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 – predominantly 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 March 31, %
(In millions, except for percentages and per share amounts)
2026 2025 Change
GAAP
Revenues $ 1,375.1 1,246.7 10
Cost of revenues 1,019.4 939.5 9
Selling, general and administrative expenses 250.8 186.3 35
Operating profit 110.2 119.1 (7)
Operating profit margin
8.0 % 9.6 % (16)
Income from continuing operations (a)
32.1 51.6 (38)
Diluted EPS from continuing operations (a)
0.77 1.19 (35)
Non-GAAP (b)
Non-GAAP operating profit $ 168.4 150.6 12
Non-GAAP operating profit margin
12.2 % 12.1 % 1
Non-GAAP income from continuing operations (a)
74.7 70.6 6
Adjusted EBITDA
237.5 215.0 10
Non-GAAP diluted EPS from continuing operations (a)
1.80 1.62 11
(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 40 for further information on these non-GAAP measures and reconciliations to the applicable GAAP measures.
GAAP Basis
Analysis of Consolidated Results: First Quarter 2026 versus First Quarter 2025
Consolidated Revenues Revenues increased $128.4 million due to the favorable impact of currency exchange rates ($71.1 million), organic increases in North America ($20.4 million), Rest of World ($13.2 million), Latin America ($11.4 million), and Europe ($10.7 million), and the favorable impact of acquisitions ($1.6 million). The favorable currency exchange rate impact was driven primarily by the euro, Mexican peso, and Brazilian real. Revenues increased 4% on an organic basis primarily due to inflation-based price increases, and organic growth in AMS and DRS revenue, as well as BGS revenue. See our definition of “organic growth” on page 40 .
Consolidated Costs and Expenses Cost of revenues increased 9% to $1,019.4 million primarily due to the impact of higher revenue and the impact of currency exchange rates. Selling, general and administrative costs increased 35% to $250.8 million primarily due to costs from NCR Atleos acquisition and transformation initiatives, higher incentive compensation, and the impact of currency exchange rates.
Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 9.6% to 8.0%. Operating profit decreased $8.9 million due mainly to:
• higher expenses due to the NCR Atleos acquisition and transformation initiatives ($33.8 million) and
• higher corporate expenses on an organic basis ($11.5 million),
partially offset by:
• organic increases in North America ($7.8 million), Europe ($7.6 million), Rest of World ($6.0 million), and Latin America ($0.9 million) and
• favorable changes in currency exchange rates ($6.7 million), driven primarily by the Mexican peso, the euro, and Brazilian real.
Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $19.5 million to $32.1 million due to the decrease in operating profit mentioned above, lower interest and other nonoperating income ($8.8 million), higher interest expense ($6.0 million), and higher noncontrolling interest ($0.4 million), partially offset by the lower income tax expense ($4.6 million). Earnings per share from continuing operations was $0.77, down from $1.19 in the first quarter of 2025.
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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 40 and are reconciled to comparable GAAP measures on pages 42 - 44 .
Analysis of Consolidated Results: First Quarter 2026 versus First Quarter 2025
Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 12.1% to 12.2%. Non-GAAP operating profit increased $17.8 million due mainly to:
• organic increases in North America ($7.8 million), Europe ($7.6 million), Rest of World ($6.0 million), and Latin America ($0.9 million),
• favorable changes in currency exchange rates ($6.7 million), driven primarily by the Mexican peso, the euro, and Brazilian real, and
• the favorable impact of acquisitions in segment results ($0.3 million),
partially offset by:
• higher corporate expenses on an organic basis ($11.5 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 increased $4.1 million to $74.7 million due to the operating profit increase mentioned above, partially offset by lower interest and other nonoperating income ($6.1 million), and higher interest expense ($6.0 million), and the higher income tax expense ($1.6 million). Non-GAAP earnings per share from continuing operations was $1.80, up from $1.62 in the first quarter of 2025.
Adjusted EBITDA Adjusted EBITDA increased 10% to $237.5 million primarily due to the increase in Non-GAAP operating profit ($17.8 million).
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Revenues and Operating Profit by Segment: First Quarter 2026 versus First Quarter 2025
Organic Change (a)
Impact of Acquisitions / Dispositions (b)
Currency Effect (c)
% Change
(In millions, except for percentages)
1Q'25 1Q'26 Total Organic Growth (a)
Revenues:
North America $ 417.6 20.4 — 1.6 439.6 5 5
Latin America 307.6 11.4 0.5 24.3 343.8 12 4
Europe 319.0 10.7 1.1 35.1 365.9 15 3
Rest of World 202.5 13.2 — 10.1 225.8 12 7
Segment revenues
1,246.7 55.7 1.6 71.1 1,375.1 10 4
Revenues
$ 1,246.7 55.7 1.6 71.1 1,375.1 10 4
Operating profit:
North America $ 53.1 7.8 — — 60.9 15 15
Latin America 53.9 0.9 (0.2) 2.8 57.4 6 2
Europe 28.1 7.6 0.5 3.7 39.9 42 27
Rest of World 47.2 6.0 — 1.8 55.0 17 13
Segment operating profit 182.3 22.3 0.3 8.3 213.2 17 12
Corporate expenses (d)
(31.7) (11.5) — (1.6) (44.8) 41 36
Other items not allocated to segments (d)
(31.5) (30.1) 3.4 — (58.2) 85 96
Operating profit
$ 119.1 (19.3) 3.7 6.7 110.2 (7) (16)
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 40 .
(b) Amounts include the current year results of businesses acquired within the past twelve months recognized from the transaction date through the end of the twelve month period and the impact of prior year comparable period results for disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 40 .
(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 40 .
(d) See pages 34 - 36 for further information, where these items are discussed in more detail.
Analysis of Segment Results: First Quarter 2026 versus First Quarter 2025
North America
Revenues increase 5% ($22.0 million) primarily due to a 5% organic increase ($20.4 million). Organic revenue increased primarily due to growth in AMS and DRS, as well as BGS revenue. Operating profit increased 15% ($7.8 million) due to a 15% organic increase ($7.8 million). The organic increase was primarily driven by higher revenue, the net impact of revenue mix, and cost productivity.
Latin America
Revenues increased 12% ($36.2 million) due to the favorable impact of currency exchange rates ($24.3 million) primarily from the Mexican peso and a 4% organic increase ($11.4 million). The organic increase was primarily driven by price increases across the segment, as well as growth in AMS and DRS revenue. Operating profit increased 6% ($3.5 million) primarily due to the favorable impact of currency exchange rates ($2.8 million) and a 2% organic increase ($0.9 million). The organic increase was primarily driven by higher revenue and cost productivity.
Europe
Revenues increased 15% ($46.9 million) primarily due to favorable impact of currency exchange rates ($35.1 million), a 3% organic increase ($10.7 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 42% ($11.8 million) primarily due to a 27% organic increase ($7.6 million) and the favorable impact of currency exchange rates ($3.7 million). The organic increase was driven by the mix benefit of higher AMS and DRS revenue.
Rest of World
Revenues increased 12% ($23.3 million) due to a 7% organic increase ($13.2 million) and the favorable impact of currency exchange rates ($10.1 million). Organic growth in the segment was primarily due to growth in BGS revenue and pricing discipline across the segment. Operating profit increased 17% ($7.8 million) primarily due to a 13% organic increase ($6.0 million) and the favorable impact of currency exchange rates ($1.8 million). The organic increase was primarily driven by a favorable BGS mix and higher revenue.
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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 March 31, %
(In millions, except for percentages)
2026 2025 change
General, administrative and other expenses $ (46.4) (34.9) 33
Foreign currency transaction gains 1.6 3.2 (50)
Corporate expenses $ (44.8) (31.7) 41
Corporate expenses for the first three months of 2026 increased $13.1 million versus the prior year period. This was primarily driven by higher net compensation costs ($6.7 million), higher global management costs not allocated to segments ($3.5 million), higher net technology costs ($2.9 million) and a reduction in currency transaction gains ($1.6 million), partially offset by lower charges related to insurance and security losses ($3.6 million).
Other Items Not Allocated to Segments
Three Months
Ended March 31, %
(In millions, except for percentages)
2026 2025 change
Reorganization and restructuring
$ — (0.5) (100)
Acquisitions and dispositions (15.6) (18.5) (16)
Argentina highly inflationary impact 0.5 (6.3) fav
NCR Atleos acquisition and transformation initiatives
(38.9) (5.1) unfav
Non-routine legal matters
(2.8) — unfav
DOJ/FinCEN investigations (1.2) (0.9) 33
Chile antitrust matter
(0.2) (0.2) —
Total Other items not allocated to segments
$ (58.2) (31.5) 85
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Reorganization and Restructuring
Costs associated with certain reorganization and restructuring actions were excluded from reported non-GAAP results. These items included primarily severance charges and asset impairment losses. These costs related to global restructuring initiatives, completed in prior years, mainly to mitigate the impact of external economic conditions in light of the COVID-19 pandemic. 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.
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:
2026 Acquisitions and Dispositions
• Amortization expense for acquisition-related intangible assets was $14.9 million in the first three months of 2026.
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.
• Net charges of $0.9 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.
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 three months of 2026, we recognized a net $0.5 million pretax gain in operating profit related to highly inflationary accounting, including currency remeasurement gains of $1.4 million. 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 loss of $4.8 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.
NCR Atleos acquisition and transformation initiatives On February 26, 2026, we entered into a definitive agreement to acquire NCR Atleos. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary closing conditions. This acquisition represents a significant strategic step for Brink’s, expanding the scale of the combined company and supporting continued growth in our AMS and DRS offerings, which reflect an increasing portion of our business mix.
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 and streamline our commercial and operational systems and processes, as well as back-office functions, including finance and information technology. The efforts will drive continuous improvement and achieve operational excellence.
Accordingly, we incurred $5.1 million of expense in the first three months of 2025, which primarily included third-party professional services. During the first three months of 2026, we incurred $38.9 million of related costs, including fees to attorneys, accountants and other professional advisors related to the NCR Atleos acquisition as well as severance costs and third-party professional services. Because these expenses are associated with discrete transformation initiatives, they are not reflective of our ongoing operating cost structure and are not indicative of our core operating expenses or normal activities. Accordingly, 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.
Non-routine legal matters In the first quarter of 2026, we recognized $2.8 million of probable losses in connection with non-routine legal matters. These costs relate to fact-specific matters that management does not believe are indicative of the Company's underlying operational performance for the period. Additionally, the nature of these amounts and the underlying claims are such that they are not reasonably likely to recur based on the Company's historical experience within two years, nor were there similar charges for such matters within the prior two years. Management has excluded these amounts when evaluating internal operating performance, and accordingly, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.
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DOJ/FinCEN investigations During the first three months of 2026, we accrued $1.2 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 March 31, 2026, 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 other 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 March 31, %
(In millions, except for percentages)
2026 2025 change
Foreign currency items:
Transaction gains (losses)
$ (7.4) 10.9 unfav
Derivative instrument gains (losses)
10.4 (12.6) fav
Gains (losses) on sale of property and other assets
0.1 — fav
Impairment losses (0.5) (1.6) (69)
Indemnification asset adjustments — (0.9) (100)
Share in earnings of equity affiliates 0.9 0.8 13
Royalty income 2.8 1.9 47
Other gains (losses)
(1.0) (0.3) unfav
Other operating income (expense) $ 5.3 (1.8) fav
Nonoperating Income and Expense
Interest expense
Three Months
Ended March 31, %
(In millions, except for percentages)
2026 2025 change
Interest expense $ 63.5 57.5 10
Interest expense was higher for the three months ended March 31, 2026, 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 March 31, %
(In millions, except for percentages)
2026 2025 change
Interest income $ 4.4 10.9 (60)
Gain (loss) on equity and debt securities (0.6) (0.2) unfav
Foreign currency transaction gains (losses) 0.6 (0.7) fav
Retirement benefit cost other than service cost (4.2) (0.2) unfav
Argentina turnover tax (0.1) (0.7) (86)
Non-income taxes on intercompany billings
(1.2) (0.2) unfav
Other 0.2 (1.0) fav
Interest and other nonoperating income (expense) $ (0.9) 7.9 unfav
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Income Taxes
Three Months
Ended March 31,
(In millions, except for effective tax rate)
2026 2025
Continuing operations
Provision for income taxes
$ 11.0 15.6
Effective tax rate 24.0 % 22.4 %
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 March 31, %
(In millions, except for percentages)
2026 2025 change
Net income attributable to noncontrolling interests $ 2.7 2.3 17
The increase in the net income attributable to noncontrolling interests in the first three months ended March 31, 2026, in comparison to the first three months ended March 31, 2025, is primarily attributable to higher 2025 operating results reported by certain subsidiaries that are not wholly-owned.
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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.
• 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, 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. 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: Free cash flow before dividends is a non-GAAP financial measure that represents management’s calculation of cash flows that are available for capital and investing activities such as paying dividends, share repurchases, debt, acquisition and other investments. We define free cash flow before dividends as net cash provided by (used in) 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 property and equipment used to operate our business, including capital expenditures, cash proceeds from the sale of property and equipment, as well as lessor debt financing. Free cash flow before dividends also excludes the cash impact of transaction costs related to the NCR Atleos acquisition.
• 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 49 for more details.
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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 34 – 36 . 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.
NCR Atleos acquisition cash flows This represents the cash outflows during the period related to NCR Atleos acquisition-related transaction costs, such as fees to attorneys, accountants and other professional advisors.
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.
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Non-GAAP reconciled to GAAP
Three months ended March 31, 2026 Three months ended March 31, 2025
(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 $ 45.8 11.0 24.0 % $ 69.5 15.6 22.4 %
Reorganization and restructuring (c)
— — 0.5 0.1
Acquisitions and dispositions (c)
15.2 3.4 19.2 1.4
Argentina highly inflationary impact (c)
1.1 0.1 7.3 0.1
NCR Atleos acquisition and transformation initiatives (c)
38.9 4.8 5.1 0.1
Non-routine legal matters (a)
2.8 0.7 — —
DOJ/FinCEN investigations (c)
1.2 0.3 0.9 —
Chile antitrust matter (c)
0.2 0.1 0.2 —
Retirement plans (b)
1.5 0.4 (1.7) (0.5)
Income tax rate adjustment (d)
— 8.6 — 11.0
Non-GAAP $ 106.7 29.4 27.6 % $ 101.0 27.8 27.5 %
Amounts may not add due to rounding.
(a) From continuing operations.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 41 for details.
(c) See “Other Items Not Allocated To Segments” on pages 34 - 36 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 27.6% for 2026 and was 27.5% for 2025.
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Three Months
Ended March 31,
(In millions, except for per share amounts) 2026 2025
Operating profit:
GAAP $ 110.2 119.1
Reorganization and restructuring (a)
— 0.5
Acquisitions and dispositions (a)
15.6 18.5
Argentina highly inflationary impact (a)
(0.5) 6.3
NCR Atleos acquisition and transformation initiatives (a)
38.9 5.1
Non-routine legal matters (a)
2.8 —
DOJ/FinCEN investigations (a)
1.2 0.9
Chile antitrust matter (a)
0.2 0.2
Non-GAAP $ 168.4 150.6
Income (loss) from continuing operations attributable to Brink's:
GAAP $ 32.1 51.6
Reorganization and restructuring (a)
— 0.4
Acquisitions and dispositions (a)
11.6 17.5
Argentina highly inflationary impact (a)
1.0 7.2
NCR Atleos acquisition and transformation initiatives (a)
34.1 5.0
Non-routine legal matters (a)
2.1 —
DOJ/FinCEN investigations (a)
0.9 0.9
Chile antitrust matter (a)
0.1 0.2
Retirement plans (b)
1.1 (1.2)
Income tax rate adjustment (c)
(8.3) (11.0)
Non-GAAP $ 74.7 70.6
Adjusted EBITDA:
Net income attributable to Brink's $ 32.1 51.6
Interest expense 63.5 57.5
Income tax provision 11.0 15.6
Depreciation and amortization 79.7 70.7
EBITDA $ 186.3 195.4
Reorganization and restructuring (a)
— 0.5
Acquisitions and dispositions (a)
0.1 4.5
Argentina highly inflationary impact (a)
0.1 5.2
NCR Atleos acquisition and transformation initiatives (a)
38.9 5.1
Non-routine legal matters (a)
2.8 —
DOJ/FinCEN investigations (a)
1.2 0.9
Chile antitrust matter (a)
0.2 0.2
Retirement plans (b)
1.5 (1.7)
Income tax rate adjustment (c)
0.3 —
Share-based compensation (d)
7.1 5.7
Marketable securities (gain) loss (e)
(1.0) (0.8)
Adjusted EBITDA $ 237.5 215.0
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Three Months
Ended March 31,
(In millions, except for per share amounts) 2026 2025
Diluted EPS:
GAAP $ 0.77 1.19
Reorganization and restructuring (a)
— 0.01
Acquisitions and dispositions (a)
0.28 0.40
Argentina highly inflationary impact (a)
0.02 0.17
NCR Atleos acquisition and transformation initiatives (a)
0.82 0.11
Non-routine legal matters (a)
0.05 —
DOJ/FinCEN investigations (a)
0.02 0.02
Retirement plans (b)
0.03 (0.02)
Income tax rate adjustment (c)
(0.20) (0.25)
Non-GAAP $ 1.80 1.62
Amounts may not add due to rounding.
(a) See “Other Items Not Allocated To Segments” on pages 34 - 36 for details.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 41 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 27.6% for 2026 and was 27.5% for 2025.
(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 $1.0 million non-GAAP adjustment for a loss in the three months ended March 31, 2025. There was a $1.6 million non-GAAP adjustment for a loss in the three months ended March 31, 2026.
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LIQUIDITY AND CAPITAL RESOURCES
Overview
Cash flows from operating activities increased $88.9 million in the first three months of 2026 as compared to the first three months of 2025. Cash used for investing activities decreased by $12.5 million in the first three months of 2026 compared to the first three months of 2025. We financed our liquidity needs in the first three months of 2026 with existing cash from operations.
Operating Activities
Three Months
Ended March 31, $
(In millions) 2026 2025 change
Cash flows provided by (used in) operating activities - GAAP
$ 28.7 (60.2) 88.9
(Increase) decrease in restricted cash held for customers (see Note 12) (a)
(3.2) 45.0 (48.2)
Increase in customer obligations (a)
(30.0) (38.9) 8.9
Capital expenditures (40.1) (58.9) 18.8
Cash proceeds from sale of property and equipment 3.3 2.6 0.7
Proceeds from lessor debt financing (see Note 12) 3.2 8.1 (4.9)
Subtotal
$ (38.1) (102.3) 64.2
NCR Atleos acquisition cash flows (a)
2.1 — 2.1
Free cash flow before dividends (a)
$ (36.0) (102.3) 66.3
(a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. See page 40 for further information on this non-GAAP measure, and see page 41 for descriptions of the adjustments.
Cash flows from operating activities - GAAP
Cash flows from operating activities increased $88.9 million in the first three months of 2026 compared to the same period in 2025. The increase was primarily attributed to restricted cash held for customers (restricted cash held for customers increased by $3.2 million in 2026 compared to a decrease of $45.0 million in 2025) and changes in working capital excluding taxes and interest (working capital decreased by $115.2 million in 2026 compared to a decrease of $176.0 million in 2025), partially offset by changes in custom er obligations related to certain of our secure cash management services operations (certain customer obligations increased by $30.0 million in 2026 compared to an increase of $38.9 million in 2025) and lower operating profit.
Free cash flow before dividends - non-GAAP
Free cash flow before dividends increased $66.3 million in the first three months of 2026 as compared to the same period in 2025. The increase was mostly attributed to changes in working capital excluding taxes and interest and lower amounts paid for capital expenditures (we had $40.1 million in cash paid for capital expenditures in 2026 compared to $58.9 million in 2025), partially offset by lower operating profit and lower cash proceeds from lessor debt financing (we had $3.2 million in cash proceeds in 2026 compared to $8.1 million in 2025).
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Investing Activities
Three Months
Ended March 31, $
(In millions) 2026 2025 change
Cash flows from investing activities
Capital expenditures $ (40.1) (58.9) 18.8
Acquisitions, net of cash acquired — (5.3) 5.3
Marketable securities:
Purchases (18.8) (12.7) (6.1)
Sales 18.4 14.3 4.1
Proceeds from sale of property and equipment
3.3 2.6 0.7
Net change in economic hedges
(1.2) 9.0 (10.2)
Net change in loans held for investment 1.5 1.6 (0.1)
Other 0.7 0.7 —
Investing activities $ (36.2) (48.7) 12.5
Cash used by investing activities decreased by $12.5 million in the first three months of 2026 versus the first three months of 2025. The decrease was primarily due to less cash paid for capital expenditures and acquisitions in 2026, partially offset by more cash payments related to the net change in economic hedge contracts in 2026, as discussed in Note 7.
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Capital expenditures and depreciation and amortization were as follows:
Three Months
Ended March 31, $ Full Year
(In millions) 2026 2025 change 2025
Property and equipment acquired during the period
Capital expenditures:
North America $ 8.7 24.0 (15.3) 59.7
Latin America 6.4 6.0 0.4 24.2
Europe 13.1 14.7 (1.6) 73.3
Rest of World 10.9 13.8 (2.9) 43.4
Corporate 1.0 0.4 0.6 2.5
Capital expenditures
$ 40.1 58.9 (18.8) 203.1
Financing leases:
North America $ 12.9 5.9 7.0 23.8
Latin America 4.8 3.3 1.5 37.6
Europe 4.0 4.7 (0.7) 13.7
Rest of World — — — 1.1
Financing leases
$ 21.7 13.9 7.8 76.2
Total:
North America $ 21.6 29.9 (8.3) 83.5
Latin America 11.2 9.3 1.9 61.8
Europe 17.1 19.4 (2.3) 87.0
Rest of World 10.9 13.8 (2.9) 44.5
Corporate 1.0 0.4 0.6 2.5
Total property and equipment acquired $ 61.8 72.8 (11.0) 279.3
Depreciation and amortization (a)
North America $ 23.1 19.4 3.7 85.1
Latin America 14.7 12.7 2.0 56.2
Europe 18.9 15.6 3.3 71.5
Rest of World 6.5 5.8 0.7 24.3
Total reportable segments
$ 63.2 53.5 9.7 237.1
Corporate 0.6 0.7 (0.1) 2.6
Argentina highly inflationary impact
1.0 2.1 (1.1) (7.8)
Depreciation and amortization of property and equipment
$ 64.8 56.3 8.5 231.9
Amortization of intangible assets (a)
14.9 14.4 0.5 58.9
Total depreciation and amortization
$ 79.7 70.7 9.0 290.8
(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 1.1 for the 12 months ended March 31, 2026 compared to 1.4 for the 12 months ended March 31, 2025.
Capital expenditures in the first three months of 2026 were primarily for cash devices, information technology, and armored vehicles.
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Financing Activities
Three Months
Ended March 31, $
(In millions) 2026 2025 change
Cash flows from financing activities
Borrowings and repayments:
Short-term borrowings $ (11.3) (16.5) 5.2
Long-term revolving credit facilities, net (39.2) (7.0) (32.2)
Other long-term debt, net (21.9) (20.3) (1.6)
Borrowings (repayments) (72.4) (43.8) (28.6)
Acquisition of noncontrolling interest — (6.6) 6.6
Debt financing costs (20.6) (0.8) (19.8)
Repurchase shares of Brink's common stock (30.2) (44.8) 14.6
Dividends to:
Shareholders of Brink’s (10.5) (10.4) (0.1)
Noncontrolling interests in subsidiaries (0.2) (0.4) 0.2
Proceeds from exercise of stock options 0.2 — 0.2
Tax withholdings associated with share-based compensation (18.1) (17.3) (0.8)
Financing activities $ (151.8) (124.1) (27.7)
Debt borrowings and repayments
Cash used in financing activities increased by $27.7 million year over year as we had net cash used in financing activities of $151.8 million in the first three months of 2026 compared to net cash used from financing activities of $124.1 million in the first three months of 2025. The change was driven primarily by an increase in net repayments (as discussed in Note 8) compared to the prior year three month period and an increase in cash paid for debt financing costs, partially offset by a decrease in cash used to repurchase shares of common stock (we used $30.2 million to repurchase shares in 2026 as compared to $44.8 million in 2025).
Dividends
We paid dividends to Brink’s shareholders of $0.2550 per share or $10.5 million in the first three months of 2026 compared to $0.2425 per share or $10.4 million in the first three months of 2025. 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
March 31, December 31,
(In millions) 2026 2025
Debt:
Short-term borrowings $ 229.2 241.1
Long-term debt 3,926.7 3,973.2
Total Debt $ 4,155.9 4,214.3
Less:
Cash and cash equivalents $ 1,547.3 1,725.9
Amounts held by Cash Management Services operations (a)
(135.2) (106.4)
Cash and cash equivalents available for general corporate purposes $ 1,412.1 1,619.5
Net Debt (a)
$ 2,743.8 2,594.8
(a) Net Debt is a supplemental non-GAAP financial measure that is not required by or presented in accordance with GAAP. See page 40 for further information on this non-GAAP measure, and see page 41 for a description of the adjustment. Included within Net Debt is net cash from our Argentina operations of $31.3 million at March 31, 2026 and $24.9 million at December 31, 2025.
Net Debt as of March 31, 2026 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 March 31, 2026, $540 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, 2025, 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.
Equity
In December 2025, our Board authorized a $750 million share repurchase program that expires on December 31, 2027 (the "2025 Repurchase Program").
Under the 2025 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.
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In November 2023, our Board authorized a $500 million share repurchase program (the "2023 Repurchase Program"). Under the 2023 Repurchase Program, in 2025, we repurchased a total of 2,210,616 shares of our common stock for an aggregate of $209.4 million and an average price of $94.74 per share. These shares were retired upon repurchase. The 2023 Repurchase Program expired on December 31, 2025, with approximately $87 million remaining available.
During the three months ended March 31, 2026, we repurchased a total of 241,321 shares of our common stock for an aggregate amount of $30.2 million and an average price of $125.12 per share. These shares were retired upon repurchase. At March 31, 2026, $720 million remained available under the 2025 Repurchase Program.
Contingent Matters
See Note 13 to the condensed consolidated financial statements for information about contingent matters at March 31, 2026.
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, 2025.
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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.