The Brink's Company (BCO) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $1,253M, up 3% year-over-year, with 14% organic growth and AMS/DRS organic growth of 26%, offsetting global services softness and currency headwinds.

• Adjusted EBITDA increased 16% to $226M, with margins expanding 200 basis points to 18%; GAAP net income rose 44% to $46M.

• Earnings per share rose 31% year-over-year to $1.67 (non-GAAP), with GAAP EPS up 51% to $1.03, driven by profit growth and share repurchases.

• Transformation initiatives and operational improvements, especially in North America, contributed to margin expansion and productivity gains.

• Year-to-date share repurchases increased more than 3x versus prior year, with $86M returned to shareholders, including over 722k shares repurchased.

Financial highlights

• Q2 2024 revenue reached $1,253M, up 3% reported and 14% organic; adjusted EBITDA up 16% to $226M, margin expanded 200bps to 18%.

• EPS up 31% year-over-year to $1.67 (non-GAAP); diluted shares decreased to 45.1M.

• Six-month 2024 revenue up 4% reported, 13% organic; adjusted EBITDA up 15% to $444M.

• Free cash flow conversion at 32% for Q2 and six months; free cash flow before dividends for H1 was $(36.8)M, down from $66.9M.

• Shareholder returns more than doubled year-over-year, with $86M returned, including $66M in share repurchases.

Outlook and guidance

• 2024 guidance affirmed: revenue $5,075–$5,225M, adjusted EBITDA $935–$985M, margin 18.4–18.9%, EPS $7.30–$8.00, and free cash flow $415–$465M.

• AMS/DRS double-digit organic growth expected; margin expansion driven by mix and productivity.

• FX headwinds, especially from Latin America and Argentina, may cause revenue to trend below midpoint if current rates persist.

• Guidance assumes continuation of current economic trends and no significant downturn.

• EPS growth impacted by non-repeating 2023 gains on sale of marketable securities.