Brink’s (NYSE:BCO) reported third-quarter revenue growth of 3% and higher profit margins as demand for its ATM managed services and digital retail solutions continued to grow. The company also said it now expects to close its pending acquisition of NCR Atleos in early January 2027.
Organic revenue grew 4% in the quarter, while organic growth in ATM managed services and digital retail solutions, known as AMS and DRS, accelerated to more than 16%. CEO Mark Eubanks said it was the 15th consecutive quarter of at least mid-teens organic growth for those services.
Adjusted EBITDA rose 8% to $274 million, with the margin expanding 90 basis points to 19.9%. Operating profit increased 11% to $208 million, and earnings per share rose 18% to $2.46. Executives said most of their commentary focused on non-GAAP results.
Atleos deal moves toward an earlier close
Eubanks said the revised closing target would allow Brink’s to begin capturing acquisition synergies almost a full quarter earlier than originally contemplated. The company expects to reach its existing target of $200 million in annual run-rate cost synergies by the end of 2029.
Management also sees potential for additional savings in procurement, corporate functions and the combined service network, though Eubanks said the company has not yet quantified those opportunities. He said Brink’s has not quantified potential revenue synergies either.
The transaction remains subject to regulatory approvals and other customary closing conditions. Eubanks said conditions related to foreign direct investment and money transmitter licensing have been met, and antitrust reviews have reached resolution in 12 major jurisdictions. Reviews in the U.K. and European Union remain underway.
Asked about the proposed U.K. divestiture of NoteMachine and TestLink, CFO Kurt McMaken said the business generates roughly $120 million to $130 million in revenue and approximately $30 million in EBITDA. He said Brink’s could not yet estimate sale proceeds because the process was active. Eubanks said the company’s $200 million synergy projection did not depend on benefits from NoteMachine.
Some customers are delaying decisions on ATM-related services until they can evaluate the combined offering, Eubanks said. He added that the combination could provide services spanning hardware, cash logistics, software and processing.
Higher-margin services drive growth
AMS and DRS represented a record 32% of third-quarter revenue, up from 30% over the trailing 12 months. Brink’s expects growth in those services to accelerate again in the fourth quarter, despite a comparison with a large equipment sale in the prior-year period.
By contrast, organic revenue in cash and valuables management fell 1.5%, which Eubanks attributed partly to faster conversions of customers to AMS and DRS. He also said growth in global services continued to moderate toward historical norms, particularly in North America.
Eubanks said the North American DRS backlog was up 80% from a year earlier. It includes a previously announced retail customer with about 5,500 locations, most of which are expected to be deployed in 2027, as well as customers of varying sizes.
The company also highlighted a contract with a Canadian bank for traditional cash management services beginning in 2027 and an ATM managed services win for Luxembourg’s Bancomat shared network. Brink’s is deploying the Luxembourg network, with work continuing into next year.
In Latin America, where organic growth was 2%, Eubanks pointed to economic pressure in Argentina and emerging retail weakness in Mexico. He said Brink’s continued to see growth opportunities in AMS and DRS, including in Brazil, despite the adoption of digital payments there.
2026 outlook maintained
Brink’s maintained its full-year framework for mid-single-digit organic revenue growth, including mid-to-high teens growth in AMS and DRS. It also expects adjusted EBITDA margin expansion of 30 to 50 basis points and conversion of adjusted EBITDA to free cash flow of 40% to 45%.
For the fourth quarter, the company forecast revenue of $1.365 billion to $1.415 billion, adjusted EBITDA of $275 million to $295 million and earnings per share of $2.45 to $2.80. McMaken said foreign exchange is expected to be a headwind of slightly more than 1% to revenue in the quarter.
Trailing 12-month free cash flow was $413 million. Eubanks said leverage declined to 2.6 times in the quarter. McMaken said the acquisition is expected to temporarily push leverage above three times, with debt paydown the primary use of capital in 2027 and a target of getting below three times by year-end.
About Brink’s (NYSE:BCO)
Brink’s Company (NYSE: BCO) is a global provider of security and logistics services. The company helps businesses, financial institutions, retailers, governments and other organizations protect, transport and manage cash, valuables and other high-value assets.
Its services include secure transportation, cash-in-transit operations, ATM replenishment and servicing, cash processing, vaulting, cash management and related payment services. Brink’s also provides international logistics for precious metals, jewelry, gemstones, artwork and other valuables through its Brink’s Global Services business.
Founded in 1859, Brink’s serves customers across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region through a worldwide network of employees, vehicles and facilities.
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