BCO

Brink's FY2025 results show a business executing well on its strategy. Revenue grew 5.0% to $5.26B, operating income jumped 29.2% to $586M (operating margin expanding to 11.1%), and diluted EPS rose 29.2% to $4.69 — meaningfully aided by a 4.6% reduction in share count from $209M of buybacks. Operating cash flow surged 50.1% to $640M, and management's MD&A attributes this to disciplined working-capital actions ('centrally managing more of our overall spend and negotiating with suppliers to optimize our payment terms'), higher operating profit, and favorable customer-obligation timing. Free cash flow before dividends of $435.5M comfortably funds the $42.3M dividend and the buyback program. ROE of 71.9% looks spectacular but is flattered by a razor-thin $278M equity base against $6.93B of liabilities — a 25x leverage ratio that demands respect.

The valuation is reasonable, not cheap. At $96.24, BCO trades at 20.5x trailing EPS and 0.8x sales — fair for a defensive logistics franchise growing earnings in the high-twenties, but pricing in continued execution. The five-year revenue trajectory ($4.20B → $5.26B) is steady mid-single-digit growth; the EPS leverage is coming from margin expansion, buybacks, and operating-profit conversion rather than top-line acceleration. The MD&A itself flags that the magnitude of working-capital improvement was 'more moderate' in 2025 versus 2024, suggesting the easy gains are behind.