The Brink's Company (BCO) Q3 2026 Earnings Call Transcript

Operator: Good morning and welcome to the Brink's Third Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. 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. Brink's assumes no obligation to update any forward-looking statements. Call is copyrighted and may not be used without written permission from Brink's. Please note this event is being recorded. I would now like to turn the conference over to your host, Jesse Jenkins, Senior Vice President of Financial Planning and Analysis and Investor Relations. Mr. Jenkins, you may begin.

Jesse Jenkins: Thanks and good morning. Joining me today are CEO, Mark Eubanks and CFO, Kurt McMacken. Brink's reported third quarter results on a GAAP, non GAAP and constant currency basis this morning. Most of our commentary today will be focused on our non GAAP results. These non GAAP 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 today's earnings release and the presentation appendix both available on our website. We will also have commentary on the status of our pending acquisition of NCR Atleos. A reminder, this transaction remains subject to the completion of customary closing conditions and additional regulatory approvals. Other details including factors related to risk of the transaction can be found in the pertinent filings. I will now turn the call over to Brink's CEO, Mark Eubanks.

Richard Mark Eubanks Jr.: Thanks, Jesse. Good morning, everyone. I will begin on slide 3 with a quick overview of the quarter before updating progress on the NCR Atleos acquisition. In the third quarter, we delivered 4% organic growth with organic growth in ATM managed services and digital retail solutions, or AMS DRS accelerating sequentially to more than 16%. Our AMS DRS growth strategy continues to drive growth and profitability across the business in this, our 15th consecutive quarter of at least mid teens organic revenue growth. AMS DRS now represents 30% of our trailing 12-month revenue mix after reaching a record 32% in the third quarter. Strong momentum is continuing in the AMS DRS markets, and we expect to continue this acceleration into the fourth quarter. Cash and Valuable Management, or CVM, was highlighted by good pricing discipline and continued growth in our global services business. Supported by record AMS DRS revenue mix and good productivity, we delivered a third quarter with adjusted EBITDA margins above the midpoint of our previous guidance. Adjusted EBITDA margins were 19.9% in the quarter, up 90 basis points year on year, while operating profit margins expanded by 100 bps. Record Q3 total company margin performance was highlighted by the continued expansion in North America, Europe, and rest of world. As you will see later, North America hit 20% adjusted EBITDA margins on a trailing 12-month basis, and our European segment expanded by over 400 bps year on year. Trailing 12 month free cash flow was $413 million with conversion of 40% reflecting the adjusted EBITDA growth I previously mentioned and continued CapEx leverage as we shift our business to a less capital intensive customer offering. The year to date free cash flow and adjusted EBITDA growth drove an expected leverage reduction to 2.6x in the quarter. Year to date, our results remain in line with our full year framework, and we expect to deliver on mid single digit organic revenue growth 30 to 50 basis points of adjusted EBITDA margin expansion with free cash flow conversion between 40-45%. I am confident in our team's ability to continue our growth trajectory in AMS DRS improve our profit margins and expand these results into higher free cash flow for the years to come. Turning to Slide 4. I would like to take a moment to revisit the strategic rationale of the NCR Atleos acquisition. The deeper we progress with integration planning, the more excited I become about the potential of the combination. While both companies are performing well independently, we expect our complementary customers offerings to create simplified solutions for customers. On the ATM managed services side, we have the potential to bring together a complete vertical stack of capabilities that touches every aspect of the value chain. From hardware and cash logistics through to software and processing capabilities. Over the last few months, we have had many conversations with financial institutions about the possibility of what this combination unlocks. Together, we will have a compelling best in class offer to present banks as they allocate capital towards other priorities and simplify ATM ownership in a managed services or full outsourced model. On the retail side, we are already seeing the potential of the combination. As I discussed last quarter, we recently signed an agreement with a large retail customer in North America to service approximately 5.5 thousand locations with our DRS solution. Each already containing an 8 an Allpoint ATM within the store. After deal completion, we will have the ability to combine services of both DRS devices and AMS into a single trip. Improving service quality and eliminating inefficiency as we support the entire cache ecosystem. Efficiency gain will help lower our operating costs while helping customers optimize the cash ecosystem within their stores creating a true win-win solution. We continue to densify our service network across existing and new customers, and drive significant back office synergies, and our cost structure will continue to improve creating a flywheel that will position us to capture new customers and expand our share of wallet with existing customers. The opportunity in front of us is so compelling. As we continue to drive more ATM outsourcing and penetrate deeper into the broad retail customer base, we believe the combination could expand our addressable opportunity to 2x to 3x the current $36 billion global addressable market. As I have said many times, this was a strategy first acquisition. The more we explore the possibilities with the NCR team, the clearer it becomes that the growth potential is just as compelling as the value captured from the cost synergies. Turn to slide 5. We have made considerable progress validating cost synergies and are optimistic there is a potential for more as we progress with integration planning. As we announced this morning, we are pulling forward our expected closing date again and now expect to close the transaction in early January of 27. This would allow us to execute our synergy capture activities almost a full quarter faster than was originally contemplated. The chart in the middle of the page shows the impact of the improvement of the timeline where we will ultimately reach our full $200 million run rate synergy projection by the end of 29. Beyond the timing improvement, we have also preliminarily identified the potential for additional synergies across each of our focus cost categories. Within SG and A, we have identified opportunities to further streamline management functions and simplify the organizational structure of the combined business. We also see the potential to leverage existing Atleos back office and customer support centers of excellence in the combined business as we shift cost to lower cost locations and drive standardization and simplification during integration. In the service network, our early estimates suggest additional opportunities in route density, operational footprint rationalization, and service network consolidation beyond the original, simplifying assumptions around insourcing cash logistics and second line maintenance. And finally, procurement appears to be a significant opportunity as we assess potential savings involving common vendors, and similar spend across categories like fleet, information technologies, and parts and supplies. While we still have work to do to solidify and quantify this potential upside after we close the transaction, it is clear from the work we have done so far that we expect to capture more value and capture that value sooner than our original expectations. On to slide 6. I will provide a quick update on the significant progress we have made on the regulatory front. There are 3 areas of regulatory clearance that must be addressed before closing. I am happy to report that all closing conditions have been met in 2 of those in both the foreign direct investment and money transmitter licensing. We have also made considerable progress in antitrust reviews, reaching resolution in 12 major jurisdictions. Remaining reviews, including those in The UK and EU are progressing as expected. As we announced today, we expect the remaining regulatory approvals and other customary closing conditions to conclude within the next 2 months allowing us to target closing in early January of next year. On to slide 7, You can see here our full timeline. Over the coming months, each company will remain focused on its standalone commitments while we accelerate integration planning and day 1 readiness. Our joint integration planning teams have developed a list of quick wins which we can distill into day 1 action plans to optimize and accelerate value capture post closing. We are also making progress designing the combined leadership team and organizational structure with plans to finalize it within the coming weeks for implementation following closing. Shifting back to the quarter on slide 8, I will provide some commentary on the performance by line of business. Starting with CBM. Organic growth was down 1.5% reflecting faster conversion to AMS DRS than in previous quarters. Underlying growth reflects strong pricing ahead of inflation, and continued strong growth in our Global Services volumes. Sequentially, global services continued to moderate towards its historic norms, especially in North America. We expect these AMS DRS conversion and global services moderation dynamics to continue into the fourth quarter. Moving to AMS DRS, revenue growth accelerated sequentially to more than 16%, our 15th consecutive quarter of at least mid to high teens organic growth. The acceleration was widespread with growth advancing in all segments. In the AMS business, we saw good growth from customer wins in Mexico and continue to roll out the Mandiri Bank network in Indonesia. In DRS, we continue to see stable strong growth in all markets, Our value proposition is resonating with customers of all sizes and across diverse customer end markets. Pipelines and backlogs remain robust as we head into the close of the year and prepare for growth in 2027. This includes the large retail enterprise customer we announced last quarter in North America that is now expected to begin deployment early next year. As we look at the fourth quarter, we expect to see revenue accelerate in AMS DRS again despite the lapping impact of a large equipment sale in the prior year in North America. Supported by strong backlogs and pipelines in DRS and a solid schedule of conversions, including a new customer rollout in Luxembourg in AMS, that I will discuss in a few slides, we remain confident that we are on track to deliver our full year framework of mid to high teens organic growth. Moving to slide 9. I want to highlight a financial institution contract award that we recently won in Canada that will support growth and improve density in this important market starting in 2027. This deal is with the top bank in Canada that has a large commercial presence across the major metropolitan areas in the country. As part of the competitive process, our commercial teams are able to secure the relationship supporting traditional cash management services across the country. This key win in the Canadian banking sector establishes a foundation for long term growth with 1 of Canada's premier financial institutions. The additional volume provided by these locations will give us a better foundation as we continue to penetrate a large and growing addressable market with ERS. On Slide 10, you can see the details of an exciting new AMS win in Luxembourg. This deal continues a broader trend we are seeing across Europe, major banks joined together to build a consortium and create a shared ATM network. These situations often create a unique entry point for Brink's, as they initiate a general review of operations, including the consideration of a full outsourcing of the new estate. In this specific situation the participating banks have built a shared network under the brand name Bancomat that places devices at strategic locations spanning across the country. Their goal is to ensure consistent and reliable access to cash for their customers and Brink's will provide a holistic end to end solution to facilitate this objective. Once fully deployed, our turnkey solution, including services from cash logistics and real time monitoring, transaction acquiring and processing, aims to simplify the customer experience, allowing these banks to shift focus to other value creating customer services like loans and account growth. Once we complete our pending acquisition, we will explore leveraging the capabilities of NCR Atleos in hardware second line maintenance and software that could enable us to add new transactions types to these machines as we scale our relationship. This is a big win for our European teams and illustrates the outsourcing capabilities we have today and the potential to build on those capabilities post closing. We are having similar discussions with major potential customers across a range of geographic markets. We continue to see our offering is solving a diverse set of customer problems and by continuing to win in the marketplace, we are developing more proof points for additional potential future customers. I am confident our AMS strategy remains in the early stages of development and we are poised to capture significant future growth as this market continues to mature in the coming years. On Slide 11, before I turn it over to Kurt for more details on the financials, I want to recognize an important strategic milestone. I am happy to report on a trailing 12-month basis we reached 20% adjusted EBITDA margins in our North America segment in the third quarter. Our progress has been impressive over the last several years, with revenue mix aggressively shifting to higher margin services and supported by strong productivity enhancements across the cost base, we have expanded margins by more than 500 basis points since 2022. While reaching this milestone is certainly worth celebrating, I am encouraged because I know that we are just getting started. With a solid AMS DRS pipeline, reaching well into 2027, significant synergy potential from the NCR Atleos deal and ongoing efficiency initiatives across both Canada and The U. S. There remains significant potential to continue to expand margins over the coming years. And with that, I will turn it over to Kurt to walk through the financials and fourth quarter guidance before I return for some closing comments and Q&A. Kurt?

Kurt McMaken: Thanks, Mark. I will begin on Slide 13 with a look at the quarter. Revenue increased by 3% with 4% organic growth a 1% foreign currency tailwind and a 2% revenue decline from the previously disclosed deconsolidation of our Malaysian business. Which will continue at a similar level over the next 3 quarters. Adjusted EBITDA was up 8% to $274 million operating profit was up 11% to $208 million We continue to demonstrate strong operating leverage in the business with profit growth rates more than double revenue growth rates again this quarter. EBITDA margins were up 90 basis points to 19.9% and operating profit margins were up 100 basis points, pacing ahead of our third quarter guidance. EPS of $2.46 per share reflects growth of 18%. Trailing 12 month free cash flow was $413 million with conversion of 40%. As I will cover in a few slides, we remain on track for full year free cash flow conversion between 40-45%. On slide 14, total organic revenue growth was $48 million including $62 million from our higher margin subscription based strategic focus areas of AMS and DRS. As Mark mentioned earlier, growth in AMS DRS reflects an increase in conversion from CVM, which more than offset growth in global services and good pricing realization. FX contributed $15 million or 1%. The last few months of the quarter, the dollar strengthened considerably against most currencies. Impacting our growth in Q3 as you will see in a few slides our expectations for the fourth quarter. Moving to the right side of the slide you can see that $40 million of organic revenue growth converted to $24 million of adjusted EBITDA growth for an incremental flow through to profits of approximately 50%. Our 19.9% EBITDA margin was driven by record margin performance across many of our segments, we continue to shift our revenue mix and drive operating leverage. Moving to slide 15, starting on the left, Operating profit was up $20 million to $208 million with a margin of 15.1% on productivity, pricing and revenue mix. Interest expense was $66 million in the quarter, up $3 million sequentially and year over year on higher interest rates higher levels of provisional credit from DRS growth. Tax expense was $39 million in the quarter, representing an effective tax rate of 27.2% slightly better than the prior year. Income from continuing operations was $102 million on 41.5 million diluted shares for an EPS of $2.46 Depreciation and amortization was $61 million in the quarter, and is expected to be slightly below $250 million for the full Stock based compensation was $5 million in Q3 and is expected to be $30 million for the full year. Roughly in line with the prior year. Let's move to slide 16 to discuss our capital allocation framework. Our capital allocation framework remains unchanged. Despite the pending NCR Atleos acquisition. We reduced our leverage at the end of the second quarter to 2.0 net debt to adjusted EBITDA. With the pending acquisition set to temporarily move us over 3x at closure, continue to expect the primary use of capital during 2027 to be aggressive debt paydown. As we have mentioned previously, we plan to rapidly delever after closing and are targeting net leverage below 3 times by the end of 27. Once we return to our targeted leverage level of 2x to 3x, we expect to resume our prior capital allocation model with at least 50% of free cash flow focused on shareholder returns. Given the expected adjusted EBITDA growth after closing, both organically and through synergies, we expect to continue net debt leverage reduction during 2028. With line of sight to $1 billion of free cash flow, we expect to have flexibility to capitalize on accretive uses of capital that can compound cash generation and improve return on invested capital as we move forward. Moving to the guidance on slide 17. Our framework for 2026 is unchanged expect to deliver mid single digit total organic growth supported by mid to high teens organic growth for AMS and DRS. Adjusted EBITDA margins are expected to expand between 30 and 50 basis points with conversion of adjusted EBITDA to free cash flow between 40-45%. In the fourth quarter, we expect revenue between $1.365 billion and $1.415 billion reflecting between 3-4.5% organic growth. Organic growth reflects continued moderation in Global Services and the lapping of a large DRS equipment sale in the prior year. FX is expected to be a little more than a 1% headwind in the quarter impact from the Malaysia deconsolidation is expected to continue into the fourth quarter and the first half of next year. Adjusted EBITDA is expected to be between $275 million and $295 million reflecting adjusted EBITDA margin expansion of approximately 40 bps to 20.5% at the midpoint. EPS is expected to be between $2.45 and $2.80 And with that, I will turn it back over to Mark for some closing comments.

Richard Mark Eubanks Jr.: Thanks, Kurt. Before we take questions, I want to return to our preparations for post closing integration. As I detailed earlier, we have increasing confidence in the significant synergy potential above our original estimates. We see upside across the service network within SG and A and also in procurement. With the accelerated close timeline, we have the ability to capture these synergies sooner than our original estimates. Our joint integration planning management office has been busy deep diving these opportunity areas and developing robust day 1 action plans to deliver against our synergy commitments. Externally, customers are excited about the possibilities that this combination can provide. Interest is high. And while we are still 2 separate entities until closing, customers increasingly want to understand what the future will look like. Conversations have been very positive and include potential customers of all sizes and across all of the countries where we operate. Just as we saw with the Bank of America win this quarter, we will be able to deliver bespoke solutions that can solve a broad range of customer needs by leveraging our combined best in class service offerings. Go to market plan is accelerating as we approach day 1. We are developing playbooks for our commercial leaders and targeting specific customer opportunities to pursue post close for quick commercial wins. The outlook remains attractive The marketplace is evolving rapidly and post closing, we will be even better positioned to capitalize on the opportunities in front of us. I look forward to closing the strong 2026 as standalone Brink's and I am energized for the potential of the combined companies to drive higher levels of growth and profitability for our shareholders in 2027. And with that, we will open the line up for questions. Operator?

Operator: Thank you. We will now begin the question and answer session. And our first question comes from George Tong from Goldman Sachs. Please go ahead.

George Tong: Hi, thanks. Good morning. You have publicly agreed to divest your note machine and test link businesses in The UK to address the CMA's concerns. Can you quantify the revenue and EBITDA associated with those businesses? And what you expect in terms of sale proceeds and any other remedies that might be required to satisfy regulatory clearance for the Atleos transaction.

Kurt McMaken: Hey, George, it is Kurt. Let me, just give you kind of roughly size the business. The business runs about $120 million to $130 million revenues. And then, you know, EBITDA margins in the mid to high twenties on that. So you are looking at about a $30 million EBITDA kind of impact of the note machine business. Really cannot talk about sales proceeds because we do not really know yet. it is a. it is an active process. We will have to see just kinda where that sorts out, but we should know, you know, obviously, as the as the process progresses, we will get much better feel here. In the coming weeks.

Analyst: I think import.

Richard Mark Eubanks Jr.: Importantly, George, this is Mark. Good morning. We had. We had no. None of our $200 million worth of cost synergies contemplated that meeting benefits from the note machine business just because we knew this was a potential remedy that might we might have to undertake, you know, during the process and during the modeling. And I would say, you know, all the returns that we talked about, you know, with regards to the deals are still intact the way we talked about them because this was contemplated that we might have to do this.

George Tong: Got it. that is helpful. And then switching gears, to discuss the AMS DRS pieces. They both now delivered at least mid teens organic growth for multiple consecutive quarters. And you are looking for another sequential acceleration in growth in 4Q. As you look into 2027, do signed contracts and scheduled deployments in the backlog support sustaining mid to high teens growth? Or would you anticipate a moderation in growth as the revenue base? Becomes bigger?

Richard Mark Eubanks Jr.: Yeah. No, George. Really, Really happy with how the backlog has been developing in orders entered. And I think, you know, if you just take 1 of our biggest markets in North America, our DRS backlog alone is up 80%. Versus prior year. This time, you know, prior year, 2025. We are we are excited about that. I think the other thing that we have seen even with the growth that we are continuing to deliver are some delays in long term deal making. Around AMS and ATM as a service. In fact, I know that NCR guys released this morning and mentioned this as well, and I think others mentioned some of this. What we have heard from customers directly we are still operating as separate companies, is know, they are they are delaying some decisions based on waiting for what the combined offer looks like. I mean, what that you know, new value proposition could be. So know, maybe it is a couple months out. But even with that, we are still seeing really good progress. I think you saw the growth rates here in Q3 on revenue for AMS DRS continue. We. What we did see was more acceleration of conversions. You know, we have been running about 1% to 2% headwind to CVM in prior quarters on the organic side for AMS and DRS conversions, we were running about 2x that rate here in Q3. So really know, glad the team was able to pivot in the quarter. As we as we saw a little bit of that new customer decision making happening to really, you know, pivot more to conversions with our customers. I think the other thing you can see is the ramp of progress on growth in, in Latin America from a from a AMS DRS revenue perspective, which was really strong in the quarter. We had a good order in rest of the world, again, on a big v, and we expect that to accelerate again here into Q4. So we are feel. We are feeling, you know, really good about of where things are laid out. Of course, know, the Europe business, we announced the Bancomat network, which is basically the big bank network, the country of Luxembourg and now are in process of deploying that network and we will go into a little bit of next year. So again, all of that continues to add to positive growth momentum in the quarter. So really proud of all of our teams, you know, around the world on continuing to stay focused on executing the most important thing right now, which is run the business and grow the business in the strategic areas that we want to grow at AMS DRS. While you let the corporate team and, our lawyers and bankers work on, you know, getting the deal across the line. So really, really good focus by our teams as well as look across at the NCR teams. Very helpful. Thank you. Thanks, George.

Operator: And the next question comes from Timothy Mulrooney from William Blair. Please go ahead.

Tim Mulrooney: Yes. Good morning. Thanks for taking my Mark, I just want to pick up on a couple of things you said there on DRS backlog up 80% year-over-year in The United States. That. that is a that is a big number. I was not expecting you to say something like that. Is that, can you talk about how broad based that is? Is that a couple of large retail customers that you won this year that you are planning to roll out? Next year? Or is it would you qualify it as pretty broad based and fragmented?

Richard Mark Eubanks Jr.: Yes. I would start, Timothy. We announced a big retailer last quarter. About 5.5 thousand locations. that is largely going to be deployed in you know, in 2027. So that is part of the backlog. that is not. That did not make up 80%, as you know. And so we have a pretty broad based backlog right now that you know, has some 10s and 20s of locations, some hundreds of locations. A couple of it are thousands, you know, locations, but it really is more broad based, more of that mid market retail. And I and I think that is in North America. We are seeing similar progression in Latin America too, particularly our Brazilian team and as well as in Mexico. So we really are optimistic about how we are continuing to build Course, that is outside the 80% I mentioned.

Tim Mulrooney: Understood. And, Mark, are you finding, of these new wins, are they smaller in terms of the amount of cash usage? Like, are you seeing the aperture open with these new customer wins that they do not necessarily need to be the heavy cash users of the past. Yeah. I. We certainly are, Timothy, and part of that is just as we continue to build more density of our existing business, a more flexible network with our DRS and AMS offerings. It just allows us to continue to deliver a very strong value proposition from the highest cash users moving down, continuing to push the envelope on the lower cash users that still value the service, value the transparency, and the visibility of their cash transactions. Okay. Yeah. that is interesting, especially the Latin America comment. I have I wanted to ask about Latin America just lastly here. I saw organic growth was 2% it is a little bit below our estimate. We are expecting maybe more mid single digit range. I am just curious, Mark, if you are seeing any incremental headwinds these days particularly, I am thinking about the South American countries, as some of them seem to be transitioning quickly towards digital payment infrastructure. I am curious if you are seeing that too. Or in the business or if I am just getting sucked into the headlines. Thank you.

Richard Mark Eubanks Jr.: Yes. No, good question, Jim. The thing we have seen where we have seen the most digital payment adoption that could be impactful is actually in Brazil. That really started almost 2, you know, almost 2 years ago now with the PIX network. That being said, we have seen and continue to see very good organic AMF and DRS particular growth across know, that region, across the country. And part of that is the economy is, is doing well. Relative to the others in Latin America. The other is that we have got a strong doing a great job on really targeting the right kinds of customers with the right value proposition DRS and AMS and really, again, unlocking a lot of unvended customers that you know, were always in the TAM, you know, kind of opportunity. But you know, maybe were not in our previous aperture, as you said. Think that we are seeing some economic headwinds in Argentina, and we talked about that in the last few quarters. Consumption really is down. Is there you know, working through their austerity measurements and getting their fiscal house in order. But, again, still a really good business for us, and it does impact our business. it is a very profitable business as well. I would say the same thing. You know, we have started to see some retail weakness in Mexico. You know, the I think, Womx, you know, it is kinda highly publicized you know, plus their retail, sales and growth, has been kinda low single digit. We think that is cyclical, of course, but we are certainly seeing that Again, regardless of this sort of macro pressure on you know, the economic environment, there is still a ton of unvended opportunities, and our team you know, does not view that as necessarily. Or use that as an excuse even as a headwind. When there is so many unvended customers for us to go tackle. And they are doing a good job doing it. Got it. You, Mark. Sure.

Operator: And our next question comes from Tobey Sommer from Truist. Please go ahead.

Tobey Sommer: Thank you. I was hoping you could elaborate on your customer conversations about what the combination with NCR Atleos could mean to them? Sort of what happens if they and you dream the dream of what it could unlock for your customers?

Richard Mark Eubanks Jr.: Yeah. Good question. Good morning, Tobey. Yeah. We are super excited about the combined offering and I think we have we have talked about this, you know, previously, but this idea of integrating the entire value chain and orchestrating all of the activities as a priority 1, which is all of the field maintenance, the break fix, the cash logistics, the reconciliation, seeing the forecasting across the value chain, is just going to allow us to squeeze out inefficiencies in cost as well as cash that is tied up in the in their system. That they are having to deploy to keep their networks full. We think that will continue to be a big opportunity. I think our customers are also aware or becoming more aware of what this could mean. And in fact, that is that is kind of where the conversations go is you know. Or have been going, let's say, here in Q3 and I am sure we will be more in Q4 around yeah. We probably could put these 2 together in some virtual way. We know you are gonna be you know, a combined company later, but would not it be great if we just sort of waited to get the full value proposition and understand kinda what all that looks like. Frankly, they could also take out, you know, inefficiencies in their system and whether that is around forecasting or reconciliation and you know, all of the operational infrastructure they have to run their networks. We think that there is a really good opportunity. I think the way those conversations are going to evolve Tobey, is less about a brochure that has you know, a specific price and scope of work or menu of options, but more like a whiteboard session with the customers and their operations team and their technology teams and their IT teams and, of course, our counterparts and professional services teams to orchestrate and architect the best offering to them. that is gonna extract the most value in what becomes a more trusted relationship. As you enter these kind of agreements. And we have seen that. We have seen that with other customers that we have already deployed with. And those are the best outcomes, not only for us, but also for the customers. And I think that is that is where we are headed, and where we are excited to get in a room and talk with those customers about that as we close this deal here in early Q1.

Tobey Sommer: Thanks. With respect to the flexible versus fixed nature of the network, how do you think of the percent of the network that is flexible now with know, AMS, DRS growing so much over the years. And then if we fast forward, know, 3-5 years from now, how would that percentage of flexible what would that look like, and how would it compare to a snapshot today?

Richard Mark Eubanks Jr.: Well, you know, I would like for it to be that way and be dynamic everywhere. And that the amount of flexibility and efficiency and improved service we are able to deliver by being flexible is a win for us and customers. If you think about today, about a third of our revenue is coming from AMS DRS. that is probably on a on a location count. it is probably a little less of locations because we are able to do more on that flexible network. We are able to serve more locations than we are on the fixed. But listen. I think we are we are continuing to progress that. Tobey and would like to continue to march that up. As fast as we can. You know, if we are in the future in some way, you think about the ability to move, let's say, 50% of our business to AMS DRS there is no reason why we would not think the cash logistics piece would follow that. If you look at what already happens with you know, NCR from an FL and SLN perspective, most of that is already a flexible network anyway. It is about the dynamic capability. Of deploying their field engineers to you know, to the right field engineer to the right location for the right problem with the right spare part. Already. And we think leveraging that algorithm and that optimization already, combined with the optimization we have done with our control towers is gonna continue to just compound to let us serve more customers with the same network or. I am sorry. More customers with the same network or same amount of customers with fewer. Resources. So for us, it is it is a really a good productivity and mixed impact by know, being able to drive that. And think you are seeing that in the numbers all you know, over the past few years. We talked about it on the call. On the prepared remarks there with, you know, with North America, it is it is a clear lever that is driving productivity and driving profit improvements across the business. Seeing the same thing in Europe. Almost 400 bps here in Q3, and that is really on the backs of AMS DRS penetration and getting after the cost structure that is there, and matching our infrastructure to the revenue volumes and new business model that we have with DRS and AMS. Thank you very much. Great. Thanks, Tobey.

Operator: And our next question comes from Chris Senyek from Wolfe Research. Please go ahead.

Analyst: Good morning. Great quarter. Question, and thanks for providing additional information on the synergy opportunities. If we could unpack that a bit as you look out to 2030 and have identified those additional opportunities, Are those more on the revenue side or the cost side? And then any high level additional color you can provide in terms of where those are coming from and what they might look like would be super helpful.

Richard Mark Eubanks Jr.: Yeah. Great. Good morning, Chris. Yeah. So I think what we are referencing on the increased synergies that we have obviously, from 2 areas. 1 is timing. We are sliding. We are basically sliding everything to the to the left a little bit. 1 quarter earlier. So you are gonna see realization sooner. that is that is based on just the timing close, improvement. What we referenced in the additional synergies that we have identified or. And have a marker on and we are working through, validation, those are largely cost synergies. And if you think about areas like sourcing, like corporate real estate, like our network density, you know, we had previously just you know, been kinda far away from each other, the 2 companies. We were only able to really talk about what are we gonna insource of, you know, their field services, what were they gonna insource for our cash logistics. I think there is more to do in that service network and infrastructure. That we have identified around optimization and, you know, utilizing cross-trained people to deliver services more efficiently. And then lastly, I think it is SG&A. You know, we have we have been working through the kind of the operating model of the company and the leadership team there and how we think about making sure that we are. We have got the efficiency of both and particularly in the corporate functions, as we continue to streamline and move work to the best cost country and be able to utilize, you know, larger centers of excellence to deliver sort of back office services. I think what we want to also highlight and where we are working, and this kind of leads to the revenue synergies, though, is we really are not looking to take out sales infrastructure. In fact, we view this duplicative sales organization as an opportunity to go deeper and wider with more customers. And whether that is expansion and share of wallet or whether that is moving over to new customers that 1 or the other 2 did not serve in a respective market. But we think there is a lot of opportunity. We are we are still qualifying those costs that I mentioned. We will have more specifics as we get through close as we are able to work, you know, sort of mitigated relative to antitrust and kinda anything we would not wanna do legally. But we are we are really excited about and we will we will be able to update everyone after we close, you know, likely in, in February with our Q4 results. But rest assured, we feel positive about that, and again, just gotta go validate it and to get after it. I would say on the revenue side, we have not quantified that yet. Although we are clearly mapping the opportunities and. You know, on our side and trying to think about where we have got customer opportunities, We know where there are opportunities coming in, whether that is equipment-- equipment cycle refreshes on the ATM side, or customers that are looking to make a new decision or an expansion of their existing networks those are clearly areas we will be focusing on and being ready to present that to customers. But I would say that the largest part, and I have talked about this in the past, of customers that we have spoken to have been positive on the opportunity and are intrigued by what the new offering could be and how they can participate again, drive kind of better CapEx efficiency on their side as well as ultimately a better outcome for their customers. And I think that. that is the important thing that we wanna make sure that our value proposition lays out is not only is it better cost, not only is it going to be better availability and reliability, we are gonna give customers a blank palette or canvas to still control their customer experience. And I think that is something that is key this is not a outsourcing of their customers. This is really an outsourcing of the infrastructure and the work that happens behind the scenes around hardware, software, technology and field service. Versus outsourcing the sort of customer experience to Brink's or NCR And we have seen you know, really good conversation with customers about how we do that and how we enable them to focus on the things they want to focus on and let us handle the things that we know we can streamline and provide better efficiency. Super helpful and then, another question. You have any sense for the combined businesses exposure to memory costs? I know we saw on the cost side some competitors talking about that recently. And wanted to get a sense, if you can, or how you are thinking about that for the combined companies? Sure. I know on the Brink's side, no real impact other than you know, we are thinking about in the future. Could there be cost pass through on hardware that is ATMs or whether that is, you know, DRS devices. But we have not seen anything meaningful yet. I know that the NCR guys have done. They have seen this as well and then bought through and bought forward to protect their 2027. I am sorry, 2026, you know, inflation and I think also in the 27. So we do not see any of that. I think anything we would expect longer term you know, we would we would expect just like we do with all other input cost is pass that through in pricing to the marketplace.

Kurt McMaken: This is Kurt. The only thing to add is that, you know, we saw in the Atleos release today that there was not really any mention of memory costs as impacting negatively and in fact, they performed pretty well from a EBITDA margin perspective.

Analyst: Great. Super helpful. Thanks guys.

Richard Mark Eubanks Jr.: Great. Thanks, Chris.

Operator: That concludes today's call. You may now hang up.