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The Brink's Co (BCO) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Growth Amid ...

In This Article:

  • Organic Growth: 11% in Q4 and 12% for the full year 2024.

  • AMS/DRS Growth: 23% organic growth in both Q4 and the full year.

  • CVM Growth: 7% in Q4 and 9% for the full year.

  • EBITDA: $912 million for 2024, with a margin expansion of 40 basis points to 18.2%.

  • EPS: $7.17, with a 4% reduction in share count year-over-year.

  • Free Cash Flow: $400 million for the full year, over $300 million in Q4.

  • Revenue: Exceeded $5 billion for the first time in company history.

  • Adjusted EBITDA Growth: 11% on a constant currency basis.

  • North America Organic Growth: 2% for the full year.

  • Latin America Organic Growth: Down 2% due to FX volatility.

  • Europe Organic Growth: 7% in 2024.

  • DRS Device Base: Increased by 20% over the year.

  • Fleet Reduction: Decreased by over 300 vehicles in 2024.

  • Facility Count Reduction: Reduced by over 60 locations.

  • Share Repurchases: $204 million spent, reducing share count by over 2.1 million shares.

  • Net Leverage: Reduced to 2.8 times.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Brink's Co (NYSE:BCO) achieved total organic growth of 11% in Q4 and 12% for the full year 2024, with ATM managed services and digital retail solutions growing 23% organically.

  • The company delivered a record high EBITDA margin of 18.2% in 2024, expanding by 40 basis points despite currency headwinds.

  • Strong free cash flow generation was reported, with $400 million for the full year and over $300 million in Q4, driven by working capital efficiencies.

  • The Brink's Co (NYSE:BCO) successfully executed a share repurchase program, reducing share count by approximately 4% and returning $250 million to shareholders.

  • The company is focused on strategic growth, with AMS/DRS now representing 24% of total revenue and plans to increase this to 25-27% by year-end 2025.

Negative Points

  • The Brink's Co (NYSE:BCO) faced a 10% currency headwind in Q4, primarily impacting the higher margin Latin American segment.

  • EPS was down compared to the prior year due to the absence of a marketable security gain that benefited the previous year's results.

  • The Latin American segment experienced a 2% decline in total revenue due to volatile FX conditions, with anticipated continued FX headwinds in 2025.

  • The company expects a more normalized tax rate of 28% in 2025, up from 23% in 2024, which may impact net income.

  • Interest expense increased by $8 million year-over-year, with expectations to remain flat in 2025, potentially affecting net earnings.