Brink's delivered a quarter that exceeded Wall Street’s expectations, with management highlighting robust organic revenue growth across all segments, especially in higher-margin ATM Managed Services (AMS) and Digital Retail Solutions (DRS). CEO Mark Eubanks credited this performance to “record transactions and cash dispensed” as well as successful new customer onboardings, notably in North America. The company also saw improved productivity and operating margin expansion due to a favorable mix shift toward subscription-based offerings and ongoing efficiency initiatives.
Is now the time to buy BCO? Find out in our full research report (it’s free).
Brink's (BCO) Q2 CY2025 Highlights:
- Revenue: $1.30 billion vs analyst estimates of $1.27 billion (3.8% year-on-year growth, 2.1% beat)
- Adjusted EPS: $1.79 vs analyst estimates of $1.45 (23.7% beat)
- Adjusted EBITDA: $232 million vs analyst estimates of $215.9 million (17.8% margin, 7.5% beat)
- Revenue Guidance for Q3 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.30 billion
- Adjusted EPS guidance for Q3 CY2025 is $2.05 at the midpoint, above analyst estimates of $2.01
- EBITDA guidance for Q3 CY2025 is $250 million at the midpoint, above analyst estimates of $244.8 million
- Operating Margin: 10.8%, up from 9.6% in the same quarter last year
- Market Capitalization: $4.54 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Brink's’s Q2 Earnings Call
- Timothy Michael Mulrooney (William Blair): Asked which factors most contributed to the margin beat, CEO Mark Eubanks pointed to strong organic growth, AMS/DRS mix shift, and productivity improvements, rather than favorable FX or one-time items.
- Timothy Michael Mulrooney (William Blair): Inquired about AMS/DRS growth trajectory given the first-half performance, with Eubanks explaining that second-half growth should accelerate, supported by pipeline momentum and recent customer onboardings.
- Timothy Michael Mulrooney (William Blair): Queried about the impact of tariffs and shipment activity in the global services business, with Eubanks confirming mid-single-digit growth and noting that volatility from trade policy creates opportunity for Brink’s to capture additional business.
- Tyler David Barishaw (Truist): Asked about internal efforts to convert CVM customers to AMS/DRS, Eubanks emphasized a “pull” strategy where customers are attracted to more efficient solutions, with conversion activity increasing in 2025.
- Keen Fai Tong (Goldman Sachs): Questioned the sustainability of CVM growth and potential catalysts for acceleration, with Eubanks highlighting that further volatility or more conversions to AMS/DRS could drive upside or downside, respectively.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will closely monitor (1) the pace of AMS and DRS adoption, particularly as large customer implementations ramp up; (2) the impact of operational efficiency initiatives on margins and free cash flow; and (3) the success of new market entries and product launches such as the KAL partnership. We will also track how macroeconomic volatility and tariff-related developments affect the traditional CVM business.
Brink's currently trades at $108.89, up from $88.73 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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