Prosegur Q3 2025 presentation: Net profit surges 47% as Security business shines

Introduction & Market Context

Prosegur (BME:PSG) reported strong third-quarter 2025 results on October 31, showcasing significant profitability improvements despite moderate sales growth. The security services provider saw its stock price at €2.84, down slightly by 0.18% following the announcement. The company demonstrated resilience against currency headwinds, particularly in Latin America, while achieving notable organic growth across its business segments.

Quarterly Performance Highlights

Prosegur reported total sales of €3.672 billion for the first nine months of 2025, representing a 2.5% year-over-year increase. More impressively, the company achieved 11.2% organic growth, which was partially offset by a 9.2% negative impact from foreign exchange fluctuations. Net profit surged by 47.2% to €96 million, while consolidated net profit reached €82 million, up 58.7% compared to the same period in 2024.

As shown in the following comprehensive performance overview:

EBITA increased by 9.0% to €258 million, with the EBITA margin improving from 6.6% to 7.0%. EBITDA rose by 2.7% to €409 million, maintaining a stable margin of 11.1%. The company’s profit before tax jumped 40.8% to €175 million, reflecting significant operational improvements and cost efficiencies.

The detailed profit and loss statement reveals the extent of Prosegur’s financial improvements:

Detailed Financial Analysis

Regional Performance

Prosegur’s regional performance showed mixed results, with strong growth in Europe and Rest of World (RoW) offsetting a slight decline in Latin America. European operations generated €1.503 billion in sales, up 4.9% year-over-year, while RoW operations surged 13.8% to €450 million. Latin American operations, however, decreased by 2.1% to €1.719 billion, primarily due to currency devaluation effects.

The following chart illustrates the company’s sales and profitability breakdown by region:

Business Segment Analysis

Prosegur Security emerged as the standout performer, with sales increasing by 5.6% to €1.935 billion and EBITA growing by an impressive 17.5% to €63 million. The segment benefited from 13% organic growth and improved operational cash flow by €35 million compared to the previous year.

The Security segment’s strong performance is detailed in this chart:

Prosegur Cash, the company’s cash management services segment, reported a 2.3% increase in sales to €1.488 billion, with an EBITA margin holding steady at 11.8%. The segment generated €109 million in operational cash flow and achieved 6.9% organic growth, led by strong performance in the APAC region.

The Cash segment’s performance metrics are illustrated here:

Prosegur Alarms continued its growth trajectory, with sales increasing by 9.7% to €174 million and the client base expanding by 10.4% to 1.035 million connections. The segment demonstrated strong organic growth of 30% and significant expansion through new channels, which grew by 78%.

The following chart shows the Alarms segment’s growth in client base and revenues:

The service cash flow for Prosegur Alarms showed notable improvement across regions:

Strategic Initiatives

Prosegur maintained a disciplined financial approach with a net debt to EBITDA ratio of 2.3x and an average debt cost of 2.4%. The company successfully issued a €300 million cash bond maturing in 2030, strengthening its financial position. The extraordinary efficiency program implemented across the organization has contributed to improved profitability, particularly in the Security business.

The company’s cash flow analysis demonstrates its financial management strategy:

In the Cash business, transformation products now account for 35% of total sales, indicating the company’s successful pivot toward higher-margin services. The Security business has benefited from expansion in Spain and the United States, with improved margins due to the quality of new clients and increased operational scalability.

Forward-Looking Statements

Prosegur highlighted several key conclusions that provide insight into its future direction:

The company has scheduled an Investor Day for Prosegur Alarms on December 16, 2025, in Madrid, suggesting a strategic focus on this growing segment. With the Alarms business generating €81 million in rolling recurring cash flow available for reinvestment in growth, Prosegur appears positioned to continue expanding this business line.

The Security business maintains a positive outlook, driven by continued growth in Spain and the United States. Meanwhile, the Cash business is focusing on transformation products to offset traditional cash-handling pressures.

Overall, Prosegur’s Q3 2025 results demonstrate the company’s ability to drive profitability improvements despite moderate top-line growth, with particular strength in its Security segment and promising momentum in Alarms. The company’s strategic focus on operational efficiency and higher-margin services positions it well for continued performance improvement, though currency fluctuations remain a challenge in certain markets.

Full presentation:

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