Brink's earnings fluctuate on volatility

RICHMOND, Va. — The Brink’s Company managed double-digit organic growth in the third quarter of 2024 despite global market fluctuations. 

Most impressive among the company’s quarterly achievements was the 26% organic growth for digital retail solutions (DRS) and ATM managed services (AMS) in every regional segment, ahead of its expectations.  

Overall, however, the company’s quarter fell short of its initial expectations, something CEO Mark Eubanks attributed primarily to the devaluation of the Mexican Peso and, to a lesser extent, the market softness in its global services business. Several international currencies saw fluctuations due to the recent U.S. elections. 

“This is, obviously, you know, an unprecedented move here this morning but, obviously, that's also tied to the election, and you know we think it’s likely (that) investors in foreign currencies are reconditioning portfolios,” he said during a conference call to discuss the company’s latest financial results. “So, let's see where this lands, but I would say a good way to think about it is you know, as we think about the rates that we have built into the guide, you know that it was a couple weeks ago, right at the end of the quarter. It's not gotten better since then; in fact, it got a little worse. But let's see after these things settle out.” 

Brink’s has updated its full-year 2024 guidance to revenues of $5 billion to $5.05 billion; adjusted EBITDA of $900 million to $920 million; adjusted EBITDA margin of about 18.1%; free cash flow before dividends of $320 million to $360 million; and EPS from continuing operations attributable to Brink’s of $6.50 to $6.80.  

The company’s third-quarter results also included a $10 million increase in security losses year-over-year, primarily from a large loss event. While company officials did not specify the event, it may relate to security gains made in Argentina in 2023 that did not reoccur in 2024. 

“We still expect mid-single digit organic growth that would exclude the impact from Argentina inflation, driven by continued strong AMS and DRS organic growth as we capitalize on the momentum from 2024 and realize the benefits of a growing opportunity and backlog,” Eubanks said. “We still expect to generate 100 basis points of operating profit expansion, and we continue to see many operational levers in free cash flow to continue to improve our cash conversion from EBITDA.” 

Eubanks added, “I am confident we're building the right team and the right culture to capture the opportunity in front of us.”