Brinks Company (The)

Good morning and welcome to the BRINCS third quarter 2025 earnings presentation. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. 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 are available in today's press release and presentation and in the company's SEC filings. The information presented and discussed on this call is representative of today only. Brinks assumes no obligation to update any forward-looking statements. The 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.

Thanks, and good morning. Here with me today are CEO Mark Eubanks and CFO Kurt McMacken. This morning, BRICS reported third quarter 2025 results on a gap, non-gap, and constant currency basis. Most of our comments today will be focused on our non-gap results. These non-gap financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. We believe these measures allow investors to better compare performance over time and to evaluate our 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 our 8-K filings, 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, and good morning, everyone. Starting on slide three, Brinks delivered another solid quarter of mid-single-digit organic revenue growth. The 5 percent total company organic growth included an acceleration from Q2 to 19% for ATM managed services and digital retail solutions, or AMS DRS, as we continue to make progress expanding into large and growing markets. For the second consecutive quarter, we delivered record Q3 EBITDA and operating profit margins, driven by strong productivity, the benefits of AMS DRS revenue mix, and continued pricing discipline. Third quarter EBITDA margins were 19%, up 180 basis points from the prior year. The improvement was highlighted by 320 basis points of expansion in North America as we make progress driving a balanced agenda around growth in AMSDRS and cost productivity with the Brinks business system. With AMSDRS now accounting for 28% of total revenue in the quarter and more productivity initiatives underway, we are expecting continued margin progress going forward. Cash generation also continues to improve. In Q3, we delivered $175 million of free cash flow a year-over-year increase of 30%. We continue to shorten our cash cycle and deliver capital efficiency across our asset base, with vehicle counts down again this quarter and DSOs improved by five days. Looking at the quarter in total, we delivered on our guidance commitments, with performance exceeding the midpoint of our communicated ranges for the quarter. Organic growth remains healthy in the mid-single digits, with AMS DRS accelerating quarter-over-quarter. We continue to make steady progress improving profitability as we drive lasting structural changes to the way we operate on both the front lines and in the back office. Supported by this strong momentum, we are passing through our Q3 midpoint outperformance to the full year and affirming our previously increased full year framework. Kurt will have more details on the guidance at the end of the presentation. During the slide four, you can see how our year-to-date performance supports our value creation strategy. We're focused on delivering organic growth primarily from our higher margin subscription-based services of AMS and DRS. We are tracking in line with our full-year framework with organic growth of 5 percent for the total company and 18 percent AMS DRS year-to-date. The revenue growth and the execution of productivity enhancements have driven EBITDA margin expansion of 40 basis points year-to-date with acceleration in the second half. For the second consecutive quarter, we've achieved record EBITDA margins in both North America and Europe. Free cash flow conversion is also improving. Year-to-date free cash flow has increased 78%, and trailing 12-month conversion has improved to 50% of adjusted EBITDA. Supported by growth in AMS DRS acceptance in the marketplace, we are making structural changes in the business that we believe will continue to pay dividends for years to come. Our cash cycle continues to shorten with year-to-date DSO improvement of five days. we are also improving capital efficiency as we reduce our CapEx needs and leverage our network more efficiently. And finally, we are focused on maximizing value for our shareholders through disciplined capital allocation. This year, capital has primarily been allocated to our share repurchase program where we've utilized $154 million year to date to repurchase approximately 1.7 million shares at roughly $89 per share. Even with the share repurchases, we have moved our net debt to EBITDA leverage ratio to 2.9 times in the third quarter within our targeted range of two to three times. We expect to stay within the range through year end and remain on track to allocate at least 50% of our total free cash flow towards shareholder returns in the full year. So far, we have made meaningful progress against these value creation drivers this year. Turn to slide five. you can see the progression of our revenue mix towards AMS and DRS over the last several years. As a reminder, we split our business into two main customer offerings, cash and valuables management, or CVM, and AMS DRS. Our CVM business includes the traditional parts of the business, like point-to-point cash logistics, money processing, and our international shipping business we call global services, while AMS includes revenue from our ATM-managed services business as well as digital retail solutions. With full-year organic growth in AMS DRS trending towards the high end of our mid- to high-teens growth framework, we are increasing our mixed expectations to between 27 and 28 percent of total revenue by year end. While AMS DRS is now 27 percent of our total revenue on a trailing 12-month basis, we are still in the early stages of penetrating this large and growing total addressable market. As we've previously discussed, unvended retail locations and ATM outsourcing opportunities represent a two to three times market expansion opportunity. Looking closer at each of the customer offerings, organic growth in CBM remained consistent with our expectations. Growth was driven by good pricing discipline and global services performing similarly to the second quarter. As a reminder, CBM organic growth includes the conversion of existing customers over to AMS DRS. AMS DRS accelerated from 16% organic growth in Q2 to 19% this quarter. Acceleration occurred in both AMS and DRS individually and was balanced across geographic segments. In DRS, our pipelines remain robust and we see consistent strength in verticals like pharmacies, gas stations, C-stores, quick serve restaurants, as well as fashion and jewelry verticals. In AMS, we have completed the onboarding of several key accounts and are at full revenue run rates with QT and Racetrack here in North America, and Sainsbury's in Europe, with several additional customers set to be onboarded in the fourth quarter in LATAM and the Middle East. Turning to slide six, I thought it'd be helpful to show a map of our current AMS footprint. The highlighted 51 countries represent Brink's presence across the globe, with those in light blue representing countries with existing AMS agreements. We've also added a select few customer logos to illustrate our presence in these markets. This map had almost no AMS presence less than four years ago. Leveraging our existing customer relationships with banks and retailers, as well as our acquired and organically built capabilities in AMS, we've been able to expand this market to what it is today. As we've previously said, this is just the beginning. While there are some impressive customers already in our portfolio, we are still in the early stages of this opportunity. As we consistently deliver reliable service with a total lower cost of ownership for customers, we see penetration opportunities both in the countries we already serve as well as the other geographies where we still have a presence. The current penetration rate for ATM outsourcing is still low. As we've previously discussed, there is an opportunity for the current addressable market to expand by two to three times as more financial institutions make the shift to this win-win value proposition. This growing opportunity coupled with an equally compelling retail backdrop in DRS, provides confidence in our strategy for years to come. On slide seven, I'll provide a quick update on our margin improvement journey in the key North America segment. The margin progression begins on the top line, where we've improved the revenue quality by shifting the higher margin AMS DRS. On a 12-month basis, AMS DRS now represents 31 percent of revenue in this segment. Since 2022, this business line has grown by 33% with strong conversion rates and steady new customer growth driving continued market penetration. Other areas of margin enhancement include our pricing discipline and the deployment of waste elimination initiatives through the Brinks business system. These improvements are coming through the P&L with less direct labor expenses and lower fuel consumption. Even with the healthy top line growth, we are seeing consistent vehicle and employee count reductions and our safety performance continues to improve to record levels. In fact, since 2023, our total recordable incident rate, or TRIR, is down 33%. There are many studies that indicate positive correlation between higher safety records and improved shareholder returns. These returns happen because a safer work environment enables higher employee engagement, resulting in higher labor productivity, better service quality, resulting in higher customer satisfaction, which all ultimately leads to higher growth and profits. As we continue to shift to AMS DRS and increase productivity, we are targeting to be at least 20% EBITDA margin in this segment over the midterm. Before I hand it over to Kurt to go through the details of the quarter, I want to thank our team for executing against our strategy. We delivered another solid quarter while meeting our commitments and advancing our strategy. Growth in the AMS DRS business line is accelerated. our profit margins expanded to record highs, and our cash generation continues to improve. Supported by large and growing markets, ample productivity opportunities, and consistent execution, I remain confident we have the right team and strategy in place. I'm excited for the future and encouraged about how far we've come. And with that, I'll hand it to Kurt to discuss the financials, and I'll come back for Q&A. Kurt?