Item 2. Management’s Discussion and Analysis
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Brink’s Company (along with its subsidiaries, “Brink’s”, the “Company”, “we”, “us” or “our”) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services throughout the world. These services include:
Cash and Valuables Management ("CVM")
• Cash-in-transit ("CIT") services – armored vehicle transportation of cash and coin
• Basic ATM services – cash replenishment and treasury management of automated teller machines ("ATMs")
• Brink's Global Services ("BGS") – secure international transportation, pick-up, packaging, customs clearance, secure vault storage, and inventory management of high-value commodities and goods
• Cash management services – counting, sorting, wrapping, check imaging, cashier balancing, counterfeit detection, account consolidation and electronic reporting
• Vaulting services – combines CIT services, cash management, vaulting and electronic reporting technologies for banks
• Other Services – guarding, commercial security, and payment services
Digital Retail Solutions ("DRS"), and ATM Managed Services ("AMS")
• DRS – services that facilitate faster access to cash deposits leveraging Brink’s tech-enabled devices and software platforms that enable enhanced customer analytics and visibility
• AMS – comprehensive solutions for ATM management, including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, first and second line maintenance, parts provisioning, funds settlements, and installation services
We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on an operating profit or loss measure, excluding corporate expenses and other items not allocated to segments.
We manage our business in the following four segments:
• North America – operations in the U.S. and Canada, including the BGS line of business,
• Latin America – operations in Latin American countries where we have an ownership interest, including the BGS line of business,
• Europe – total operations in European countries that primarily provide services outside of the BGS line of business, and
• Rest of World – operations in the Middle East, Africa and Asia. This segment also includes total operations in European countries that primarily provide BGS services and BGS activity in Latin American countries where we do not have an ownership interest.
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RESULTS OF OPERATIONS
Consolidated Review
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages and per share amounts)
2025 2024 Change 2025 2024 Change
GAAP
Revenues $ 1,300.5 1,253.1 4 $ 2,547.2 2,489.2 2
Cost of revenues 976.7 937.8 4 1,916.2 1,865.0 3
Selling, general and administrative expenses 184.5 194.3 (5) 370.8 394.9 (6)
Operating profit 133.9 116.0 15 253.0 236.9 7
Operating profit margin
10.3 % 9.3 % 11 9.9 % 9.5 % 4
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 (b)
Non-GAAP operating profit $ 164.5 155.6 6 $ 315.1 300.6 5
Non-GAAP operating profit margin
12.6 % 12.4 % 2 12.4 % 12.1 % 2
Non-GAAP income from continuing operations (a)
75.7 80.8 (6) 145.4 155.4 (6)
Adjusted EBITDA
232.0 225.9 3 447.0 444.1 1
Non-GAAP diluted EPS from continuing operations (a)
1.79 1.79 — 3.38 3.44 (2)
(a) Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests.
(b) These measures are supplemental financial measures that are not required by, or presented in accordance with, GAAP. 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.
GAAP Basis
Analysis of Consolidated Results: 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 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:
• 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.
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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),
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.
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Non-GAAP Basis
Non-GAAP Financial Measures The non-GAAP measures included in the table above and the analysis below present our operating profit, operating profit margin, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of the Company's operations. These non-GAAP measures are described in more detail on page 46 and are reconciled to comparable GAAP measures on pages 48 - 50 .
Analysis of Consolidated Results: 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 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). 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).
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Revenues and Operating Profit by Segment: Second Quarter 2025 versus Second Quarter 2024
Organic Change (a)
Impact of Acquisitions / Dispositions (b)
Currency Effect (c)
% Change
(In millions, except for percentages)
2Q'24 2Q'25 Total Organic Growth (a)
Revenues:
North America $ 412.0 22.6 — (0.3) 434.3 5 5
Latin America 331.7 24.7 3.1 (40.1) 319.4 (4) 7
Europe 309.7 9.8 1.1 17.2 337.8 9 3
Rest of World 199.7 3.2 — 6.1 209.0 5 2
Segment revenues
1,253.1 60.3 4.2 (17.1) 1,300.5 4 5
Revenues
$ 1,253.1 60.3 4.2 (17.1) 1,300.5 4 5
Operating profit:
North America $ 51.7 10.6 — — 62.3 21 21
Latin America 63.2 (2.6) 2.0 (7.6) 55.0 (13) (4)
Europe 32.2 5.7 (0.5) 2.1 39.5 23 18
Rest of World 39.0 1.3 — 0.9 41.2 6 3
Segment operating profit 186.1 15.0 1.5 (4.6) 198.0 6 8
Corporate expenses (d)
(30.5) (1.8) — (1.2) (33.5) 10 6
Other items not allocated to segments (d)
(39.6) 6.7 (10.8) 13.1 (30.6) (23) (17)
Operating profit
$ 116.0 19.9 (9.3) 7.3 133.9 15 17
Amounts may not add due to rounding.
(a) Organic change and organic growth are supplemental financial measures that are not required by, or presented in accordance with, GAAP, and are described in more detail on page 46 .
(b) Amounts include the impact of prior year comparable period results for acquired and disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 46 .
(c) The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 46 .
(d) See pages 41 - 42 for further information, where these items are discussed in more detail.
Analysis of Segment Results: Second Quarter 2025 versus Second Quarter 2024
North America
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 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 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.
Europe
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 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 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 primarily driven by a favorable revenue mix impact.
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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)
Revenues:
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
Revenues
$ 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.
Europe
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.
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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 CODM evaluates segment results. Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses.
Other Items not Allocated to Segments include income and expenses that are not necessary to operate our business in the ordinary course and are not considered when the CODM evaluates segment results. These include non-recurring as well as certain recurring costs and gains which are not considered to be part of the Company's operations and revenue generating activities. Each of the items in the “Other Items Not Allocated to Segments” table is excluded from non-GAAP operating profit.
Corporate Expenses
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
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 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 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
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
2025 2024 change 2025 2024 change
Reorganization and restructuring
$ (0.2) (0.1) 100 $ (0.7) (1.5) (53)
Acquisitions and dispositions (25.8) (14.8) 74 (44.3) (30.7) 44
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) (6.0) (85) (1.8) (6.0) (70)
Chile antitrust matter
(0.2) (0.1) 100 (0.4) (0.5) (20)
Total Other items not allocated to segments
$ (30.6) (39.6) (23) $ (62.1) (63.7) (3)
Reorganization and Restructuring
Costs associated with certain reorganization and restructuring actions are excluded from reported non-GAAP results. These items include primarily severance charges and asset impairment losses. The 2022 Global Restructuring Plan was designed to, among other things, enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions in light of the COVID-19 pandemic. Other restructuring actions were primarily in response to the COVID-19 pandemic and a decision to exit a line of business in our Canada operating unit. Due to the unusual nature of the underlying events that led to these actions, the charges are not considered part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
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Acquisitions and dispositions
Certain acquisition and disposition items are not part of the Company's operations and revenue generating activities. These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. All of the items are significantly impacted by the timing and nature of our acquisitions and dispositions, and many are inconsistent in amount and frequency. Management has excluded these amounts when evaluating internal performance. Therefore, we have not allocated these amounts to segment or Corporate results and have excluded these amounts from non-GAAP results.
These items are described below:
2025 Acquisitions and Dispositions
• 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 $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 $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. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. 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. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
Transformation initiatives During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model. 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 $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. These costs relate to a discrete program and are not reflective of our ongoing operating cost structure, and are not indicative of our core operating expenses or normal activities. Additionally, management has excluded these amounts when evaluating internal performance. 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 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 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.
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). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. 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.
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Foreign Operations
We currently serve customers in more than 100 countries, including 51 countries where we operate subsidiaries.
We are subject to risks customarily associated with doing business in foreign countries, including labor and economic conditions, the imposition of international sanctions, including by the U.S. government, political instability, controls on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive action by local governments. Changes in the political or economic environments in the countries in which we operate could have a material adverse effect on our business, financial condition and results of operations. The future effects, if any, of these risks are unknown. In April 2019, the U.S. government sanctioned the Venezuela central bank and, as a result, the Company has ceased support of the Venezuela business.
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. dollars.
Our international operations conduct a majority of their business in local currencies. Because our financial results are reported in U.S. dollars, they are affected by changes in the value of various local currencies in relation to the U.S. dollar. Future fluctuations in exchange rates could have either a positive or negative impact on our financial results.
Changes in exchange rates may also affect transactions that are denominated in currencies other than the functional currency. From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the Mexican peso, and the British pound and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. See Note 7 for more details regarding our economic hedges.
We have entered into cross currency swaps and foreign exchange forward swap contracts to hedge a portion of our net investments in certain of our subsidiaries with euro and Hong Kong dollar functional currencies. As net investment hedges for accounting purposes, we elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges. Accordingly, changes in fair value attributable to changes in the undiscounted spot rates are recorded in the foreign currency translation adjustments component of accumulated other comprehensive income (loss) and will remain there until the hedged net investments are sold or substantially liquidated. We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of the cross currency swaps. See Note 7 for more details regarding these contracts.
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Other Operating Income and Expense
Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
2025 2024 change 2025 2024 change
Foreign currency items:
Transaction gains (losses)
$ 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 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
Share in earnings of equity affiliates 0.4 0.6 (33) 1.2 1.4 (14)
Royalty income 2.6 2.0 30 4.5 4.1 10
Other gains (losses)
0.9 (0.6) fav 0.6 0.9 (33)
Other operating income (expense) $ (5.4) (5.0) 8 $ (7.2) 7.6 unfav
Nonoperating Income and Expense
Interest expense
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
2025 2024 change 2025 2024 change
Interest expense $ 60.9 56.5 8 $ 118.4 112.3 5
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)
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
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 (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)
Non-income taxes on intercompany billings (a)
(0.1) (0.2) (50) (0.3) (0.6) (50)
Other 0.2 2.1 (90) (0.8) 1.8 unfav
Interest and other nonoperating income (expense) $ 1.8 12.5 (86) $ 9.7 25.8 (62)
(a) Certain of our Latin American subsidiaries incur non-income taxes related to the billing of intercompany charges. These intercompany charges do not impact the Latin America segment results and are eliminated in our consolidation.
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Income Taxes
Three Months
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 %
Effective Income Tax Rate
Our effective tax rate may fluctuate materially from these estimates due to changes in pre-tax earnings, permanent book-tax differences, changes in the expected amount and geographical mix of earnings, changes in current or deferred taxes due to legislative changes, changes in valuation allowances or accruals for contingencies, changes in distributions of share-based payments, changes in U.S. taxable income, and other factors.
Noncontrolling Interests
Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions, except for percentages)
2025 2024 change 2025 2024 change
Net income attributable to noncontrolling interests $ 3.7 3.6 3 $ 6.0 6.5 (8)
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.
45
Non-GAAP Measures and Reconciliations to GAAP Measures
Non-GAAP measures described below and included in this filing are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to report financial information from the primary operations of our business by excluding the effects of certain income and expenses that do not reflect the ordinary earnings of our operations.
These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. The reconciliations in the tables below include adjustments that we do not consider reflective of our operating performance as they result from events and circumstances that are not a part of our core business. Additionally, certain non-GAAP results, including non-GAAP operating profit and free cash flow before dividends, are utilized as performance measures in certain management incentive compensation plans.
Non-GAAP results should not be considered as an alternative to results determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.
The items excluded from non-GAAP measures are considered by us to be nonrecurring, infrequent or unusual costs and gains as well as other items not considered part of our operations and revenue generating activities. Non-recurring and infrequent items are items that are not reasonably expected to recur in the following two years.
In addition to the rationale described above, we believe the following non-GAAP metrics are helpful to investors in assessing results of operations consistent with how our management evaluates performance:
• Non-GAAP operating profit and Non-GAAP operating profit margin : Non-GAAP operating profit equals GAAP operating profit excluding Other Items not Allocated to Segments. Non-GAAP operating margin equals non-GAAP operating profit divided by revenues.
• Non-GAAP income from continuing operations attributable to Brink's : This measure equals GAAP income from continuing operations attributable to Brink's excluding Other Items not Allocated to Segments as well as certain retirement plan expenses/gains and unusual adjustments to deferred tax asset valuation allowances.
• Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA: EBITDA is calculated by starting with net income attributable to Brink's and adding back the amounts for interest expense, income taxes, depreciation and amortization. Adjusted EBITDA equals EBITDA excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, unusual adjustments to deferred tax asset valuation allowances, income tax rate adjustments, share-based compensation and marketable securities (gain) loss.
• Non-GAAP diluted EPS from continuing operations attributable to Brink's common shareholders : This measure equals non-GAAP income from continuing operations attributable to Brink's divided by diluted shares.
• Organic change and organic growth : Organic change represents the change in revenues or operating profit between the current and prior period excluding the effect of acquisitions and dispositions for one year after the transaction and changes in currency exchange rates. Organic growth is the percentage change of organic growth versus the prior year amount.
• Impact of Acquisitions/Dispositions: This measure represents the impact of acquisitions or dispositions without a full year of reported results in either comparable period.
• Currency Effect: This measure consists of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period.
• Non-GAAP pre-tax income, Non-GAAP income tax and Non-GAAP effective income tax rate : Non-GAAP pre-tax income and non-GAAP income tax equal their GAAP counterparts excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains and unusual adjustments to deferred tax asset valuation allowances. Non-GAAP effective income tax rate equals non-GAAP income tax divided by non-GAAP pre-tax income.
In addition to the rationale described above, we believe the following non-GAAP metrics are helpful in assessing cash flow and financial leverage consistent with how our management evaluates performance:
• Free Cash Flow before Dividends: This non-GAAP measure reflects management’s calculation of cash flows that are available for capital or investing activities such as paying dividends, share repurchases, debt, acquisitions and other investments. The measure is calculated as net cash flows from operating activities, adjusted to exclude certain operating activities related to cash that is not available for corporate purposes, including the impact of cash flows from restricted cash held for customers, as well as cash received and processed in certain of our secure cash management services operations. The resulting amount is further adjusted to include the impact of cash flows related to equipment used to operate our business, including capital expenditures, cash proceeds from sale of property and equipment, as well as proceeds from lessor debt financing. The latter item, which is part of cash flows from financing activities and relates to the subsequent financings of certain capital expenditures, was added to our calculation in the second quarter of 2024 as we believe such cash flows are similar in nature to transactions reported in Investing Activities, which have historically been included in our calculation. Prior amounts were recast to reflect this change.
• Net Debt : Net Debt equals total debt less cash and cash equivalents available for general corporate purposes. We exclude from cash and cash equivalents amounts held by our cash management services operations, as such amounts are not considered available for general corporate purposes. See page 55 for more details.
46
Reconciliations of Non-GAAP to GAAP Measures
Non-GAAP measures are reconciled to comparable GAAP measures either in the tables below or in “Liquidity and Capital Resources” section. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 41 – 42 . Additional reconciling items include the following:
Retirement plans We incur costs, such as interest expense and amortization of actuarial gains and losses, associated with certain retirement plans that have been frozen to new entrants. Furthermore, we also incur non-cash settlement charges and curtailment gains related to all of our retirement plans. These costs and gains are not considered to be part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results.
Change in restricted cash held for customers Restricted cash held for customers is not available for general corporate purposes such as payroll, vendor invoice payments, debt repayment, or capital expenditures. Because the cash is not available to support the Company's operations and revenue generating activities, management excludes the changes in the restricted cash held for customers balance when assessing cash flows from operations. We believe that the exclusion of the change in restricted cash held for customers from our non-GAAP operating cash flows measure is helpful to users of the financial statements as it presents this financial measure consistent with how management assesses this liquidity measure.
Change in certain customer obligations The title to cash received and processed in certain of our secure cash management services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and is thus not available for general corporate purposes. Because the cash is not available to support our operations and revenue generating activities, management excludes the changes in this specific cash balance when assessing cash flows from operations. We believe that the exclusion of the change in this cash balance from our non-GAAP operating cash flows measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure.
Amounts held by cash management services operations As described above, cash held in certain of our secure cash management services operations is not available to support our operations and revenue generating activities. Therefore, management excludes this specific cash balance when assessing our liquidity and capital resources, and in our computation of Net Debt. We believe that the exclusion of this cash balance from our non-GAAP Net Debt measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure.
47
Non-GAAP reconciled to GAAP
Six months ended June 30, 2025 Six months ended June 30, 2024
(In millions, except for percentages) Pre-tax income (a)
Income tax
Effective income tax rate (a)
Pre-tax income (a)
Income tax Effective income tax rate (a)
GAAP $ 144.3 42.8 29.7 % $ 150.4 48.3 32.1 %
Reorganization and restructuring (c)
0.7 0.1 1.5 0.3
Acquisitions and dispositions (c)
46.5 13.5 30.5 2.3
Argentina highly inflationary impact (c)
9.1 0.1 13.2 0.1
Transformation initiatives (c)
10.5 0.2 12.0 0.3
DOJ/FinCEN investigations (c)
1.8 — 6.0 —
Chile antitrust matter (c)
0.4 0.1 0.5 0.1
Retirement plans (b)
(3.1) (0.7) (3.4) (0.7)
Income tax rate adjustment (d)
— 3.6 — (1.8)
Non-GAAP
$ 210.2 59.7 28.4 % $ 210.7 48.9 23.2 %
Amounts may not add due to rounding.
(a) From continuing operations.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 47 for details.
(c) See “Other Items Not Allocated To Segments” on pages 41 - 42 for details.
(d) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.4% for 2025 and was 23.2% for 2024.
48
Three Months
Ended June 30, Six Months
Ended June 30,
(In millions, except for per share amounts)
2025 2024 2025 2024
Operating profit:
GAAP $ 133.9 116.0 $ 253.0 236.9
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
Income (loss) from continuing operations attributable to Brink's:
GAAP $ 43.9 46.3 $ 95.5 95.6
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
Non-GAAP
$ 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
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Three Months
Ended June 30, Six Months
Ended June 30,
(In millions, except for per share amounts)
2025 2024 2025 2024
Diluted EPS:
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)
(0.03) (0.04) (0.05) (0.06)
Income tax rate adjustment (c)
0.23 (0.05) (0.05) 0.05
Non-GAAP
$ 1.79 1.79 $ 3.38 3.44
Amounts may not add due to rounding.
(a) See “Other Items Not Allocated To Segments” on pages 41 - 42 for details.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 47 for details.
(c) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.4% for 2025 and was 23.2% for 2024.
(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 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.
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LIQUIDITY AND CAPITAL RESOURCES
Overview
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
Six Months
Ended June 30, $
(In millions) 2025 2024 change
Cash flows provided from (used in) operating activities - GAAP
$ 143.8 (2.2) 146.0
Decrease (increase) in restricted cash held for customers (see Note 12) (a)
(31.3) 67.2 (98.5)
Increase in customer obligations (a)
(24.0) (4.6) (19.4)
Capital expenditures
(110.7) (108.9) (1.8)
Cash proceeds from sale of property and equipment
9.8 4.5 5.3
Proceeds from lessor debt financing (see Note 12)
12.0 7.2 4.8
Free cash flow before dividends (a)
$ (0.4) (36.8) 36.4
(a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. See page 46 for further information on this non-GAAP measure, and see page 47 for descriptions of the adjustments.
Cash flows from operating activities - GAAP
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 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).
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Investing Activities
Six Months
Ended June 30, $
(In millions) 2025 2024 change
Cash flows from investing activities
Capital expenditures $ (110.7) (108.9) (1.8)
Acquisitions, net of cash acquired (5.3) (14.4) 9.1
Marketable securities:
Purchases (92.9) (1.4) (91.5)
Sales 64.8 1.2 63.6
Proceeds from sale of property and equipment
9.8 4.5 5.3
Net change in economic hedges
(17.2) — (17.2)
Net change in loans held for investment 3.3 3.5 (0.2)
Other (9.4) (0.9) (8.5)
Investing activities $ (157.6) (116.4) (41.2)
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.
52
Capital expenditures and depreciation and amortization were as follows:
Six Months
Ended June 30, $ Full Year
(In millions) 2025 2024 change 2024
Property and equipment acquired during the period
Capital expenditures:
North America $ 38.8 28.7 10.1 62.6
Latin America 13.1 17.1 (4.0) 33.0
Europe 29.9 39.6 (9.7) 76.9
Rest of World 27.0 20.0 7.0 45.6
Corporate 1.9 3.5 (1.6) 4.4
Capital expenditures
$ 110.7 108.9 1.8 222.5
Financing leases:
North America $ 14.0 14.4 (0.4) 38.4
Latin America 6.9 5.7 1.2 21.4
Europe 10.9 5.0 5.9 13.4
Rest of World 0.7 0.5 0.2 1.9
Financing leases
$ 32.5 25.6 6.9 75.1
Total:
North America $ 52.8 43.1 9.7 101.0
Latin America 20.0 22.8 (2.8) 54.4
Europe 40.8 44.6 (3.8) 90.3
Rest of World 27.7 20.5 7.2 47.5
Corporate 1.9 3.5 (1.6) 4.4
Total property and equipment acquired $ 143.2 134.5 8.7 297.6
Depreciation and amortization (a)
North America $ 40.3 40.4 (0.1) 82.4
Latin America 25.6 28.1 (2.5) 53.9
Europe 30.7 28.4 2.3 57.0
Rest of World 13.8 12.7 1.1 26.2
Total reportable segments
$ 110.4 109.6 0.8 219.5
Corporate 1.4 1.9 (0.5) 3.5
Argentina highly inflationary impact (b)
(10.5) 4.9 (15.4) 12.0
Reorganization and restructuring
— — — —
Depreciation and amortization of property and equipment
$ 101.3 116.4 (15.1) 235.0
Amortization of intangible assets (a)
29.2 29.1 0.1 58.3
Total depreciation and amortization
$ 130.5 145.5 (15.0) 293.3
(a) Amortization of acquisition-related intangible assets has been excluded from reportable segment amounts.
(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.
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Financing Activities
Six Months
Ended June 30, $
(In millions) 2025 2024 change
Cash flows from financing activities
Borrowings and repayments:
Short-term borrowings $ 19.8 (7.0) 26.8
Long-term revolving credit facilities, net 186.0 (534.9) 720.9
Other long-term debt, net (65.1) 754.4 (819.5)
Borrowings (repayments) 140.7 212.5 (71.8)
Acquisition of noncontrolling interest (6.6) (0.2) (6.4)
Debt financing costs (1.0) (9.6) 8.6
Repurchase shares of Brink's common stock (130.0) (65.7) (64.3)
Dividends to:
Shareholders of Brink’s (21.1) (20.6) (0.5)
Noncontrolling interests in subsidiaries (0.7) (0.1) (0.6)
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 $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).
Dividends
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.
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Capitalization
Reconciliation of Net Debt to U.S. GAAP Measures
June 30, December 31,
(In millions) 2025 2024
Debt:
Short-term borrowings $ 181.7 149.3
Long-term debt 3,941.4 3,746.9
Total Debt $ 4,123.1 3,896.2
Less:
Cash and cash equivalents $ 1,376.8 1,395.3
Amounts held by Cash Management Services operations (a)
(111.2) (81.3)
Cash and cash equivalents available for general corporate purposes $ 1,265.6 1,314.0
Net Debt (a)
$ 2,857.5 2,582.2
(a) Net Debt is a supplemental non-GAAP financial measure that is not required by or presented in accordance with GAAP. 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 $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
Our liquidity needs include not only the working capital requirements of our operations but also investments in our operations, business development activities, payments on outstanding debt, dividend payments and share repurchases.
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 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.
Limitations on dividends from foreign subsidiaries . A significant portion of our operations are outside the U.S. which may make it difficult to or costly to repatriate additional cash for use in the U.S. See “Risk Factors” in Item 1A of our annual report on Form 10-K for the year ended December 31, 2024, for more information on the risks associated with having businesses outside the U.S.
Our conclusion that we will be able to fund our cash requirements for the next 12 months by using existing capital resources, cash on hand, and cash generated from operations does not take into account any potential material worsening of economic conditions or material increases in inflation that would adversely affect our business. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, or if other economic conditions change, such as material increases in inflation, from those currently prevailing or from those now anticipated, such as higher inflation or if other unexpected circumstances arise that may have a material effect on the cash flow or profitability of our business, including material negative changes in the health and welfare of our employees or changes in the condition of our customers or suppliers, and the operating performance or financial results of our business. Any of these events or circumstances, including any new business opportunities, could involve significant additional funding needs in excess of the identified currently available sources and could require us to raise additional debt or equity funding to meet those needs. Our ability to raise additional capital, if necessary, is subject to a variety of factors that we cannot predict with certainty, including:
• our future profitability;
• the quality of our accounts receivable;
• our relative levels of debt and equity;
• the volatility and overall condition of the capital markets; and
• the market prices of our securities.
55
Equity
On November 2, 2023, our Board of Directors authorized a $500 million share repurchase program that expires on December 31, 2025 (the "2023 Repurchase Program").
Under the 2023 Share Repurchase Program, we are not obligated to repurchase any specific dollar amount or number of shares. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise.
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 June 30, 2025, $166 million remained available under the 2023 Repurchase Program.
U.S. Retirement Liabilities
Assumptions for U.S. Retirement Obligations
The amounts in the tables below are based on a variety of estimates, including actuarial assumptions as of the most recent measurement date. The assumptions used to estimate our U.S. retirement obligations can be found in our Annual Report on Form 10-K for the year ended December 31, 2024. The estimated amounts will change in the future to reflect payments made, investment returns, actuarial revaluations, and other changes in estimates. Actual amounts could differ materially from the estimated amounts and will be updated at December 31, 2025.
Our most significant actuarial assumptions include:
• Changing discount rates and other assumptions in effect at measurement dates (normally December 31)
• Investment returns on plan assets
• Addition of new participants (historically immaterial due to freezing of pension benefits and exit from coal business)
• Mortality rates
• Change in laws
Funded Status of U.S. Retirement Plans
Actual Actual Projected
(In millions) 2024 First Half 2025 3Q-4Q 2025 2026 2027 2028 2029
Primary U.S. pension plan
Beginning funded status $ (10.9) 8.2 15.0 14.1 20.0 27.0 39.6
Net periodic pension credit (a)
16.0 6.8 6.7 11.3 9.0 9.4 9.6
Payment from Brink’s — — — — 1.3 5.5 1.5
Benefit plan experience loss 3.1 — (7.6) (5.4) (3.3) (2.3) (1.6)
Ending funded status $ 8.2 15.0 14.1 20.0 27.0 39.6 49.1
UMWA plans
Beginning funded status $ (77.9) (42.7) (41.7) (42.7) (42.3) (42.0) (41.9)
Net periodic postretirement cost (a)
0.6 0.1 (0.1) 0.4 0.3 0.1 (0.1)
Benefit plan experience gain 42.9 — — — — — —
Other (8.3) 0.9 (0.9) — — — —
Ending funded status $ (42.7) (41.7) (42.7) (42.3) (42.0) (41.9) (42.0)
Black lung plans
Beginning funded status $ (74.4) (69.8) (67.2) (64.3) (59.3) (54.8) (50.6)
Net periodic postretirement cost (a)
(3.6) (1.8) (1.7) (3.3) (3.1) (2.8) (2.6)
Payment from Brink’s 8.0 4.4 4.6 8.3 7.6 7.0 6.4
Benefit plan experience loss 0.2 — — — — — —
Ending funded status $ (69.8) (67.2) (64.3) (59.3) (54.8) (50.6) (46.8)
(a) Excludes amounts reclassified from accumulated other comprehensive income (loss).
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Primary U.S. Pension Plan
Pension benefits provided to eligible U.S. employees were frozen on December 31, 2005, and benefits are not provided to employees hired after 2005 or to those covered by a collective bargaining agreement. We did not make cash contributions to the primary U.S. pension plan in 2024 or the first six months of 2025. There are approximately 10,300 beneficiaries in the plan.
Based on our current assumptions, we do not expect to make contributions until 2027.
UMWA Plans
Retirement benefits related to former coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA Represented Employees. There were approximately 2,200 beneficiaries in the UMWA plans as of December 31, 2024. The Company does not expect to make additional contributions to these plans until 2040, based on actuarial assumptions.
Black Lung
Under the Federal Black Lung Benefits Act of 1972, Brink’s is responsible for paying lifetime black lung benefits to miners and their dependents for claims filed and approved after June 30, 1973. There were approximately 700 black lung beneficiaries as of December 31, 2024.
Summary of Expenses Related to All U.S. Retirement Liabilities through 2029
This table summarizes actual and projected expense related to U.S. retirement liabilities.
Actual Actual Projected
(In millions) 2024 First Half 2025 3Q-4Q 2025 FY2025 2026 2027 2028 2029
Primary U.S. pension plan $ (10.9) (4.1) (4.2) (8.3) (0.6) 6.6 4.9 3.9
UMWA plans (8.3) (4.3) (3.8) (8.1) (4.8) (4.6) (4.5) (4.3)
Black lung plans 8.2 3.7 3.4 7.1 7.1 6.6 6.1 5.6
Total $ (11.0) (4.7) (4.6) (9.3) 1.7 8.6 6.5 5.2
Summary of Payments from Brink’s to U.S. Plans and Payments from U.S. Plans to Participants through 2029
This table summarizes actual and projected payments from Brink’s to U.S. retirement plans and from the plans to participants.
Actual Actual Projected
(In millions) 2024 First Half 2025 3Q-4Q 2025 FY2025 2026 2027 2028 2029
Payments from Brink’s to U.S. Plans
Primary U.S. pension plan $ — — — — — 1.3 5.5 1.5
Black lung plans 8.0 4.4 4.6 9.0 8.3 7.6 7.0 6.4
Total $ 8.0 4.4 4.6 9.0 8.3 8.9 12.5 7.9
Payments from U.S. Plans to participants
Primary U.S. pension plan $ 44.4 22.4 25.4 47.8 47.7 47.3 46.9 46.3
UMWA plans 20.7 9.5 6.7 16.2 16.0 15.8 15.7 15.4
Black lung plans 8.0 4.4 4.6 9.0 8.3 7.6 7.0 6.4
Total $ 73.1 36.3 36.7 73.0 72.0 70.7 69.6 68.1
Contingent Matters
See Note 13 to the condensed consolidated financial statements for information about contingent matters at June 30, 2025.
Critical Accounting Policies and Estimates
There have been no material changes to the Company’s critical accounting policies and estimates as reported in its Annual Report on Form 10-K for the year ended December 31, 2024.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.