Brink's Delivers Strong Q4 and Full Year Results, Eyes Continued Growth in 2025
Brink's, a leading global logistics company, recently reported its fourth quarter and full year 2024 earnings results. According to the company's CEO, Mark Eubanks, Brink's delivered total organic growth of 11% in the fourth quarter and 12% in the full year.
One of the key drivers of this growth was the company's ATM managed services and digital retail solutions (AMS DRS) business, which grew 23% organically in both Q4 and the full year. This marks the 12th consecutive quarter of double-digit growth rates in these key lines of business, with Eubanks stating that "our growth outlook remains positive." The company's customers continue to value its offerings, and Brink's is well-positioned to capitalize on a robust global pipeline of opportunities.
Brink's Cash and Valuables Management (CVM) business also experienced strong growth, with organic increases of 7% in the fourth quarter and 9% for the full year. The company's Global Services business, which had been softer over the last few quarters, ended 2024 as a bright spot, with Eubanks noting that "increasing volatility in the precious metals markets" has created opportunities for Brink's to benefit from rebounding demand in 2025.
Despite a 10% headwind from the strengthening U.S. dollar, which affected the company's higher-margin Latin American segment, Brink's delivered $912 million of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in 2024 and expanded its EBITDA margins by 40 basis points to a record high level of 18.2%. The company also reported EPS (Earnings Per Share) of $7.17, which included an approximate 4% reduction in share count year-over-year as a result of the company's opportunistic share repurchase program.
Brink's strong fourth quarter performance was punctuated by robust free cash flow, with the company delivering over $300 million in the period alone. CFO Kurt McMaken noted that this anticipated performance was primarily the result of continued progress on working capital efficiencies, including accounts receivable collections and payables management.
Looking ahead to 2025, Brink's is focused on creating value by improving its revenue mix, streamlining its operations, and compounding free cash flow that it can return to shareholders. The company continues to strengthen its global leadership team, with the addition of three uniquely experienced global executives who will help drive growth, continuous improvement, ethics and compliance, and productivity enhancements.
Brink's also remains committed to executing its capital allocation framework, reducing its net leverage in 2024 to 2.8x EBITDA while returning approximately $250 million to shareholders through its repurchase program and dividend growth policy. As the company looks ahead to 2025, it is clear that Brink's will continue to be a major player in the global logistics market, with a strong track record of innovation, growth, and margin expansion.
