Tyler Barishaw

Tyler Barishaw, on for Tobey Sommer of Truist Securities, inquired about internal initiatives to drive customer conversion to AMS and DRS, key lessons from markets with high DRS traction, and the growth expectations for the North America segment in the second half of the year.

Answer

CEO Mark Eubanks clarified that customer adoption of AMS/DRS is a 'pull' driven by a superior value proposition, not a 'push' from the company. He noted that in markets like Latin America, DRS provides a lower-cost solution for small stores, while in North America, enterprise clients value consolidating banking relationships. For the North America segment, Eubanks expects a continued slight upward trajectory in H2, supported by the AMS/DRS pipeline. CFO Kurt McMaken added that the company is improving its 'quote to revenue' cycle time.

Representing Tobey Sommer, Tyler Barishaw asked about the trends observed in the Brink's Global Services (BGS) segment quarter-to-date and inquired about the company's initiatives to increase the DRS revenue mix in Latin America and the Rest of World.

Answer

CEO Mark Eubanks stated that the unusual Q1 BGS volume, driven by tariff concerns on precious metals, has moderated in Q2, with trends returning to mid-single-digit organic growth, which is reflected in the guidance. To boost DRS mix in developing markets, Eubanks described a two-pronged strategy: developing higher-capacity solutions for cash-heavy economies and creating smaller, lower-cost devices for smaller retailers. This involves building new sales channels and partnerships. CFO Kurt McMaken added that both Latin America and Rest of World saw AMS/DRS growth of about 25% in the quarter.

Tyler Barishaw of Truist Securities inquired about the drivers behind the Q2 utilization decline, the impact of tariff uncertainty on business trends, and the preliminary revenue outlook for 2026.

Answer

EVP & CFO Rich Schlenker attributed half of the utilization drop to the July 4th holiday shift and the rest to normalization from a strong prior year and new hire integration. CEO Catherine Corrigan noted minor softness in the chemical sector due to tariff uncertainty but highlighted long-term opportunities in supply chain complexity. For 2026, Corrigan detailed growth drivers in wearables, energy, automotive, and AI, while Schlenker projected a return to 4-8% headcount growth and normal rate realization, setting up for a strong year.

Tyler Barishaw from Truist Securities inquired about the potential implications of a ceasefire in the Russia-Ukraine war and the conditions that could lead to the company raising its dividend again.

Answer

Chairman & CEO Jonas Prising stated that a ceasefire would be very beneficial for European employer confidence and the economy. EVP & CFO Jack McGinnis explained that the dividend was reset for the current environment and that the company has a strong track record of increasing it in stable to improving environments. He suggested that as the business environment improves, they would look to increase the dividend again.

Tyler Barishaw, on for Tobey Sommer of Truist Securities, asked about the drivers of strong performance in Europe, profitability expectations for the On-Demand Talent and Consulting segments, and demand trends across different end markets, particularly financial services.

Answer

Executive Nirupam Sinha stated that European performance was strong and broad-based across all major sectors. Executive Thomas Monahan added that the quality of the local team was the primary driver. Regarding profitability, Sinha reiterated that the focus is on achieving the long-term margin targets of 7-9% for On-Demand Talent and 11-13% for Consulting, rather than on specific quarterly results. He also confirmed that demand trends were balanced across key end markets, with financial services performing well globally.

Tyler Barishaw, on behalf of Tobey Sommer of Truist Securities, asked for clarification on the impacts of reduced medical research spending, expectations for utilization trends in 2025, and how rising medical costs would affect Huron's Healthcare segment.

Answer

CEO C. Hussey explained that reduced federal research funding directly decreases revenue for their Education clients, creating pressure and driving demand for Huron's services to improve financial resilience. CFO John D. Kelly projected that utilization, which ramped up to over 77% in Q4 2024, is expected to continue strengthening in 2025. Hussey also noted that higher medical costs for managed care organizations squeeze provider margins, a long-term trend that continues to drive demand for Huron's assistance.

Tyler Barishaw from Truist asked about the potential impact of a Trump administration's tariff policies on the business and for an update on demand trends across key customer verticals like refineries and chemical companies.

Answer

Co-CEO Eric Gerstenberg stated he does not anticipate any material effect from a change in administration, as the foundational environmental regulations are long-standing and unlikely to be rolled back. He noted the new EPA leader has discussed supporting business through onshoring and permitting. On demand, Gerstenberg said trends remain strong, with containerized waste collection volumes up high single digits to start 2025. While refinery turnaround spending was constrained in late 2024, the number of booked turnarounds for 2025 is stronger, and demand from chemical, retail, and manufacturing remains solid.