Brink’s Q3 Margin Expands as AMS/DRS Growth Reaches 16%

The Brink’s Company reported higher third-quarter revenue and profitability as rapid growth in ATM Managed Services and Digital Retail Solutions shifted its sales mix toward higher-margin services. The cash-management company also maintained its full-year 2026 framework and said it expects to close its proposed acquisition of NCR Atleos in early January 2027, subject to remaining regulatory approvals.

Revenue for the quarter increased 3% year over year to $1.375 billion. Organic revenue grew 4%, reflecting 16% organic growth in ATM Managed Services and Digital Retail Solutions, or AMS/DRS, partly offset by a 2% decline in the Cash and Valuables Management business. Acquisitions and dispositions reduced reported growth by 2 percentage points, while foreign exchange added 1 point.

Adjusted EBITDA rose 8% to $274 million, and the adjusted EBITDA margin expanded by 90 basis points to 19.9%. Non-GAAP operating profit increased 11% to $208 million, with the corresponding margin rising 100 basis points to 15.1%. Non-GAAP earnings per share advanced 18% to $2.46.

On a GAAP basis, Brink’s reported third-quarter operating profit of $131 million and net income attributable to the company of $14.5 million.

Higher-margin services drive growth

AMS/DRS recorded its 15th consecutive quarter of at least mid-teens organic revenue growth, with growth accelerating sequentially in the third quarter. Brink’s attributed the performance to strong ATM Managed Services growth in Latin America and Rest of World markets following recent customer wins, along with continued Digital Retail Solutions growth supported by backlogs and sales pipelines.

The company expects full-year AMS/DRS organic revenue growth in the mid-to-high teens. AMS/DRS is targeted to represent 30% to 32% of total 2026 revenue, compared with 28% in 2025 and 24% in 2024.

Brink’s highlighted a new long-term agreement with a major bank covering about 1,000 ATMs and 450 branches, which it said strengthens its backlog for 2027. It also won a contract to provide end-to-end ATM outsourcing for a shared network operated by five banks in Luxembourg. The services include monitoring, cash forecasting, maintenance, transaction processing and acquiring.

North America revenue increased 1% to $440 million, while adjusted EBITDA rose 5% to $83 million. The segment’s adjusted EBITDA margin improved to 18.9% from 18.2%, supported by a shift toward higher-margin services and operating productivity. AMS/DRS accounted for 34% of North American revenue.

Latin America revenue rose 8% to $354 million, or 2% on a constant-currency basis. Adjusted EBITDA was unchanged at $80 million and declined 5% in constant currency, reducing the margin to 22.5% from 24.3%.

Europe generated revenue of $200 million, up 1%, while adjusted EBITDA increased 16% to $58 million. Its margin expanded to 29.0% from 25.3%, the highest among Brink’s four reporting segments. Rest of World revenue increased 1% to $380 million, as 14% organic growth was largely offset by a 12% impact from acquisitions and dispositions. Adjusted EBITDA rose 24% to $84 million, lifting the margin to 22.1% from 18.0%.

Cash flow and 2026 outlook

Trailing-12-month free cash flow before dividends totaled $413 million, down 13% from $476 million a year earlier. Free cash flow conversion was 40%, compared with 50% in the prior-year period. Net debt stood at $2.73 billion as of Sept. 30, while net leverage declined to 2.6 times adjusted EBITDA from 2.7 times at the end of 2025, remaining within the company’s target range of 2 to 3 times.

Brink’s left its full-year 2026 framework unchanged. Management expects mid-single-digit organic revenue growth, mid-to-high-teens AMS/DRS organic growth, 30 to 50 basis points of adjusted EBITDA margin expansion and free cash flow conversion of 40% to 45%.

For the fourth quarter, the company forecast revenue of $1.365 billion to $1.415 billion, organic growth of 3.0% to 4.5% and total growth ranging from a 1% decline to a 3% increase. Adjusted EBITDA is expected to be between $275 million and $295 million, with a margin of about 20.5%. Non-GAAP EPS is projected at $2.45 to $2.80.

The total-growth outlook reflects current foreign-exchange conditions and the deconsolidation of the Malaysia business. Brink’s said its adjusted EBITDA expectations incorporate benefits from revenue mix and productivity.

NCR Atleos transaction advances

Brink’s said regulatory progress has increased visibility into the timing of its proposed NCR Atleos acquisition, which is now expected to close in early January 2027. The required foreign direct investment review has been completed, 14 approvals have been received, and all key money-transmitter licensing conditions have been met across 61 jurisdictions. Antitrust reviews remain in progress, including proceedings in the United Kingdom and European Union.

The company expects the transaction to generate $200 million of run-rate synergies by the end of 2029, with additional opportunities identified beyond that target. Planned savings include eliminating overlapping public-company and management costs, consolidating service networks, improving route density and coordinating procurement and supply chains.

Brink’s said near-term capital allocation will focus primarily on preparing for the acquisition and subsequent integration, with limited additional merger and acquisition activity contemplated. Once net leverage falls below 3 times after closing, the company expects to return to a framework that directs at least 50% of free cash flow toward shareholder returns.

The outlook remains subject to macroeconomic conditions, tariffs, foreign inflation, currency movements and the operating environment in Argentina. The NCR Atleos transaction also carries risks related to outstanding regulatory approvals, closing timing, integration costs, customer and employee retention, realization of expected synergies and the combined company’s higher indebtedness.