What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-06 compared with 2025-05-12 · 264 added, 122 removed, 569 unchanged (40% of the section changed)

24 unchanged sentences

Consolidated Review

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages and per share amounts)

2025 2024 Change

2025 2024 Change 2025 2024 Change

Revenues $ 1,300.5 1,253.1 4 $ 2,547.2 2,489.2 2

4 unchanged sentences

10.3 % 9.3 % 11 9.9 % 9.5 % 4

Income from continuing operations (a)

Income from continuing operations (a)(c)

43.9 46.3 (5) 95.5 95.6 —

Diluted EPS from continuing operations (a)

1.03 1.03 — 2.22 2.12 5

Non-GAAP operating profit $ 164.5 155.6 6 $ 315.1 300.6 5

10 unchanged sentences

See page 46 for further information on these non-GAAP measures and reconciliations to the applicable GAAP measures.

(c) Amounts for 2025 include an adjustment that reduced depreciation expense and increased income from continuing operations by $13.6 million.

See "Depreciation Adjustment" in Note 1 for more details.

Analysis of Consolidated Results:

First Quarter 2025 versus First Quarter 2024

Consolidated Revenues Revenues increased $10.6 million due to organic increases in Latin America ($24.8 million), Rest of World ($19.0 million), Europe ($15.5 million), and North America ($9.9 million), and the favorable impact of acquisitions ($7.2 million), partially offset by the unfavorable impact of currency exchange rates ($65.8 million).

The unfavorable currency impact was driven primarily by the Mexican peso, Argentine peso, and Brazilian real.

Second Quarter 2025 versus Second Quarter 2024

Consolidated Revenues Revenues increased $47.4 million due to organic increases in Latin America ($24.7 million), North America ($22.6 million), Europe ($9.8 million), and Rest of World ($3.2 million), and the favorable impact of acquisitions ($4.2 million), partially offset by the unfavorable impact of currency exchange rates ($17.1 million).

The unfavorable currency exchange rate impact was driven primarily by the Mexican peso, Argentine peso, and Brazilian real.

Revenues increased 5% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue.

See our definition of “organic growth” on page 46 .

Consolidated Costs and Expenses Cost of revenues increased 1% to $939.5 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates.

Selling, general and administrative costs decreased 7% to $186.3 million primarily due the impact of currency exchange rates and lower net compensation costs, professional fees, and administrative expenses.

Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 9.8% to 9.6%.

Operating profit decreased $1.8 million due mainly to:

• unfavorable changes in currency exchange rates ($19.2 million), driven by the Mexican peso, Argentine peso, and Brazilian real and

• the unfavorable impact of acquisitions ($2.8 million),

Consolidated Costs and Expenses Cost of revenues increased 4% to $976.7 million primarily due to the impact of higher revenue and the impact of acquisitions, partially offset by the impact of currency exchange rates.

Selling, general and administrative costs decreased 5% to $184.5 million primarily due to the depreciation adjustment discussed in Note 1 and the impact of currency exchange rates, partially offset by organic increases in labor costs.

Consolidated Operating Profit and Operating Profit Margin Operating profit margin increased from 9.3% to 10.3%.

Operating profit increased $17.9 million due mainly to:

• organic increases in North America ($10.6 million), Europe ($5.7 million), and Rest of World ($1.3 million) and

• the depreciation adjustment mentioned above,

partially offset by:

• organic increases in Rest of World ($9.4 million), North America ($4.5 million), Latin America ($1.4 million), and Europe ($0.3 million) and

• higher costs incurred related to business acquisitions and dispositions ($9.3 million),

• unfavorable changes in currency exchange rates on segment profit ($4.6 million), primarily driven by the Mexican peso and Argentine peso, and

• an organic decrease in Latin America ($2.6 million).

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $2.4 million to $43.9 million due to lower interest and other nonoperating income ($10.7 million), higher income tax expense ($5.1 million), higher interest expense ($4.4 million) and higher noncontrolling interest ($0.1 million), partially offset by the increase in operating profit mentioned above.

Earnings per share from continuing operations was $1.03, flat to the second quarter of 2024.

Analysis of Consolidated Results:

First Half 2025 versus First Half 2024

Consolidated Revenues Revenues increased $58.0 million due to organic increases in Latin America ($49.5 million), North America ($32.5 million), Europe ($25.3 million), and Rest of World ($22.2 million) and the favorable impact of acquisitions ($11.4 million), partially offset by the unfavorable impact of currency exchange rates ($82.9 million).

The unfavorable currency exchange rate impact was driven primarily by the Mexican peso, Argentine peso, and Brazilian real.

Revenues increased 5% on an organic basis primarily due to to inflation-based price increases and organic growth in AMS and DRS revenue.

See our definition of “organic growth” on page 46 .

Consolidated Costs and Expenses Cost of revenues increased 3% to $1,916.2 million primarily due to the impact of higher revenue partially offset by the impact of currency exchange rates.

Selling, general and administrative costs decreased 6% to $370.8 million primarily due to the depreciation adjustment discussed above and the impact of currency exchange rates.

Consolidated Operating Profit and Operating Profit Margin Operating profit margin increased from 9.5% to 9.9%.

Operating profit increased $16.1 million due mainly to:

• organic increases in North America ($15.1 million), Rest of World ($10.7 million), and Europe ($6.0 million),

• the depreciation adjustment mentioned above, and

• lower corporate expenses on an organic basis ($3.1 million),

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $2.3 million to $51.6 million due to lower income tax expense ($10.6 million) and lower noncontrolling interest ($0.6 million), partially offset by lower interest and other nonoperating income ($5.4 million), the decrease in operating profit mentioned above, and higher interest expense ($1.7 million).

Earnings per share from continuing operations was $1.19, up from $1.09 in the first quarter of 2024.

partially offset by:

• unfavorable changes in currency exchange rates on segment profit ($16.2 million), primarily driven by the Mexican peso, Argentine peso, and Brazilian real,

• higher costs incurred related to business acquisitions and dispositions ($13.5 million), and

• an organic decrease in Latin America ($1.2 million).

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $0.1 million to $95.5 million due to lower interest and other nonoperating income ($16.1 million) and higher interest expense ($6.1 million), partially offset by the increase in operating profit mentioned above, lower income tax expense ($5.5 million) and lower noncontrolling interest ($0.5 million).

Earnings per share from continuing operations was $2.22, up from $2.12 in the first six months of 2024.

Non-GAAP Basis

2 unchanged sentences

Analysis of Consolidated Results:

First Quarter 2025 versus First Quarter 2024

Second Quarter 2025 versus Second Quarter 2024

Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 12.4% to 12.6%.

Non-GAAP operating profit increased $8.9 million due mainly to:

• organic increases in Rest of World ($9.4 million), North America ($4.5 million), Latin America ($1.4 million), and Europe ($0.3 million) and

• lower corporate expenses on an organic basis ($4.9 million),

• organic increases in North America ($10.6 million), Europe ($5.7 million) and Rest of World ($1.3 million) and

• the favorable impact of acquisitions ($1.5 million),

partially offset by:

• unfavorable changes in currency exchange rates ($5.8 million), driven primarily by the Mexican peso, Argentine peso, and Brazilian real,

• organic decrease in Latin America ($2.6 million), and

• higher corporate expenses on an organic basis ($1.8 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $5.1 million to $75.7 million due to higher income tax expense ($5.5 million), lower interest and other nonoperating income ($5.2 million), and higher interest expense ($4.4 million), partially offset by the operating profit increase mentioned above, and lower noncontrolling interest ($1.1 million).

Earnings per share from continuing operations was $1.62, down from $1.65 in the first quarter of 2024.

Adjusted EBITDA Adjusted EBITDA decreased 1% to $215.0 million primarily due to lower interest and other nonoperating income, primarily driven by lower interest income.

Non-GAAP earnings per share from continuing operations was $1.79, unchanged from $1.79 in the second quarter of 2024.

Adjusted EBITDA Adjusted EBITDA increased 3% to $232.0 million primarily due to the increase in Non-GAAP operating profit ($8.9 million).

Analysis of Consolidated Results:

First Half 2025 versus First Half 2024

Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 12.1% to 12.4%.

Non-GAAP operating profit increased $14.5 million due mainly to:

• organic increases in North America ($15.1 million), Rest of World ($10.7 million), and Europe ($6.0 million),

• lower corporate expenses on an organic basis ($3.1 million), and

• the favorable impact of acquisitions ($1.4 million)

partially offset by:

• unfavorable changes in currency exchange rates ($20.6 million), driven primarily by the Mexican peso, Argentine peso, and Brazilian real, and

• organic decreases in Latin America ($1.2 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $10.0 million to $145.4 million due to higher income tax expense ($10.8 million), lower interest and other nonoperating income ($8.9 million), and higher interest expense ($6.1 million), and partially offset by the operating profit increase mentioned above, and lower noncontrolling interest ($1.3 million).

Earnings per share from continuing operations was $3.38, down from $3.44 in the first six months of 2024.

Adjusted EBITDA Adjusted EBITDA increased 1% to $447.0 million primarily due to the increase in Non-GAAP operating profit ($14.5 million).

Revenues and Operating Profit by Segment:

First Quarter 2025 versus First Quarter 2024

Second Quarter 2025 versus Second Quarter 2024

Organic Change (a)

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Analysis of Segment Results:

First Quarter 2025 versus First Quarter 2024

Second Quarter 2025 versus Second Quarter 2024

North America

Revenues increased 3% ($12.1 million) due to a 2% organic increase ($9.9 million) and the impact of acquisitions ($4.3 million), partially offset by the unfavorable impact of currency exchange rates ($2.1 million).

Organic revenue increased primarily due to price increases and growth in AMS and DRS, as well as BGS revenue.

Revenues increased 5% ($22.3 million) due to a 5% organic increase ($22.6 million), partially offset by the unfavorable impact of currency exchange rates ($0.3 million).

Organic revenue increased primarily due to growth in AMS and DRS, as well as BGS revenue.

Operating profit increased 21% ($10.6 million) due to a 21% organic increase ($10.6 million).

The organic increase was primarily driven by higher revenue, the net impact of revenue mix, and due to productivity initiatives.

The organic increase was primarily driven by higher revenue, the net impact of revenue mix, and productivity initiatives.

Latin America

Revenues decreased 4% ($12.3 million) due to the unfavorable impact of currency exchange rates ($40.1 million) primarily from the Mexican peso, Argentine peso, and Brazilian real, partially offset by a 7% organic increase ($24.7 million) and the impact of acquisitions ($3.1 million).

The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue.

Operating profit decreased 14% ($9.1 million) primarily due to the unfavorable impact of currency exchange rates ($10.4 million), partially offset by a 2% organic increase ($1.4 million).

The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases.

Revenues increased 3% ($7.7 million) primarily due to an 5% organic increase ($15.5 million) partially offset by the unfavorable impact of currency exchange rates ($8.2 million).

The organic increase was primarily driven by price increases across the segment with a majority of the impact from Argentina and Mexico, as well as growth in AMS and DRS revenue.

Operating profit decreased 13% ($8.2 million) primarily due to the unfavorable impact of currency exchange rates ($7.6 million) and a 4% organic decrease ($2.6 million), partially offset by the favorable impact of acquisitions ($2.0 million).

The organic decrease was primarily driven by lower volumes and one-time expenses.

Revenues increased 9% ($28.1 million) primarily due to favorable impact of currency exchange rates ($17.2 million), an 3% organic increase ($9.8 million) and the favorable impact of acquisitions ($1.1 million).

Organic revenue increased primarily due the growth of AMS and DRS revenue.

Operating profit decreased 3% ($0.7 million) primarily due to the unfavorable impact of currency exchange rates ($0.8 million) and the impact of acquisitions ($0.2 million), partially offset by a 1% organic increase ($0.3 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment and the mix benefit of higher AMS and DRS revenue.

Operating profit increased 23% ($7.3 million) primarily due to an 18% organic increase ($5.7 million) and the favorable impact of currency exchange rates ($2.1 million).

The organic increase was driven by the mix benefit of higher AMS and DRS revenue.

Rest of World

Revenues increased 9% ($17.9 million) due to a 9% organic increase ($19.0 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million).

Revenues increased 5% ($9.3 million) due to the favorable impact of currency exchange rates ($6.1 million) and a 2% organic increase ($3.2 million).

Organic growth in the segment was primarily due to growth in BGS revenue.

Operating profit increased 6% ($2.2 million) primarily due to a 3% organic increase ($1.3 million).

The organic increase was driven by higher revenue.

The organic increase was primarily driven by a favorable revenue mix impact.

Revenues and Operating Profit by Segment:

First Half 2025 versus First Half 2024

Six months ended June 30, 2024 Organic Change (a)

Impact of Acquisitions / Dispositions (b)

Currency Effect (c)

Six months ended June 30, 2025 % Change

(In millions, except for percentages)

Total Organic Growth (a)

North America $ 817.5 32.5 4.3 (2.4) 851.9 4 4

Latin America 666.4 49.5 5.6 (94.5) 627.0 (6) 7

Europe 601.1 25.3 1.5 9.0 636.9 6 4

Rest of World 404.2 22.2 — 5.0 431.4 7 5

Segment revenues

2,489.2 129.5 11.4 (82.9) 2,547.2 2 5

$ 2,489.2 129.5 11.4 (82.9) 2,547.2 2 5

Operating profit:

North America $ 100.1 15.1 0.2 — 115.4 15 15

Latin America 126.2 (1.2) 1.9 (18.0) 108.9 (14) (1)

Europe 58.1 6.0 (0.7) 1.3 64.7 11 10

Rest of World 80.1 10.7 — 0.5 91.3 14 13

Segment operating profit 364.5 30.6 1.4 (16.2) 380.3 4 8

Corporate expenses (d)

(63.9) 3.1 — (4.4) (65.2) 2 (5)

Other items not allocated to segments (d)

(63.7) 6.4 (13.5) 8.7 (62.1) (3) (10)

Operating profit

$ 236.9 40.1 (12.1) (11.9) 253.0 7 17

Amounts may not add due to rounding.

See page 39 for footnote explanations.

Analysis of Segment Results:

First Half 2025 versus First Half 2024

North America

Revenues increased 4% ($34.4 million) primarily due to a 4% organic increase ($32.5 million) and the impact of acquisitions ($4.3 million).

Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue, as well as BGS revenue.

Operating profit increased 15% ($15.3 million) due to a 15% organic increase ($15.1 million) and the impact of acquisitions ($0.2 million).

The organic increase was primarily driven by the net impact of revenue mix and cost productivity improvements from transformation initiatives in the U.S.

Latin America

Revenues decreased ($39.4 million) due to the unfavorable impact of currency exchange rates ($94.5 million), primarily from the Mexican peso, Argentine peso, and Brazilian real, partially offset by a 7% organic increase ($49.5 million).

The organic increase was driven by price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue.

Operating profit decreased 14% ($17.3 million) due to the unfavorable impact of currency exchange rates ($18.0 million) and a 1% organic decrease ($1.2 million), partially offset by the favorable impact of acquisitions ($1.9 million).

The organic decrease was driven by lower volumes.

Revenues increased 6% ($35.8 million) due to an 4% organic increase ($25.3 million), the favorable impact of currency exchange rates ($9.0 million), and the favorable impact of acquisitions ($1.5 million).

The organic increase was primarily due to price increases and the growth of AMS and DRS revenue.

Operating profit increased 11% ($6.6 million), primarily due to a 10% organic increase ($6.0 million).

The organic increase was primarily driven by higher revenue outpacing the impact of labor and other cost increases across the segment and the mix benefit of higher AMS and DRS revenue.

Rest of World

Revenues increased 7% ($27.2 million) due to a 5% organic increase ($22.2 million) and the favorable impact of currency exchange rates ($5.0 million).

Organic growth in the segment was primarily due to growth in BGS revenue.

Operating profit increased 14% ($11.2 million) due to a 13% organic increase ($10.7 million) and the favorable impact of currency exchange rates ($0.5 million).

The organic increase was driven by a favorable revenue mix impact.

Analysis of Income and Expense Not Allocated to Segments

Income and expenses not allocated to segments are reported either as “Corporate Expenses” or “Other Items not Allocated to Segments.”

Corporate Expenses include costs to manage the global business and perform activities required by public companies as well as other items that are considered part of the Company's operations and revenue generating activities but are not considered when the chief operating decision maker ("CODM") evaluates segment results.

Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses.

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Corporate Expenses

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

General, administrative and other expenses $ (37.2) (33.2) 12 $ (72.2) (74.4) (3)

Foreign currency transaction gains 1.8 3.1 (42) 5.0 9.4 (47)

Reconciliation of segment policies to GAAP 0.1 1.5 (93)

Reconciliation of segment policies to GAAP 1.9 (0.4) fav 2.0 1.1 82

Corporate expenses $ (33.5) (30.5) 10 $ (65.2) (63.9) 2

Corporate expenses for the first three months of 2025 decreased $1.7 million versus the prior year period.

This was primarily driven by lower net compensation costs ($4.1 million) and lower professional and audit fees ($3.0 million), partially offset by a reduction in currency transaction gains ($3.1 million) and higher charges related to insurance and security losses ($2.7 million).

Corporate expenses for the three months ended June 30, 2025 increased $3.0 million versus the prior year period.

This was primarily driven by higher charges related to insurance and security losses ($2.6 million), a reduction in currency transaction gains ($1.3 million), and higher net compensation costs ($1.2 million), partially offset by favorable adjustments related to reconciliation of segment policies to GAAP ($2.3 million).

Corporate expenses for the first six months of 2025 increased $1.3 million versus the prior year period.

This was primarily driven by a reduction in currency transaction gains ($4.4 million), partially offset by lower net compensation costs ($2.5 million).

Other Items Not Allocated to Segments

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

Reorganization and restructuring

1 unchanged sentence

Acquisitions and dispositions (25.8) (14.8) 74 (44.3) (30.7) 44

Argentina highly inflationary impact (6.3) (1.6) unfav

Argentina highly inflationary impact 1.9 (11.4) fav (4.4) (13.0) (66)

Transformation initiatives (5.4) (7.2) (25) (10.5) (12.0) (13)

DOJ/FinCEN investigations (0.9) — unfav

DOJ/FinCEN investigations (0.9) (6.0) (85) (1.8) (6.0) (70)

Chile antitrust matter

10 unchanged sentences

As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

2022 Global Restructuring Plan

In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations.

In total, we have recognized $34.2 million in charges under this program, including $0.2 million in the first three months of 2025.

The actions under this program were substantially completed in 2024.

Severance actions from this restructuring plan reduced our global workforce by approximately 3,200 positions.

Other Restructurings

As a result of other restructuring actions, we recognized net costs of $0.4 million in the first three months of 2024, primarily severance costs.

We recognized $0.3 million in net costs in the first three months of 2025.

The actions were substantially completed in 2024.

Acquisitions and dispositions

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2025 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $14.4 million in the first three months of 2025.

• Restructuring costs related to acquisitions were $2.0 million in the first three months of 2025.

• Amortization expense for acquisition-related intangible assets was $29.2 million in the first six months of 2025.

• Restructuring costs related to acquisitions were $9.7 million in the first six months of 2025.

• Net charges of $2.2 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

• We incurred $0.4 million in integration costs in the first three months of 2025.

• Transaction costs related to business acquisitions were $0.5 million in the first three months of 2025.

• We incurred $1.6 million in integration costs in the first six months of 2025.

• Transaction costs related to business acquisitions were $1.1 million in the first six months of 2025.

2024 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $14.5 million in the first three months of 2024.

• We incurred $0.3 million in integration costs in the first three months of 2024.

• Compensation expense related to the retention of key PAI employees was $0.1 million in the first three months of 2024.

• Amortization expense for acquisition-related intangible assets was $29.1 million in the first six months of 2024.

• Net charges of $1.2 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

• We recognized $0.5 million in charges in Argentina in the first six months of 2024 for an inflation-adjusted labor increase to expected payments to union workers of the Maco businesses.

• We incurred $0.4 million in integration costs in the first six months of 2024.

• Transaction costs related to business acquisitions were $0.3 million in the first six months of 2024.

• A net credit of $1.3 million related to the reversal of retention liability for key PAI employees was recorded in the first six months of 2024.

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes.

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The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed.

In the first three months of 2025, we recognized $6.3 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $4.8 million.

In the first three months of 2024, we recognized $1.6 million in pretax charges in operating profit related to highly inflationary accounting.

In the first six months of 2025, we recognized $4.4 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $14.1 million.

In the first six months of 2024, we recognized $13.0 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $6.4 million.

Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates.

4 unchanged sentences

The program is designed to help us standardize our commercial and operational systems and processes, drive continuous improvement and achieve operational excellence.

Accordingly, we incurred $4.8 million of expense in the first three months of 2024 and an additional $5.1 million in the first three months of 2025.

Accordingly, we incurred $12.0 million of expense in the first six months of 2024 and an additional $10.5 million in the first six months of 2025.

The transformation costs primarily include third party professional services and project management charges.

2 unchanged sentences

As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

DOJ/FinCEN investigations During the first three months of 2025, we accrued $0.9 million in connection with the DOJ and FinCEN investigations, which represents third-party legal costs associated with this matter.

DOJ/FinCEN investigations During the first six months of 2025, we accrued $1.8 million in connection with the DOJ and FinCEN investigations, which represents third-party legal costs associated with these matters.

In the first quarter of 2025, we reached resolutions with both the DOJ and FinCEN.

These costs are not considered part of the Company's operations and revenue generating activities.

Additionally, the nature of these amounts and the underlying investigation are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years.

Additionally, the nature of these amounts and the underlying investigations are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years.

Management has excluded these amounts when evaluating internal performance.

Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

See Note 13 for details.

Chile antitrust matter We recognized an estimated loss of $9.5 million in 2021 and recognized additional amounts in

subsequent years (which were primarily related to changes in currency rates).

Chile antitrust matter We recognized an estimated loss of $9.5 million in 2021 and recognized additional amounts in subsequent years (which were primarily related to changes in currency rates).

Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency).

13 unchanged sentences

government sanctioned the Venezuela central bank and, as a result, the Company has ceased support of the Venezuela business.

At March 31, 2025, Argentina's economy remained highly inflationary for accounting purposes.

At June 30, 2025, Argentina's economy remained highly inflationary for accounting purposes.

See Note 1 for more details about our Argentina operations including a description of how we account for currency remeasurement for our Argentine subsidiaries and the potential impacts of converting local currency into U.S.

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Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

Foreign currency items:

Transaction gains (losses)

$ 10.9 (5.5) fav

$ 15.2 7.2 fav $ 26.1 1.7 fav

Derivative instrument gains (losses)

(22.6) (12.1) 87 (35.2) 1.3 unfav

Gains (losses) on sale of property and other assets — 0.8 (100)

Impairment losses (1.6) (0.5) unfav

Gains on sale of property and other assets

0.3 0.5 (40) 0.3 1.3 (77)

Impairment losses (0.4) (1.4) (71) (2.0) (1.9) 5

Indemnification asset adjustments (1.8) (1.2) 50 (2.7) (1.2) unfav

2 unchanged sentences

Other gains (losses)

(0.3) 1.5 unfav

0.9 (0.6) fav 0.6 0.9 (33)

Other operating income (expense) $ (5.4) (5.0) 8 $ (7.2) 7.6 unfav

1 unchanged sentence

Interest expense

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

Interest expense $ 60.9 56.5 8 $ 118.4 112.3 5

Interest expense was higher in the first three months of 2025 compared to the first three months of 2024 due to higher interest rates on corporate debt and overall higher borrowing levels.

Interest expense was higher for the three and six months ended June 30, 2025, compared to the same prior year periods due to higher interest rates on corporate debt and overall higher borrowing levels.

Borrowings were primarily used to fund growth in our DRS business and other general corporate initiatives.

Interest and other nonoperating income (expense)

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

Interest income $ 6.8 11.8 (42) $ 17.7 27.4 (35)

Gain (loss) on equity and debt securities (0.2) 0.5 unfav

Foreign currency transaction gains (losses) (0.7) 0.1 unfav

Retirement benefit cost other than service cost (0.2) (1.1) (82)

Gain (loss) on equity and debt securities (2.3) — unfav (2.5) 0.5 unfav

Foreign currency transaction gains (losses) (1.5) — unfav (2.2) 0.1 unfav

Retirement benefit cost other than service cost (0.7) (0.3) unfav (0.9) (1.4) (36)

Argentina turnover tax (0.6) (0.9) (33) (1.3) (2.0) (35)

5 unchanged sentences

These intercompany charges do not impact the Latin America segment results and are eliminated in our consolidation.

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions, except for effective tax rate)

2025 2024 2025 2024

Continuing operations

Provision for income taxes

$ 27.2 22.1 $ 42.8 48.3

Effective tax rate 36.4 % 30.7 % 29.7 % 32.1 %

3 unchanged sentences

Noncontrolling Interests

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for percentages)

2025 2024 change

2025 2024 change 2025 2024 change

Net income attributable to noncontrolling interests $ 3.7 3.6 3 $ 6.0 6.5 (8)

The decrease in the net income attributable to noncontrolling interests in the three months ended March 31, 2025, in comparison to the three months ended March 31, 2024, is primarily attributable to lower first quarter 2025 operating results reported by certain subsidiaries that are not wholly-owned.

The net income attributable to noncontrolling interest in the three months ended June 30, 2025, is consistent with the net income attributable to noncontrolling interest in the three months ended June 30, 2024.

The decrease in the net income attributable to noncontrolling interests in the first six months ended June 30, 2025, in comparison to the first six months ended June 30, 2024, is primarily attributable to lower 2025 operating results reported by certain subsidiaries that are not wholly-owned.

Non-GAAP Measures and Reconciliations to GAAP Measures

62 unchanged sentences

Non-GAAP reconciled to GAAP

Three months ended March 31, 2025 Three months ended March 31, 2024

Six months ended June 30, 2025 Six months ended June 30, 2024

(In millions, except for percentages) Pre-tax income (a)

13 unchanged sentences

Chile antitrust matter (c)

0.4 0.1 0.5 0.1

Retirement plans (b)

9 unchanged sentences

The full-year non-GAAP effective tax rate is estimated at 28.4% for 2025 and was 23.2% for 2024.

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions, except for per share amounts)

2025 2024 2025 2024

Operating profit:

1 unchanged sentence

Reorganization and restructuring (a)

0.2 0.1 0.7 1.5

Acquisitions and dispositions (a)

25.8 14.8 44.3 30.7

Argentina highly inflationary impact (a)

(1.9) 11.4 4.4 13.0

Transformation initiatives (a)

5.4 7.2 10.5 12.0

DOJ/FinCEN investigations (a)

0.9 6.0 1.8 6.0

Chile antitrust matter (a)

0.2 0.1 0.4 0.5

Non-GAAP $ 164.5 155.6 $ 315.1 300.6

2 unchanged sentences

Reorganization and restructuring (a)

0.2 0.2 0.6 1.2

Acquisitions and dispositions (a)

15.0 13.5 32.5 27.7

Argentina highly inflationary impact (a)

1.8 11.4 9.0 13.1

Transformation initiatives (a)

5.3 7.0 10.3 11.7

DOJ/FinCEN investigations (a)

0.9 6.0 1.8 6.0

Chile antitrust matter (a)

0.1 — 0.3 0.4

Retirement plans (b)

(1.2) (1.5) (2.4) (2.7)

Income tax rate adjustment (c)

9.7 (2.1) (2.2) 2.4

$ 75.7 80.8 $ 145.4 155.4

Adjusted EBITDA:

Net income (loss) attributable to Brink's

$ 43.7 46.2 $ 95.3 95.5

Interest expense

60.9 56.5 118.4 112.3

Income tax provision

27.2 22.1 42.8 48.3

Depreciation and amortization

59.8 73.1 130.5 145.5

EBITDA $ 191.6 197.9 $ 387.0 401.6

Discontinued operations

0.2 0.1 0.2 0.1

Reorganization and restructuring (a)

0.2 0.1 0.7 1.5

Acquisitions and dispositions (a)

12.3 (0.1) 16.8 0.9

Argentina highly inflationary impact (a)

14.4 9.0 19.6 8.3

Transformation initiatives (a)

5.4 7.2 10.5 12.0

DOJ/FinCEN investigations (a)

0.9 6.0 1.8 6.0

Chile antitrust matter (a)

0.2 0.1 0.4 0.5

Retirement plans (b)

(1.4) (1.9) (3.1) (3.4)

Income tax rate adjustment (c)

1.4 0.3 1.4 0.6

Share-based compensation (d)

8.1 7.3 13.8 16.6

Marketable securities (gain) loss (e)

(1.3) (0.1) (2.1) (0.6)

Adjusted EBITDA $ 232.0 225.9 $ 447.0 444.1

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions, except for per share amounts)

2025 2024 2025 2024

GAAP $ 1.03 1.03 $ 2.22 2.12

Reorganization and restructuring (a)

— 0.01 0.01 0.02

Acquisitions and dispositions (a)

0.36 0.30 0.75 0.62

Argentina highly inflationary impact (a)

0.05 0.25 0.21 0.29

Transformation initiatives (a)

0.13 0.16 0.24 0.26

DOJ/FinCEN investigations (a)

0.02 0.13 0.04 0.13

Chile antitrust matter (a)

— — 0.01 0.01

Retirement plans (b)

1 unchanged sentence

Income tax rate adjustment (c)

0.23 (0.05) (0.05) 0.05

$ 1.79 1.79 $ 3.38 3.44

Amounts may not add due to rounding.

4 unchanged sentences

(d) There is no difference between GAAP and non-GAAP share-based compensation amounts for the periods presented.

(e) Due to the impact of Argentina highly inflationary accounting, there was no non-GAAP adjustment for a loss in the three months ended March 31, 2024.

There was a $1.0 million non-GAAP adjustment for a loss in the three months ended March 31, 2025.

(e) Due to the impact of Argentina highly inflationary accounting, there was a $0.2 million non-GAAP adjustment for a loss in the three and six months ended June 30, 2024.

There was a $3.7 million and a $4.7 million non-GAAP adjustment for a loss in the three and six months ended June 30, 2025, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities decreased $124.1 million in the first three months of 2025 as compared to the first three months of 2024.

Cash used for investing activities increased by $2.9 million in the first three months of 2025 compared to the first three months of 2024.

We financed our liquidity needs in the first three months of 2025 with existing cash from operations.

Cash flows from operating activities increased $146.0 million in the first six months of 2025 as compared to the first six months of 2024.

Cash used for investing activities increased by $41.2 million in the first six months of 2025 compared to the first six months of 2024.

We financed our liquidity needs in the first six months of 2025 with existing cash from operations.

Operating Activities

Ended March 31, $

Ended June 30, $

(In millions) 2025 2024 change

8 unchanged sentences

Cash proceeds from sale of property and equipment

2.6 3.5 (0.9)

Proceeds from lessor debt financing (see Note 12)

4 unchanged sentences

Cash flows from operating activities - GAAP

Cash flows from operating activities decreased $124.1 million in the first three months of 2025 compared to the same period in 2024.

The decrease was primarily ($102.3 million) attributed to restricted cash held for customers (restricted cash held for customers decreased by $45.0 million in 2025 compared to an increase of $57.3 million in 2024) as well as changes in working capital excluding taxes and interes t (working capital decreased by $176.0 million in 2025 compared to a decrease of $137.6 million in 2024), partially offset by changes in custom er obligations related to certain of our secure cash management services operations (certain customer obligations increased by $38.9 million in 2025 compared to an increase of $24.0 million in 2024) and lower amounts paid for interest (we had $52.9 million in cash payments for interest in 2025 as compared to $68.0 million in 2024).

Cash flows from operating activities increased $146.0 million in the first six months of 2025 compared to the same period in 2024.

The increase was primarily attributed to restricted cash held for customers (restricted cash held for customers increased by $31.3 million in 2025 compared to a decrease of $67.2 million in 2024) and changes in custom er obligations related to certain of our secure cash management services operations (certain customer obligations increased by $24.0 million in 2025 compared to an increase of $4.6 million in 2024) as well as changes in working capital excluding taxes and interes t (working capital decreased by $133.8 million in 2025 compared to a decrease of $161.3 million in 2024)

Free cash flow before dividends - non-GAAP

Free cash flow before dividends decreased $40.3 million in the first three months of 2025 as compared to the same period in 2024.

The decrease was mostly attributed to changes in working capital, and higher amounts paid for capital expenditures (we had $58.9 million in capital expenditures in 2025 compared to $52.2 million in 2024), partially offset by lower amounts paid for interest.

Free cash flow before dividends increased $36.4 million in the first six months of 2025 as compared to the same period in 2024.

The increase was mostly attributed to changes in working capital excluding taxes and interest, and higher amounts of cash proceeds from sale of property and equipment (we had $9.8 million in cash proceeds in 2025 compared to $4.5 million in 2024) and cash proceeds from lessor debt financing (we had $12.0 million in cash proceeds in 2025 compared to $7.2 million in 2024).

Investing Activities

Ended March 31, $

Ended June 30, $

(In millions) 2025 2024 change

6 unchanged sentences

Proceeds from sale of property and equipment

Net change in economic hedges

(17.2) — (17.2)

2 unchanged sentences

Investing activities $ (157.6) (116.4) (41.2)

Cash used by investing activities increased by $2.9 million in the first three months of 2025 versus the first three months of 2024.

The increase was primarily due to increases in cash paid for capital expenditures and increases in cash paid for acquisitions in Europe in 2025, partially offset by cash flows received related to economic hedge contracts, as discussed in Note 7.

Cash used by investing activities increased by $41.2 million in the first six months of 2025 versus the first six months of 2024.

The increase was primarily due to the increases in net cash paid for purchases of marketable securities in 2025 and cash payments related to the net change in economic hedge contracts, as discussed in Note 7, partially offset by less cash paid for acquisitions in 2025.

Capital expenditures and depreciation and amortization were as follows:

Ended March 31, $ Full Year

Ended June 30, $ Full Year

(In millions) 2025 2024 change 2024

29 unchanged sentences

Corporate 1.4 1.9 (0.5) 3.5

Argentina highly inflationary impact 2.1 2.3 (0.2) 12.0

Argentina highly inflationary impact (b)

(10.5) 4.9 (15.4) 12.0

Reorganization and restructuring

6 unchanged sentences

(a) Amortization of acquisition-related intangible assets has been excluded from reportable segment amounts.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending March 31, 2025 compared to 1.4 for the 12 months ending March 31, 2024.

Capital expenditures in the first three months of 2025 were primarily for cash devices, information technology, and armored vehicles.

(b) See "Depreciation Adjustment" in Note 1 for more details.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending June 30, 2025 compared to 1.3 for the 12 months ending June 30, 2024.

Capital expenditures in the first six months of 2025 were primarily for cash devices, information technology, and armored vehicles.

Financing Activities

Ended March 31, $

Ended June 30, $

(In millions) 2025 2024 change

12 unchanged sentences

Tax withholdings associated with share-based compensation (17.8) (17.2) (0.6)

Other (1.6) — (1.6)

Financing activities $ (38.1) 99.1 (137.2)

Debt borrowings and repayments

Cash used in financing activities increased by $122.8 million year over year as we had net cash used in financing activities of $124.1 million in the first three months of 2025 compared to net cash used in financing activities of $1.3 million in the first three months of 2024.

The change was driven primarily by a decrease in net borrowings (as discussed in Note 8) compared to the prior year three month period, and an increase in cash used to repurchase shares of common stock (we used $44.8 million to repurchase shares in 2025 as compared to $23.0 million in 2024).

We paid dividends to Brink’s shareholders of $0.2425 per share or $10.4 million in the first three months of 2025 compared to $0.2200 per share or $9.8 million in the first three months of 2024.

On May 7, 2025, the Board declared a regular quarterly dividend of 25.50 cents per share payable on June 2, 2025 to shareholders of record on May 19, 2025.

Cash used in financing activities increased by $137.2 million year over year as we had net cash used in financing activities of $38.1 million in the first six months of 2025 compared to net cash provided from financing activities of $99.1 million in the first six months of 2024.

The change was driven primarily by a decrease in net borrowings (as discussed in Note 8) compared to the prior year six month period, and an increase in cash used to repurchase shares of common stock (we used $130.0 million to repurchase shares in 2025 as compared to $65.7 million in 2024).

We paid dividends to Brink’s shareholders of $0.4975 per share or $21.1 million in the first six months of 2025 compared to $0.4625 per share or $20.6 million in the first six months of 2024.

Future dividends are dependent on our earnings, financial condition, shareholders’ equity levels, our cash flow and business requirements, as determined by the Board of Directors.

2 unchanged sentences

GAAP Measures

March 31, December 31,

June 30, December 31,

(In millions) 2025 2024

9 unchanged sentences

See page 46 for further information on this non-GAAP measure, and see page 47 for a description of the adjustment.

Included within Net Debt is net cash from our Argentina operations of $117.4 million at March 31, 2025 and $104 million at December 31, 2024 (see Note 1 to the consolidated financial statements for a discussion of currency controls in Argentina).

Net Debt as of March 31, 2025 increased versus the prior year end to provide funding for general corporate purposes and other working capital needs.

Included within Net Debt is net cash from our Argentina operations of $16.9 million at June 30, 2025 and $104 million at December 31, 2024 (see Note 1 to the consolidated financial statements for a discussion of currency controls in Argentina).

Net Debt as of June 30, 2025 increased versus the prior year end to provide funding for general corporate purposes and other working capital needs.

Liquidity Needs

1 unchanged sentence

Our operating liquidity needs are typically financed by cash from operations, short-term borrowings and the available borrowing capacity under our Revolving Credit Facility (our debt facilities are described in more detail in Note 8 to the condensed consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity).

As of March 31, 2025, $531 million was available under the Revolving Credit Facility.

As of June 30, 2025, $373 million was available under the Revolving Credit Facility.

Based on our current cash on hand, cash generated from operations, and amounts available under our credit facilities and our ability to access capital from financial markets, we believe that we will be able to meet our liquidity needs for the next 12 months and thereafter the foreseeable future.

16 unchanged sentences

Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise.

During the three months ended March 31, 2025, we repurchased a total of 514,795 shares of our common stock for an aggregate of $44.8 million and an average price of $86.97 per share.

During the six months ended June 30, 2025, we repurchased a total of 1,485,362 shares of our common stock for an aggregate amount of $130.0 million and an average price of $87.49 per share.

These shares were retired upon repurchase.

At March 31, 2025, $252 million remained available under the 2023 Repurchase Program.

At June 30, 2025, $166 million remained available under the 2023 Repurchase Program.

Retirement Liabilities

15 unchanged sentences

Actual Actual Projected

(In millions) 2024 1Q 2025 2Q-4Q 2025 2026 2027 2028 2029

(In millions) 2024 First Half 2025 3Q-4Q 2025 2026 2027 2028 2029

Beginning funded status $ (10.9) 8.2 15.0 14.1 20.0 27.0 39.6

21 unchanged sentences

We did not make cash contributions to the primary U.S.

pension plan in 2024 or the first three months of 2025.

pension plan in 2024 or the first six months of 2025.

There are approximately 10,300 beneficiaries in the plan.

10 unchanged sentences

Actual Actual Projected

(In millions) 2024 1Q 2025 2Q-4Q 2025 FY2025 2026 2027 2028 2029

(In millions) 2024 First Half 2025 3Q-4Q 2025 FY2025 2026 2027 2028 2029

pension plan $ (10.9) (4.1) (4.2) (8.3) (0.6) 6.6 4.9 3.9

8 unchanged sentences

Actual Actual Projected

(In millions) 2024 1Q 2025 2Q-4Q 2025 FY2025 2026 2027 2028 2029

(In millions) 2024 First Half 2025 3Q-4Q 2025 FY2025 2026 2027 2028 2029

Payments from Brink’s to U.S.

9 unchanged sentences

Contingent Matters

See Note 13 to the condensed consolidated financial statements for information about contingent matters at March 31, 2025.

See Note 13 to the condensed consolidated financial statements for information about contingent matters at June 30, 2025.

Critical Accounting Policies and Estimates

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis