Prosegur Cash, S.A.

Q1 2026 revenue was EUR 497 million, down 3.7% year on year, as 3.2% organic growth was more than offset by a 6.6% foreign exchange impact and a 0.2% inorganic drag. EBITDA totaled EUR 86 million with a 17.3% margin, versus 17.4% in Q1 2025; EBITA was EUR 56 million with an 11.3% margin; EBIT was EUR 51 million; and EPS reached EUR 1.68, up 8.6%. Net profit increased 8.1% to EUR 26 million, consolidated net profit was EUR 25 million, and free cash flow was EUR 6 million, slightly above EUR 5 million a year ago. For the balance sheet, net financial position improved to EUR 700 million at March end, total net debt was EUR 845 million including IFRS 16 and other items, and leverage was 2.4x. No formal quarterly or full-year guidance was issued, but management said consensus EBITDA of EUR 250 million-plus sounded reasonable, while underlying growth excluding Argentina was running at mid-single-digit levels.

Management framed the quarter as a solid start to the year, emphasizing resilience in the business model despite adverse FX. They highlighted continued transformation progress, stable profitability, and reduced debt, while noting geopolitical tension, fuel costs, and inflation as variables to monitor. The tone was constructive but cautious, with repeated emphasis on controlling debt and improving profitability through sales growth.

The CFO said EBITDA was EUR 86 million and margins stayed broadly stable at 17.3%, while lower financial costs helped improve EBT to EUR 44 million and net profit to EUR 26 million. He pointed to a tax rate reduction to 42%, free cash flow of EUR 6 million, working capital use down to EUR 18 million from EUR 40 million, and net debt reduction of EUR 47 million over 12 months. He also said leverage stayed within the comfort range at 2.4x, and that fuel-cost increases are being passed through to tariffs, with contingency measures in place for supply-chain disruption.

Analysts focused on Argentina, asking whether sequential improvement was likely and what growth looked like excluding the country; management said April showed some early improvement, but recovery would be gradual, and ex-Argentina Latin America growth was mid-single-digit. Questions also centered on the AVOS divestment, with management saying it 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. On cash flow, management said the lower working-capital use was helped by DSO/DPO management and lower Q1 organic growth, but seasonality should lead to some reversion later in the year; on Europe, management said growth reflected broad-based strength rather than a single large contract.