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Introduction & Market Context
Prosegur (BME:PSG) presented its Q2 2025 results on July 29, showing continued profitability improvements across all business segments despite more moderate sales growth compared to the previous quarter. The security services company reported an 80.2% increase in net profit while achieving the significant milestone of surpassing one million alarm connections.
The company’s stock closed at €2.925 prior to the results announcement and was trading down 2.07% at €2.865 following the presentation, suggesting investors may have expected even stronger results after the impressive Q1 performance that saw an 11.4% sales increase.
Quarterly Performance Highlights
Prosegur reported total sales of €2.467 million for the first half of 2025, representing a 5.1% year-over-year increase. This growth was balanced across all geographic regions, with Rest of World (including APAC and US) leading at 20.9%, followed by Europe at 4.8% and Latin America at 1.9%.
The company’s EBITA reached €170 million, a 15.9% increase compared to the same period last year, while EBITDA grew to €275 million, up 7.4% year-over-year. Most notably, net profit jumped 80.2% to €64 million, with consolidated net profit increasing by 96.3% to €54 million.
As shown in the following summary of key milestones:
Detailed Financial Analysis
Prosegur’s profit and loss statement reveals significant improvements in profitability metrics across the board. The company’s EBIT increased by 19.8% to €155 million, with the EBIT margin expanding from 5.5% to 6.3%. Profit before tax saw an even more dramatic improvement, rising 71.0% to €118 million.
The company also reported a tax rate improvement of 279 basis points, dropping from 48.29% to 45.58%, which contributed to the substantial net profit growth. This improvement in tax efficiency reflects the company’s robust tax strategy.
The detailed P&L statement shows:
From a cash flow perspective, Prosegur maintained stable operating cash flow at €45 million, while free cash flow improved from -€44 million to -€36 million compared to the same period last year. The company’s net financial debt stood at €1.394 billion, resulting in a net debt to EBITDA ratio of 2.3x, which the company describes as "controlled leverage."
The cash flow statement highlights:
Business Segment Performance
Prosegur’s three main business segments all delivered positive results, though with varying growth rates:
Prosegur Cash, the company’s cash-in-transit and cash management business, reported a modest 0.7% increase in sales to €1.005 million, with organic growth of 9.7%. EBITA for this segment increased by 0.5% to €117 million, with a margin of 11.7%. The company noted that excluding the extraordinary efficiency plan, EBITA growth would have been 3.7%.
Prosegur Security demonstrated stronger performance with sales increasing by 7.9% to €1.294 million and organic growth of 16%. EBITA rose by 12.1%, with the company attributing this improvement to strong gross margins, particularly in the US market, enabling better scalability in indirect costs.
The Prosegur Alarms segment showed the most robust growth, with revenues increasing by 14.9% and organic growth of 34.5%. The business achieved a significant milestone by surpassing one million connections, with a 13.1% increase in client base and 57,000 new clients added during the period. The service margin improved by 14.8%, while ARPU (Average Revenue Per User) increased by 12.7%.
The Alarms business also demonstrated strong cash generation capabilities, with service cash flow for ROW (Rest of World) plus 50% of MPA increasing by 17.7% to €178 million. This includes €76 million in replacement cash flow and €101 million in recurring cash flow.
Strategic Initiatives & Outlook
Prosegur’s presentation highlighted several strategic priorities moving forward. The company continues to focus on organic growth across all business segments, with particular emphasis on expanding its Security business in the US market, which has been a strong growth driver.
For the Alarms business, having reached the milestone of one million connections, the company is focusing on improving service margins and ARPU while controlling churn, which improved by 168 basis points during the period. The company is also emphasizing recurring cash generation to reinvest in growth.
The company maintains a BBB credit rating from S&P, with an average cost of debt of 2.4% and average maturity of 2.3 years. With 66% of debt at fixed rates, Prosegur appears well-positioned to manage its financial obligations in the current interest rate environment.
Looking ahead, Prosegur’s management summarized the company’s achievements and outlook:
The company’s next financial events include participation in the ODD O BHF Iberian forum in Madrid on September 30, 2025, followed by the presentation of 9M 2025 results on October 31, 2025.
While Q2 results show continued profitability improvements, the moderation in sales growth compared to Q1’s 11.4% increase may warrant attention from investors. Nevertheless, the substantial profit growth and milestone achievements in the Alarms business demonstrate Prosegur’s ability to enhance operational efficiency while pursuing strategic growth initiatives.
Full presentation:
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