Q2 2025 The Brinks Co Earnings Call

Operator: Good day and welcome to the Brinks Company's second quarter 2025 earnings conference call. This call and the Q&A session will contain forward-looking statements. Actual results could differ materially from projected or estimated results. Information regarding factors that could cause such differences is available in today's press release and presentation and in the company's most recent SEC filings. The information presented and discussed on this call is representative of today's only. Brinks assumes no obligations to update any forward-looking statements. This call is copyrighted and may not be used without written permission from Brinks. I will now turn it over to your host, Jesse Jenkins, Vice President of Invest Relations. Mr. Jenkins, you may begin.

Good day and welcome to the Brinks company's second quarter 2025 earnings conference call.

This call and the Q&A session will contain forward-looking statements actual results. Could differ materially from projected or estimated results.

In information regarding factors that could cause such differences are available in. Today's press release and presentation.

and the company's most recent SEC filings the information presented and discussed on this call is representative of today's only

Brings assumes. No obligations to update, any forward-looking statements.

This call is copyrighted and may not be used without written permission from Brinks.

I will now turn it over to your host. Jesse Jenkins, vice president of investor relations. Mr. Jenkins, you may begin.

Jesse Jenkins: Thanks and good morning. Here with me today are CEO Mark Eubanks and CFO Kurt McMaken. This morning, Brinks reported second quarter 2025 results on a GAAP, non-GAAP, and constant currency basis. Most of our comments today will be focused on our non-GAAP results. 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 they allow investors to evaluate performance using the same metrics as management. Reconciliations of non-GAAP results to their most comparable GAAP results are provided in the press release, the appendix of the presentation, and the AK filing, all of which can be found on our website. I will now turn the call over to Brinks CEO Mark Eubanks.

Mark Eubanks: Thanks, Jesse. Good morning and thank you for joining us. Starting with the second quarter performance highlights on slide three, Brinks delivered strong organic revenue growth in all segments and lines of business. The 5% total company organic growth included 16% growth in ATM managed services and digital retail solutions, or AMSDRS, as well as 5% growth in North America. This is the fastest organic growth rate for the North America segment in the last nine quarters. Total reported revenue growth of 4% exceeded our guidance for the period. Record Q2 EBITDA and operating profits were driven by strong productivity, revenue mix benefits, and good pricing discipline. Second quarter EBITDA margins were 17.8% and record second quarter operating margins were 12.6%, up 20 basis points year over year. The benefits of growth in AMSDRS were evident in both North America and Europe, where we posted record second quarter EBITDA margins.

Thanks and good morning here with me today. Our CEO Mark, Eubanks and CFO. Kurt mcmackin this morning. Brings reported second quarter, 2025 results on a gap, non-gaap and constant currency basis. Most of our comments today will be focused on our non-gaap results. 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 they allow investors to evaluate performance, using the same metrics as management, reconciliations of non-gaap results to their most comparable, gaap results are provided in the press release, the appendix of the presentation and and the AK filing, all of which can be found on our website. I will now turn the call over to Brinks CEO Mark Eubanks.

Thanks Jesse. Good morning, and thank you for joining us.

Starting with the second quarter performance, highlights on slide, 3 brings delivered, strong organic Revenue, growth in all segments and lines of business.

The 5% total company organic growth included. 16% growth in ATM managed services and digital retail Solutions or amdrs as well as 5% growth in North America. This is the fastest organic growth rate for North America segment in the last 9 quarters.

Total reported Revenue growth of 4%, exceeded our guidance, for the period.

Record Q2 IBA and operating profits were driven by strong productivity Revenue mixed benefits and good pricing discipline.

Second quarter, ibaon, margins were 17.8% and record. Second quarter. Operating margins. Were 12.6% up, 20 basis points. Year-over-year

Mark Eubanks: We continue to see margin improvement opportunities in these segments as we move through the balance of the year. Earnings per share of $1.79 reflects the benefits of our ongoing share repurchase program, with total diluted share count down 6%. Cash generation also continues to improve. In Q2, we delivered $102 million of free cash flow, a year-to-date increase of $36 million. We continue to shorten our cash cycle and deliver capital efficiency across our entire asset base. Looking at the second quarter in total, we overdelivered against our commitments. Organic growth remains robust, with acceleration in our key business lines of AMS and DRS expected in the second half of the year. Profitability continues to improve as we drive meaningful operational consistency and shift our revenue to higher margin lines of business.

Growth in AMS and DRS was evident in both North America and Europe, where we posted record second quarter EBITDA margins.

We continue to see margin Improvement opportunities in these segments as we move through the balance of the year.

Earnings per share of a $1.79 reflects the benefits of our ongoing share repurchase program with total diluted share count down 6%.

Cash generation also continues to improve in. Q2 we delivered a 102 million dollars of free cash flow, a year-to-date increase of 36 million. We continue to shorten our cash cycle and deliver Capital efficiency across our entire asset base.

Look at the second quarter in total. We over-delivered against our commitments.

Organic growth remains robust with acceleration in our key business lines of AMS and DRS expected in a second half of the year.

Mark Eubanks: The strong first half performance has increased our confidence, and we're now expecting an increase in revenue and EBITDA for the full year. Kurt will have more color on our third quarter guidance and our full year framework at the end of the presentation. Turn to slide four. You can see how our year-to-date performance supports our value creation strategy. First, we're focused on delivering organic revenue growth primarily from our higher margin subscription-based services of AMS and DRS. Through the first half of the year, we remain on track for our full year framework, delivering 5% organic growth and 18% organic growth in AMSDRS. This revenue growth and execution of productivity enhancements have driven operating margin expansion of 30 basis points year to date.

Profitability continues to improve as we drive meaningful, operational, consistency and shift our Revenue to higher margin. Lines of business

The strong first half performance has increased our confidence, and we're now expecting an increase in revenue and ibido for the full year.

Kurt will have more color on our third quarter, guidance, and our full-year framework at the end of the presentation.

Turn the slide 4, you can see how our year-to-date performance supports our value creation strategy. First we're focused on delivering organic Revenue growth primarily from our higher margin subscription-based, Services of AMS and DRS

Through the first half of the year, we remain on track. For our full year framework, delivering 5% organic growth and 18% organic growth in ambsdr.

Mark Eubanks: As we've previously discussed, and as you can see from our Q3 guidance, we expect margin expansion to accelerate in the second half of the year, and we remain on track to deliver our framework of 30 to 50 basis points of EBITDA margin expansion in 2025. We are delivering improvements in free cash flow as well. Trillion 12-month free cash flow has increased by $140 million, and conversion has improved to 48% of adjusted EBITDA. We are driving structural changes to the business that support this improving free cash flow generation. Our cash cycle continues to shorten with DSO improvement of six days. We're also improving our capital efficiency as we shift to less capital-intensive AMSDRS offerings, reducing several hundred vehicles from our fleet year to date. And finally, we're focused on maximizing value for our shareholders with disciplined capital allocation.

This Revenue growth and execution of productivity enhancements have driven operating margin expansion of 30 basis points, year to date.

Points at ibida margin expansion in 2025.

We are delivering improvements in free cash flow as well.

Trillion 12-month free, cash flow is increased by 140 million and conversion as improved to 48% of adjusted IBA duct.

We are driving structural changes to the business that support. This improving. Free cash, flow generation.

Our cash flow will continue to shorten with DSO Improvement of 6 days. We're also improving our Capital efficiency as we shift to less Capital, intensive AMS, DRS offerings. Reducing several hundred vehicles from our Fleet year to date.

Mark Eubanks: This year, capital has primarily been allocated to our share repurchase program, where we've utilized $130 million year to date to repurchase approximately 1.5 million shares. With remaining capacity under our share repurchase program through the end of the year of $166 million, we remain on track to allocate at least 50% of our free cash flow towards shareholder returns in 2025. The meaningful progress we've made against these value creation goals in the first half of the year provides confidence and support to our increased expectations for the full year. On slide five, I'll provide a strategy update on our ATM managed services progress. Across the top of the slide, you can see the ATM ownership value chain from software on the machines all the way through cash logistics and money processing.

and finally, we're focused on maximizing value for our shareholders with discipline Capital, allocation

This year capital is primarily been allocated to our share repurchase program where we've utilized 130 million year to date to repurchase approximately 1 and a half million shares.

With remaining capacity under our share repurchase program, through the end of the year of 166 million. We remain on track to allocate at least 50% of our free cash flow towards shareholder returns in 2025,

The meaningful progress we've made against these value creation goals, in the first half of the Year provides confidence and support to our increased expectations for the full year.

Slide 5. I'll provide a strategy update on our ATM and managed services progress.

Mark Eubanks: Our business was historically focused on cash in transit and money processing, but over the last few years, we've added capabilities both organically and through acquisition, which have expanded our addressable market and moved us further up the value chain. This expanded market has allowed us to consistently deliver mid to high teens or better organic growth since we started reporting AMS. In the second quarter, we saw record transactions and cash dispensed in several of our large geographies, including North America. We recently finished onboarding several large new AMS customers, including Sainsbury's Bank in the UK and a few large convenience store chains in North America. The combination of record transactions and larger installed base support our increased expectations for AMS and DRS in the second half of the year. During the quarter, we also closed a strategic investment in KAL that advances our existing AMS capabilities.

Across the top of the slide, you can see the ATM ownership value chain from software on the machines all the way through cash logistics and money processing.

Our business was historically focused on cash and Transit and money processing. But over the last few years, we've added capabilities both organically and through acquisition which have expanded our addressable market and moved us, further up the value chain.

this expanded Market has a lot of us to consistently deliver, mid to high teens or better organic growth since we started reporting AMS,

In the second quarter, we saw record transactions and cash dispensed in several of our large geographies including North America.

We recently finished on boarding. Several large new AMS, customers including Sainsbury's Bank in the UK and a few large convenience store chains in North America.

Combination of record, transactions and larger installed base. Support our increased expectations for AMS and DRS in the second half of the year.

Mark Eubanks: KAL is a leading global hardware-independent ATM software provider and a globally recognized solutions provider for financial institutions and retailers. With many of our ATMs already using KAL software, we believe this partnership allows us to provide improved solutions to the managed services marketplace. Moving to slide six on DRS. First, a quick reminder of the value proposition of digital retail solutions for both our customers and for Brinks. For our customers, DRS helps move cash transactions into the digital world. Once cash is accepted at retailers from customers and deposited into a DRS device, there's now a digital record of the transaction and the customer's bank account is credited. To the retailer, this process looks and feels similar to credit and debit transactions, often at prices that are less than their typical 2 to 4% of credit card fees.

During the quarter, we also closed a Strategic investment in Kal that advances, our existing AMS capabilities.

Kal is a leading Global Hardware independent ATM software provider and a globally recognized Solutions, provider for financial institutions, and retailers.

With many of our ATMs already using Cal software, we believe this partnership allows us to provide improved solutions to the managed Services Marketplace.

Moving to slide 6 on DRS.

first, a quick reminder, on the value proposition of digital retail solutions, for both our customers and for Brinks

For our customers, DRS helps move cash transactions into the digital world.

Once cash is accepted at retailers from customers and deposited into a DRS device. There's now a digital record of the transaction and the customer's bank account is credited.

To the retailer. This process looks and feels similar to credit and debit transactions often their prices.

Mark Eubanks: Benefits of this process for customers include faster access to working capital and improvement in store productivity without the need to reconcile the cash received and then walk deposits to the bank. We've seen our customers reduce internal theft, and when interfaced with a point-of-sale operating system, allow customers to gain the ability to digitally track customers' individual cash transactions. The value proposition for Brinks includes a transition to flexible schedules, only dispatching service when needed or convenient. This allows us to provide a superior customer offering while improving labor and CapEx efficiency. Because this service includes flexible scheduling, we have extended our potential customer base to include enterprise customers that were not efficiently served by traditional services, as well as small and mid-sized businesses that were previously priced out of the cash management solution.

that are less than their typical 2% to 4% of credit card fees.

Benefits of this process for customers include faster access to working capital and Improvement in store, productivity, without the need to reconcile the cash received, and then walk deposits to the bank.

We've seen our customers reduce internal theft and when interfaced with a point of sale operating system, allow customers to gain the ability to digitally track customer individual cash transactions.

The value proposition for Brinks, includes a transition to flexible schedules, only dispatching service when needed or convenient.

This allows us to provide a superior customer offering while improving labor and capex efficiency.

Mark Eubanks: By penetrating this large unvended market and converting existing CIT customers to DRS, we've been able to scale this business with double-digit growth rates over the last couple of years. Looking at a few highlights this quarter on DRS, we had record global device installations as we continue to build momentum in all markets. Encouraged by the traction that we've seen in the business, we continue to scale and invest in dedicated commercial capabilities across all markets to further penetrate this large untapped total addressable market. We believe these new investments will drive continued growth in both margin accretive conversions of existing customers as well as the unvended retail locations. On slide seven, you can see the market expansion potential into AMS and DRS. Traditionally, Brinks has been the leader in the $28 billion cash logistics end market.

Because this service includes flexible scheduling, we have extended our potential customer base to include Enterprise customers that were not officially served by traditional Services as well as small and midsize businesses that were previously priced out of the cash management solution.

By penetrating this large unvented market and converting an existing CIT customers to DRS, we've been able to scale this business with double-digit growth rates over the last couple of years.

Looking at a few highlights this quarter on DRS, we had record Global devices installations as we continue to build momentum in all markets.

Encouraged by the traction that we've seen in the business we continue to scale and invest in dedicated, commercial capabilities, across all markets. To further penetrate, this large untapped total addressable Market,

As well as the unvented retail locations.

On slide 7. You can see the Market expansion potential into AMS and DRS

Mark Eubanks: Using industry data, we estimate that the current vended AMS market is roughly $8 billion. If you add the addressable market for unvended retailers with more than $5,000 in monthly cash transactions, and if all banks decide to outsource their ATM networks, our total addressable market would increase by two to three times our existing traditional market. This market potential is something we're already seeing in our numbers, with new customers like Sainsbury's Bank and AMS, and a large part of our DRS growth coming from this unvended white space. This market expansion, coupled with the success we've already delivered, gives us confidence in our ability to achieve our mid to high teens organic growth framework for AMSDRS over the midterm. Turning to slide eight, I'll tie the last few slides to our Q2 results before turning to Kurt to provide some additional financial details on the quarter.

Traditionally, Brinks has been the leader in the 28 billion, cash Logistics in Market.

Using industry data, we estimate that. The current vended AMS Market is roughly 8 billion dollars.

If you add the address of a market for unvented retailers, with more than 5,000 in monthly cash transactions, and if all banks decide to Outsource their ATM networks, our total addressable Market would increase by 2 to 3 times. Our existing traditional Market.

This Market potential is something we're already seeing in our numbers with new customers, like Sainsbury's bank and AMS and a large part of our DRS growth coming from this unvented, white space. This Market expansion coupled with a success. We've already delivered gives us confidence in our ability to achieve our mid to high teens organic growth framework for AMS. DRS over the midterm.

Mark Eubanks: We split our business into two main customer offerings: cash and valuables management, or CVM, and AMSDRS. Our CVM business includes the traditional parts of our business, like cash in transit, money processing, and our international shipping business we call global services. Organic growth in CVM was stable sequentially this quarter, with growth of 1% year over year. As we previously explained, headline growth in CVM is impacted by the conversion of traditional ATM or CIT customers to AMSDRS, which we estimate cost us a couple of points of growth in the quarter. Year to date, our global services business has supported CVM growth with high precious metals demand, partially related to the global trade policy environment. AMSDRS had another strong quarter with organic growth of 16%, in line with our expectations for the quarter.

Turning the slide 8. I'll try the last few slides to our Q2 results before turning to Kurt to provide some additional Financial details on the quarter.

We split our business into 2 main customer offerings cash and valuables management or CVM and AMS. DRS

Our CVM business includes the traditional parts of our business, like, cash and Transit money processing and our international shipping business, we call Global Services.

Organic growth in CBM was stable sequentially this quarter, with growth of 1% year-over-year. As we previously explained, headline growth in CVM is impacted by the conversion of traditional ATM or CIT customers to AMS DRS, which we estimate cost us a couple of points of growth in the quarter.

Year to date our Global Services business has supported CVM growth with high precious metals demand, partially related to global trade policy environment.

Mark Eubanks: As we previously discussed, growth this quarter was impacted by a one-time impact of higher equipment sales in the quarter last year. This included record growth in North America as we onboarded several large AMS customers and installed a record number of DRS devices in the quarter. As I've mentioned in the past few slides, we continue to build considerable momentum in AMS and DRS and expect our growth to accelerate in the second half of the year. Pipelines remain robust in both areas, and we continue to close new customer sales. With expectations increasing, we now expect to be at the top end of our organic growth guidance for AMSDRS for the full year. It was a great quarter of progress on our strategic initiatives. Growth in AMSDRS was strong, and our outlook for the second half of the year has improved.

Amdrs had another strong quarter with Organic growth of 16% in line with our expectations for the quarter.

As we previously, discussed growth, this quarter was impacted by a 1-time impact of higher equipment sales in the quarter last year.

This included record growth in North America. As we onboarded several large AMS, customers and installed a record number of DRS devices in the quarter.

As I've mentioned in the past few slides, we continue to build considerable momentum in AMS, and DRS, and expect our growth to accelerate in the second half of the year.

Pipelines remain robust in both areas and we continue to close new customer sales.

With expectations, increasing, we now expect to be at the top end of our organic growth, guidance for AMS, DRS for the full year.

Mark Eubanks: Operating margins expanded in Q2 and are expected to accelerate into the second half of the year. Our cash generation was also strong, and we continue to improve CapEx efficiency and shorten our cash cycle. In the second quarter, we remained aggressive with our repurchase program, reducing our share count by 4% year to date. I'm confident we're executing the right strategy to drive shareholder value, and I'm encouraged by the opportunities that are in front of us. And with that, I'll turn it over to Kurt to discuss the financials, and I'll come back with some final thoughts in Q&A. Kurt.

It was a great quarter of progress on our strategic initiatives. Growth in AMS and DRS was strong, and our outlook for the second half of the year has improved.

Operating margins expanded in Q2 and are expected to accelerate into the second half of the year.

Our cash generation was also strong and we continue to improve capex, efficiency and shorten our cash cycle.

In the second quarter, we remained aggressive with our repurchase program, reducing our share count by 4% year to date.

I'm confident we're executing the right strategy to drive shareholder value and am encouraged by the opportunities that are in front of us.

Kurt McMaken: Thanks, Mark. I'll begin on slide 10 with a look at the quarter. Revenue of approximately $1.3 billion increased 4%, with 5% organic growth partially offset by currency. Adjusted EBITDA was up 3% in total and 5% constant currency to $232 million. An operating profit was up 6%, or 9% on a constant currency basis. Record operating margins and EBITDA well ahead the top end of our guidance range are driven by strong productivity. Earnings per share of $1.79 was flat to the prior year, with operating profit growth and a diluted share count reduction of 6% year over year, offset by increases in tax rate and interest expense year over year. As Mark mentioned earlier, free cash flow was strong this quarter, with improvement in cash cycle on accounts payable and accounts receivable and improving capital efficiency as we shift our businesses to AMSDRS.

And with that, I'll turn it over to Kurt to discuss the financials and I'll come back with some final thoughts in Q&A Kurt.

Thanks. Mark, I'll begin on, slide 10 with a look at the quarter revenue of an approximately 1.3 billion increased 4% with 5% organic growth, partially offset by currency adjusted. Evita was up 3%, in total and 5% constant currency to 232 million.

An operating profit was up 6% or 9% on a constant currency basis.

Record. Operating margins in IBA. Well ahead of the top end of our guidance range were driven by strong productivity earnings per share of 1.79 was flat to the prior year with operating profit growth and a diluted share count reduction of 6%, year-over-year offset by increases in tax rate and interest expense year-over-year.

Kurt McMaken: We delivered over $100 million of free cash flow in Q2 and remain on track to achieve our framework of between 40% and 45% conversion. On slide 11, organic growth was $60 million, with over 80% of that growth coming from higher margin subscription-based AMS and DRS services. The $12 million of CVM growth included growth in global services and the impact of AMS and DRS customer conversions. Currency changes amounted to $17 million, or 1% in the period. FX tailwinds, primarily from the Euro and British Pound, were more than offset by currency devaluation in Latin America, primarily from the Mexican Peso and Argentine Peso. On slide 12, starting on the left, operating profit was up $9 million to $165 million, with a record margin of 12.6% on strong productivity and line of business revenue mix. Interest expense was up $4 million year over year to $61 million.

As Mark mentioned earlier, free cash flow was strong. This quarter with Improvement in cash cycle on accounts, payable and accounts receivable and improving Capital efficiency as we shift our businesses to AMS DRS

We delivered over 100 million of free cash flow and Q2 and remain on track to achieve our framework of between 40 and 45% conversion.

On slide 11 organic growth was 60 million with over 80% of that growth coming from higher margins subscription-based, AMS and DRS services.

The 12 million of CVM growth included growth in Global Services and the impact of AMS and DRS customer conversions.

For more than offset by currently devaluation in Latin America primarily from the Mexican peso and Argentine peso.

On slide, 12 starting on the left. Operating profit was up 9 million to 165 million, with a record margin of 12.6% on strong productivity and line of business Revenue. Mix

Kurt McMaken: We expect the $61 million to be a good quarterly run rate for interest expense for the balance of the year. Tax expense was $31 million in the quarter, representing an effective tax rate of 28%, in line with our expectations. This represents an increase from the 23% we saw in the prior year. As a reminder, this tax rate increase is primarily related to the lapping impact of one-time tax benefits in the prior year that are not expected to repeat in 2025. Income from continuing operations was $76 million. Walking back up to adjusted EBITDA, depreciation and amortization was $58 million. We still expect total D&A to rise modestly in 2025, primarily reflecting increased depreciation from AMS and DRS equipment.

Interest expense was up 4 million year-over-year to 61 million.

We expect the 61 million to be a good quarterly run rate for interest expense for the balance of the year.

Tax expense was 31 million. In the quarter representing an effective tax rate of 28% in line with our expectations

This represents an increase from the 23% we saw in the prior year. As a reminder, this tax rate increase is primarily related to the lapping impact of 1-time tax benefits in the prior year that are not expected to repeat in 2025.

Income from continuing operations, with 76 million.

Walking back up to adjusted. Evita to appreciation. Amor was 58 million.

Kurt McMaken: Stock comp and other was flat to the prior year, and we still expect a slight decrease to stock-based compensation over the full year to between $30 to $35 million. In total, the record second quarter adjusted EBITDA of $232 million exceeded our original expectations for the quarter, driven by revenue mix and the efficiency gains mentioned earlier. Let's move to slide 13 to discuss our capital allocation framework. As Mark mentioned earlier, we continue to make strategic investments in our business to drive organic growth opportunities and fund productivity initiatives across the business, from labor management to route optimization. These investments are typically made through OpEx, but they will remain our first call for capital. Moving to leverage, we are targeting between two and three times EBITDA.

We still expect total DNA to rise modestly in 2025 primarily reflecting increased depreciation from AMS and DRS equipment.

Stock comp, and other was flat to the prior year. And we still expect a slight decrease to stock-based compensation, over the full year to between 30 to 35 million.

In total the record second quarter, adjusted, ebit of 232 million, exceeded our original expectations for the quarter driven by Revenue mix and the efficiency gauge gains mentioned earlier.

Let's move to slide 13 to discuss our Capital allocation framework.

As Mark mentioned earlier, we continue to make strategic investments in our business, to drive organic growth opportunities and fund productivity initiatives across the business from Labor Management, to Route optimization.

These Investments are typically made through Opex, but they will remain our first call for Capital.

Kurt McMaken: We're slightly above this range as of the end of Q2 as we accelerated share repurchases into the early part of the year to opportunistically take advantage of attractive pricing. We remain on target to be below the top end of the range by year end, consistent with prior year. Our primary use of capital continues to be shareholder returns, primarily through our share repurchase program. We have retired approximately 1.5 million shares year to date and will continue to be opportunistic in the second half of the year. We also maintain a modest dividend that we have demonstrated we are committed to growing annually. And finally, on M&A, our posture on deals is unchanged. We have a full pipeline and continue to explore creative opportunities that have a strong strategic fit, attractive returns, and align with our broader capital allocation framework.

Moving to leverage, we are targeting between 2 and 3 times ebita for a slightly this range. As of the end of Q2 as we accelerated, share repurchases into the early part of the year to opportunistically take advantage of attractive pricing.

We remain on target to be below. The top end of the range by year, end consistent with prior year.

Our primary use of capital continues to be shareholder returns, primarily through our share repurchase program.

We have retired approximately 1 and a half million shares a year to date and will continue to be opportunistic in the second half of the year.

We also maintain a modest dividend that we have demonstrated. We are committed to Growing annually.

Kurt McMaken: The KAL investment Mark discussed earlier expands our AMS capabilities and helps us gain better access to new customers that we can pursue organically. Investments like KAL give us quicker access to the expanded addressable markets we are now pursuing, which we believe will increase the pace of our strategy execution. We continue to allocate capital in ways that will compound cash flow in the future and create long-term shareholder value. Moving to the guidance on slide 14. Based on the strong first half performance in AMSDRS and global services, good visibility of AMSDRS acceleration to the high end of our framework, and the favorable first half FX trends, we are increasing our expectations for the full year for the second consecutive quarter.

And finally, on M&A, our posture on deals is unchanged. We have a full pipeline and continue to explore creative opportunities that have a strong strategic fit, attractive returns, and align with our broader capital allocation framework.

KL investment Mark discussed earlier expands our AMS capabilities and helps us gain better access to new customers that we can pursue, organically Investments like KL. Give us quicker access to the expanded addressable markets. We are now pursuing, which we believe will increase the pace of our strategy execution.

We continue to allocate Capital ways that will compound cash flow in the future and create long-term shareholder value.

Moving to the guidance on slide 14.

Kurt McMaken: Factoring in strong operational performance and using today's FX rates, our full year revenue increases by about $75 million and EBITDA by about $20 million from our expectations after the first quarter. The remaining components of our framework are unchanged, with margin expansion expected between 30 and 50 basis points, free cash flow conversion between 40 and 45%, and shareholder returns of over 50% of free cash flow. In the third quarter, we expect revenue of $1.33 billion at the midpoint of our range, reflecting organic growth in the mid-single digits. FX is expected to have a slight tailwind in the period, primarily in our European segment. The organic revenue guidance assumes strong continued growth in AMSDRS towards the high end of our framework. Adjusted EBITDA is expected to be between $240 and $260 million.

Based on the strong first half performance in amsd RS and Global Services good visibility of ambsdr acceleration to the high end of our framework and the favorable first half FX Trends, we are increasing our expectations for the full year for the second consecutive quarter.

Factoring in strong, operational performance. And using today's FX rates are full year Revenue, increases by about 75 million and IBA by about 20 million from our expectations after the first quarter.

The remaining components of our framework are unchanged with margin expansion, expected between 30 and 50 basis. Points free cash flow conversion between 40 and 45% and shareholder returns of over 50% of free, cash flow.

In the third quarter, we expect revenue of 1.33 billion at the midpoint of our range reflecting organic growth in the mid single digits.

FX is expected to have a slight Tailwind of the period primarily in our European segment.

Your organic Revenue guidance is assumes strong continued growth in AMS DRS towards the high end of our framework.

Kurt McMaken: Adjusted EBITDA guidance reflects the flow-through of revenue growth and continued strong productivity, as well as normalizing FX in the high margin Latin America segment. EPS is expected to be between $1.85 and $2.25. We remain confident in our ability to deliver accelerated margin expansion in the second half of 2025. This is attributed to our strong AMSDRS growth trajectory and the productivity initiatives we are seeing across the business. Additionally, our seasonal volume and profits accelerate in the second half in many of our end markets. On average, over the last four years, we have generated about 55% of our full year EBITDA in the second half of the year, and this is consistent this year at the midpoint of our framework. And now I'll hand it back to Mark for closing comments before we start Q&A.

Adjusted ebita is expected to be between 240 and 260 million.

Adjusted ebit, Doug guidance, reflects the flow through of Revenue growth and continued strong productivity as well as normalizing FX in the high margin Latin America segment.

EPS is expected to be between $1.85 and $2.25.

We remain confident in our ability to deliver accelerated margin expansion in the second half of 2025.

This is attributed to our strong AMS, DRS growth trajectory and the productivity initiatives we are seeing across the business.

Volume and profit accelerate in the second half and many of our end markets.

On average, over the last 4 years, we have generated about 55% of our full year, ebit da in the second half of the year and this is consistent this year at the midpoint of our framework.

Mark Eubanks: Thanks, Kurt. I'm encouraged by another strong quarter of strategic progress. We've increased our full year expectations now for the second consecutive quarter after exceeding the top end of our second quarter guidance. As we look at the back half of the year, we have good visibility into the accelerating momentum in our growth verticals of AMS and DRS, as well as the productivity initiatives in our key markets. We are confident in our ability to deliver accelerating margin expansion and EBITDA growth. I'm confident we're sustainably improving operations and building a business that will deliver consistent growth, consistent margin improvement, and free cash flow generation for years to come. And with that, we're happy now to take your questions. Operator, please open the line.

And now, I'll hand it back to mark for closing comments before we start Q&A.

Thanks, Kurt, I'm encouraged by another strong quarter of strategic progress.

We've increased our full year expectations. Now for the second consecutive quarter after exceeding, the top end of our second quarter guidance.

As we look at the back, half of the year, we have good visibility into the accelerating momentum in our growth, verticals of AMS, and DRS, as well as the productivity initiatives in our key markets.

We are confident in our ability to deliver accelerating Market expansion and ibida growth.

I'm confident, we are sustainably, improving operations, and building a business that will deliver consistent growth consistent, margin Improvement, and free cash flow generation for years to come

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchstone phone. If you are using a speakerphone, please pick up your headset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your questions, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from the line of Tim Mulroney with Limpair. Please go ahead.

And with that, we're happy now to take your questions operator, please open the line.

Thank you.

We will now begin the question and answer session to ask a question. You may press start and 1 on your touchtone phone,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

If at any time your question has been addressed and you would like to withdraw your questions. Please press star. Then 2 at this time, we will pause momentarily to assemble our roster.

The first question comes from the line of Tim Muni with Tim Player. Please go ahead.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Good morning.

Mark Eubanks: Hey, good morning, Tim. How are you?

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Morning, Tim.

Mark Eubanks: Doing well, thank you. So, a few questions here. The first is on your second quarter results. It looks like adjusted EBITDA margin in the second quarter of 17.8%. That was well above your guide for 16.9%. And, you know, I recall last quarter you calling out a few potential swing factors like FX, Argentina, interest income, timing of restructuring. You know, which one of those factors played out differently relative to your expectations, or were there other factors like organic performance that you'd call out? Thanks. Yeah.

Kurt good. Good morning. Hey, good morning, Tim. How are you? Good morning. Tim doing well. Thank you. So, um, a few questions here first is on, um, your second quarter results.

It, it looks like uh adjusted Evita margin in the second quarter of 17.8%. I was well above your guide for 16.9% and um you know, I recall last quarter you calling out a few potential swing factors like FX Argentina, interest income timing of restructuring, you know which 1 of those factors played out differently, relative to your expectations or or were there other factors like

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Sure. Thanks, Tim. You know, first of all, we had a really strong organic growth quarter, and you know, I think the printed numbers at 4.8% actually are a bit understated. You know, we actually had probably two less workdays in Latin America and Europe and at least one in North America and the rest of the world. So, you know, that's a pretty decent adjustment, maybe a point and a half, two points, as well as, you know, we lapped a previously disclosed equipment sale, one-time equipment sale from last quarter, again, another, you know, half point or so. So, we felt like a really strong organic growth quarter came through than maybe even we were expecting, almost probably on an adjusted basis, you know, 6.5% and a half, 7%. So, we feel pretty good about that, which gives us some confidence and momentum in the back half.

Um, organic performance that you'd call out. Thanks.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): So, obviously, the volume helps. The other is DRS, AMS mix that also continues to, you know, to be a real green shoot in the business. And as we think about the back half, we still are committed to acceleration of that AMSDRS mix as part of our business, and that's obviously helpful. And then as well, we had, you know, quite a bit of productivity coming through. We're seeing good productivity, in fact, record margins in both North America and Europe in the quarter that are part of our trend and trajectory that we've talked about and expect going forward. You know, the things that we're working on from a productivity perspective, you know, are both inside our facilities as well as outside. And, you know, we made some investments late last year in our money processing centers.

Yeah, sure. Thanks Tim you know. Um first of all, we had a really strong organic growth quarter and you know, I think the the printed numbers at at 4.8% actually, are are a bit understated. You know, we actually had probably 2 less work days in Latin America and Europe and at least 1 in North America and rest of the world. So, you know, that's a pretty decent adjustment, maybe a point and a half 2 points as well as, you know, we lapped, um, a previously disclosed, um, equipment sale, 1 time equipment sale from last quarter again, another, you know, half point or so. So we felt like a really strong organic growth, uh quarter came through. Then then maybe, even we were expecting almost probably on an adjusted basis, you know, 6 and a half 7%. So we we we feel pretty good about that which gives us some confidence and momentum in the back half. So obviously the volume helps. The other is DRS AMS. Mix that also continues to um,

You know, to be a, a, a real green shoot in the business. And as we think about the back half, we we still are committed to acceleration. Um, of that AMS, DRS mix as part of our business and that's obviously helpful and is then as well. We had

You know quite a bit about productivity coming through. We're seeing good productivity, in fact, record margins, in both North America and Europe in the quarter. These are part of our trend and trajectory that we've talked about and expect going forward.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): We've talked about that previously, and that is driving good productivity and throughput, you know, through our facilities, as well as routing initiatives that we talked about for route optimization. That's been coming across, you can see clearly in North America, but we're also seeing this in parts of Latin America as well as Europe as we're rolling out that program. So, really good benefits as we think about that forward. So, I'd say in general, Tim, we probably had, you know, maybe more just sort of business organic performance improvements, less about things needing to go our way. And so, restructuring, we did, you know, the stuff that we talked about, delaying out of Q1 to Q2, we executed on. That's in our numbers. And in fact, I think the other thing you mentioned was FX. So, we did see a little bit of a slight improvement on FX.

That's in our numbers. And, um,

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): But in fact, from a, you know, in total in the quarter, the benefit was about $17 million in revenue, but in fact, it was a headwind to EBITDA from our last guide. So, you know, really strong performance, really proud of our team globally to deliver.

Mark Eubanks: Hey, Tim, the only thing I would add to that is really more operationally oriented is that we did, we had a really good quarter, I'd say, price relative to cost inflation. And, you know, we covered our cost inflation with price in all of our businesses, did a solid job there.

and in fact, I think the other thing you mentioned was FX. So we, we did see a little bit of a slight Improvement on FX. Um, but, but in fact from a, you know, in total in the quarter, um, the benefit was about 17 million in Revenue, but in fact, it was a headwind to IBA from our last guide. So, you know, really strong performance, really proud of our team, uh, globally, uh, to deliver. Hey, Tim, you know, it's the only thing I would add to that is really more operationally oriented is that? We did we we had a really good quarter. I'd say price relative to cost inflation and, you know, we covered our cost inflation with price in all of our businesses that a solid job there.

Kurt McMaken: Okay, that's really helpful, caller. Thanks, guys. It sounds like there's actually a lot more on the organic side than I appreciated. And like you said, Mark, less about FX. I also didn't appreciate the workday adjustment and the equipment sale adjustment. So, taking all that into account, it sounds like things are moving really well on the organic side. I did want to ask about the AMSDRS as well, because, you know, if I'm doing my math right, I think you did 20% organic in the first quarter, 16% this quarter. So, that's 18% organic for the first half of the year, plus or minus, right? And you're calling, you know, you're guiding for, I guess, high teens for the full year, because that'd be the high end of your range, but you're already there.

Okay, that's really helpful color. Thanks guys. It's it sounds like there's actually a lot more on the organic side, um, then I appreciate it and, and like you said, Mark less about FX. I also didn't appreciate the workday adjustment and the equipment sale adjustments. So taking all that into account, it sounds like things are are moving really well and the organic side. Um, I did want to ask about the AMS DRS as well because you know you if I'm doing my math, right? Like you I think you did 20% organic in the first quarter or 16 this quarter so that's 18.

18% organic for the first half of the year plus or minus. Right? And and you're calling, you know, your guiding for, I guess High Teens for the full year.

um,

Kurt McMaken: And you're telling us that you're looking for accelerating trends in the back half of the year. So, can you square that circle for me? Like, is that just, hey, we're being a little conservative here, or is it like, hey, these implementations could be lumpy, you don't want to get ahead of yourselves? Any help there?

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Yeah, I'd say both of those. So, the acceleration we talked about in both, in their fair remarks as well as even last quarter was really accelerated out of Q2 because we did see, you know, we did have this sort of air pocket on the equipment sales lapping year on year, as well as we had some large ATM rollouts that we did in Q2 that, to your point, was a little bit lumpy in Q2. But we know those are online now. We know the equipment sales have lapped, and we feel good about what we see in the back half. That's probably, you know, more in line with the upper end of our guide or closer to what we saw in Q1.

Because that's that'd be the high end of your range but you're already there and you're telling us that you're looking for accelerating Trends in the back half of the year. So can you square that Circle for me like is is that just pay we're being a little conservative here or is it like hey, these implementations can be lumpy you don't want to get ahead of yourself any any, any help there?

Yeah, I'd say both of those. So the acceleration we talked about um in both um in their prayer Mark as well as even last quarter was really accelerating out of Q2 because we did see you know, we did have this sort of air pocket on um the equipment sales lapping year on year as well as we had some large ATM uh uh rollouts that we did in Q2 that.

To your point was a little bit lumpy uh in in Q2 but we we know those are online now. We we know the equipment sales as lapped and we feel good about what we see in the back half. That's probably you know more in line with the upper end of our guide or closer to what we saw in q1.

Kurt McMaken: Got it. Thank you. And then just if I could just squeeze one more in on BGS. I wanted to ask how that performed during the quarter, if it kind of reverted back toward that mid-single digit growth rate that you I think were expecting heading into the quarter. And I'm also curious, you know, now it's more tariff noise back into the market today. You know, if you're seeing any pickup in shipment activity once again as we're moving through the third quarter here. Thanks.

And then just if I could just squeeze 1 more in on bgs, I wanted to ask how that performed during the quarter. If it kind of reverted back toward that mid single digit growth rate that you I think were expecting heading into the quarter. And, and I'm also curious, you know, now it's more tariff noise.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Yeah, sure. That's a good question. So, obviously, we had a very, you know, very strong Q1 for that business just coming out of Q4 that we discussed. Q2, as we expected, did moderate after a lot of the tariff noise took closer to that traditional, you know, more of a mid-single digit range. We, you know, early in July, we saw, we're seeing kind of similar, you know, mid-single digits. And so, we expect that to continue, you know, for the near term. But you know, these things, these trends can change quickly. With one tweet, you know, you know, in a tariff change, that this could evolve. And, you know, we're fortunate that we have this position and we have this infrastructure to take advantage of any of those dislocations in the market that cause people to move precious metals or other valuables.

Back in the market today, you know, if you're seeing any pickup in shipment activity, once again, as we're moving through the third quarter here, thanks.

Yep, sure. That's a good question. So obviously we had a very, you know, very strong q1 for that business, just coming out of Q4 that we, we discussed Q2 as we expected did moderate after a lot of the Tariff noise to closer to that traditional, you know, more of a mid single digit range. Uh, we you know, early in July we saw we're seeing kind of similar, you know, mid single digits. And so we expect that to continue, um, you know, for the, for the near-term. But you know these things, these Trends can change quickly um, with 1 thweatt, you know, uh,

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): So, you know, all in all, we still, we're expecting a strong year, full year still, but expect the second half to be, you know, more in line with the mid-single digit range.

You know, in a tariff change that this could could evolve and um, you know, we're fortunate that that we have this position and we have this infrastructure, take advantage of any of those dislocations in the market that causes people to, to move precious metals or or other valuables. So, you know, all in all, we still, we're expecting a strong year, full year still, and but expect the second half to be, um, you know, more in line with the mid single digit range.

Kurt McMaken: Got it. Thanks for all the color. Nice quarter, guys.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Yeah, thanks, Tim.

Got it. Thanks for all the color. Nice quarter, guys. Yeah, thanks, Jim. Thanks.

Operator: Thank you. Next question comes from the line of Toby Summer with Tuvis. Please go ahead.

Thank you. Next question, comes from the line of Toby summer with 2. Please go ahead.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Hi, this is Tyler Barrishaw on for Toby. I'm wondering if you could discuss any internal initiatives you're taking to push customers into AMS and DRS. Any actions pushing customers away from CVM? Or just curious if you could expand on that.

Hi, this is Tyler barisha on for Toby. Um wondering if you could discuss any internal initiatives, you're taking to push customers into AMS in the US.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Yeah, sure. Tyler, good morning. You know, we're always trying to find ways to move people to what we think is a better value proposition both for them and for us, you know, and enabling us to use our networks more efficiently. But in some markets, with some customers, you know, they still highly value our traditional CVM business. And that continues to be a big, you know, big source of business for us and, you know, lots of large customers. I'd say that the opportunity, you know, half of that CVM business in our traditional CIT is with the banks, where we're either servicing branches or ATMs. And that's where we feel like as the ATM managed services, you know, continue to grow, we're seeing more and more banks wanting to talk about outsourcing their networks or augmenting their networks through leveraging our services.

Any actions pushing customers away from CBM, or just curious? If you could expand on that.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): And so, this is something we're seeing everywhere. We saw good growth in North America and Europe in the quarter. And we talked about some wins last quarter in Latin America, I'm sorry, in Asia Pacific that we'll be onboarding here in the next, you know, couple of quarters, as well as some pilots that we've just initiated here in this quarter in Latin America. So, you know, that AMS is less of a push. It's more of a pull. You know, we're pulling customers, you know, to us with more services. And I would say DRS is similar, although most of the DRS growth that we've seen, you know, in the last two or three years has really been new customers that are unvended, customers that don't use any sort of CVM services.

Business and uh, that continues to be a big, uh, you know, big source of business for us and and you know, lots of large customers. I say that the, the, the opportunity, you know, half of that CBM business in our traditional CIT is with the banks where we're either servicing branches, or or ATMs. And that's where we feel like, as the ATM managed Services, um, you know, continues to grow. We're seeing more and more Banks, um, wanting to talk about Outsourcing their networks or augmenting, their networks uh, through leveraging our services. And so this is something we're seeing everywhere. We're seeing some good growth in uh, North America and Europe in the in the quarter and and are seeing um, we talked about some wins last quarter in in Latin America. I mean, I'm sorry in Asia Pacific uh, that will be on boarding here in the, in the next, you know, couple of quarters as well as you know, some Pilots that we've just initiated here in this quarter in Latin.

America. So you know that AMS is less of a push. It's more of a pull you know, we're pulling customers you know to us with more services and I would say DRS similar although most of the DRS growth that we've seen um

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Although we are putting more focus on converting customers here in '25 and have seen that trend pick up as a share of our new customers. And I think that's something that, again, is a pull versus a push. And really, it's customers who, you know, appreciate that value proposition. And, you know, frankly, we're getting better at also communicating it, as well as building out a sales force that is focused on that kind of solution sale, not necessarily based on, you know, a traditional sales model or, you know, an RFP kind of situation.

You know, in the last 2 or 3 years has really been new customers that are unvented customers that don't use any sort of CVM Services, uh, although we are putting more focus on converting customers here in, um, in 25 and have seen that Trend pick up as a share of our new customers. And I, and I think that's something that again is a pull versus a push. Um,

And and really it's customers who, who, you know, appreciate that value proposition and, you know, frankly we're getting better at also communicating it as well as building out a sales force that is focused on that kind of solution sale, not necessarily. Um, based on, you know, uh, you know, traditional sales model or, you know, an RFP kind of uh situation.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Got it. Can you maybe talk about what lessons you're learning, though, in markets where DRS has the most traction?

Got it. You maybe talk about what lessons you're learning, though. In markets, where DRS has the most traction?

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Sure. You know, I think about Latin America particularly. You know, that's a market that is a very cash-intensive market where there's a lot of small format stores, and the cost to serve is pretty high because of the security infrastructure. And so, in those markets, it's, you know, sometimes more difficult for customers to justify in a small format a traditional CIT pickup that might be, you know, two, three, four, five days a week versus getting to a DRS solution that allows them at a lower entry point, a lower subscription rate, and allows us to use a lower cost to serve, provides a, you know, good value proposition for the both of us. So, I think that that is certainly happening. I think the other place we're seeing, you know, benefits are certainly in North America.

Sure. I, you know, I think about uh, Latin America, particularly um, you know, that's a that's a market that

has is a very cash intensive Market where uh there's a lot of small format stores and the cost of serve is pretty high because of the security infrastructure and so in those markets it's um you know it's sometimes more difficult for customers to justify in a small format a traditional CIT pickup that might

Be, you know, 2 3 4, 5 days a week versus getting to a DRS solution that allows them at a lower entry point a lower subscription rate. Uh and allows us to use a lower cost to serve provides a you know, good value proposition for the both of us. So I think that that that is certainly happening. I think the other

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): When you think about the large enterprise customers, our customers not only value the cash security as well as the, you know, the provisional credit, you know, the transactions that feel a lot like credit and debit, but they also value this idea of having, you know, one provider provide that solution that allows them to consolidate banking relationships across thousands of, you know, footprints, thousands of location footprints that they traditionally have been walking money to the bank with their employees. And so, I think this is an area where we continue to see strong adoption. In fact, we had a record installation quarter in North America, you know, with our DRS devices, and our pipeline continues to grow.

Mark Eubanks: Hey, Tyler, the only thing I'd add is I think also operationally, we're definitely continuing to get better and better in all regions from a quote to revenue kind of basis. So, it's really collapsing.

Place we're seeing, you know, benefits are certainly in North America. When you think about the large Enterprise customers, they our customers, not only value the cash security as well as the, um, you know, the provisional credit. You know, the the transactions that feel a lot like credit and debit, but they also value this idea of having, you know, 1 provider provide, that solution that allows them consolidate banking relationships across thousands of, you know, footprint thousands of locations footprints that they traditionally have been walking money to the bank, uh, with their employees. And so, I think this is a, an area where we continue to see strong adoption. In fact, we had a record installation quarter in North America, you know, with our DRS devices, and our pipeline continues to grow.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Collapsing the cycle time.

Mark Eubanks: Collapsing the cycle time, yeah.

Hey Tyler. The only thing I'd add is I think also operationally we're definitely continuing to get better and better and all regions on from a quote to revenue kind of basis. So it's really collapse collapse, collapse in the cycle time. Collapsing, the cycle time. Yeah.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Got it. And then just on the North America segment at large, can you maybe talk about your expectations for the second half of the year? You've seen nice acceleration in one Q to two Q, but just curious if you could talk about expectations for the back half of the year.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Yeah, I think we expect it to continue, you know, a slight upward trajectory. As you think about the back half, certainly, our pipeline would support that, particularly in AMS and DRS. As I mentioned, we brought on a few large customer networks in the convenience store area. But we also, you know, still, you know, would expect our global services business to continue to, you know, to be healthy in the year, given the tariff situation relative to precious metals.

Got it and then just I'm in North America segment uh at large maybe talking about your expectations for the second half of the year. You've seen nice acceleration in 1 2 to 2 Cube. But uh just curious to be talking about expectations for the back half of the year.

yeah, I I I think we we expected to continue, you know, a slight upward trajectory um, as you think about the back half, uh, certainly

Our pipeline would support that, uh, particularly, uh, in AMS. And DRS, as I, as I mentioned, we brought on uh, a few

The Tariff situation.

Uh, relative to Precious Metals.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Thank you.

Thank you.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Great. Thanks, Tyler.

Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of George Tong with Goldman Sachs. Please go ahead.

Great. Thanks. That 1

Thank you.

A reminder to all the participants that you may press star and want to ask a question. Next question comes from the line of George Tong with Goldman Sachs. Please go ahead.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Hi, thanks. Good morning. You talked about expectations for, hi. You talked about expectations for the DRS and AMS businesses to accelerate. Is there any way to differentiate between how much acceleration you expect between those two going into the second half of the year and perhaps even into 2026? If you see any differences in the growth curves or the growth trajectories between the two?

Hi, thanks. Good morning. Uh, you talked to your patients for...

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): No, not necessarily, George. It's pretty lumpy, you know, with these big customers. And I would say that's certainly the case with AMS. And, you know, sometimes even with the DRS, large customer rollouts can be lumpy when they come on board or not. And we've seen that sort of push and pull. But generally, these have been pretty balanced growth rates for both. The acceleration that we expect to see coming out of Q2 into the rest of the year from an organic growth perspective, again, feels more like Q1 kind of trajectory. But that looks pretty balanced in the visibility we have, not only in the booked business that we've either installed or are installing here in Q3, but also the pipeline and, you know, sales velocity that our teams are working through. We've got a pretty good handle on that.

Hi. Um, you talked about expectations for the DRS, and AMS businesses to accelerate is there any way to differentiate between, how much acceleration you expect between those 2, uh, going into the second half of the year and perhaps even into 2026 if you if you see any differences in uh the growth curves or the growth trajectories uh, between the 2.

Uh, no, not necessarily George. It's, it's, it's pretty lumpy, um, you know, with these, with these big customers. And, and I, and I say, that's certainly the case with AMS. And, you know, sometimes, even with the DRS large customer, rollouts can can be lumpy when they come on board or not. Um, and, and we've seen that sort of push and pull. But generally these have been pretty balanced growth rates for both the acceleration that we expect to see coming out of Q2 into their rest of the year. From an organic growth perspective. Again, feels more like q1, uh, kind kind of trajectory, but that looks pretty balanced. And the visibility. We have not only in the booked business that

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): So, you know, I would say that the back half looks similar. I think as you think into '26, growth rates, there's no reason for us to think growth rates would change, you know, relative to each other. And again, I think our framework in the midterm, you know, would continue to be this mid to high teams.

We've either installed or are installing here in Q3 um but also the pipeline and and you know, sales velocity that our teams are are working through. We've got a pretty good handle on that. So you know I would say that the back app looks similar I think as you think in the 26, growth rates, there's no reason for us to think growth rates would change, um, you know, relative to each other. And again, I think our framework

In the midterm, you know we will continue to be in the mid to high teens.

Unknown (Analyst, possibly Tobey Sommer or George Tong, but not enough evidence to assign a specific name): Got it. That's helpful. And then in the quarter, you saw about 1% organic growth in your cash and valuables management business. Would you say that's a steady state rate of growth, or do you see catalysts that can alter that rate of growth to the upside or downside?

Got it, that's helpful. Um, and then in the quarter, you saw about 1% organic growth in your cash and valuables management business. Um, would would you say that's a steady state rate of growth? Or do you see catalysts that can alter that, uh, rate of growth to the upside or downside?

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Well, I think that, you know, first and foremost, I think the BGS business certainly can do that. You know, if, you know, with more volatility, like we saw in Q1, we could see, you know, the CVM, you know, segment outperform. I think the other thing, George, is, you know, the downside or the other way would be just more conversion to AMSDRS. And I think that for us, that's a good situation and always, you know, positive mix for us as we go forward. And I, you know, again, I look at the growth rates in total from an organic perspective in the trajectory we have. You know, this is all very supportive of each other. And in fact, the network that we use for CVM is the same network we use for AMSDRS.

Well, I, I think that, you know, first and foremost, that I think the bgs business. Certainly can can do that. Um, you know, if if you know, with more volatility, uh, like we saw in q1, we could see, you know, the CVM, you know, segment outperform. I, I think the, the other thing George is, you know, uh, the downside or or the other way would be just more conversion to amdrs. And I think that, that for us that's a good situation and and always, you know, positive mix for us as we as we go forward. And I, you know, again, I I look at the growth rates in total from an organic perspective in the trajectory, we have, you know, this

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): It's just allowing us to add more value on top of that for customers that allows us to provide not only growth in total, but also accretive margins, you know, to the portfolio, which is a, you know, a good mixed benefit, obviously, for the company.

Mark Eubanks: And George, just, you know, Mark made comment about the workdays earlier, and that would also benefit the CVM segment, obviously, in the quarter. So, you know, as you look at that 1%, you get a positive to that given a workday adjustment.

Is all very supportive of each other. And in fact, the network that we use for CVM is the same network we use for ambsdr, it just allowing us to add more value on top of that. Uh, for customers, that allows us to provide not only growth in total, but also a creative margins, you know, to the portfolio, which is a, you know, a good mixed benefit obviously for the company.

And George just, uh, you know, Mark made a comment about the workdays earlier, and that would also benefit this evening, obviously, in the quarter. So as you look at that 1%, you get a positive to that given the workday.

Adjustment.

Jesse Jenkins: Got it. Very helpful. Thank you.

Got it. Very helpful. Thank you.

Operator: Great. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Mark Eubanks for any closing remarks.

Great.

Thank you.

This concludes our question and answer session. I would like to turn the conference back over to mark your banks for any closing remarks.

Unknown (Brink's Executive, likely Richard Eubanks or another, but not enough evidence to assign a specific name): Thank you for joining us this afternoon. We appreciate your continued interest in Brinks and look forward to speaking with you all soon, whether on the phone or when we're on the road. Have a great day.

Thank you for joining us this afternoon. We appreciate your continued interest in Brinks and look forward to speaking with you all soon, whether on the phone or when we're on the road. Have a great day.

Operator: Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect