The Brink's Company (BCO) Q4 2024 earnings summary

Executive summary

• Achieved 12% organic growth in 2024, with AMS/DRS organic growth of 23% and AMS/DRS now 24% of total revenue; EBITDA reached $912M (18.2% margin), EPS was $7.17, and free cash flow was $400M.

• Returned $245M (61% of free cash flow) to shareholders, including a 20% increase in share repurchases and double-digit dividend growth.

• Net leverage reduced to 2.8x EBITDA, within the 2-3x target range, and strategic transformation initiatives advanced.

• Strengthened leadership team with three new global executives to drive growth and productivity.

• Resolved DOJ and FinCEN investigations with a $45.7M charge and advanced operational excellence initiatives.

Financial highlights

• Full-year revenue was $5.01B (+3% reported, +12% organic), with Q4 organic growth of 11%; adjusted EBITDA was $912M (18.2% margin), and EPS was $7.17.

• Free cash flow for the year was $400M, with 44% conversion and significant working capital improvements.

• Interest expense rose to $60M due to higher debt and financing leases; tax expense was $29M in Q4, with a full-year effective tax rate of 23%.

• Cash CapEx was $147M (2.9% of revenue), below the 3.5%-4% target.

• Net income increased 86% to $163M; GAAP EPS $3.61, up 97% year-over-year.

Outlook and guidance

• 2025 guidance targets mid-single-digit total organic growth, mid-to-high teens AMS/DRS organic growth, and adjusted EBITDA margin expansion of 30-50 bps.

• Free cash flow conversion expected at 40-45%, with over 50% to be returned to shareholders.

• Q1 2025 revenue expected at $1.2B–$1.25B, adjusted EBITDA $190M–$210M, and EPS $1.10–$1.40.

• Margin expansion may be muted by currency headwinds, especially in Latin America in early 2025.