Prosegur Q1 2025 slides: Sales jump 11.4%, net profit soars 69%

Prosegur (BME:PSG) reported strong first-quarter results on May 6, 2025, with significant growth across all business segments and geographic regions. The security services company saw its stock rise 3.46% to €2.45 following the announcement, continuing its positive momentum after a strong performance in the previous quarter.

Quarterly Performance Highlights

Prosegur delivered impressive financial results for Q1 2025, with total sales reaching €1.255 billion, an 11.4% increase compared to the same period last year. The company’s profitability metrics showed even stronger improvement, with EBITA surging 42.8% year-over-year to €86 million and net profit soaring 68.9% to €34 million.

The growth was broad-based across all geographic regions, with each area achieving at least 5% growth. The Asia-Pacific region was particularly strong, showing 37.4% growth compared to the same period last year, while Latin America grew by 11.2% and Europe by 5.3%.

As shown in the following chart of key performance metrics:

This strong performance follows the positive trend established in Q4 2024, when the company reported a 13.9% increase in total sales to €4.9 billion and a 17% rise in EBITDA. The continued growth trajectory demonstrates Prosegur’s ability to maintain momentum and execute its strategic initiatives effectively.

Detailed Financial Analysis

The company’s profit and loss statement reveals significant improvements across all key financial metrics. EBITDA increased by 22.4% to €138 million, with the margin expanding from 10.0% to 11.0%. EBITA margin grew from 5.3% to 6.8%, while EBIT margin improved from 4.5% to 6.2%.

The company’s tax rate decreased by 181 basis points, contributing to the substantial 69% increase in consolidated net profit, which reached €28 million for the quarter.

The detailed P&L statement shows the comprehensive improvement in financial performance:

"We proved to be highly resilient and efficient in overcoming certain headwinds," CFO Maite Rodriguez had noted during the previous quarter’s earnings call, a statement that continues to hold true given the company’s ability to maintain strong growth despite some foreign exchange challenges, which had a 6.6% negative impact on overall sales growth.

Business Segment Performance

All three of Prosegur’s business segments delivered strong results in Q1 2025:

Prosegur Cash

The Cash business reported a 9.7% increase in sales to €516 million, driven by 13.3% organic growth and 4.3% inorganic growth, partially offset by an 8.0% negative foreign exchange impact. EBITA increased by 20.9% to €61 million, with the margin improving from 10.7% to 11.8%.

The segment’s transformation products continued to gain traction, representing 33.0% of sales, an increase of 130 basis points year-over-year.

As illustrated in the Cash segment performance chart:

Prosegur Security

The Security business showed robust growth, with sales increasing by 11.7% to €653 million, driven entirely by organic growth of 17.0%, partially offset by a 5.4% negative foreign exchange impact. EBITA surged by 49.2% to €17 million, with the margin improving from 1.97% to 2.63%.

The operational cash flow in the Security segment also showed significant improvement, reducing negative cash flow from -€24 million in Q1 2024 to -€10 million in Q1 2025, a 57.3% improvement.

The following chart details the Security segment’s performance:

Prosegur Alarms

The Alarms business delivered the strongest growth among all segments, with sales increasing by 26.6% year-over-year. The client base grew by 13.1%, with 27,000 new clients added in Q1 2025 compared to 17,000 in the same period last year. The churn rate improved from 12% to 10%.

The service margin increased by 0.6%, while ARPU (Average Revenue Per User) grew by 1.6%, indicating successful price optimization strategies, particularly in Argentina following the lifting of currency restrictions after an IMF agreement.

The key metrics for the Alarms segment are shown below:

The Alarms business also showed strong cash flow performance, with service cash flow increasing from €142 million to €176 million, including a significant improvement in recurring cash flow from €53 million to €75 million.

Cash Flow and Debt Position

Despite the strong operational performance, Prosegur’s consolidated cash flow for Q1 2025 showed some seasonal patterns typical for the first quarter. The company reported a negative free cash flow of -€54 million, slightly worse than the -€51 million reported in Q1 2024, primarily due to working capital requirements associated with business growth.

The company maintained a solid financial position with a net debt to EBITDA ratio of 2.3x, unchanged from the previous quarter. Prosegur holds a BBB credit rating from S&P, with an average cost of debt of 2.6% and 68% of its debt at fixed rates.

The following chart provides an overview of the company’s cash flow:

Forward-Looking Statements

Looking ahead, Prosegur remains optimistic about its growth prospects. The company has announced an upcoming participation in the Goldman Sachs Conference in London on June 23, 2025, followed by its H1 2025 results presentation scheduled for July 29, 2025.

The General Shareholders’ Meeting approved a 5% increase in the dividend, reflecting confidence in the company’s continued financial strength and commitment to shareholder returns.

Based on the strong Q1 performance and the company’s strategic initiatives, Prosegur appears well-positioned to maintain its growth trajectory throughout 2025, particularly as it continues to expand its presence in high-growth markets like Asia-Pacific and leverages operational efficiencies across its business segments.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.