FMR LLC Boosts Stake in The Brink's Co, Reflecting Growth Strategy

FMR LLC has increased its stake in The Brink's Co, a leading secure logistics provider, by buying 302,443 shares at $89.29. This move reflects FMR LLC's confidence in The Brink's Co's potential, despite the stock being modestly overvalued. The Brink's Co exhibits strong growth metrics, with a 3-year revenue growth rate of 10.10% and EBITDA growth of 14.80%. FMR LLC's growth-focused investment philosophy aligns with the company's future prospects, making it an attractive investment opportunity.

FMR LLC has recently expanded its investment in The Brink's Co, a leading secure logistics provider, by purchasing an additional 302,443 shares at a price of $89.29. This strategic move underscores FMR LLC's confidence in The Brink's Co's potential, despite the stock being modestly overvalued. The acquisition comes amidst a period of robust growth for The Brink's Co, which has shown a 3-year revenue growth rate of 10.10% and EBITDA growth of 14.80%.

The company's strong performance in the second quarter of 2025, as highlighted in its earnings call, has been driven by organic revenue growth across all segments, particularly in higher-margin ATM Managed Services (AMS) and Digital Retail Solutions (DRS). CEO Mark Eubanks credited this success to record transactions and cash dispensed, as well as successful new customer onboardings, notably in North America. The company also saw improved productivity and operating margin expansion due to a favorable mix shift toward subscription-based offerings and ongoing efficiency initiatives.

Analysts have taken note of several key factors contributing to The Brink's Co's performance. Timothy Michael Mulrooney of William Blair inquired about the margin beat, with CEO Eubanks pointing to strong organic growth, AMS/DRS mix shift, and productivity improvements. Mulrooney also asked about the growth trajectory of AMS/DRS, with Eubanks indicating that second-half growth should accelerate, supported by pipeline momentum and recent customer onboardings. Furthermore, Tyler David Barishaw of Truist questioned the impact of tariffs and shipment activity in the global services business, with Eubanks confirming mid-single-digit growth and noting that volatility from trade policy creates opportunities for Brink’s to capture additional business.

The Brink's Co's international operations also play a significant role in its financial performance. In the second quarter of 2025, international revenues accounted for a substantial portion of the company's total revenue. Europe contributed 26% of the total revenue, Latin America contributed 24.5%, and the Rest of World accounted for 16.1%. Analysts project that these regions will continue to drive growth, with Europe expected to contribute 24.4% of the total revenue for the ongoing fiscal quarter.

FMR LLC's growth-focused investment philosophy aligns with The Brink's Co's future prospects, making it an attractive investment opportunity. Despite the stock being modestly overvalued, the company's strong growth metrics and strategic positioning in the secure logistics sector suggest that it is well-positioned for continued success.

References:
[1] https://markets.financialcontent.com/stocks/article/stockstory-2025-8-13-the-top-5-analyst-questions-from-brinkss-q2-earnings-call
[2] https://finance.yahoo.com/news/why-brinks-bco-international-revenue-131507852.html