Prosegur Cash, S.A. (PGUCY) Q1 2026 Earnings Call Transcript – Image for illustrative purposes only (Image credits: Pixabay)
Madrid – Prosegur Cash reported a resilient start to 2026, with net profit climbing 8.1 percent year-over-year to €26 million in the first quarter. Sales dipped 3.7 percent to €497 million, primarily dragged by unfavorable foreign exchange rates and hyperinflation adjustments, though organic growth held steady at 3.2 percent.[1][2] Executives emphasized accelerating transformation efforts, as higher-margin products now represent over a third of revenue.
Profitability Holds Firm Amid Headwinds
The company maintained EBITDA near prior-year levels at €86 million, a slight 4.2 percent decline that kept the margin stable at 17.3 percent.[1] EBITA came in at €56 million with an 11.3 percent margin, reflecting disciplined cost management despite the sales contraction.
Financial results improved notably, shifting from a €12 million loss to €6 million, which helped push earnings before tax up 2.5 percent to €44 million. After taxes at a 42 percent effective rate, the bottom line advanced, delivering earnings per share of 1.68 euro cents, up 8.6 percent.[1] This performance underscores Prosegur Cash’s ability to navigate volatile currencies in key markets like Latin America.
Regional Dynamics Shape Mixed Results
Europe, accounting for 32 percent of group sales, posted a 3.2 percent revenue decline to €156 million, but organic growth accelerated to 3.8 percent.[1] Transformation products grew 9.1 percent there, boosting penetration to 32.6 percent of sales.
Latin America, the largest region at 58 percent of sales, saw revenues fall 5.1 percent to €111 million, with FX impacts at minus 8.9 percent offsetting 1.5 percent organic gains. Asia-Pacific revenues edged down 4.3 percent to €45 million, masking robust 12.6 percent organic expansion hampered by 12.9 percent currency effects.[1]
| Region | Sales (€M) | YoY Change | Organic Growth |
|---|---|---|---|
| Europe | 156 | -3.2% | +3.8% |
| Latin America | 111 | -5.1% | +1.5% |
| Asia-Pacific | 45 | -4.3% | +12.6% |
Transformation Products Drive Margin Expansion
Higher-value transformation products, such as automated cash handling solutions, rose 6.2 percent and now comprise 36.4 percent of total sales, up 340 basis points from last year.[1] This shift supports long-term profitability as the company moves away from traditional cash-in-transit services toward tech-enabled offerings for retail, hospitality, and transportation sectors.
Free cash flow strengthened to €6 million, aided by reduced working capital needs of €18 million, compared to €40 million previously.[1] Capital expenditures rose modestly to €22 million, while interest payments fell to €10 million.
Balance Sheet Bolstered by Debt Reduction
Last twelve months net debt decreased €47 million, with the leverage ratio ticking up slightly to 2.4 times EBITDA due to seasonal factors.[1] The company also completed the sale of its AVOS operations in Argentina and Paraguay, alongside treasury share cancellations from a prior buyback.
Net cash flow turned positive at €7 million for the quarter, reflecting operational efficiencies and lower variable costs. Stakeholders, including shareholders and creditors, benefit from this deleveraging trajectory amid economic uncertainty in emerging markets.
Prosegur Cash’s Q1 results signal steady progress in its strategic overhaul, with organic momentum and product mix improvements offsetting external pressures. As transformation gains traction across regions, the focus remains on sustainable cash generation and margin resilience in a cashless-leaning world.
