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%.

• Adjusted EBITDA increased 16% to $226M, with margin expanding 200 basis points to 18%.

• Non-GAAP EPS rose 31% to $1.67; 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.

• Returned $86M to shareholders year-to-date, including repurchase of over 722k shares at an average price of $91.02.

Financial highlights

• Q2 2024 revenue up 3% reported, 14% organic, reaching $1,253M; adjusted EBITDA up 16% to $226M.

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

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

• Free cash flow before dividends for the first half was $(36.8)M, down from $66.9M, due to higher capex and working capital needs.

• Net debt at June 30, 2024: $2,726M, leverage ratio 2.9x adjusted EBITDA.

Outlook and guidance

• 2024 guidance affirmed: revenue $5,075M–$5,225M, adjusted EBITDA $935M–$985M, margin 18.4%–18.9%.

• EPS expected between $7.30–$8.00; free cash flow $415M–$465M, conversion 42%–50%.

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

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

• FX headwinds, especially from Latin America and Argentina, could impact revenue but are being managed through pricing and productivity.