Brink’s Company Delivers Strong Q1 2026 Performance and Advances NCR Atleos Acquisition

Key Highlights

• Double-Digit Revenue Growth: Q1 2026 revenue grew 10% year-over-year to \$1,375 million, with 4.5% organic growth and 15% organic growth in AMS/DRS segments.
• Margin Expansion: EBITDA margin improved, driven by favorable revenue mix, pricing discipline, and cost productivity.
• Significant Cash Flow Improvement: Operating cash flow increased by \$89 million; free cash flow up \$66 million. Trailing twelve-month free cash flow exceeded \$500 million for the first time in company history.
• NCR Atleos Acquisition Progress: The acquisition is on track to close by the end of Q1 2027. Integration management team in place; \$200 million annual run-rate cost synergy target set.
• Raised Guidance and Framework: 2026 organic revenue growth expected in the mid-single digits, with AMS/DRS organic growth in the mid-to-high teens. Adjusted EBITDA margin expansion of 30-50 basis points, free cash flow conversion of 40-45%.
• Q2 2026 Non-GAAP Guidance: Revenue expected between \$1,370-\$1,430 million, adjusted EBITDA of \$245-\$265 million, and non-GAAP EPS of \$1.85-\$2.20.

Financial Results Detail

Business Segment Performance

• North America: Revenue up 5%, operating profit up 15%.
• Latin America: Revenue up 12%, operating profit up 6%.
• Europe: Revenue up 15%, operating profit up 42%.
• Rest of World: Revenue up 12%, operating profit up 17%.

Margin expansion was most notable in Europe and Rest of World segments, highlighting the impact of operational improvements and pricing.

Strategic Developments: NCR Atleos Acquisition

Brink’s continues to advance its transformative acquisition of NCR Atleos, a move expected to significantly expand its scale, particularly in ATM managed services and digital retail solutions. The integration management team is already in place, targeting \$200 million in annual run-rate cost synergies. The registration statement has been filed and regulatory approvals are progressing as expected. The transaction is anticipated to close by the end of Q1 2027.

The company is incurring material one-off costs associated with the acquisition and transformation initiatives. In Q1 2026, \$38.9 million was spent on related expenses, including professional fees and severance costs.

Cash Flow and Balance Sheet

• Cash Flow: Net cash from operating activities was \$28.7 million for Q1 2026, a significant improvement from a net outflow of \$60.2 million in Q1 2025.
• Free Cash Flow Before Dividends: \$(36.0) million, after adjustments for restricted cash and customer obligations. This reflects usual Q1 seasonal cash outflows.
• Cash and Equivalents: Ended Q1 at \$1,547 million, with total assets of \$7.28 billion and total equity of \$393 million.
• Debt: Net long-term debt increased slightly to \$3.83 billion.

Key Risks & Forward-Looking Statements

• Integration risks and regulatory approval process for the NCR Atleos acquisition.
• Exposure to volatile economic and currency conditions, notably in Argentina, where highly inflationary accounting continues to impact results.
• Ongoing legal matters, including the Chile antitrust investigation and U.S. DOJ/FinCEN compliance costs, though management excludes these from core operating results.
• Material one-off and non-routine items continue to impact GAAP results (including legal, transformation, and acquisition costs).
• Macroeconomic risks: supply chain, inflation, currency devaluations, geopolitical conflicts (esp. in Israel/Iran), and labor issues.

Guidance and Outlook

• 2026 Full-Year Framework:
  • Organic revenue growth: Mid-single digits
  • AMS/DRS organic revenue growth: Mid-to-high teens
  • Adjusted EBITDA margin expansion: 30-50 bps
  • Free cash flow conversion: 40-45%
• Q2 2026 Guidance (Non-GAAP):
  • Revenue: \$1,370 – \$1,430 million
  • Adjusted EBITDA: \$245 – \$265 million
  • Non-GAAP EPS: \$1.85 – \$2.20

Management notes that non-GAAP guidance cannot be reconciled to GAAP without unreasonable effort due to uncertainties related to inflationary accounting in Argentina, M&A costs, and other non-routine items.

Other Items and Non-GAAP Adjustments

• Ongoing adjustments for highly inflationary Argentina accounting, one-off legal and compliance costs, and one-time acquisition and restructuring charges.
• Q1 2026 saw \$38.9 million in NCR Atleos-related costs and \$2.8 million in legal matter provisions, among other adjustments.
• Management continues to exclude these items from non-GAAP performance reporting for a cleaner view of core operational performance.

Conference Call Information

Brink’s will host its Q1 2026 earnings call on May 6, 2026 at 9:00 a.m. EDT. Details for accessing the webcast and replays are available on the company’s investor relations website.

Potential Price-Sensitive Information for Investors

• Positive: Strong organic revenue growth, margin expansion, and robust cash generation set a solid foundation for 2026. The NCR Atleos acquisition, if executed as planned, could materially boost scale and profitability, especially in AMS/DRS segments.
• Negative: Ongoing exposure to Argentina’s volatile economy, elevated non-recurring costs (acquisition/legal), and the risk that the NCR Atleos deal could be delayed or face integration challenges.
• Shareholders should monitor: Progress and regulatory approval of the NCR Atleos deal, pace of synergy realization, and any escalation in legal or compliance costs.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all risk factors and disclosures in Brink’s public filings with the SEC. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company undertakes no obligation to update such statements except as required by law.

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