The Brink's Company (BCO) Q3 2024 earnings summary

Executive summary

• Achieved 13% organic revenue growth in Q3 2024, led by 26% growth in AMS and DRS, now over 23% of total revenue, with all regions contributing double-digit growth and strong backlogs supporting future momentum.

• CVM grew 9% organically, offsetting market softness in global services; FX headwinds, mainly from the Mexican peso and Argentina, reduced reported results.

• Adjusted EBITDA was $217 million (17.2% margin), impacted by a $10 million security loss and delayed productivity from tech investments.

• Free cash flow reached $135 million in Q3, with nine-month FCF before dividends at $98 million, aided by asset efficiency and AR management but offset by lower EBITDA and FX impacts.

• Added two key executives to drive cost productivity and global services growth.

Financial highlights

• Q3 2024 revenue: $1,259 million, up 3% year-over-year; nine months: $3,747.7 million, up 3%.

• Adjusted EBITDA for Q3 2024 was $216.8 million, down 6% year-over-year; nine months: $660.9 million, up 7%.

• EPS for Q3 2024 was $1.51 (non-GAAP) and $0.65 (GAAP), both down year-over-year due to higher interest expense and security loss.

• Free cash flow before dividends for nine months: $98 million, down from $235.8 million year-over-year.

• Share repurchases totaled $125 million YTD, with 1.3 million shares repurchased.

Outlook and guidance

• 2024 revenue guidance: $5,000–$5,050 million, reflecting low teens organic growth and 20%+ AMS/DRS growth.

• Adjusted EBITDA guidance: $900–$920 million (18.1% margin); free cash flow expected between $320–$360 million, with 37% conversion from EBITDA.

• EPS from continuing operations expected at $6.50–$6.80.

• Full-year interest expense forecasted at $235–$240 million; tax rate expected to remain at or below 28%.

• 2025 targets include mid to high-teens organic revenue growth and continued margin expansion.