% on a trailing 12-month basis, nearing the 20% intermediate milestone through service optimization and waste elimination. Global Services within the Cash and Viables Management (CVM) segment benefited from increased volume in volatile precious metals markets. Secured a major enterprise DRS agreement with a U.S. retail chain covering 5,000 locations, nearly doubling share of wallet with that customer. Strategic shift toward less capital-intensive subscription models supported a 46% free cash flow conversion rate, exceeding the full-year framework. Management attributes slight organic growth deceleration in some regions to customer-driven timing shifts for large installations now slated for the second half. Moved the estimated closing timeline for the NCR Atleos acquisition forward to early Q1 2027 following early U.S. antitrust clearance. Expects second-half organic growth for AMS/DRS to reach the top end of the mid-to-high teens framework, supported by a strong contracted backlog. Full-year profit expectations raised due to Q2 outperformance, despite a projected reduction in foreign currency tailwinds to between 1.5% and 2.5%. The primary use of capital during 2026 will be preemptive debt paydown, followed by rapid deleveraging post-acquisition to reach a target net leverage below 3x by the end of 2027. Integration planning focuses on capturing routing synergies between Brink's DRS footprint and NCR's Allpoint ATM network to improve service density. Achieved over 99% shareholder approval for the NCR Atleos transaction from both companies' voting blocks. Obtained regulatory clearances in major markets including Brazil, India, and the majority of the Eurozone, with U.S. money transmitter licenses 80% complete. Austerity measures in Argentina continue to depress local consumption, acting as a regional headwind despite the business remaining margin-resilient. Management identified a shift in the ATM market toward full outsourcing consortiums in Europe, contrasting with the community bank focus in North America. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is primarily volume-driven through new locations and increased share of wallet rather than price increases. High confidence in second-half acceleration is supported by specific large-scale deployments in Europe and Indonesia that shifted out of Q2. Management views 20% as a milestone rather than a ceiling, citing 'infinite' opportunity in the unvended retail space. Incremental margins are expected to rise as network density increases, allowing the company to decouple revenue growth from linear capacity investments. The market is in the 'early innings,' with Europe leading in large bank consortium outsourcing while the U.S. remains focused on smaller institutions. The combined Brink's-NCR entity aims to be the catalyst for large U.S. banks to eventually move toward full-stack managed services. Management confirmed there are no structural barriers to exceeding 50% conversion as the business model shifts to less capital-intensive services. Both Brink's and NCR Atleos are independently focused on working capital efficiency, which should compound post-merger.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Brink's Co (NYSE:BCO) delivered a strong second quarter with 4% organic growth and record second-quarter operating and EBITDA margins of 18.5%, up 70 basis points year-over-year. AMS/DRS (ATM Managed Services and Digital Retail Solutions) grew 14% organically, marking the 14th consecutive quarter of mid-teens or better growth, with total revenue more than doubling to over $1.5 billion. The company raised its full-year profit expectations due to year-to-date results exceeding original expectations, with EBITDA above the midpoint of prior guidance. Significant progress on the NCR Atlios acquisition, including early termination from US antitrust regulators, clearances in multiple jurisdictions (Brazil, India, Turkey, Colombia, and most of the Eurozone), and over 99% shareholder support. Strong cash flow generation with trailing 12-month free cash flow of $468 million and a conversion rate of 46%, above the full-year framework, driven by EBITDA growth and capital efficiency. New major customer wins, including a large North American retail chain DRS enterprise agreement covering over 5,000 locations and a full ATM outsourcing deal with Mandiri Bank in Indonesia, supporting second-half growth expectations. Organic growth in North America, Latin America, and Europe decelerated to about 2% in the quarter, partly due to customer-driven timing decisions pushing large installations and wins to the second half. The pending NCR Atlios acquisition will temporarily push net leverage above 3 turns at close, requiring a focus on debt paydown and delaying the resumption of the prior capital allocation model. The company faces ongoing regulatory hurdles for the NCR Atlios deal, including remaining antitrust clearances in some jurisdictions and money transmitter licensing requirements in the US, with closing not expected until early Q1 2027. Foreign currency is expected to provide a smaller benefit for the full year (1.5% to 2.5%) than previously anticipated, due to recent changes in exchange rates. The Argentinian peso continues to be a headwind, with depressed consumption in Argentina due to government austerity measures, impacting regional performance. The company's full-year free cash flow conversion is still targeted at 40% to 45%, despite being ahead of that pace year-to-date, due to expected timing of cash tax payments, working capital, and CapEx. Warning! GuruFocus has detected 3 Warning Signs with BCO. Is BCO fairly valued? Test your thesis with our free DCF calculator. Q: Can you break down the 14% AMS and DRS organic growth between pricing, new customer wins, and expansion with existing customers? How much of your second-half AMS and DRS growth outlook is already supported by contracted business versus opportunities in the pipeline?A: CEO Mark Eubanks noted that the back-half growth is supported by a very strong pipeline, with some deployments moving from Q2 into Q3. He highlighted recent wins, including a large enterprise retailer agreement for 5,000 locations and a major ATM outsourcing deal with a European bank consortium. CFO Kurt McMacken added that AMS and DRS growth is primarily volume-driven, with price being a much smaller component, and that growth mainly comes from new locations and deployments under long-term recurring revenue agreements. Q: North America, Latin America, and Europe all decelerated to about 2% organic growth this quarter. Was there a common factor driving that across the regions, and where do you expect improvement in the back half?A: CEO Mark Eubanks explained that the deceleration was primarily a timing issue related to customer deployments, particularly in North America. He noted that Latin America remains stable, with Argentina being an anomaly due to government austerity measures. He expressed confidence in the back-half acceleration, driven by AMS/DRS growth, which saw 34% quarter-on-quarter growth in Latin America, and expects continued strong penetration in DRS across the region. Q: As you approach your intermediate target for North America margins, can you talk about the framework for incremental margins and the ability to press beyond 20%?A: CEO Mark Eubanks stated that the unvended space is so large that incremental margins are almost infinite relative to the existing market. As the business shifts away from linear capacity investment, network density continues to drive higher incrementals. He emphasized that 20% is not a destination but a point in time, and that the combination with NCR Atlios will further improve density and create additional margin leverage through better service quality and network optimization. Q: Beyond the obvious cost synergies, are there opportunities that would drive incremental margins higher for a combined Brinks and NCR?A: CEO Mark Eubanks highlighted that beyond the cost synergies already laid out, the combined company can leverage a shared network to optimize field service operations, sending the right technician with the right skills to the right location. This optimization drives better service quality, which in turn supports growth and creates incremental margin leverage. He sees the acquisition as a catalyst for end-to-end solutions, further enhancing density and margin expansion. Q: What inning do you think we are in with regional and national banks regarding ATM outsourcing in the US and Europe? Is there anything that suggests this will accelerate?A: CEO Mark Eubanks believes the industry is in the early innings of ATM outsourcing. He noted a bifurcation between Europe, where banks are actively outsourcing or forming consortiums (e.g., BPCE in France), and North America, where smaller banks and credit unions are leading adoption. He expects large US financial institutions to eventually find full-stack managed services attractive, with the TAM projected to be 2x to 3x over the next decade, providing significant incremental growth opportunities. Q: On the regulatory front for the NCR Atlios deal, what are the longest lead-time items and geographies, and what would need to happen to close even earlier?A: CEO Mark Eubanks stated that all regulatory activities have trended positively, citing the early termination from US antitrust regulators. He mentioned remaining clearances needed in parts of Europe, Latin America, and Asia Pacific. While he couldn't specify exact items due to confidentiality, he indicated that early resolution of remaining jurisdictions could potentially advance the closing timeline, but nothing currently suggests doing better than early Q1. Q: How are you thinking about incentive compensation as you join with NCR Atlios, given your track record of aligning comp with growth in AMS and DRS?A: CEO Mark Eubanks said the strategy remains intact, and the deal supports both AMS and DRS. He plans to continue the same incentive comp approach that has driven cultural alignment around AMS/DRS and free cash flow. He noted that NCR Atlios is already highly focused on ATM-as-a-service and free cash flow, making cultural alignment easier. He emphasized the importance of aligning incentives with shareholder interests and the company's strategic direction. Q: You've done well on cash conversion year-to-date. What are the puts and takes around setting and achieving an even higher cash conversion from EBITDA, potentially cracking the 50% barrier?A: CFO Kurt McMacken explained that both companies are focused on improving free cash flow conversion. Key drivers include shifting to less capital-intensive AMS and DRS offerings, improving working capital turns, and better capital management. He sees no obstacles to continuing to move up the conversion levels, driven by EBITDA growth and both companies' progress on working capital. Q: Can you provide more detail on the new DRS win in North America and its impact on the business?A: CEO Mark Eubanks detailed a new enterprise agreement with a large retail chain to provide a full DRS solution at over 5,000 locations, nearly doubling share of wallet. The win leverages Ring Solutions and integrates physical-to-digital payments, improving working capital transparency and simplifying cash handling. He highlighted the productivity opportunities from increased density and route optimization, and noted the overlap with NCR's Allpoint network, which will create significant routing synergies post-acquisition. Q: Can you discuss the recent AMS win with Mandiri Bank in Indonesia and the broader Southeast Asia opportunity?A: CEO Mark Eubanks announced a new AMS deal with Mandiri Bank, Indonesia's largest national bank, servicing over a third of its 13,000+ ATM estate. He noted Southeast Asia remains an attractive market with favorable cash usage trends and growing outsourcing demand. The win adds to previous successes in Indonesia and the Philippines, and he expects the combined company post-acquisition to have best-in-class ATM managed services capabilities to serve financial institutions globally. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Brink's Company (The)? Here are five stocks we like better. Brink’s delivered strong Q2 results, with 4% organic revenue growth, 11% adjusted EBITDA growth to $257 million, and record operating and EBITDA margins. The company also generated $468 million in trailing 12-month free cash flow. AMS/DRS revenue increased 14%, supported by major retail, banking and ATM outsourcing wins. Management expects second-half AMS/DRS growth toward the top end of its mid-to-high-teens full-year outlook. Brink’s raised its full-year profit outlook while maintaining its revenue-growth framework, and now expects the NCR Atleos acquisition to close in early Q1, subject to remaining approvals. Leverage is expected to temporarily exceed 3x following the deal, with debt repayment prioritized in 2026. Amid Tech Volatility, These 3 Stocks Are Up & Boosting Buybacks Brink's (NYSE:BCO) reported second-quarter results marked by 4% organic revenue growth, a 14% increase in ATM Managed Services and Digital Retail Solutions revenue, and record second-quarter operating and EBITDA margins, while raising its full-year profit expectations. Chief Executive Officer Mark Eubanks said the company’s AMS/DRS businesses have now delivered mid-teens or better organic revenue growth for 14 consecutive quarters. Revenue from those offerings has more than doubled over that period to exceed $1.5 billion, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We delivered a strong second quarter with organic growth of 4% and ATM Managed Services and Digital Retail Solutions, or AMS/DRS, growing 14%,” Eubanks said. He added that customer wins and scheduled deployments provide visibility into continued growth in the second half of the year. Revenue rose 7% from a year earlier, including 4% constant-currency growth and a 3% foreign-exchange benefit, according to CFO Kurt McMaken. Adjusted EBITDA increased 11% to $257 million, while EBITDA margin expanded 70 basis points to 18.5%. → 3 Drone Stocks That Should Soar After the Summer Slump Operating profit climbed $25 million, or 15%, to $190 million, producing a 13.6% operating margin. Brink’s reported income from continuing operations of $88 million, or $2.13 per diluted share, based on 41.5 million diluted shares. McMaken said earnings-per-share growth of 18% exceeded the company’s revenue growth rate. The company generated $468 million of trailing 12-month free cash flow, equal to 46% conversion from EBITDA. Management said it remains on track for full-year free-cash-flow conversion of 40% to 45%, citing the expected timing of tax payments, working capital and capital expenditures during the rest of the year. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Brink’s said favorable revenue mix, pricing discipline and productivity initiatives supported margin expansion across all operating segments. Eubanks said the company’s Cash and Valuables Management business posted slightly positive organic growth, as growth in Global Services and pricing offset conversions into AMS/DRS offerings. AMS/DRS generated $50 million of organic revenue growth during the quarter. Some major installations and customer deployments shifted from the second quarter into the second half because of customer-driven timing decisions, management said. Brink’s recently signed an enterprise agreement with a large U.S. retail chain to provide a full DRS solution at more than 5,000 retail locations. Eubanks said the agreement will nearly double Brink’s share of wallet with that customer and could create productivity benefits by increasing route density across the company’s existing footprint. The company also cited an ATM outsourcing agreement for a European bank consortium, expected to come online during the second half, and an AMS contract with Mandiri Bank in Indonesia. Brink’s will service more than one-third of Mandiri’s ATM estate. Mandiri operates more than 13,000 ATMs, according to Eubanks. Management said AMS/DRS growth in the second half is expected to trend toward the top end of its full-year mid-to-high-teens framework. McMaken said AMS/DRS growth is predominantly volume-driven, reflecting new locations, deployments, new customers and expanded customer relationships rather than pricing. In North America, Brink’s reported a trailing 12-month EBITDA margin of 19.8% at the end of the second quarter, approaching management’s intermediate 20% target. Eubanks said that threshold is “not a destination,” citing potential for continued margin improvement through network density, productivity and expansion of recurring-service offerings. Brink’s said it now expects its pending acquisition of NCR Atleos to close early in the first quarter, subject to remaining regulatory approvals and customary closing conditions. Eubanks said shareholders of both companies approved the transaction with more than 99% of votes cast in favor. The company also received early termination from U.S. antitrust regulators and antitrust clearances in Brazil, India, Turkey and Colombia. Foreign-direct-investment approvals have been received across much of the company’s Eurozone footprint, including France, Germany, Spain, Italy and the United Kingdom. Brink’s has also received clearance in more than 80% of the jurisdictions needed for U.S. money transmitter licensing requirements, Eubanks said. Management said the companies will continue operating independently until the transaction closes while integration teams prepare to capture strategic benefits. Eubanks pointed to NCR Atleos’ Allpoint ATM network as a potential source of routing efficiencies and service-level improvements when combined with Brink’s retail network. Following the acquisition, Brink’s expects leverage to temporarily exceed three times net debt to adjusted EBITDA. The company plans to prioritize debt repayment during 2026 and targets net leverage below three times by the end of 2027. Brink’s reported standalone leverage of 2.7 times at the end of the second quarter and said it expects to reduce that figure to about 2.3 times before the transaction. Brink’s maintained its full-year revenue-growth framework while raising its full-year organic profit outlook after second-quarter EBITDA exceeded the midpoint of its previous guidance. Full-year organic revenue growth is expected to be in the mid-single digits. AMS/DRS organic growth is expected to be in the mid-to-high teens. EBITDA margin is expected to expand by 30 to 50 basis points. Foreign exchange is expected to provide a 1.5% to 2.5% full-year benefit, based on recent exchange rates. Free-cash-flow conversion is expected to be 40% to 45%. For the third quarter, Brink’s forecast revenue of $1.365 billion to $1.415 billion, adjusted EBITDA of $263 million to $283 million, and diluted EPS of $2.23 to $2.63. At the midpoint, the company expects EBITDA margin of approximately 19.6%, representing about 60 basis points of year-over-year expansion. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Brink's Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Brink's (BCO) came out with quarterly earnings of $2.13 per share, beating the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $1.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.90%. A quarter ago, it was expected that this armored car company would post earnings of $1.68 per share when it actually produced earnings of $1.8, delivering a surprise of +7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Brink's, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $1.39 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.09%. This compares to year-ago revenues of $1.3 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Brink's shares have added about 1.1% since the beginning of the year versus the S&P 500's gain of 13%. While Brink's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Brink's was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.44 on $1.4 billion in revenues for the coming quarter and $9.14 on $5.58 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Payoneer Global Inc. (PAYO), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Payoneer Global Inc.'s revenues are expected to be $267.53 million, up 2.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brink's Company (The) (BCO) : Free Stock Analysis Report Payoneer Global Inc. (PAYO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research