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Lululemon (LULU - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this athletic apparel maker have returned -3%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Textile - Apparel industry, which Lululemon falls in, has gained 3.9%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Lululemon is expected to post earnings of $2.14 per share for the current quarter, representing a year-over-year change of -31%. Over the last 30 days, the Zacks Consensus Estimate has changed -34.8%.

The consensus earnings estimate of $11.57 for the current fiscal year indicates a year-over-year change of -12.8%. This estimate has changed -7.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $12.43 indicates a change of +7.4% from what Lululemon is expected to report a year ago. Over the past month, the estimate has changed -7.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Lululemon.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Lululemon, the consensus sales estimate of $2.47 billion for the current quarter points to a year-over-year change of -2.4%. The $11.15 billion and $11.68 billion estimates for the current and next fiscal years indicate changes of +0.4% and +4.7%, respectively.

Last Reported Results and Surprise HistoryLululemon reported revenues of $2.47 billion in the last reported quarter, representing a year-over-year change of +4.3%. EPS of $1.69 for the same period compares with $2.6 a year ago.

Compared to the Zacks Consensus Estimate of $2.43 billion, the reported revenues represent a surprise of +1.59%. The EPS surprise was +1.2%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Lululemon is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Lululemon. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

Shares of Knife River Corporation (NYSE: KNF - Get Free Report) have earned an average recommendation of "Moderate Buy" from the ten brokerages that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, three have given a hold recommendation and six have given a buy recommendation to

Congress Asset Management Co. lessened its holdings in Knife River Corporation (NYSE: KNF) by 8.6% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 700,780 shares of the company's stock after selling 65,623 shares during the quarter. Congress Asset Management Co. owned

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BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, will host its first quarter 2026 earnings conference call at 11 a.m. EDT Tuesday, May 5, 2026. Financial results for the quarter will be released that morning before the NYSE market opens.

A live webcast of the call, along with presentation slides, will be available in the Investors section of the Knife River website at investors.kniferiver.com or at https://events.q4inc.com/attendee/317415196.

To participate in the live conference call:

After the conclusion of the call, an on-demand replay of the webcast will be made available.

About Knife River

Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt, liquid asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.

More News From Knife River Corporation

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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Emcor Group (EME - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Emcor Group is one of 90 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for EME's full-year earnings has moved 3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, EME has moved about 44.7% on a year-to-date basis. At the same time, Construction stocks have gained an average of 14.4%. This means that Emcor Group is performing better than its sector in terms of year-to-date returns.

Another stock in the Construction sector, Knife River (KNF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 26.4%.

For Knife River, the consensus EPS estimate for the current year has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Emcor Group belongs to the Building Products - Heavy Construction industry, which includes 8 individual stocks and currently sits at #40 in the Zacks Industry Rank. On average, this group has gained an average of 45.3% so far this year, meaning that EME is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Knife River belongs to the Building Products - Miscellaneous industry. This 33-stock industry is currently ranked #167. The industry has moved +7.2% year to date.

Investors interested in the Construction sector may want to keep a close eye on Emcor Group and Knife River as they attempt to continue their solid performance.

BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the first quarter ended March 31, 2026.

Three Months Ended March 31,

(In millions, except per share)

2026

2025

% Change

Revenue

$

410.1

$

353.5

16

%

Net loss

$

(79.2

)

$

(68.7

)

(15

)%

Net loss margin

(19.3

)%

(19.4

)%

Adjusted EBITDA

$

(31.8

)

$

(38.0

)

16

%

Adjusted EBITDA margin

(7.8

)%

(10.7

)%

Net loss per share

$

(1.40

)

$

(1.21

)

(16

)%

Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures."

“We had a good start to 2026, improving year-over-year revenue by 16%, adjusted EBITDA by 16% and adjusted EBITDA margin by 290 basis points,” said Knife River President and CEO Brian Gray. “We realized double-digit volume increases across our product lines and we reduced our per-unit costs, which drove gross profit improvements for aggregates, ready-mix and asphalt. We also generated more contracting services revenue than the same time last year, taking advantage of better weather and more activity across our segments.

“Knife River states are enjoying some of the fastest population growth in the nation, and we are growing our business along with them,” Gray said. “We completed three acquisitions during the quarter: Morgan Asphalt in Utah; and Sparrow Enterprises and Donaldson Brothers Ready-Mix in Montana. These aggregates-based, vertically integrated additions to our Mountain Region align with our strategy of expanding into mid-sized, higher-growth markets.

“While the first quarter is seasonally the lightest activity period of the year, we enter the 2026 construction season with momentum, including record first quarter backlog of $1.2 billion,” Gray said. “With strong underlying demand, our recent acquisitions, and continued focus on price optimization and cost controls — including mitigating energy costs with our established operational practices — we expect to deliver profitable growth for our shareholders this year and beyond.”

Knife River expects full-year 2026 financial results in the ranges noted in the following table.

2026 Financial Guidance

Low

High

(In millions)

Revenue

$

3,300.0

$

3,500.0

Adjusted EBITDA

$

520.0

$

560.0

The company further expects:

Aggregates volumes and pricing to increase mid-single digits. Ready-mix volumes to increase mid-teens. Asphalt volumes to increase mid-single digits. Financial results for Energy Services expected to be broadly in line with full-year 2025 results. Depreciation, depletion and amortization to increase mid-single digits. The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions.

REPORTING SEGMENT PERFORMANCE

West

Alaska, California, Hawaii, Oregon, Washington

Three Months Ended

March 31,

2026

2025

% Change

(In millions)

Revenue

$

211.8

$

208.3

2

%

EBITDA

$

22.2

$

24.9

(11

)%

EBITDA margin

10.5

%

12.0

%

First quarter revenue increased 2% year-over-year, driven primarily by higher private market demand and project timing, which resulted in increased material volumes. EBITDA decreased 11% compared to the prior year, primarily due to the absence of a one-time gain of $3.5 million related to an acquisition recognized as a bargain purchase in the first quarter of 2025, as well as volume declines in Hawaii following significant flooding in the state.

Mountain

Idaho, Montana, Utah, Wyoming

Three Months Ended

March 31,

2026

2025

% Change

(In millions)

Revenue

$

81.2

$

66.0

23

%

EBITDA

$

(8.2

)

$

(16.3

)

49

%

EBITDA margin

(10.1

)%

(24.6

)%

First quarter revenue increased 23% from the prior year, largely driven by increased ready-mix, aggregate and asphalt volumes and pricing. In addition, contracting services increased due to favorable weather that enabled execution on record backlog, along with contributions from acquisitions during the first quarter of 2026. EBITDA improved 49%, primarily driven by more aggregate and ready-mix volume, pricing and lower cost per unit.

Central

Iowa, Minnesota, North Dakota, South Dakota, Texas

Three Months Ended

March 31,

2026

2025

% Change

(In millions)

Revenue

$

101.2

$

67.9

49

%

EBITDA

$

(26.8

)

$

(24.3

)

(10

)%

EBITDA margin

(26.5

)%

(35.8

)%

First quarter revenue increased 49% from the prior year, primarily driven by contributions from acquisitions completed in 2025, including more than doubling ready-mix volumes in Texas. EBITDA decreased 10%, with a majority of the decline being attributed to the two additional months of seasonal losses from the March 2025 purchase of Strata, as anticipated, partially offset by increased ready-mix sales volumes.

Energy Services

California, Iowa, Nebraska, Oregon, South Dakota, Texas, Washington, Wyoming

Three Months Ended

March 31,

2026

2025

% Change

(In millions)

Revenue

$

20.4

$

13.9

47

%

EBITDA

$

(4.6

)

$

(7.8

)

41

%

EBITDA margin

(22.6

)%

(56.0

)%

First quarter revenue increased 47% from the prior year, driven by higher sales volumes primarily related to favorable weather. EBITDA improved $3.2 million, largely because of the increased sales volumes, as well as lower railcar maintenance expenses compared to prior year.

The company is committed to disciplined capital allocation, including reinvesting to maintain fixed assets, improve operations and grow the business.

The company currently estimates total 2026 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue. For the three months ending March 31, 2026, the company spent $42.3 million, largely on the replacement of construction equipment and plant improvements.

Additionally, for the three months ended March 31, 2026, the company spent $209.2 million on growth initiatives, which was comprised of $174.2 million on acquisitions and $35.0 million on aggregate expansions and greenfield projects. For the remainder of 2026, the company expects to spend $101.4 million on organic growth projects. Capital expenditures for future acquisitions and new growth opportunities would be incremental to the outlined capital program. It is anticipated that capital expenditures for the remainder of 2026 will be funded by various sources, including cash from operations and debt.

As of March 31, 2026, Knife River had $13.4 million of unrestricted cash and cash equivalents, $1.4 billion of gross debt and $178.2 million of available capacity under its revolving credit facility, net of outstanding letters of credit. Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 2.9x at March 31, 2026.

Knife River will host a conference call at 11 a.m. EDT on May 5 to discuss first quarter results and conduct a question-and-answer session. The event will be webcast at https://events.q4inc.com/attendee/317415196.

To participate in the live call:

Domestic: 1-800-715-9871 International: 1-646-307-1963 Conference ID: 9769431 Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.

Knife River Corporation

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

March 31,

2026

2025

(In millions, except per share amounts)

Revenue:

Construction materials

$

262.3

$

213.4

Contracting services

147.8

140.1

Total revenue

410.1

353.5

Cost of revenue:

Construction materials

272.9

233.8

Contracting services

140.0

129.3

Total cost of revenue

412.9

363.1

Gross loss

(2.8

)

(9.6

)

Selling, general and administrative expenses

83.5

73.1

Operating loss

(86.3

)

(82.7

)

Interest expense

20.7

15.3

Other (expense) income

(0.6

)

4.6

Loss before income taxes

(107.6

)

(93.4

)

Income tax benefit

(28.4

)

(24.7

)

Net loss

$

(79.2

)

$

(68.7

)

Net loss per share:

Basic

$

(1.40

)

$

(1.21

)

Diluted

$

(1.40

)

$

(1.21

)

Weighted average common shares outstanding:

Basic

56.7

56.6

Diluted

56.7

56.6

Knife River Corporation

Consolidated Balance Sheets

(Unaudited)

March 31, 2026

March 31, 2025

December 31, 2025

(In millions, except shares and per share amounts)

Assets

Current assets:

Cash, cash equivalents and restricted cash

$

75.5

$

138.5

$

123.4

Receivables, net

227.3

238.0

278.1

Contract assets

77.2

28.5

77.5

Inventories

480.5

467.1

435.7

Prepayments and other current assets

81.8

74.6

46.2

Total current assets

942.3

946.7

960.9

Noncurrent assets:

Net property, plant and equipment

2,158.4

1,743.5

2,028.9

Goodwill

573.1

449.6

519.7

Other intangible assets, net

38.2

42.0

32.7

Operating lease right-of-use assets

49.6

46.5

52.6

Investments and other

56.3

52.4

55.3

Total noncurrent assets

2,875.6

2,334.0

2,689.2

Total assets

$

3,817.9

$

3,280.7

$

3,650.1

Liabilities and Stockholders' Equity

Current liabilities:

Long-term debt - current portion

$

11.7

$

11.8

$

11.7

Accounts payable

131.4

112.0

145.6

Contract liabilities

30.3

42.0

33.8

Accrued compensation

23.1

19.0

44.3

Current operating lease liabilities

15.6

13.4

15.9

Other taxes payable

14.3

14.2

11.3

Accrued interest

16.2

15.9

7.3

Other accrued liabilities

109.7

93.7

108.1

Total current liabilities

352.3

322.0

378.0

Noncurrent liabilities:

Long-term debt

1,421.6

1,160.4

1,153.8

Deferred income taxes

292.3

221.6

287.9

Noncurrent operating lease liabilities

34.0

33.1

36.7

Other

158.3

136.0

152.8

Total liabilities

2,258.5

1,873.1

2,009.2

Commitments and contingencies

Stockholders' equity:

Common stock, 300,000,000 shares authorized, $0.01 par value, 57,184,991 shares issued and 56,753,855 shares outstanding at March 31, 2026; 57,083,497 shares issued and 56,652,361 shares outstanding at March 31, 2025; 57,095,301 shares issued and 56,664,165 shares outstanding at December 31, 2025

0.6

0.6

0.6

Other paid-in capital

627.1

621.0

629.6

Retained earnings

945.4

798.8

1,024.6

Treasury stock held at cost - 431,136 shares

(3.6

)

(3.6

)

(3.6

)

Accumulated other comprehensive loss

(10.1

)

(9.2

)

(10.3

)

Total stockholders' equity

1,559.4

1,407.6

1,640.9

Total liabilities and stockholders' equity

$

3,817.9

$

3,280.7

$

3,650.1

Knife River Corporation

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

March 31,

2026

2025

(In millions)

Operating activities:

Net loss

$

(79.2

)

$

(68.7

)

Adjustments to reconcile net income to net cash provided by operating activities

51.8

38.2

Changes in current assets and liabilities, net of acquisitions:

Receivables

52.5

41.1

Inventories

(41.1

)

(50.4

)

Other current assets

(33.5

)

(35.5

)

Accounts payable

(5.3

)

(12.8

)

Other current liabilities

(8.5

)

(40.3

)

Pension and postretirement benefit plan contributions

(0.1

)

(0.1

)

Other noncurrent changes

4.8

3.2

Net cash used in operating activities

(58.6

)

(125.3

)

Investing activities:

Capital expenditures

(77.3

)

(75.0

)

Acquisitions, net of cash acquired

(174.2

)

(443.4

)

Net proceeds from sale or disposition of property and other

3.1

17.5

Investments

(2.6

)

(2.7

)

Net cash used in investing activities

(251.0

)

(503.6

)

Financing activities:

Issuance of long-term debt

270.0

500.0

Repayment of long-term debt

(2.9

)

—

Debt issuance costs

—

(11.1

)

Tax withholding on stock-based compensation

(5.4

)

(2.6

)

Net cash provided by financing activities

261.7

486.3

Decrease in cash, cash equivalents and restricted cash

(47.9

)

(142.6

)

Cash, cash equivalents and restricted cash -- beginning of year

123.4

281.1

Cash, cash equivalents and restricted cash -- end of period

$

75.5

$

138.5

Segment Financial Data and Highlights (Unaudited)

  Three Months Ended

March 31,

2026

2025

Dollars

Margin

Dollars

Margin

(Dollars in millions)

Revenues by segment:

West

$

211.8

$

208.3

Mountain

81.2

66.0

Central

101.2

67.9

Energy Services

20.4

13.9

Total segment revenues

414.6

356.1

Corporate Services and Eliminations

(4.5

)

(2.6

)

Consolidated revenues

$

410.1

$

353.5

EBITDA by segment:

West

$

22.2

10.5

%

$

24.9

12.0

%

Mountain

(8.2

)

(10.1

)%

(16.3

)

(24.6

)%

Central

(26.8

)

(26.5

)%

(24.3

)

(35.8

)%

Energy Services

(4.6

)

(22.6

)%

(7.8

)

(56.0

)%

Total segment EBITDA (a)

(17.4

)

(4.2

)%

(23.5

)

(6.6

)%

Corporate Services and Eliminations (b)

(18.0

)

N.M.

(18.0

)

N.M.

Consolidated EBITDA (a)

$

(35.4

)

(8.6

)%

$

(41.5

)

(11.7

)%

The following table summarizes backlog for the company.

March 31, 2026

March 31, 2025

(In millions)

West

$

180.3

$

242.1

Mountain

500.4

418.3

Central

488.1

278.3

$

1,168.8

$

938.7

Margins on backlog at March 31, 2026, are expected to be lower than the margins on backlog at March 31, 2025. Approximately 88% of the company's contracting services backlog relates to publicly funded projects, including street and highway construction projects. Period over period increases or decreases should not be used as an indicator of future revenues or earnings.

Three Months Ended

March 31,

2026

2025

Sales (thousands):

Aggregates (tons)

4,878

3,867

Ready-mix concrete (cubic yards)

724

544

Asphalt (tons)

283

199

Average selling price:*

Aggregates (per ton)

$

21.22

$

21.05

Ready-mix concrete (per cubic yard)

$

199.76

$

199.26

Asphalt (per ton)

$

74.06

$

81.05

* The average selling price includes freight and delivery and other revenues.

Three Months Ended

March 31,

2026

2025

Dollars

Margin

Dollars

Margin

(Dollars in millions)

Revenues by product line:

Aggregates

$

103.5

$

81.4

Ready-mix concrete

144.5

108.5

Asphalt

21.0

16.1

Liquid asphalt

18.2

12.2

Other*

46.6

43.5

Contracting services

147.8

140.1

Internal sales

(71.5

)

(48.3

)

Total revenues

$

410.1

$

353.5

Gross profit (loss) by product line:

Aggregates

$

(3.7

)

(3.5

)%

$

(6.0

)

(7.4

)%

Ready-mix concrete

15.5

10.7

%

8.7

8.1

%

Asphalt

(4.9

)

(23.6

)%

(5.7

)

(35.4

)%

Liquid asphalt

(2.7

)

(15.0

)%

(4.2

)

(34.3

)%

Other*

(14.8

)

(31.8

)%

(13.2

)

(30.3

)%

Contracting services

7.8

5.3

%

10.8

7.7

%

Total gross loss

$

(2.8

)

(0.7

)%

$

(9.6

)

(2.7

)%

* Other includes cement, merchandise, fabric and spreading, and other products and services that individually are not considered to be a core line of business.

NON-GAAP FINANCIAL MEASURES

EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric.

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding unrealized gains and losses on benefit plan investments, stock-based compensation, and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting, as they are considered non-cash and not part of our core operations. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations.

EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names.

The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations.

The following table provides the reconciliation of net loss to EBITDA and Adjusted EBITDA.

Three Months Ended

March 31,

2026

2025

(In millions)

Net loss

$

(79.2

)

$

(68.7

)

Depreciation, depletion and amortization

52.2

38.8

Interest expense, net

20.0

13.1

Income taxes

(28.4

)

(24.7

)

EBITDA

$

(35.4

)

$

(41.5

)

Unrealized (gains) losses on benefit plan investments

0.7

0.7

Stock-based compensation expense

2.9

2.8

Adjusted EBITDA

$

(31.8

)

$

(38.0

)

Revenue

$

410.1

$

353.5

Net loss margin

(19.3

)%

(19.4

)%

EBITDA margin

(8.6

)%

(11.7

)%

Adjusted EBITDA margin

(7.8

)%

(10.7

)%

The following table provides the reconciliation of consolidated net loss to total segment EBITDA.

Three Months Ended

March 31,

2026

2025

(In millions)

Net loss

$

(79.2

)

$

(68.7

)

Depreciation, depletion and amortization

52.2

38.8

Interest expense, net

20.0

13.1

Income taxes

(28.4

)

(24.7

)

EBITDA

$

(35.4

)

$

(41.5

)

Less corporate services EBITDA

(18.0

)

(18.0

)

Total segment EBITDA

$

(17.4

)

$

(23.5

)

The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

Twelve Months Ended

March 31, 2026

Three Months Ended March 31, 2026

Twelve Months Ended December 31, 2025

Three Months Ended March 31, 2025

(In millions)

Net income (loss)

$

146.6

$

(79.2

)

$

157.1

$

(68.7

)

Depreciation, depletion and amortization

207.1

52.2

193.7

38.8

Interest expense, net

84.3

20.0

77.4

13.1

Income taxes

52.4

(28.4

)

56.1

(24.7

)

EBITDA

$

490.4

$

(35.4

)

$

484.3

$

(41.5

)

Unrealized (gains) losses on benefit plan investments

(2.9

)

0.7

(2.9

)

0.7

Stock-based compensation expense

11.5

2.9

11.4

2.8

Impact of selling acquired inventory after markup to fair value as part of acquisition accounting

3.7

—

3.7

—

Adjusted EBITDA

$

502.7

$

(31.8

)

$

496.5

$

(38.0

)

The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

Twelve Months Ended

March 31, 2026

(In millions)

Long-term debt

$

1,421.6

Long-term debt - current portion

11.7

Total debt

1,433.3

Add: Unamortized debt issuance costs

14.9

Total debt, gross

1,448.2

Less: Cash and cash equivalents, excluding restricted cash

13.3

Total debt, net

$

1,434.9

Trailing-twelve-months ended March 31, 2026, Adjusted EBITDA

$

502.7

Net leverage

2.9

x

Knife River’s projections for 2026 Adjusted EBITDA, 2026 Adjusted EBITDA margin and long-term net leverage target are non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from Knife River’s financial statements. When the company provides its forward-looking 2026 Adjusted EBITDA, 2026 Adjusted EBITDA margin and long-term net leverage target, it does not provide a reconciliation of these non-GAAP financial measures as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, Knife River is unable to provide a reconciliation of these measures without unreasonable efforts.

FORWARD-LOOKING STATEMENTS

The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on reasonable assumptions, there is no assurance the company’s statements with respect to its EDGE strategy, shareholder value creation, financial guidance, expected long-term goals, expected backlog margin, or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission.

Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

Knife River (KNF - Free Report) reported $410.1 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 16%. EPS of -$1.40 for the same period compares to -$1.21 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $386.59 million, representing a surprise of +6.08%. The company delivered an EPS surprise of +1.18%, with the consensus EPS estimate being -$1.42.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Knife River performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Contracting services: $147.8 million compared to the $146.46 million average estimate based on two analysts.Revenues- Aggregates: $103.5 million versus $91.66 million estimated by two analysts on average.Revenues- Internal sales: $-71.5 million compared to the $-52.1 million average estimate based on two analysts.Revenues- Asphalt: $21 million versus $16.65 million estimated by two analysts on average.Revenues- Ready-mix concrete: $144.5 million compared to the $132.96 million average estimate based on two analysts.View all Key Company Metrics for Knife River here>>>

Shares of Knife River have returned +20.7% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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, /PRNewswire/ -- WEC Energy Group Inc. (NYSE: WEC) will issue its 2026 first-quarter earnings news release before the stock market opens Tuesday, May 5. A conference call for investors and security analysts is scheduled for the same day at 1 p.m. Central time.

Detailed financial information will be available on the WEC Energy Group website by 6:30 a.m. Central time May 5.

To listen to webcast

Go to wecenergygroup.com. Under 'Webcasts,' select 'Q1 Earnings' at any point within 15 minutes of the start of the call. To listen to conference call

Conference ID: 3088105 Live: 888-330-2443. International: 240-789-2728 Replay: 800-770-2030. International: 647-362-9199
(replay available for two weeks following event) WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.8 million customers in Wisconsin, Illinois, Michigan and Minnesota.

The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a fleet of renewable generation facilities in states ranging from South Dakota to Texas.

WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 32,000 stockholders of record, 7,000 employees and more than $51 billion of assets.

SOURCE WEC Energy Group

Key Takeaways D is expected to report Q1 EPS of 89 cents and revenues of $4.25 billion on May 1. Dominion Energy may benefit from Virginia data center demand and new rate implementation. D's offshore wind output and grid investments may aid earnings despite higher expenses. Dominion Energy (D - Free Report) is scheduled to release first-quarter 2026 results on May 1, before the market opens. The company delivered an earnings surprise of 6.25% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Dominion’s Q1 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at 89 cents per share, indicating a year-over-year decline of 4.3%.

The Zacks Consensus Estimate for revenues is pinned at $4.25 billion, reflecting a 4.3% improvement year over year.

Factors Likely to Have Influenced D’s Q1 EarningsDominion Energy’s first quarter is likely to have benefited from a rise in load growth, supported by strong electricity demand from large-scale data center expansion in Virginia. This is likely to have boosted the revenues and supported earnings.

Dominion Energy is also likely to have benefited from new rate implementation in its service region and an increase in electric demand driven by an expanding customer base. The first power offshore wind project is expected to have been delivered to the grid during the first-quarter, which is likely to have a positive impact on the company’s earnings.

The company is making strategic investments in expanding renewable energy, regulated assets, and upgrading and maintaining its transmission and distribution infrastructure. This is likely to have enhanced operational efficiency and service reliability, acting as an earnings tailwind.

However, return to normal weather, rise in financing expenses, operation and maintenance expenses, and share dilution might have weighed on some positives.

What Our Quantitative Model Says About DOur proven model predicts an earnings beat for Dominion Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is +1.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Dominion Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dominion Energy Inc. Price and EPS SurpriseInvestors may consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.

WEC Energy Group (WEC - Free Report) is likely to come up with earnings beat when it reports first-quarter results on May 5. It has an Earnings ESP of +0.54% and a Zacks Rank #3 at present.

WEC’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.31, which implies a year-over-year increase of 1.76%.

Ameren Corporation (AEE - Free Report) is set to report first-quarter results on May 6 and is likely to have come up with an earnings beat. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.17, which implies a year-over-year increase of 9.35%.

NiSource Inc. (NI - Free Report) is scheduled to report first-quarter results on May 6 and is likely to have come up with an earnings beat. It has an Earnings ESP of +2.34% and a Zacks Rank #3 at present.

NI’s long-term earnings growth rate is 6.11%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.03, which implies a year-over-year increase of 5.10%.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider WEC Energy Group (WEC - Free Report) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.

This electricity and natural gas provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.98%.

For the most recent quarter, WEC Energy was expected to post earnings of $1.38 per share, but it reported $1.42 per share instead, representing a surprise of 2.90%. For the previous quarter, the consensus estimate was $0.79 per share, while it actually produced $0.83 per share, a surprise of 5.06%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for WEC Energy. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

WEC Energy currently has an Earnings ESP of +0.54%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 5, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

WEC Energy Group (WEC - Free Report) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.27 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +5.30%. A quarter ago, it was expected that this electricity and natural gas provider would post earnings of $1.38 per share when it actually produced earnings of $1.42, delivering a surprise of +2.9%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

WEC Energy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $3.43 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.00%. This compares to year-ago revenues of $3.15 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

WEC Energy shares have added about 10.4% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for WEC Energy?While WEC Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for WEC Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.84 on $2.05 billion in revenues for the coming quarter and $5.60 on $10.31 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, PPL (PPL - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 8.

This energy and utility holding company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +1.7%. The consensus EPS estimate for the quarter has been revised 2.8% lower over the last 30 days to the current level.

PPL's revenues are expected to be $2.62 billion, up 4.7% from the year-ago quarter.

Electrical transmission towers, poles and lines are shown in the early morning of a hot summer day in Commerce, California, U.S, August 7, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab

May 5 (Reuters) - Utility firm WEC Energy (WEC.N), opens new tab reported a rise in first-quarter profit on Tuesday, supported ​by higher sales of power to residential and industrial customers, ‌and said it was working with large hyperscale clients to serve potential load growth of up to 4 gigawatts.

U.S. power consumption is expected to rise further this year, after ​hitting its second straight annual record high in 2025, driven mainly by Big ​Techs' race to build energy-intensive data centers to support AI ⁠initiatives, and homes and businesses increasingly using electricity for heat and transportation.

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WEC ​said on a post-earnings call it had received regulatory approval to buy ​three more solar projects and a battery storage project, with plans to invest $730 million.

Electricity usage from large commercial and industrial customers rose 2.7% during the quarter, while consumption among ​small commercial and industrial customers increased 0.7%, the company said.

Residential electricity usage ​edged up 0.2% from a year earlier, lifting total retail electricity deliveries by 1.3%, ‌excluding ⁠sales to an iron ore mine.

WEC, which serves nearly 4.7 million electric and natural gas customers across Wisconsin, Illinois, Michigan and Minnesota, said natural gas deliveries in Wisconsin fell 2.1% in the first quarter.

The company provides natural ​gas through its We ​Power and Wisconsin ⁠Public Service units.

"The continued execution of our capital plan and focus on operating efficiencies led to solid first-quarter ​results," said CEO Scott Lauber.

WEC had said in February it ​would raise ⁠capital spending by $1 billion over the next five years as it increases output to power Microsoft (MSFT.O), opens new tab data centers.

The company also expects to add incremental capital spending ⁠to ​its plan in the third quarter.

The company's quarterly ​net income rose to $804.4 million, or $2.45 per share, from $724.2 million, or $2.27 per share, a year ​ago.

Reporting by Dharna Bafna in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways WEC posted Q1 EPS of $2.45, beating estimates and rising 7.9% from the prior-year quarter. WEC revenue rose 9% year over year to $3.43B, driven by higher electricity consumption.WEC plans $37.5B in investments through 2030 to support long-term EPS growth of 7-8%. WEC Energy Group (WEC - Free Report) reported first-quarter 2026 earnings of $2.45 per share, which surpassed the Zacks Consensus Estimate of $2.33 by 5.15%. The bottom line also increased 7.93% from the year-ago quarter’s $2.27.

WEC’s RevenuesOperating revenues of $3.43 billion surpassed the Zacks Consensus Estimate of $3.21 billion by around 6.98%. The top line also increased 9.02% from $3.15 billion recorded in the year-ago quarter.

Highlights of WEC’s Earnings ReleaseIn the first quarter of 2026, electricity consumption increased 0.7% for small commercial and industrial customers, 2.7% for large commercial and industrial customers, excluding the iron-ore mine, and 0.2% for residential customers.

On a weather-normal basis, retail deliveries of electricity, excluding the iron-ore mine, increased 1.3%.

Total operating expenses were $2.45 billion, up 10.95% from the year-ago level of $2.21 billion, primarily due to higher cost of sales.

Operating income totaled $980 million, up 4.53% from $937.5 million recorded in the year-ago quarter.

The company incurred an interest expense of $228.5 million, up 2.47% from the prior-year level of $223 million.

WEC’s Financial PositionAs of March 31, 2026, WEC had cash and cash equivalents of $45.6 million compared with $27.6 million as of Dec. 31, 2025.

As of March 31, 2026, the company had a long-term debt of $19.38 billion compared with $18.50 billion as of Dec. 31, 2025.

Net cash provided by operating activities during the first three months of 2026 was $1.22 billion compared with $1.16 billion in the year-ago period.

WEC’s GuidanceWEC reaffirmed its 2026 earnings outlook of $5.51-$5.61 per share. The Zacks Consensus Estimate is pegged at $5.60, which lies at the higher end of the company’s projected range.

The company plans to invest a total of $7.4 billion in modern, efficient natural gas generation and LNG storage, and $12.6 billion to add 6,535 megawatts in renewable energy over the 2026-2030 period.

WEC Energy expects to invest $37.5 billion during the 2026-2030 period, which supports 7-8% long-term EPS growth. The company plans to invest $5.67 billion in 2026.

WEC’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utilities ReleasesAlgonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.

PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.

Global Water Resources, Inc. (GWRS - Free Report) is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.

WEC Energy Group, Inc. (WEC) Shareholder/Analyst Call Transcript

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The VictoryShares US Large Cap High Div Volatility Wtd ETF (NASDAQ:CDL) pulls its distribution from dividends paid by large U.S. companies that have screened in for both yield and lower realized volatility. CDL is volatility weighted rather than market-cap weighted (the index methodology pushes back against market-cap concentration risk), which means a handful of regulated utilities and a couple of mega-cap tech names tend to anchor the portfolio. The question for income investors is straightforward: are those underlying dividends durable, or is CDL’s payout at risk?

How CDL produces its yield CDL collects cash dividends from its roughly 100 large-cap holdings and passes them through to shareholders. There are no options premiums, no leverage, and no synthetic income at work. The distribution rises or falls based on what the underlying companies pay. Fund-level details such as the current 30-day SEC yield and expense ratio were not retrievable in our data pull, so this safety read focuses on the dividend health of the listed anchors.

The utility core does the heavy lifting WEC Energy Group (NYSE:WEC | WEC Price Prediction) raised its quarterly payout 6.7% to $0.9525, extending a 23rd consecutive year of increases on a 3.3% yield. With $3.38 billion in 2025 operating cash flow and 2026 EPS guidance of $5.51 to $5.61, coverage is comfortable. The Illinois $205 million pre-tax regulatory charge is a one-time pressure point, not a structural threat to the payout.

Duke Energy (NYSE:DUK) earned $6.31 in adjusted EPS for 2025 against a $4.24 annual dividend, leaving payout coverage near 2x. The $103 billion five-year capital plan and contracted AI demand support 5% to 7% EPS growth through 2030, which translates into a clear runway for continued dividend hikes.

FirstEnergy (NYSE:FE) lifted its quarterly dividend 4.5% to $0.465, a 68% payout ratio at the midpoint of 2026 guidance that sits squarely inside the company’s 60% to 70% target band. Alliant Energy and Evergy round out the regulated cohort with quarterly payouts of $0.535 and $0.695 respectively, both stepping up off long-term growth plans tied to data center electricity contracts. The common thread: regulated rate bases, formula-rate recovery mechanisms, and contracted demand growth that make these dividends among the most predictable income streams in the large-cap universe.

The mega-cap tech anomaly For a fund branded around high dividends, the inclusion of Microsoft at a 0.9% yield and Apple at 0.4% looks counterintuitive. Both qualify because they pay growing dividends with extreme coverage. Microsoft stepped its quarterly payout from $0.83 to $0.91 in late 2025, and Apple lifted to $0.27 alongside a $100 billion buyback authorization. These positions add minimal yield but anchor the portfolio with fortress balance sheets.

Total return and rate-environment context CDL has returned 19% over the past year and 11% year to date, so the income is arriving alongside capital appreciation rather than NAV erosion. The 10-year Treasury near 4.4% creates competition for utility yields and pressures valuations, which is the single biggest macro risk to the underlying holdings.

Verdict on the distribution CDL’s payout looks durable. Five regulated utilities with multi-decade dividend records and contracted data-center growth provide the income spine. Microsoft and Apple add ballast without subtracting much from coverage. Investors should size CDL as a steady-income sleeve rather than a high-yield vehicle. Income seekers targeting a 6%-plus yield will find CDL’s headline number trails covered-call alternatives. For an investor wanting reliable, growing dividends from large U.S. names without single-stock concentration, the safety read here is reassuring.

A month has gone by since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have lost about 3.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is WEC Energy due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for WEC Energy Group, Inc. before we dive into how investors and analysts have reacted as of late.

WEC Energy Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

WEC Energy Group reported first-quarter 2026 earnings of $2.45 per share, which surpassed the Zacks Consensus Estimate of $2.33 by 5.15%. The bottom line also increased 7.93% from the year-ago quarter’s $2.27.

WEC’s RevenuesOperating revenues of $3.43 billion surpassed the Zacks Consensus Estimate of $3.21 billion by around 6.98%. The top line also increased 9.02% from $3.15 billion recorded in the year-ago quarter.

Highlights of WEC’s Earnings ReleaseIn the first quarter of 2026, electricity consumption increased 0.7% for small commercial and industrial customers, 2.7% for large commercial and industrial customers, excluding the iron-ore mine, and 0.2% for residential customers.

On a weather-normal basis, retail deliveries of electricity, excluding the iron-ore mine, increased 1.3%.

Total operating expenses were $2.45 billion, up 10.95% from the year-ago level of $2.21 billion, primarily due to higher cost of sales.

Operating income totaled $980 million, up 4.53% from $937.5 million recorded in the year-ago quarter.

The company incurred an interest expense of $228.5 million, up 2.47% from the prior-year level of $223 million.

WEC’s Financial PositionAs of March 31, 2026, WEC had cash and cash equivalents of $45.6 million compared with $27.6 million as of Dec. 31, 2025.

As of March 31, 2026, the company had a long-term debt of $19.38 billion compared with $18.50 billion as of Dec. 31, 2025.

Net cash provided by operating activities during the first three months of 2026 was $1.22 billion compared with $1.16 billion in the year-ago period.

WEC’s GuidanceWEC reaffirmed its 2026 earnings outlook of $5.51-$5.61 per share. The Zacks Consensus Estimate is pegged at $5.60, which lies at the higher end of the company’s projected range.

The company plans to invest a total of $7.4 billion in modern, efficient natural gas generation and LNG storage, and $12.6 billion to add 6,535 megawatts in renewable energy over the 2026-2030 period.

WEC Energy expects to invest $37.5 billion during the 2026-2030 period, which supports 7-8% long-term EPS growth. The company plans to invest $5.67 billion in 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, WEC Energy has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise WEC Energy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerWEC Energy is part of the Zacks Utility - Electric Power industry. Over the past month, Dominion Energy (D - Free Report) , a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Dominion Energy reported revenues of $5.02 billion in the last reported quarter, representing a year-over-year change of +23.1%. EPS of $0.95 for the same period compares with $0.93 a year ago.

Dominion Energy is expected to post earnings of $0.82 per share for the current quarter, representing a year-over-year change of +9.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Dominion Energy. Also, the stock has a VGM Score of D.

Posted by Defense World Staff on Apr 6th, 2026

SG Americas Securities LLC boosted its stake in shares of Brink’s Company (The) (NYSE:BCO – Free Report) by 176.8% during the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 15,925 shares of the business services provider’s stock after buying an additional 10,172 shares during the period. SG Americas Securities LLC’s holdings in Brink’s were worth $1,859,000 as of its most recent filing with the SEC.

Other institutional investors also recently modified their holdings of the company. Jackson Creek Investment Advisors LLC acquired a new stake in Brink’s in the 3rd quarter valued at approximately $2,332,000. JPMorgan Chase & Co. boosted its position in Brink’s by 34.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 206,737 shares of the business services provider’s stock worth $24,159,000 after acquiring an additional 52,444 shares during the last quarter. LSV Asset Management grew its stake in shares of Brink’s by 16.3% during the 3rd quarter. LSV Asset Management now owns 1,256,385 shares of the business services provider’s stock worth $146,821,000 after acquiring an additional 175,773 shares in the last quarter. Barclays PLC grew its stake in shares of Brink’s by 78.2% during the 3rd quarter. Barclays PLC now owns 370,700 shares of the business services provider’s stock worth $43,320,000 after acquiring an additional 162,677 shares in the last quarter. Finally, Algert Global LLC increased its stake in Brink’s by 382.8% in the 3rd quarter. Algert Global LLC now owns 172,880 shares of the business services provider’s stock valued at $20,203,000 after buying an additional 137,069 shares during the last quarter. 94.96% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets Several brokerages recently commented on BCO. The Goldman Sachs Group increased their price target on Brink’s from $129.00 to $145.00 and gave the company a “buy” rating in a research report on Monday, March 2nd. Truist Financial lifted their price objective on shares of Brink’s from $138.00 to $163.00 and gave the stock a “buy” rating in a research report on Tuesday, February 10th. Finally, Wall Street Zen upgraded shares of Brink’s from a “buy” rating to a “strong-buy” rating in a research report on Sunday, March 15th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $154.00.

Check Out Our Latest Research Report on BCO

Brink’s Price Performance Shares of NYSE:BCO opened at $103.40 on Monday. The firm has a 50 day moving average of $118.23 and a 200-day moving average of $116.85. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 9.35. Brink’s Company has a 12 month low of $80.10 and a 12 month high of $136.37. The stock has a market capitalization of $4.25 billion, a PE ratio of 22.05 and a beta of 1.12.

Brink’s (NYSE:BCO – Get Free Report) last issued its earnings results on Thursday, February 26th. The business services provider reported $2.54 earnings per share for the quarter, beating analysts’ consensus estimates of $2.47 by $0.07. Brink’s had a return on equity of 89.90% and a net margin of 3.80%.The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter last year, the business posted $2.12 EPS. The company’s revenue was up 9.1% compared to the same quarter last year. On average, equities research analysts predict that Brink’s Company will post 6.49 EPS for the current fiscal year.

Brink’s Announces Dividend The business also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Monday, February 2nd were issued a $0.255 dividend. The ex-dividend date of this dividend was Monday, February 2nd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 1.0%. Brink’s’s dividend payout ratio is 21.75%.

Brink’s declared that its board has initiated a share buyback program on Thursday, December 11th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the business services provider to repurchase up to 15.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Brink’s Profile (Free Report)

The Brink’s Company (NYSE: BCO) is a global leader in secure logistics and cash management solutions. The company provides a comprehensive suite of services that span armored transportation, cash-in-transit (CIT), ATM services, smart safe solutions, and valuables storage. Through its network of service centers and armored vehicles, Brink’s ensures the safe and efficient movement of currency, precious metals, and other high-value assets for banks, retailers, mints, and government agencies.

Brink’s armored transport operations are complemented by technology-driven cash management offerings, including deposit automation and secure vaulting.

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I reiterate my buy rating on The Brink's Company, driven by accelerating recurring-revenue growth and a compelling valuation at 11x forward PE. AMS/DRS organic growth has reached 22%, now comprising 28% of revenue, with management guiding for a 30-32% mix and mid-to-high teens growth by 2026. The $6.6B NATL acquisition offers a second growth leg, broadening BCO's service offering, targeting $200M in synergies, and is expected to be 35% EPS accretive post-close.

RICHMOND, Va., April 15, 2026 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services, will host a conference call on Wednesday, May 6, at 9:00 a.m. (EDT) to review first-quarter 2026 financial results, which will be released earlier that morning.

The conference call can be accessed by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants should join at least five minutes prior to the start of the call.

Participants can pre-register at https://dpregister.com/sreg/10208418/103d8e3323a to receive a direct dial-in number for the call. The call also will be accessible via live webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=WtFtsDVo.

A replay of the call will be available through May 13, 2026 at (855) 669-9658 (in the U.S.) or (412) 317-0088 (international). The conference number is 5852169. A webcast replay will also be available on the Brink’s Investor Relations site in the Events section.

About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 51 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com or call 804-289-9709.

Contact:
Investor Relations
804.289.9709

MasterCard (MA - Free Report) came out with quarterly earnings of $4.6 per share, beating the Zacks Consensus Estimate of $4.4 per share. This compares to earnings of $3.73 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.56%. A quarter ago, it was expected that this processor of debit and credit card payments would post earnings of $4.2 per share when it actually produced earnings of $4.76, delivering a surprise of +13.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

MasterCard, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $8.4 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $7.25 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

MasterCard shares have lost about 8% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for MasterCard?While MasterCard has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for MasterCard was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.83 on $9.12 billion in revenues for the coming quarter and $19.52 on $36.96 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Brink's (BCO - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This armored car company is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +3.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Brink's' revenues are expected to be $1.36 billion, up 9.3% from the year-ago quarter.

Revenue growth of 10% with 4.5% organic growth and 15% AMS/DRS organic growth
Cash flows provided by operating activities increased $89M and free cash flow was up $66M
NCR Atleos acquisition remains on track to close by the end of the first quarter of 2027

RICHMOND, Va., May 06, 2026 (GLOBE NEWSWIRE) -- The Brink’s Company (NYSE:BCO), a leading global provider of cash and valuables management, digital retail solutions ("DRS"), and ATM managed services ("AMS"), today announced first-quarter results.

Mark Eubanks, president and CEO, said: “We delivered a strong first quarter, as we continue to make progress against our strategic priorities. Double-digit top-line growth featured strong performance in the higher-margin AMS, DRS and global services lines of business. Favorable revenue mix, good pricing discipline, and continued cost productivity drove EBITDA margin expansion in the quarter. We continue to deliver sustainable improvements in cash generation with trailing-twelve-month free cash flow surpassing $500 million in the quarter for the first time in our history."

"With the registration statement filed last week, we continue to make progress on our acquisition of NCR Atleos. We have a dedicated integration management team that is working to plan and prepare for execution on our $200M annual run-rate cost synergy targets and will eventually lead the synergy capture and integration in the combined company. The regulatory approval process is well underway and progressing as expected. We remain on track for closing by the end of the first quarter of 2027 and are excited about the value creation potential of the combination."

First-quarter results are summarized in the following table:

(In millions, except for per share amounts)First-Quarter 2026 (vs. 2025) GAAP Change Non-GAAP Change Constant Currency Change(b)Revenue$1,375  10% $1,375  10% 5%Operating Profit$110  (7)% $168  12% 7%Operating Profit Margin 8.0% (160 bps)  12.2% 10 bps  30 bps Net Income / Adjusted EBITDA(a)$32  (38%) $238  10% 6%EPS$0.77  (35%) $1.80  11% 4% (a) The non-GAAP financial metric, adjusted EBITDA, is presented with its corresponding GAAP metric, net income attributable to Brink's.
(b) Constant currency represents 2026 Non-GAAP results at 2025 exchange rates.

2026 Non-GAAP Framework and Q2 2026 Non-GAAP Guidance (Unaudited)
(In millions, except for percentages and per share amounts)

In 2026, management has included additional guidance to better help investors understand currency impacts on our results. Management believes organic revenue growth, adjusted EBITDA margin expansion and free cash flow conversion performance, provided in our 2026 framework, gives investors better visibility into the performance of our business. In addition to our full-year 2026 framework, we have added quarterly guidance for revenue, adjusted EBITDA and non-GAAP EPS in 2026 to clarify the expected impact of near-term currency trends and volatile economic conditions on our results. When, and if, currency volatility lessens, management may return to the previous annual guidance methodology. Revenue guidance is presented in accordance with GAAP.

 2026 Non-GAAP FrameworkOrganic Revenue GrowthMid-Single Digits  AMS/DRS Organic Revenue GrowthMid-to-High Teens  Adjusted EBITDA Margin Expansion30-50bps  Free Cash Flow Conversion40-45%  Q2 2026
GuidanceRevenue$1,370 - $1,430  Non-GAAP Adjusted EBITDA$245 - $265  Non-GAAP EPS$1.85 - $2.25   The Q2 2026 non-GAAP guidance cannot be reconciled to GAAP without unreasonable effort, as we are unable to accurately forecast certain amounts that are necessary for reconciliation, including the impact of highly inflationary accounting on our Argentina operations, expenses relating to M&A transactions that may or may not occur in the quarter, and other potential non-GAAP adjusting items for which the timing and amounts are uncertain. The Q2 2026 non-GAAP guidance assumes the continuation of current economic trends and reflects management's current assumptions regarding variables that are difficult to accurately forecast, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.

Conference Call
Brink’s will host a conference call on Wednesday, May 6, 2026, at 9:00 a.m. (EDT) to review first-quarter financial results. The conference call can be accessed by calling 888-349-0094 (in the U.S.) or 412-902-0124 (international). Participants should join at least five minutes prior to the start of the call. Participants can pre-register at https://dpregister.com/sreg/10208418/103d8e3323a to receive a direct dial-in number for the call. The call will also be accessible at https://event.choruscall.com/mediaframe/webcast.html?webcastid=WtFtsDVo. A replay of the call will be available through May 13, 2026, at (855) 669-9658 (in the U.S.) or (412) 317-0088 (international). The conference access code is 5852169. An archived version of the webcast will also be available on our website at http://investors.brinks.com.

The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)

Condensed Consolidated Balance Sheets     December 31, 2025 March 31, 2026Assets   Current assets:   Cash and cash equivalents$1,725.9  1,547.3 Restricted cash 541.0  548.2 Accounts receivable, net 766.0  833.3 Prepaid expenses and other 296.1  346.1 Total current assets 3,329.0  3,274.9     Right-of-use assets, net 388.7  392.7 Property and equipment, net 1,130.5  1,116.1 Goodwill 1,515.3  1,508.7 Other intangibles, net 385.2  368.3 Deferred tax assets, net 237.3  240.4 Other 353.2  374.3     Total assets$7,339.2  7,275.4     Liabilities and Equity       Current liabilities:   Short-term borrowings 241.1  229.2 Current maturities of long-term debt 163.1  92.8 Accounts payable 319.3  307.8 Accrued liabilities 1,180.2  1,218.8 Restricted cash held for customers 294.2  290.9 Total current liabilities 2,197.9  2,139.5     Long-term debt 3,810.1  3,833.9 Accrued pension costs 147.8  148.9 Retirement benefits other than pensions 120.4  116.4 Lease liabilities 310.2  310.6 Deferred tax liabilities 66.5  62.6 Other 279.0  270.4 Total liabilities 6,931.9  6,882.3     Equity:   The Brink's Company ("Brink's") shareholders:   Common stock, par value $1 per share:   Shares authorized: 100.0   Shares issued and outstanding: 2026 - 41.2; 2025 - 41.1 41.1  41.2 Capital in excess of par value 632.1  619.4 Retained earnings 270.1  265.6 Accumulated other comprehensive income (loss) (665.6) (664.2)Brink's shareholders 277.7  262.0     Noncontrolling interests 129.6  131.1     Total equity 407.3  393.1     Total liabilities and equity$7,339.2  7,275.4         The Brink’s Company and subsidiaries
(In millions) (Unaudited)

Condensed Consolidated Statements of Cash Flows   Three Months Ended March 31,  2025  2026Cash flows from operating activities:   Net income$53.9  34.8 Adjustments to reconcile net income to net cash provided by (used in) operating activities:   Depreciation and amortization 70.7  79.7 Share-based compensation expense 5.7  7.1 Deferred income taxes 0.3  (8.7)(Gain) loss on marketable securities, sale of property and equipment and derivatives (8.6) 1.6 Impairment losses 1.6  0.5 Retirement benefit funding (more) less than expense:   Pension (1.0) 1.2 Other than pension (4.1) (4.6)Unrealized foreign currency losses 15.6  0.6 Other operating (5.6) 2.0 Changes in operating assets and liabilities, net of effects of acquisitions:   Increase in accounts receivable and income taxes receivable (53.1) (78.1)Increase (decrease) in accounts payable, income taxes payable and accrued liabilities (91.1) 4.4 Increase (decrease) in restricted cash held for customers (45.0) 3.2 Increase in customer obligations 38.9  30.0 Increase in prepaid and other current assets (27.5) (31.1)Other (10.9) (13.9)Net cash provided by (used in) operating activities (60.2) 28.7     Cash flows from investing activities:   Capital expenditures (58.9) (40.1)Acquisitions, net of cash acquired (5.3) — Marketable securities:   Purchases (12.7) (18.8)Sales 14.3  18.4 Cash proceeds from sale of property and equipment 2.6  3.3 Net change in loans held for investment 1.6  1.5 Net change in economic hedges 9.0  (1.2)Other 0.7  0.7 Net cash used in investing activities (48.7) (36.2)    Cash flows from financing activities:   Borrowings (repayments) of debt:   Short-term borrowings (16.5) (11.3)Long-term revolving credit facilities:   Borrowings 3,620.0  4,589.1 Repayments (3,627.0) (4,628.3)Other long-term debt:   Borrowings 8.1  5.6 Repayments (28.4) (27.5)Acquisition of noncontrolling interest (6.6) — Debt financing costs (0.8) (20.6)Repurchase shares of Brink's common stock (44.8) (30.2)Dividends to:   Shareholders of Brink’s (10.4) (10.5)Noncontrolling interests in subsidiaries (0.4) (0.2)Proceeds from exercise of stock options —  0.2 Tax withholdings associated with share-based compensation (17.3) (18.1)Net cash used in financing activities (124.1) (151.8)    Effect of exchange rate changes on cash 32.9  (12.1)Cash, cash equivalents and restricted cash:   Decrease (200.1) (171.4)Balance at beginning of period 1,840.4  2,266.9 Balance at end of period$1,640.3  2,095.5  Supplemental Cash Flow InformationThree Months Ended March 31,  2025  2026Cash paid for income taxes, net$(28.3) (30.4)Cash paid for interest (52.9) (55.9)Proceeds from lessor debt financing 8.1  3.2         The Brink’s Company and subsidiaries
(In millions, except for per share amounts) (Unaudited)

First-Quarter 2026 vs. 2025      Impact of     % Change GAAP  Organic Acquisitions / Currency     Organic  1Q'25 Change(a) Dispositions(b) Effect(c) 1Q'26 Total Growth(a) Revenues:              North America$418  20  — 2  440  5  5  Latin America 308  11  1 24  344  12  4  Europe 319  11  1 35  366  15  3  Rest of World 203  13  — 10  226  12  7  Segment revenues$1,247  56  2 71  1,375  10  4                 Revenues$1,247  56  2 71  1,375  10  4                 Operating profit:              North America$53  8  — —  61  15  15  Latin America 54  1  — 3  57  6  2  Europe 28  8  1 4  40  42  27  Rest of World 47  6  — 2  55  17  13  Segment operating profit 182  22  — 8  213  17  12  Corporate expenses(d) (32) (12) — (2) (45) 41  36  Other items not allocated to segments(d) (32) (30) 3 —  (58) 85  96  Operating profit$119  (19) 4 7  110  (7) (16)                 Amounts may not add due to rounding.

(a) Organic change and organic growth are supplemental financial measures that are not required by, or presented in accordance with, GAAP, and are described in more detail on page 11.
(b) Amounts include the impact of prior year comparable period results for acquired and disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 11.
(c) The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 11.
(d) See pages 9-10 for further information, where these items are discussed in more detail.

About The Brink’s Company
The Brink’s Company (NYSE:BCO) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our network of operations in 51 countries serves customers in more than 100 countries. For more information, please visit our website at www.brinks.com or call 804-289-9709.

Forward-Looking Statements
This release contains forward-looking information. Words such as "anticipate," "assume," "estimate," "expect," “target,” "project," "predict," "intend," "plan," "believe," "potential," "may," "should" and similar expressions may identify forward-looking information. Forward-looking information in this release includes, but is not limited to: statements made in Mr. Eubanks' quote; second quarter 2026 outlook, including revenue, adjusted EBITDA, and non-GAAP earnings per share (and drivers thereof); full-year 2026 guidance framework, including organic revenue growth, AMS/DRS organic revenue growth, adjusted EBITDA margin expansion, free cash flow conversion and shareholder returns (and the drivers thereof); capital allocation priorities; the impact of U.S. and global macroeconomic conditions; the impact of tariffs and foreign inflation; expected impact from deployment of technology-enabled solutions, including AMS and DRS; the effect of pending legal matters, including the Chile antitrust matter; the impacts of the operating environment in Argentina; the proposed acquisition of NCR Atleos, Inc. ("NCR Atleos"), including: the expected timing and conditions to closing (including receipt of regulatory approvals), the anticipated benefits and synergies of the transaction, the expected financing thereof and the related indebtedness expected to be incurred in connection with the transaction and the ability to service and repay such indebtedness, and effectiveness of the registration statement on Form S-4 and the filing of the related joint proxy statement; and strategic priorities and initiatives, including the Brink’s Business System and technology and systems investments.

Forward-looking information in this document is subject to known and unknown risks, uncertainties and contingencies, which are difficult to predict or quantify, and which could cause actual results, performance or achievements to differ materially from those that are anticipated. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to: our ability to improve profitability and execute further cost and operational improvement and efficiencies in our core businesses; our ability to improve service levels and quality in our core businesses; market volatility and commodity price fluctuations; general economic issues, including supply chain disruptions, fuel price increases, new or increased international tariffs and/or trade barriers, inflation, recessionary conditions and changes in interest rates; seasonality, pricing and other competitive industry factors; investment in information technology (“IT”) and its impact on revenue and profit growth; risks associated with the usage of artificial intelligence (“AI”) technologies; our ability to maintain an effective IT infrastructure and safeguard confidential information and risks related to a failure of our IT systems and networks, including cloud-based applications, and risks associated with current and emerging technology threats, and damage from computer viruses, unauthorized access and cyber and ransomware attacks, including increasingly sophisticated cyber attacks incorporating the use of AI and other similar disruptions; our ability to effectively develop and implement solutions for our customers; risks associated with operating in foreign countries, including changing political, labor and economic conditions (including political conflict or unrest), regulatory issues (including the imposition of international sanctions, including by the U.S. government), military conflicts (including but not limited to the conflict in Israel, Iran and surrounding areas, as well as the possible expansion of such conflicts and potential geopolitical consequences), currency restrictions and devaluations, restrictions on and cost of repatriating earnings and capital, impact on the Company’s financial results as a result of jurisdictions' higher-than-expected inflation and those determined to be highly inflationary, and restrictive government actions, including nationalization; labor issues, including labor shortages, negotiations with organized labor and work stoppages; pandemics, acts of terrorism, strikes or other extraordinary events that negatively affect global or regional cash commerce; anticipated cash needs in light of our current liquidity position; the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates; our ability to identify, evaluate and complete acquisitions and other strategic transactions and to successfully integrate acquired companies; risks related to the proposed acquisition of NCR Atleos, including: the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the inability to complete the proposed transaction due to the failure to obtain regulatory or shareholder approval or the failure to satisfy other conditions to closing; risks that the proposed transaction disrupts current plans and operations; the focus of management's time and attention on the transaction and other disruptions arising from the proposed transaction; the ability to recognize the anticipated benefits and synergies of the proposed transaction; the amount of the costs, fees, expenses, and charges related to the proposed transaction and financing obtained in connection with the proposed transaction; the ability to obtain regulatory approvals on the terms expected or anticipated schedule; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of the Company to retain customers, retain and hire key personnel and maintain relationships with suppliers, customers and other business relationships and on operating results and business generally; the risk of litigation and/or regulatory actions related to the proposed transaction; costs related to dispositions and product or market exits; our ability to obtain appropriate insurance coverage, positions taken by insurers relative to claims and the financial condition of insurers; safety and security performance and loss experience; employee, environmental and other liabilities in connection with former coal operations, including black lung claims; the impact of the American Rescue Plan Act and Patient Protection and Affordable Care Act on legacy liabilities and ongoing operations; funding requirements, accounting treatment, and investment performance of our pension plans, the VEBA and other employee benefits; changes to estimated liabilities and assets in actuarial assumptions; the nature of hedging relationships and counterparty risk; access to the capital and credit markets; our ability to realize deferred tax assets; the impact of foreign tax credit regulations; the impact of the One Big Beautiful Bill Act; the outcome of pending and future claims, litigation, and administrative proceedings; our ability to comply with regulatory compliance obligations; public perception of our business, reputation and brand; our ability to identify, recruit and retain key employees; changes in estimates and assumptions underlying our critical accounting policies; and the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations.

This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2025, and in the registration statement on Form S-4 filed in connection with the proposed acquisition of NCR Atleos, and in related disclosures in our other public filings with the Securities and Exchange Commission. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements in this document are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our business or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this document. The forward-looking information included in this document is representative only as of the date of this document and The Brink's Company undertakes no obligation to update, revise or clarify any information contained in this document or forward-looking statements that may be made from time to time on our behalf, whether as a result of new information, future events or otherwise, except as required by law.

The Brink’s Company and subsidiaries
Segment Results: 2025 and 2026 (Unaudited)
(In millions, except for percentages)

 Revenues  2025   2026  1Q 2Q 3Q 4Q Full Year 1QRevenues:           North America$417.6  434.3  434.8  455.9  1,742.6  $439.6 Latin America 307.6  319.4  326.8  335.8  1,289.6   343.8 Europe 319.0  358.0  375.3  377.2  1,429.5   365.9 Rest of World 202.5  188.8  198.1  210.1  799.5   225.8 Segment revenues$1,246.7  1,300.5  1,335.0  1,379.0  5,261.2  $1,375.1              Operating Profit  2025   2026  1Q 2Q 3Q 4Q Full Year 1QOperating profit:           North America$53.1  62.3  56.8  74.5  246.7  $60.9 Latin America 53.9  55.0  65.9  69.1  243.9   57.4 Europe 28.1  42.4  49.9  56.8  177.2   39.9 Rest of World 47.2  38.3  44.1  48.6  178.2   55.0 Segment operating profit 182.3  198.0  216.7  249.0  846.0   213.2 Corporate expenses(a) (31.7) (33.5) (28.5) (42.4) (136.1)  (44.8)Other items not allocated to segments(a)           Reorganization and Restructuring (0.5) (0.2) (0.3) (0.4) (1.4)  — Acquisitions and dispositions (18.5) (25.8) (17.8) (16.4) (78.5)  (15.6)Argentina highly inflationary impact (6.3) 1.9  (4.7) (1.1) (10.2)  0.5 NCR Atleos acquisition and transformation initiatives (5.1) (5.4) (8.1) (7.4) (26.0)  (38.9)Non-routine legal matters —  —  —  —  —   (2.8)DOJ/FinCEN investigations (0.9) (0.9) (3.7) (1.0) (6.5)  (1.2)Chile antitrust matter (0.2) (0.2) (0.2) (0.2) (0.8)  (0.2)Non-routine auto loss matter —  —  (1.0) —  (1.0)  — Operating profit$119.1  133.9  152.4  180.1  585.5  $110.2              Operating Margin Percentage  2025   2026  1Q 2Q 3Q 4Q Full Year 1QOperating margin percentage:           North America 12.7  14.3  13.1  16.3  14.2   13.9 Latin America 17.5  17.2  20.2  20.6  18.9   16.7 Europe 8.8  11.8  13.3  15.1  12.4   10.9 Rest of World 23.3  20.3  22.3  23.1  22.3   24.4 Segment operating margin percentage 14.6  15.2  16.2  18.1  16.1   15.5             Corporate expenses and Other items not allocated to segments(a) (5.0) (4.9) (4.8) (5.0) (5.0)  (7.5)Total operating margin percentage 9.6  10.3  11.4  13.1  11.1   8.0                      (a) See explanation of items on pages 9-10.

The Brink’s Company and subsidiaries
Other Items Not Allocated To Segments (Unaudited)
(In millions)

Income and expenses not allocated to segments are reported either as “Corporate Expenses” or “Other Items not Allocated to Segments.”

Corporate Expenses include costs to manage the global business and perform activities required by public companies as well as other items that are considered part of the Company's operations and revenue generating activities but are not considered when the chief operating decision maker ("CODM") evaluates segment results. Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses.

Other Items not Allocated to Segments include income and expenses that are not necessary to operate our business in the ordinary course and are not considered when the CODM evaluates segment results. These include non-recurring as well as certain recurring costs and gains which are not considered to be part of the Company's operations and revenue generating activities. Each of the items in the “Other Items Not Allocated to Segments” category is excluded from non-GAAP measures.

See below for a summary of the other items not allocated to segments.

Reorganization and Restructuring
Costs associated with certain reorganization and restructuring actions were excluded from reported non-GAAP results. These items included primarily severance charges and asset impairment losses. These costs related to global restructuring initiatives, completed in prior years, mainly to mitigate the impact of external economic conditions in light of the COVID-19 pandemic. Due to the unusual nature of the underlying events that led to these actions, the charges are not considered part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Acquisitions and dispositions 
Certain acquisition and disposition items are not part of the Company's operations and revenue generating activities. These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. All of the items are significantly impacted by the timing and nature of our acquisitions and dispositions, and many are inconsistent in amount and frequency. Management has excluded these amounts when evaluating internal performance. Therefore, we have not allocated these amounts to segment or Corporate results and have excluded these amounts from non-GAAP results.

These items are described below:

2026 Acquisitions and Dispositions

Amortization expense for acquisition-related intangible assets was $14.9 million in the first three months of 2026. 2025 Acquisitions and Dispositions

Amortization expense for acquisition-related intangible assets was $58.9 million in 2025.Restructuring costs related to acquisitions were $11.8 million in 2025.Net charges of $2.2 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.We incurred $3.8 million in integration costs in 2025.Transaction costs related to business acquisitions were $2.7 million in 2025. Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In 2025, we recognized $10.2 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $17.0 million. In the first three months of 2026, we recognized a net $0.5 million pretax gain in operating profit related to highly inflationary accounting, including currency remeasurement gains of $1.4 million. Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

NCR Atleos acquisition and transformation initiatives On February 26, 2026, we entered into a definitive agreement to acquire NCR Atleos. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary closing conditions. This acquisition represents a significant strategic step for Brink’s, expanding the scale of the combined company and supporting continued growth in our AMS and DRS offerings, which reflect an increasing portion of our business mix.

During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model. The program is designed to help us standardize and streamline our commercial and operational systems and processes, as well as back-office functions, including finance and information technology. The efforts will drive continuous improvement and achieve operational excellence.

Accordingly, we incurred $26.0 million of expense in 2025, which primarily included third-party professional services, project management charges, and severance. During the first three months of 2026, we incurred $38.9 million of related costs, including fees to attorneys, accountants and other professional advisors related to the NCR Atleos acquisition as well as severance costs and third-party professional services. Because these expenses are associated with discrete transformation initiatives, they are not reflective of our ongoing operating cost structure and are not indicative of our core operating expenses or normal activities. Accordingly, management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Non-routine legal matters In the first quarter of 2026, we recognized $2.8 million of probable losses in connection with non-routine legal matters. These costs relate to fact-specific matters that management does not believe are indicative of the Company's underlying operational performance for the period. Additionally, the nature of these amounts and the underlying claims are such that they are not reasonably likely to recur based on the Company's historical experience within two years, nor were there similar charges for such matters within the prior two years. Management has excluded these amounts when evaluating internal operating performance, and accordingly, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

DOJ/FinCEN investigations During 2025, we accrued $6.5 million in connection with the U.S. Department of Justice ("DOJ") and U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") investigations, which represents third-party legal costs associated with these matters, including upfront expenses that are directly attributable to establishing compliance programs. In the first three months of 2026, we accrued $1.2 million in connection with the DOJ and FinCEN investigations, which represents third-party legal costs associated with these matters. In the first quarter of 2025, we reached resolutions with both the DOJ and FinCEN. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts and the underlying investigations are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 and recognized additional amounts in subsequent years (which were primarily related to changes in currency rates). Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Non-routine auto loss matter In 2023, a Brink’s employee was involved in a motor vehicle accident with unique circumstances that resulted in the death of a third party and, in connection with the ensuing litigation, Brink’s recognized a $10.0 million charge. Due to the unusual nature of the matter, including the unique circumstances of the claim, potential magnitude of remedy, and variation from our ordinary-course litigation strategy, we consider the litigation as separate and distinct from routine legal matters. Management does not believe that similar litigation will likely recur within the next two years, and there have been no similar matters within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

The Brink’s Company and subsidiaries
Non-GAAP Measures and Reconciliations to GAAP Measures (Unaudited)
(In millions, except for percentages and per share amounts)

Non-GAAP measures described below and included in this press release are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to report financial information from the primary operations of our business by excluding the effects of certain income and expenses that do not reflect the ordinary earnings of our operations.

These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. The reconciliations in the tables below include adjustments that we do not consider reflective of our operating performance as they result from events and circumstances that are not a part of our core business. Additionally, certain non-GAAP results, including non-GAAP operating profit and free cash flow before dividends, are utilized as performance measures in certain management incentive compensation plans.

Non-GAAP results should not be considered as an alternative to results determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies.

The items excluded from non-GAAP measures are considered by us to be nonrecurring, infrequent or unusual costs and gains as well as other items not considered part of our operations and revenue generating activities. Non-recurring and infrequent items are items that are not reasonably expected to recur in the following two years.

In addition to the rationale described above, we believe the following non-GAAP metrics are helpful to investors in assessing results of operations consistent with how our management evaluates performance:

Non-GAAP operating profit and Non-GAAP operating profit margin: Non-GAAP operating profit equals GAAP operating profit excluding Other Items not Allocated to Segments. Non-GAAP operating margin equals non-GAAP operating profit divided by revenues.Non-GAAP income from continuing operations attributable to Brink's: This measure equals GAAP income from continuing operations attributable to Brink's excluding Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, taxes on return of capital, impairment of certain debt securities, and unusual adjustments to deferred tax asset valuation allowances.Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA: EBITDA is calculated by starting with net income attributable to Brink's and adding back the amounts for interest expense, income taxes, depreciation and amortization. Adjusted EBITDA equals EBITDA excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, taxes on return of capital, impairment of certain debt securities, unusual adjustments to deferred tax asset valuation allowances, income tax rate adjustments, share-based compensation and marketable securities (gain) loss.Non-GAAP diluted EPS from continuing operations attributable to Brink's common shareholders: This measure equals non-GAAP income from continuing operations attributable to Brink's divided by diluted shares.Organic change and organic growth: Organic change represents the change in revenues or operating profit between the current and prior period excluding the effect of acquisitions and dispositions for one year after the transaction and changes in currency exchange rates. Organic growth is the percentage change of organic growth versus the prior year amount.Impact of acquisitions/dispositions: This measure represents the impact of acquisitions or dispositions without a full year of reported results in either comparable period.Currency effect: This measure consists of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period.Non-GAAP pre-tax income, Non-GAAP income tax and Non-GAAP effective income tax rate: Non-GAAP pre-tax income and non-GAAP income tax equal their GAAP counterparts excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains. Non-GAAP effective income tax rate equals non-GAAP income tax divided by non-GAAP pre-tax income. In addition to the rationale described above, we believe the following non-GAAP metrics are helpful in assessing cash flow and financial leverage consistent with how our management evaluates performance:

Free cash flow before dividends: Free cash flow before dividends is a non-GAAP financial measure that represents management’s calculation of cash flows that are available for capital and investing activities such as paying dividends, share repurchases, debt, acquisition and other investments. We define free cash flow before dividends as net cash provided by (used in) operating activities, adjusted to exclude certain operating activities related to cash that is not available for corporate purposes, including the impact of cash flows from restricted cash held for customers, as well as cash received and processed in certain of our secure cash management services operations. The resulting amount is further adjusted to include the impact of cash flows related to property and equipment used to operate our business, including capital expenditures, cash proceeds from the sale of property and equipment, as well as lessor debt financing. Free cash flow before dividends also excludes the cash impact of transaction costs related to the NCR Atleos acquisition. Reconciliations of Non-GAAP to GAAP Measures

Non-GAAP measures are reconciled to comparable GAAP measures in the tables below. Amounts reported for prior periods have been updated in this press release to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 9-10. Additional reconciling items include the following:

Retirement plans   We incur costs, such as interest expense and amortization of actuarial gains and losses, associated with certain retirement plans that have been frozen to new entrants. Furthermore, we also incur non-cash settlement charges and curtailment gains related to all of our retirement plans. These costs and gains are not considered to be part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results.

Valuation allowance on tax credits Gains and charges related to major tax law changes are not considered to be part of the Company's operations and revenue generating activities. As a result of the One Big Beautiful Bill Act, we increased a valuation allowance on deferred tax assets and recorded a significant income tax expense in the third quarter of 2025. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results.

Tax on return of capital As a result of lifted foreign exchange controls and the official and unofficial foreign exchange rates convergence in Argentina, we were able to make an unusual and infrequent return of capital. Due to Argentinian tax law, a withholding tax was imposed on the return of capital. This withholding tax is not considered to be part of the Company’s operations and revenue generating activities. Management has excluded this amount when evaluating internal performance. Therefore, it is excluded from non-GAAP results.

Change in restricted cash held for customers   Restricted cash held for customers is not available for general corporate purposes such as payroll, vendor invoice payments, debt repayment, or capital expenditures. Because the cash is not available to support the Company's operations and revenue generating activities, management excludes the changes in the restricted cash held for customers balance when assessing cash flows from operations. We believe that the exclusion of the change in restricted cash held for customers from our non-GAAP operating cash flows measure is helpful to users of the financial statements as it presents this financial measure consistent with how management assesses this liquidity measure.

Change in certain customer obligations The title to cash received and processed in certain of our secure cash management services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and is thus not available for general corporate purposes. Because the cash is not available to support our operations and revenue generating activities, management excludes the changes in this specific cash balance when assessing cash flows from operations. We believe that the exclusion of the change in this cash balance from our non-GAAP operating cash flows measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure.

NCR Atleos acquisition cash flows This represents the cash outflows during the period related to NCR Atleos acquisition-related transaction costs, such as fees to attorneys, accountants and other professional advisors.

Non-GAAP Results Reconciled to GAAP

 Three months ended March 31, 2025 Three months ended March 31, 2026 Pre-tax income(a) Income tax Effective income tax rate(a) Pre-tax income(a) Income tax Effective income tax rate(a)            GAAP$69.5  15.6  22.4% $45.8 11.0 24.0%Reorganization and Restructuring(c) 0.5  0.1     — —  Acquisitions and dispositions(c) 19.2  1.4     15.2 3.4  Argentina highly inflationary impact(c) 7.3  0.1     1.1 0.1  NCR Atleos acquisition and transformation initiatives(c) 5.1  0.1     38.9 4.8  Non-routine legal maters(c) —  —     2.8 0.7  DOJ/FinCEN investigations(c) 0.9  —     1.2 0.3  Chile antitrust matter(c) 0.2  —     0.2 0.1  Retirement plans(b) (1.7) (0.5)    1.5 0.4  Income tax rate adjustment(d) —  11.0     — 8.6  Non-GAAP$101.0  27.8  27.5% $106.7 29.4 27.6%                   Amounts may not add due to rounding.

(a) From continuing operations.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 12 for details.
(c) See “Other Items Not Allocated To Segments” on pages 9-10 for details.
(d) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 27.6% for 2026 and was 27.5% for 2025.

The Brink’s Company and subsidiaries
Non-GAAP Results Reconciled to GAAP (Unaudited) - continued
(In millions, except for percentages and per share amounts)

  2025   2026  1Q
 2Q 3Q
 4Q
 Full Year
 1Q                Operating profit (loss):               GAAP$119.1  133.9  152.4  180.1  585.5  $110.2 Reorganization and Restructuring(a) 0.5  0.2  0.3  0.4  1.4   — Acquisitions and dispositions(a) 18.5  25.8  17.8  16.4  78.5   15.6 Argentina highly inflationary impact(a) 6.3  (1.9) 4.7  1.1  10.2   (0.5)NCR Atleos acquisition and transformation initiatives(a) 5.1  5.4  8.1  7.4  26.0   38.9 Non-routine legal maters(a) —  —  —  —  —   2.8 DOJ/FinCEN investigations(a) 0.9  0.9  3.7  1.0  6.5   1.2 Chile antitrust matter(a) 0.2  0.2  0.2  0.2  0.8   0.2 Non-routine auto loss matter(a) —  —  1.0  —  1.0   — Non-GAAP$150.6  164.5  188.2  206.6  709.9  $168.4  Income (loss) from continuing operations attributable to Brink's:           GAAP$51.6  43.9  36.2  68.4  200.1  $32.1 Reorganization and Restructuring(a) 0.4  0.2  0.3  0.3  1.2   — Acquisitions and dispositions(a) 17.5  15.0  15.6  16.5  64.6   11.6 Argentina highly inflationary impact(a) 7.2  1.8  5.6  12.2  26.8   1.0 NCR Atleos acquisition and transformation initiatives(a) 5.0  5.3  7.8  7.1  25.2   34.1 Non-routine legal maters(a) —  —  —  —  —   2.1 DOJ/FinCEN investigations(a) 0.9  0.9  3.7  0.9  6.4   0.9 Chile antitrust matter(a) 0.2  0.1  0.2  0.1  0.6   0.1 Non-routine auto loss matter(a) —  —  1.0  —  1.0   — Argentina debt securities impairment(f) —  —  —  1.0  1.0   — Retirement plans(b) (1.2) (1.2) (1.2) (1.1) (4.7)  1.1 Tax on return of capital(b) —  —  —  5.4  5.4   — Valuation allowance on tax credits(b) —  —  16.5  (2.1) 14.4   — Income tax rate adjustment(c) (11.0) 10.7  2.1  (1.8) —   (8.3)Non-GAAP$70.6  76.7  87.8  106.9  342.0  $74.7             Adjusted EBITDA:           Net income attributable to Brink's$51.6  43.7  36.3  68.1  199.7  $32.1 Interest expense 57.5  60.9  63.4  63.7  245.5   63.5 Income tax provision 15.6  27.2  53.0  47.5  143.3   11.0 Depreciation and amortization 70.7  59.8  78.2  82.1  290.8   79.7 EBITDA$195.4  191.6  230.9  261.4  879.3  $186.3 Discontinued operations —  0.2  (0.1) 0.3  0.4   — Reorganization and Restructuring(a) 0.5  0.2  0.3  0.4  1.4   — Acquisitions and dispositions(a) 4.5  12.3  2.3  1.2  20.3   0.1 Argentina highly inflationary impact(a) 5.2  14.4  3.8  7.1  30.5   0.1 NCR Atleos acquisition and transformation initiatives(a) 5.1  5.4  8.1  7.4  26.0   38.9 Non-routine legal maters(a) —  —  —  —  —   2.8 DOJ/FinCEN investigations(a) 0.9  0.9  3.7  1.0  6.5   1.2 Chile antitrust matter(a) 0.2  0.2  0.2  0.2  0.8   0.2 Non-routine auto loss matter(a) —  —  1.0  —  1.0   — Argentina debt securities impairment(f) —  —  —  1.5  1.5   — Retirement plans(b) (1.7) (1.4) (1.6) (1.7) (6.4)  1.5 Income tax rate adjustment(c) —  1.4  (1.4) —  —   0.3 Share-based compensation(d) 5.7  8.1  4.9  7.3  26.0   7.1 Marketable securities (gain) loss(e) (0.8) (1.3) 1.2  (9.3) (10.2)  (1.0)Adjusted EBITDA$215.0  232.0  253.3  276.8  977.1  $237.5                        2025   2026  1Q 2Q 3Q 4Q Full Year 1Q            EPS:           GAAP$1.19  1.03  0.86  1.62  4.70  $0.77 Reorganization and Restructuring costs(a) 0.01  —  0.01  0.01  0.03   — Acquisitions and dispositions(a) 0.40  0.36  0.37  0.39  1.52   0.28 Argentina highly inflationary impact(a) 0.17  0.05  0.13  0.29  0.63   0.02 NCR Atleos acquisition and transformation initiatives(a) 0.11  0.13  0.19  0.17  0.59   0.82 Non-routine legal maters(a) —  —  —  —  —   0.05 DOJ/FinCEN investigations(a) 0.02  0.02  0.09  0.02  0.15   0.02 Chile antitrust matter(a) —  —  0.01  —  0.01   — Non-routine auto loss matter(a) —  —  0.02  —  0.02   — Argentina debt securities impairment(f) —  —  —  0.02  0.02   — Retirement plans(b) (0.02) (0.03) (0.03) (0.03) (0.11)  0.03 Tax on return of capital(b) —  —  —  0.13  0.13   — Valuation allowance on tax credits(b) —  —  0.39  (0.05) 0.34   — Income tax rate adjustment(c) (0.25) 0.25  0.05  (0.04) —   (0.20)Non-GAAP$1.62  1.81  2.09  2.54  8.05  $1.80                      Amounts may not add due to rounding.   

(a) See “Other Items Not Allocated To Segments” on pages 9-10 for details.
(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 12 for details.
(c) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 27.6% for 2026 and was 27.5% for 2025.
(d) There is no difference between GAAP and non-GAAP share-based compensation amounts for the periods presented.
(e) Due to the impact of Argentina highly inflationary accounting, there was a $1.0 million non-GAAP adjustment for a loss in the first quarter of 2025, a $3.7 million non-GAAP adjustment for a loss in the second quarter of 2025, a $0.9 million non-GAAP adjustment for a loss in the third quarter of 2025, a $6.9 million non-GAAP adjustment for a loss in the fourth quarter of 2025, and a $1.6 million non-GAAP adjustment for a loss in the first quarter of 2026.
(f) Related to the impairment of specific debt securities in Argentina in 2025.

 Full Year Three Months
Ended March 31,  2025   2025   2026       Cash flows provided from operating activities - GAAP$639.5  $(60.2) $28.7 (Increase) decrease in restricted cash held for customers(a) (46.1)  45.0   (3.2)(Increase) decrease in certain customer obligations(a) (16.5)  (38.9)  (30.0)Capital expenditures (203.1)  (58.9)  (40.1)Cash proceeds from sale of property and equipment 18.5   2.6   3.3 Proceeds from lessor debt financing 43.2   8.1   3.2 Subtotal$435.5   (102.3)  (38.1)NCR Atleos acquisition cash flows(a) —   —   2.1 Free cash flow before dividends(a)$435.5   (102.3)  (36.0)             (a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. See page 11 for further information on this non-GAAP measure, and see page 12 for descriptions of the adjustments.

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The Brink's Company (BCO) Q1 2026 Earnings Call Transcript

Investors in The Brink’s Company (BCO - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $70.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Brink’s shares, but what is the fundamental picture for the company? Currently, Brink’s is a Zacks Rank #2 (Buy) in the Financial Transaction Services industry that ranks in the Top 19% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.90 per share to $2.05 in that period.

Given the way analysts feel about Brink’s right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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NEW YORK & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of NCR Atleos Corporation (NYSE: NATL) to The Brink’s Company (NYSE: BCO). Under the terms of the proposed transaction, shareholders of NCR will receive $30.00 in cash and 0.1574 shares of Brink’s common stock for each share of NCR that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-natl/ to learn more.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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