Prosegur Cash, S.A.

Q1 2026 revenue was EUR 497 million, down 3.7% year over year, with organic growth of 3.2%, a 0.2% inorganic drag, and a 6.6% foreign exchange headwind. EBITDA totaled EUR 86 million and EBITDA margin was 17.3%, versus 17.4% in Q1 2025; EBITA was EUR 56 million with an 11.3% margin, EBIT was EUR 51 million, and EBT was EUR 44 million, up 2.5% year over year. Net profit increased 8.1% to EUR 26 million; consolidated net profit was EUR 25 million, up 7.8%, and EPS was EUR 1.68, up 8.6%. Free cash flow was EUR 6 million, working capital use was EUR 18 million versus EUR 40 million last year, and LTM net debt fell by EUR 47 million; leverage was 2.4x and total net debt was EUR 845 million including IFRS 16 debt, deferred payments and treasury stock. Management said the year started in line with expectations, noted that consensus EBITDA of EUR 250 million-plus sounds reasonable, and said that excluding Argentina, Q1 organic growth was in the mid-single-digit range, which could be a reasonable target if comparables improve. They also said the AVOS divestment should reduce revenues by around 1.5% to 2% on a 12-month basis and be margin accretive because AVOS margins are below group average.

Management described Q1 as a solid start despite adverse FX and said the business model remains resilient. The strategic focus stayed on accelerating transformation, with Cash Today highlighted as the main growth driver, and on managing debt and profitability through a tougher macro and geopolitical backdrop. Tone was cautiously constructive: they emphasized resilience, but repeatedly flagged uncertainty around FX, geopolitics, fuel costs, and Argentina recovery.

The CFO highlighted improved bottom-line performance: financial result improved to EUR 6 million from EUR 12 million a year ago, taxes were EUR 19 million, and the tax rate fell 300 bps to 42% due to tax efficiency actions and a better country mix. Cash generation improved as free cash flow reached EUR 6 million, supported by lower working capital use of EUR 18 million and CapEx of EUR 22 million, while total net cash flow was positive EUR 7 million. He said net financial position improved from EUR 711 million to EUR 700 million during the quarter, and leverage remained at 2.4x, with LTM net debt down EUR 47 million.

On Argentina, management said recovery is slower than initially expected, but they are seeing some signs of improvement in April from monetary policy changes; excluding Argentina, Latin America organic growth was in the mid-single-digit range. On AVOS Argentina and Paraguay, they said the sale should reduce revenues by about 1.5% to 2% on a 12-month basis and be accretive to margins. On working capital, they attributed the lower use partly to better DSO/DPO management and lower organic growth, and said the improvement should remain for the later part of the year despite seasonality. On fuel, they said rising costs are being passed through to tariffs and contingency measures are in place for potential supply disruptions.